DAC

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 9:00 a.m. ET Chief Executive Officer - Dr. John Coustas Chief Financial Officer - Evangelos Chatzis Operator: Good day, and welcome to the Danaos Corporation conference call to discuss the financial results for the 3 months ended June 30, 2026. As a reminder, today's call is being recorded. Hosting the call today is Dr. John Coustas, Chief Executive Officer of Danaos Corporation; and Mr. Evangelos Chatzis, Chief Financial Officer of Danaos Corporation. Dr. Coustas and Mr. Chatzis will be making some introductory comments, and then we will open the call to a question-and-answer session. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Evangelos Chatzis, Chief Financial Officer. Please go ahead. Evangelos Chatzis: Thank you, operator. Good morning, everyone, and thank you for joining us today. Before we begin, I quickly want to remind everyone that management's remarks this morning may contain certain forward-looking statements and that actual results could differ materially from those projected today. These forward-looking statements are made as of today, and we undertake no obligation to update them. Factors that might affect future results are discussed in our filings with the SEC, and we encourage you to review these detailed safe harbor and risk factor disclosures. Please also note that where we feel appropriate, we will continue to refer to non-GAAP financial measures such as EBITDA, adjusted EBITDA, adjusted net income, time charter equivalent revenues and time charter equivalent dollars per day to evaluate our business. Reconciliations of non-GAAP financial measures to GAAP financial measures are included in our earnings release and accompanying materials. With that, let me now turn the call over to Dr. John Coustas, who will provide the broad overview of the quarter. John? John Coustas: Thank you, Evangelos. Good morning, and thank you all for joining today's call to discuss our results for the second quarter of 2026. The conflicts in Ukraine and Iran continue with no clear resolution in sight, although a brief ceasefire allowed us to move our 2 vessels out of the Gulf and both our crews and vessels safe and fully operational. Uncertainty in global supply chains, the disruption in the Gulf, the restrictions in Bab el-Mandeb and the tariff measures in the United States have combined to create exceptionally tight conditions with rates across most shipping sectors at multiyear highs. Shipping remains the only industry capable of absorbing disruption on this scale and keeping the world supplied with goods, energy and raw materials. Against this backdrop, Danaos continued to execute its long-term strategy of securing extended charter employment at attractive rates and arranging competitive long-term financing for our Newbuilding program. This quarter, we saw significant contribution from our Dry Bulk investment as Capesize rates reached multiyear highs and the segment contributed $18.8 million of adjusted EBITDA against $5.9 million a year ago. As charterers continue to compete for quality tonnage, we took the opportunity to extend charters across a broad part of the fleet, adding approximately $683 million to our contracted revenue backlog. Backlog now stands at a record $4.6 billion with 100% of our container operating days contracted for 2026, 93% for 2027, and 79% for 2028, while even for 2029 contract coverage is already above 60%. We also continue to term out our financing, refinancing 2 further vessels through Japanese operating leases. We also added a further $236 million in JOLCO financing commitments for 3 vessels delivering in 2027 and enter into $132 million credit facility to finance our 6, 1,800 TEU Newbuildings. With 78 of our 87 operating vessels debt free, Net Leverage Ratio of 0.3x and total liquidity of approximately $1.5 billion we remain well positioned to pursue accretive opportunities, including the development of our investment in the Alaska LNG project. Together with a disciplined approach to expansion, we believe these dynamics will continue to drive improving profitability and create lasting value for our shareholders. With that, I'll hand the call over back to Evangelos, who will take you through the financials for the quarter. Evangelos? Evangelos Chatzis: Thank you, John, and good morning again to everyone, and thank you for joining us. I will review the results for the quarter, and we will then open the call to Q&A. Adjusted net income for the second quarter was $133.1 million or $7.29 per share compared to $117 million or $6.36 per share in the second quarter of 2025. That is an increase of $16.1 million or approximately 15% on a per share basis. The improvement was driven principally by our Dry Bulk segment. Container vessel revenue was broadly unchanged, down $0.8 million on a base of $238.7 million. Newbuilding deliveries of containerships contributed $3.2 million of incremental revenues and higher charter rates a further $0.6 million. Offsetting this were a $3.4 million reduction in noncash revenue recognition under U.S. GAAP and the $1.2 million effect from higher off-hire charges during this period. Dry bulk revenue, on the other hand, increased by $13 million or 57% from $22.7 million to $35.7 million, and the principal driver was the improved dry bulk market. Our Capesize time charter equivalent rate rose to $30,400 per day from approximately $18,000 per day in the comparable prior quarter, which reflects improved market conditions. During this quarter, we also operated one additional vessel that we acquired a few months ago. Segment adjusted EBITDA for the Dry Bulk segment increased to $18.8 million from $5.9 million a year ago. Turning now to operating costs. Vessel operating expenses were stable and came in at $56.7 million in the current quarter against $56.4 million in the second quarter of 2025, notwithstanding an increase in the average number of vessels in the fleet between the 2 periods. Daily operating costs declined to $7,416 per vessel per day in the current quarter from $7,556 per vessel per day in the second quarter of 2025. Our operating costs remain among the most competitive in the industry. G&A expenses increased by $3.7 million to $14.9 million in the current quarter compared to $11.2 million in the second quarter of 2025. This increase mainly relates to $1.5 million in higher management fees, partially driven by the increase in the average number of vessels in our fleet and a $2.2 million increase in corporate G&A. On the finance cost side, interest expense, excluding amortization of finance fees and debt discount, decreased by $1.6 million to $7.3 million in the current quarter from $8.9 million in the second quarter of 2025. Now there are 2 components to this improvement. Capitalized interest on vessels under construction rose to $9 million from $4.8 million previously as our Newbuilding program advanced thus reducing interest expense by $4.2 million. And working in the opposite direction, average indebtedness increased by $326 million to $1.1 billion, and that added $2.6 million in interest expense. The effect of the increase in average indebtedness was partially mitigated by a reduction in our average cost of debt service of approximately 1.1%, reflecting lower SOFR rates and a lower bond coupon following the refinancing of our bond in Q4 of last year. Interest income doubled to $7.4 million compared to $3.7 million a year ago on the back of higher cash balances. Therefore, net interest expense decreased by $5.3 million between the 2 periods. Adjusted EBITDA increased by 6.1% or $10.8 million to $186.8 million this quarter compared to $176 million in the second quarter of 2025 for reasons that have already been outlined earlier on this call. We would also encourage you to review our updated investor presentation and the subsequent event disclosures, both of which are available on our website. We would like to turn to some of the highlights. Since the date of our last earnings release, we have added $683 million to our contracted revenue backlog. As a result, our backlog stands at $4.6 billion, with a 4.7 average charter duration, while contract coverage is already at 100% for this year, 93% for 2027, 79% for 2028 and 61% for 2029. Our investor presentation has analytical disclosure on our contracted charter book. As of June 30, net debt stood at $224.5 million, equivalent to 0.3x last 12 months EBITDA. And out of our 87 vessels, 78 carried no debt. That is 66 are unencumbered and a further 12 secure our revolving credit facility, which remains undrawn. Finally, as of the end of the second quarter of 2026, cash stood at $1 billion. Total liquidity that includes cash availability under our RCF and value of marketable securities stood at approximately $1.5 billion, while in addition to that, we also hold committed undrawn facilities in support of our Newbuilding program. This gives us ample flexibility to pursue accretive capital deployment opportunities. In summary, strong contract coverage for the next 4 years, a record contracted revenue backlog, net leverage of 3/10 of a turn and the fully financed construction program. With that, I would like to thank you all for listening to this first part of our call. Operator, we are now ready to open the call to Q&A. Operator: [Operator Instructions] Our first question comes from Omar Nokta of Clarksons Securities. Omar Nokta: I just wanted to ask a bit about the business obviously is thriving as we see it. You've added a good amount of backlog here these past few months as you were highlighting, and that's going to give you a nice continued stream of revenue visibility and obviously, a really good amount of free cash flow. My question is, how do you envision using this free cash flow in the coming quarters? Do you look to pay down some of the debt you've taken on here recently? Do you look for more investment opportunities? And I guess, with regards to, say, those investments, how would you rank looking at container ships, looking at Dry Bulk or maybe looking outside of those 2 segments? John Coustas: Well, the actual, let's say, risk of new investments at elevated prices is becoming higher. And of course, growing is extremely easy. Growing accretively is much more difficult. So for the time being, we are, let's say, using these extraordinary times in order to make an even better balance -- fortress balance sheet to make our financing towards, let's say, longer duration with JOLCOs. And we will just try to be there when the opportunities arise. I mean the situation is extremely volatile. We see that new buildings overall are increasing by the day. And we are very clearly looking at all this. We have executed our growth at times where prices were more reasonable and availability of long-term charters was at much more accretive rates. I mean, nowadays, we are very careful. We have positioned ourselves where we wanted, and we'll take it as it goes. Omar Nokta: Yes. No, makes sense. Definitely understood on that part. And I guess perhaps then given just how much cash you've been generating, you've been returning capital to shareholders, both via the dividends and the buyback, although you paused that recently. But I guess as we think about the dividend here moving ahead, last month, you declared the $0.90, which is the fourth one at that level since you raised it from, I think it was $0.85 the prior 4 quarters. As we think about what the next dividend looks like, should we anticipate it being another moderate rise as we've seen in the past? Or would it be something more sizable, you think? John Coustas: Well, we have kind of a pattern until now. It's up to the Board to decide really, at what pace we're going to increase it. In general, we have not been there for spectacular dividend rises. However, this is something to discuss for the next quarter. Omar Nokta: Yeah, got it. We look forward to that. Thank you John and thanks Evangelos, and congrats on the sizable backlog additions here. Operator: The next question comes from Climent Molins of Value Investors Edge. Climent Molins: Omer has already covered a lot of ground, but I wanted to ask about the relative performance on the Capesize side, which improved nicely quarter-over-quarter. Are most vessels employed on spot? Or do you have any fixed time charter cover? John Coustas: The vessels are in general spot. We have a couple of vessels on index, which practically is, let's say, spot again, and only one vessel on fixed rate until year-end or whatever. So more or less, yes, we are playing the market. Climent Molins: That's helpful. And my other question was on the Alaska LNG project. Could you talk a bit about how the project is progressing? And as you think about the LNG industry, is it fair to expect you to only place orders if they are backed by long-term contracts for the Alaska LNG project, I believe that's the case. But would you be willing to take speculative orders for other projects? John Coustas: No. I think if we wanted to take speculative orders, we would have done it. We want to tie up the orders together with the LNG production out of Alaska. The project is progressing. There are some kind of legislative arrangements that need to be performed before FID is given and the project is running full steam, which we expect sometime in September. Operator: It appears we have no further questions at this time. I would like to turn the call back over to Dr. Coustas for any further comments or closing remarks. John Coustas: Thank you all for joining this conference call and your continued interest in our story. Look forward to hosting you on our next earnings call. Have a nice day. Operator: Thank you. This concludes today's teleconference. We would like to thank everyone for their participation. Have a wonderful afternoon. Before you buy stock in Danaos, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Danaos wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 10, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Danaos (DAC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Adjusted Net Income: $133.1 million, or $7.29 per share, up from $117 million ($6.36 per share) in Q2 2025. Adjusted EBITDA: $186.8 million, up 6.1% from $176 million in the prior-year quarter. Container Revenue: $238.7 million, broadly unchanged (down $0.8 million year-over-year). Dry Bulk Revenue: $35.7 million, up 57% from $22.7 million in Q2 2025. Dry Bulk Adjusted EBITDA: $18.8 million, up from $5.9 million a year ago. Dry Bulk Time Charter Equivalent Rate: $30,400 per day, up from approximately $18,000 per day in the prior-year quarter. Vessel Operating Expenses: $56.7 million, stable versus $56.4 million in Q2 2025. Daily Operating Costs: $7,416 per vessel per day, down from $7,556 in Q2 2025. G&A Expenses: $14.9 million, up from $11.2 million in Q2 2025. Interest Expense (excl. amortization): $7.3 million, down from $8.9 million in Q2 2025. Interest Income: $7.4 million, up from $3.7 million a year ago. Contracted Revenue Backlog: $4.6 billion, with $683 million added during the quarter. Contract Coverage: 100% for 2026, 93% for 2027, 79% for 2028, and 61% for 2029. Net Debt: $224.5 million, equivalent to 0.3 times last 12 months EBITDA. Cash: $1 billion, with total liquidity of approximately $1.5 billion. Warning! GuruFocus has detected 9 Warning Signs with KIM. Is DAC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record contracted revenue backlog of $4.6 billion with 100% of container operating days contracted for 2026, 93% for 2027, and 79% for 2028, providing strong revenue visibility. Dry bulk segment significantly outperformed, with adjusted EBITDA surging to $18.8 million from $5.9 million year-over-year, driven by a 57% increase in revenue and higher charter rates. Adjusted net income rose 15% year-over-year to $133.1 million, or $7.29 per share, reflecting robust operational performance. Fortress balance sheet with net debt of only $224.5 million (0.3x EBITDA), 78 of 87 vessels debt-free, and total liquidity of approximately $1.5 billion, offering ample financial flexibility. Proactive fleet and financing management, including adding $683 million to backlog, refinancing vessels through Japanese operating leases, and securing $236 million in DROLCO financing and a $132 million credit facility for newbuilds. Operating costs remain competitive, with daily vessel operating costs declining to $7,416 per day, and interest expense decreased by $5.3 million due to lower rates and higher capitalized interest. Geopolitical conflicts in Ukraine and Iran continue to create uncertainty, with a brief ceasefire required to move vessels out of the Gulf, highlighting operational risks. Container investment revenue was broadly unchanged, down $0.8 million, due to a $3.4 million reduction in non-cash revenue recognition and higher off-hire charges. G&A expenses increased by $3.7 million to $14.9 million, driven by higher management fees and corporate costs, which could pressure margins. Management is cautious about new investments due to elevated asset prices, potentially limiting growth opportunities in the near term. Dry bulk vessels are primarily employed on spot rates, exposing the segment to market volatility and potential earnings fluctuations. The Alaska LNG project is still pending legislative arrangements before FID, with expectations for full progress only by September, indicating potential delays. Q: How do you envision using the company's strong free cash flow in the coming quarterspaying down debt, seeking more investments, and how would you rank opportunities in container ships, dry bulk, or other segments? A: John Coustas, CEO, stated that the risk of new investments at elevated prices is becoming higher, noting that while growing is easy, growing accretively is difficult. He emphasized that the company is using these extraordinary times to build an even stronger "fortress" balance sheet and extend financing duration with JOLCOs. He stressed that Danaos has already executed its growth at times when prices were more reasonable and will be patient, waiting for opportunities to arise rather than forcing investments in the current volatile market. Q: Given the significant cash generation, should we anticipate a moderate rise in the dividend, as seen in the past, or something more sizable? A: John Coustas, CEO, acknowledged the company's historical pattern of not making spectacular dividend rises. He stated that the pace of any increase is ultimately up to the Board to decide and that this is a topic for discussion in the next quarter, leaving the door open for a potential change in policy. Q: Are the Capesize vessels employed on spot rates or do you have fixed time charter cover? A: John Coustas, CEO, clarified that the vessels are generally employed on spot rates. He noted that while a couple of vessels are on index-linked charters (which practically function as spot), only one vessel is on a fixed rate until year-end. This confirms the company is actively playing the market for its dry bulk segment. Q: Could you talk about how the Alaska LNG project is progressing, and would you be willing to place speculative orders for other LNG projects? A: John Coustas, CEO, confirmed that the company would not take speculative orders, as they want to tie orders directly to the LNG production from Alaska. He stated the project is progressing well, with some legislative arrangements needing to be completed before a Final Investment Decision (FID) is given, which is expected sometime in September. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Danaos Corporation? Here are five stocks we like better. Second-quarter earnings improved: Adjusted net income rose to $133.1 million, or $7.29 per share, while adjusted EBITDA increased 6.1% to $186.8 million. Strong dry bulk performance offset largely stable container-vessel revenue. Dry bulk drove growth: Segment revenue surged 57% to $35.7 million, while the Capesize time-charter-equivalent rate climbed to $30,400 per day from about $18,000 a year earlier. Backlog and liquidity remained strong: Contracted revenue backlog reached a record $4.6 billion, with container operating days fully contracted for 2026. Danaos held approximately $1 billion in cash and $1.5 billion in total liquidity, while management remained cautious about acquisitions amid elevated asset prices. Spotlight on ZIM: Take Advantage of Shipping Stock Upside Danaos (NYSE:DAC) reported higher second-quarter earnings as strength in its dry bulk segment offset largely stable container vessel revenue, while the company expanded its contracted revenue backlog to a record $4.6 billion. Adjusted net income for the three months ended June 30 rose to $133.1 million, or $7.29 per share, from $117 million, or $6.36 per share, in the comparable 2025 period. Adjusted EBITDA increased 6.1% to $186.8 million. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Danaos Benefits from Increasing Demand in Container Shipping Chief Executive Officer Dr. John Coustas said shipping markets have been supported by geopolitical disruption, supply-chain uncertainty, restrictions in the Bab el-Mandeb and U.S. tariff measures. He said these factors had created tight conditions and pushed rates in most shipping sectors to multiyear highs. Coustas said a brief ceasefire enabled Danaos to move two vessels out of the Gulf, with both vessels and their crews safe and fully operational. → Why Rare Earth Processing Could Be the Real 2027 Opportunity ZIM Shipping Stock Forecast, Earnings Triggers a Buy The dry bulk business was the principal source of the company’s earnings improvement. Dry bulk revenue increased 57% year over year to $35.7 million from $22.7 million, reflecting improved market conditions and the operation of one additional vessel acquired several months earlier. Danaos’ Capesize time-charter-equivalent rate rose to $30,400 per day during the quarter, compared with approximately $18,000 per day a year earlier. Segment adjusted EBITDA in dry bulk climbed to $18.8 million from $5.9 million. → 3 Drone Stocks That Should Soar After the Summer Slump During the question-and-answer session, Coustas said the company’s dry bulk vessels are generally employed in the spot market. A couple of vessels are on index-linked charters, while only one is fixed at a rate through year-end, he said. Container vessel revenue was broadly unchanged, declining $0.8 million from a base of $238.7 million in the prior-year quarter. New container ship deliveries added $3.2 million in revenue and higher charter rates added another $0.6 million, according to Chief Financial Officer Evangelos Chatzis. Those gains were offset by a $3.4 million reduction in non-GAAP revenue recognition under U.S. GAAP and $1.2 million in higher off-hire charges. Danaos added approximately $683 million to contracted revenue backlog since its last earnings release. The company ended the quarter with a record $4.6 billion backlog and an average charter duration of 4.7 years. Container operating days are 100% contracted for 2026. Contract coverage stands at 93% for 2027. Coverage is 79% for 2028 and 61% for 2029. Coustas said Danaos had extended charters across a broad portion of its fleet as charterers competed for quality tonnage. The company also refinanced two additional vessels through Japanese operating leases and added $236 million in charter-financing commitments for three vessels scheduled for delivery in 2027. In addition, Danaos entered a $132 million credit facility to finance its sixth 1,800-TEU newbuilding, management said. Vessel operating expenses were essentially stable at $56.7 million, versus $56.4 million a year earlier, despite an increase in the average vessel count. Daily operating costs declined to $7,416 per vessel per day from $7,556. General and administrative expenses rose to $14.9 million from $11.2 million, primarily due to higher management fees and a $2.2 million increase in corporate G&A expenses. Interest expense, excluding amortization of finance fees and debt discounts, fell to $7.3 million from $8.9 million. Chatzis said higher capitalized interest associated with the progressing newbuilding program helped reduce expense, while increased average debt partly offset that benefit. Interest income doubled to $7.4 million as cash balances increased, resulting in a $5.3 million decline in net interest expense year over year. As of June 30, Danaos had net debt of $224.5 million, equal to 0.3 times last-12-month EBITDA. Cash stood at $1 billion, and total liquidity, including cash, revolver availability and marketable securities, was about $1.5 billion. Of the company’s 87 vessels, 78 carried no debt, including 66 unencumbered vessels and 12 that secure an undrawn revolving credit facility. Asked about capital deployment, Coustas said the company is cautious about new investments at elevated asset prices. “Growing is extremely easy. Growing accretively is much more difficult,” he said, adding that Danaos is strengthening its balance sheet and extending the duration of its financing while waiting for attractive opportunities. Coustas also discussed Danaos’ investment in the Alaska LNG project, saying the company would seek to tie any LNG carrier orders to production from Alaska rather than place speculative orders. He said certain legislative arrangements need to be completed before a final investment decision is made, which management expects sometime in September. On shareholder returns, Coustas said dividend decisions remain with the board. He noted that Danaos has followed a pattern of dividend increases but said the pace of any further increase would be discussed next quarter. Danaos Corporation is a leading independent owner and manager of containerships, specializing in long-term charters of modern vessels to major liner companies worldwide. The company's core services include vessel acquisition and sale, technical and crew management, and commercial chartering, all aimed at supporting global containerized trade. Danaos leverages its in-house expertise in operations, maintenance and regulatory compliance to ensure reliable and efficient fleet performance. Founded in 1972 by Dr. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Danaos Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was primarily driven by the Dry Bulk segment, where Capesize rates reached multiyear highs, resulting in a $12.9 million year-over-year increase in adjusted EBITDA for that segment. Management attributed exceptionally tight shipping conditions to a combination of geopolitical conflicts in Ukraine and Iran, Red Sea disruptions, and U.S. tariff measures. The company successfully moved two vessels out of the Gulf during a brief ceasefire, ensuring crew safety and maintaining full operational status for the fleet. Strategic focus remained on securing extended charter employment, adding $683 million to the contracted revenue backlog during the quarter. Operational efficiency was maintained as daily vessel operating costs declined to $7,416 per day, despite an increase in the average number of vessels in the fleet. Management emphasized a 'fortress balance sheet' strategy, utilizing high liquidity and low net leverage of 0.3x to maintain flexibility during volatile market conditions. Contracted revenue visibility is exceptionally high, with 100% of container operating days covered for 2026 and 93% for 2027. The company is transitioning toward longer-duration financing, securing $236 million in Japanese operating lease (JOLCO) commitments for vessels delivering in 2027. Management expressed caution regarding new investments at current elevated prices, prioritizing accretive growth over expansion for its own sake. Development of the Alaska LNG project is contingent on legislative arrangements, with a Final Investment Decision (FID) expected around September 2026. The fleet remains largely unencumbered, with 78 out of 87 operating vessels currently debt-free. Interest expense was mitigated by a $4.2 million increase in capitalized interest as the Newbuilding program advanced. Total liquidity reached approximately $1.5 billion, including $1 billion in cash and undrawn credit facilities. A $132 million credit facility was established specifically to finance the construction of six 1,800 TEU Newbuildings. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated that the risk of new investments is increasing due to elevated prices and will remain disciplined to ensure growth is accretive. The current focus is on strengthening the balance sheet and securing long-term financing to be ready when better opportunities arise. The CEO noted a historical pattern of moderate increases rather than 'spectacular' rises, leaving the specific pace of future growth to Board discretion. Dividend discussions for the next quarter will evaluate the current $0.90 per share level against cash flow generation. The Dry Bulk fleet is currently operating almost entirely in the spot market or on index-linked charters to capture high prevailing rates. Regarding Alaska LNG, Danaos will only place vessel orders if they are backed by long-term contracts, avoiding speculative orders in the LNG segment.

ATHENS, Greece, Aug. 3, 2026 /PRNewswire/ -- Danaos Corporation ("Danaos") (NYSE: DAC), one of the world's largest independent owners of container vessels, today reported unaudited results for the three and six month periods ended June 30, 2026. For management purposes, the Company is organized based on operating revenues generated from container vessels and drybulk vessels and has two reporting segments: (1) a container vessels segment and (2) a drybulk vessels segment. The Company measures segment performance based on net income. Items included in the applicable segment's net income are directly allocated to the extent that the items are directly or indirectly attributable to the segments. With regards to the items that are allocated by indirect calculations, their allocation is commensurate to the utilization of key resources. The Other column includes components that are not allocated to any of the Company's reportable segments and includes investments in an affiliate accounted for using the equity method of accounting and investments in marketable securities. Highlights for the Second Quarter and Half Year Ended June 30, 2026 and up to the date of this release: Financing developments In May 2026, we entered into Japanese Operating Lease ("Jolco") transactions for a total of $236 million and an eight year tenor, to finance three newbuilding vessels with expected deliveries between Q2 and Q3 2027, while we also entered into a senior secured credit facility for an amount of $132 million and a ten year tenor to finance six 1,800 TEUs newbuilding container vessels with expected deliveries between Q4 2027 and Q1 2029. In June 2026, we fully prepaid the outstanding principal amount of $116.4 million under our syndicated $450 million loan facility, relating to the vessels Greenville and Greenfield. In connection with the prepayment, two Jolco transactions were consummated for consideration of $207.0 million, with an eight year tenor. As of the date of this release, out of our total fleet of 87 vessels, 78 vessels were debt-free, comprising 66 unencumbered vessels and 12 pledged as collateral under our revolving credit facility, which remains undrawn. As of the date of this release, available committed borrowing capacity was $225 million under the revolving credit facility, $792.25 million under the Syndicated $850 mil. Facility, $236 million under the Jolco Facilities and $132 million under the senior secured facility, in each case subject to customary conditions precedent to drawdown. Fleet developments In July 2026, we took delivery of Hull No. YZJ2023-1556, an 8,258 TEUs containership named "Santorini Express". Our containership orderbook currently consists of 28 newbuilding containership vessels with an aggregate capacity of 176,292 TEUs with expected deliveries of two vessels in September 2026, fifteen vessels in 2027, seven vessels in 2028 and four vessels in 2029. All vessels in our orderbook will be built in accordance with the latest requirements of the International Maritime Organization (IMO) in relation to Tier III emission standards and Energy Efficiency Design Index (EEDI) Phase III. The majority of our orderbook vessels will be also equipped with additional eco-features, including methanol-ready capability and scrubber installations, while a portion are further designed with ammonia-ready capability. Our drybulk vessel orderbook currently consists of four 211,000 dwt Newcastlemax drybulk carriers, all with expected deliveries in 2028. All four Newcastlemax newbuildings will be built in accordance with IMO Tier III emission standards and EEDI Phase III requirements, and will be equipped with scrubbers. On a pro forma, fully delivered basis, assuming the delivery of all vessels currently under construction and on order, our fleet would consist of 104 containerships with an aggregate capacity of approximately 662,041 TEUs and 15 drybulk vessels, comprising 11 Capesize bulk carriers and four Newcastlemax bulk carriers, with an aggregate capacity of approximately 2.8 million DWT. Chartering developments Since the date of our previous earnings release, we have added approximately $683 million to our contracted revenue backlog through charter extensions for certain of our existing container vessels and vessels on order. As a result, total contracted operating revenues, based on concluded charter contracts through the date of this release, currently stand at $4.6 billion, including newbuildings. The remaining average contracted charter duration for our containership fleet is 4.7 years, weighted by aggregate contracted charter hire.Contracted operating days charter coverage for our container vessel fleet is currently 100% for 2026, 93% for 2027, 79% for 2028 and 61% for 2029. This includes newbuildings based on their scheduled delivery dates. Dividends and Share buy-back program On July 6, 2026, Danaos declared a dividend of $0.90 per share of common stock for the second quarter of 2026. The dividend was paid on July 30, 2026, to stockholders of record as of July 21, 2026. As of the date of this release, Danaos has approximately $65 million outstanding capacity under its $300 million authorized share repurchase program. Danaos' CEO Dr. John Coustas commented: "The conflicts in Ukraine and Iran continue with no clear resolution in sight, although a brief ceasefire allowed us to move our two vessels out of the Gulf, and both our crews and our vessels are safe and fully operational. Uncertainty in global supply chains, the disruption in the Gulf, the restrictions in the Bab el-Mandeb and the tariff measures in the United States have combined to create exceptionally tight conditions, with rates across most shipping sectors at multi-year highs. Shipping remains the only industry capable of absorbing disruption on this scale and keeping the world supplied with goods, energy and raw materials. Against this backdrop, Danaos continued to execute its long-term strategy of securing extended charter employment at attractive rates and arranging competitive long-term financing for our newbuilding program. This quarter we saw a significant contribution from our dry bulk investment, as Capesize rates reached multi-year highs and the segment contributed $18.8 million of adjusted EBITDA, against $5.9 million a year ago. As charterers continue to compete for quality tonnage, we took the opportunity to extend charters across a broad part of the fleet, adding approximately $683 million to our contracted revenue backlog. Backlog now stands at a record $4.6 billion, with 100% of our container operating days contracted for 2026, 93% for 2027 and 79% for 2028, while even for 2029 contract coverage is already above 60%. We also continued to term out our financing, refinancing two further vessels through Japanese operating leases. We also added a further $236 million in Jolco financing commitments for three vessels delivering in 2027 and entered into a $132 million credit facility to finance our six 1,800 TEU newbuildings. With 78 of our 87 operating vessels debt-free, net leverage of 0.3x, and total liquidity of approximately $1.5 billion, we remain well positioned to pursue accretive opportunities, including the development of our investment in the Alaska LNG project. Together with a disciplined approach to expansion, we believe these dynamics will continue to drive improving profitability and create lasting value for our shareholders." Three months ended June 30, 2026 compared to the three months ended June 30, 2025 During the three months ended June 30, 2026, Danaos had an average of 75.0 container vessels and 11.0 drybulk vessels compared to 74.0 container vessels and 10.0 drybulk vessels during the three months ended June 30, 2025. Our container vessels utilization for the three months ended June 30, 2026 was 97.7% compared to 98.4% in the three months ended June 30, 2025. Our drybulk vessels utilization for the three months ended June 30, 2026 was 99.5% compared to 99.8% in the three months ended June 30, 2025. Our adjusted net income amounted to $133.1 million, or $7.29 per diluted share, for the three months ended June 30, 2026 compared to $117.0 million, or $6.36 per diluted share, for the three months ended June 30, 2025. We have adjusted our net income in the three months ended June 30, 2026 for: (i) a $20.9 million gain from the change in fair value of investments, (ii) a $1.4 million loss on debt extinguishment, and (iii) $0.8 million of non-cash amortization of finance fees and debt discount. Adjusted net income of our container vessels segment amounted to $118.3 million for the three months ended June 30, 2026, compared to $116.7 million for the three months ended June 30, 2025. We adjusted net income of container vessels segment in the three months ended June 30, 2026 for: (i) a $1.4 million loss on debt extinguishment and (ii) $0.8 million of non-cash amortization of finance fees and debt discount. Adjusted net income of our drybulk vessels segment amounted to $12.2 million for the three months ended June 30, 2026, compared to $0.3 million for the three months ended June 30, 2025. The $16.1 million increase in adjusted net income for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily attributable to: (i) a $12.2 million increase in operating revenues, (ii) a $5.3 million decrease in net finance expenses and (iii) a $2.8 million increase in dividend income, partially offset by: (i) a $4.0 million increase in total operating expenses, and (ii) a $0.2 million increase in loss on equity investments. Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release. On a non-adjusted basis, our net income amounted to $151.8 million, or $8.32 earnings per diluted share, for the three months ended June 30, 2026 compared to net income of $130.9 million, or $7.12 earnings per diluted share, for the three months ended June 30, 2025. Our net income for the three months ended June 30, 2026 includes $20.9 million gain on marketable securities (gross of dividend income) compared to $14.7 million gain on marketable securities (gross of dividend income) in the three months ended June 30, 2025. On a non-adjusted basis, the net income of our container vessels segment amounted to $116.1 million for the three months ended June 30, 2026 compared to $115.9 million for the three months ended June 30, 2025. On a non-adjusted basis, the net income of our drybulk vessels segment amounted to $12.2 million for the three months ended June 30, 2026, compared to $0.3 million for the three months ended June 30, 2025. Operating RevenuesOperating revenues increased by $12.2 million, to $274.4 million in the three months ended June 30, 2026 from $262.2 million in the three months ended June 30, 2025. Operating revenues of our container vessels segment decreased by $0.8 million, to $238.6 million in the three months ended June 30, 2026, compared to $239.4 million in the three months ended June 30, 2025, analyzed as follows: $3.4 million lower revenues due to a decrease in non-cash revenue recognition in accordance with US GAAP; $1.2 million decrease in revenues as a result of higher revenue off-hire in the current period;partially offset by: $3.2 million increase in revenues as a result of newbuilding containership vessel additions; $0.6 million increase in revenues as a result of higher charter rates between the two periods. Operating revenues of our drybulk vessels segment increased by 57.3%, or $13.0 million, to $35.7 million in the three months ended June 30, 2026, compared to $22.7 million of revenues in the three months ended June 30, 2025. The increase was primarily driven by a significant improvement in Time Charter Equivalent rate per day, which increased to $30,401 per day in the three months ended June 30, 2026, from $17,934 per day in the three months ended June 30, 2025, reflecting improved market conditions, as well as the operation of an additional vessel in our drybulk fleet. Vessel Operating ExpensesVessel operating expenses increased by $0.3 million to $56.7 million for the three months ended June 30, 2026, from $56.4 million for the three months ended June 30, 2025, primarily due to an increase in the average number of vessels in our fleet, partially offset by a reduction in average daily operating costs to $7,416 per day from $7,556 per day in the prior-year period. Management believes that our daily operating costs remain among the most competitive in the industry. Depreciation & AmortizationDepreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs. DepreciationDepreciation expense increased by $1.1 million, to $41.8 million in the three months ended June 30, 2026 from $40.7 million in the three months ended June 30, 2025, due to the increase in the average number of vessels in our fleet. Amortization of Deferred Dry-docking and Special Survey CostsAmortization of deferred dry-docking and special survey costs decreased by $1.0 million to $10.5 million in the three months ended June 30, 2026 from $11.5 million in the three months ended June 30, 2025, primarily reflecting lower deferred dry-docking and special survey costs being amortized during the three months ended June 30, 2026 compared to the corresponding period in 2025. General and Administrative ExpensesGeneral and administrative expenses increased by $3.7 million to $14.9 million for the three months ended June 30, 2026, from $11.2 million for the three months ended June 30, 2025. The increase was mainly attributable to $1.5 million in higher management fees, which was partially driven by the increase in the average number of vessels in our fleet, as well as a $2.2 million increase in corporate general and administrative expenses. Other Operating ExpensesOther Operating Expenses include Voyage Expenses. Voyage ExpensesVoyage expenses increased by $1.0 million to $17.8 million in the three months ended June 30, 2026 from $16.8 million in the three months ended June 30, 2025. Voyage expenses of our container vessels segment increased by $1.2 million to $10.1 million in the three months ended June 30, 2026 from $8.9 million in the three months ended June 30, 2025. Voyage expenses of our drybulk vessels segment decreased by $0.2 million to $7.7 million in the three months ended June 30, 2026, compared to $7.9 million in the three months ended June 30, 2025. For the three months ended June 30, 2026, voyage expenses of our drybulk vessels comprised $2.3 million in commissions and $5.4 million in other voyage expenses, mainly comprised of bunkers costs and port expenses, compared to $1.5 million in commissions and $6.4 million in other voyage expenses for the three months ended June 30, 2025, reflecting an increase in time charter employment of our drybulk vessels, as opposed to spot voyage employment, during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Interest Expense and Interest IncomeInterest expense decreased by $1.6 million, to $8.1 million in the three months ended June 30, 2026 from $9.7 million in the three months ended June 30, 2025. The decrease in interest expense is a result of: $4.2 million decrease in interest expense due to an increase in the amount of interest expense capitalized on our vessels under construction that was $9.0 million in the three months ended June 30, 2026, when compared to capitalized interest of $4.8 million in the three months ended June 30, 2025.partially offset by: $2.6 million increase in interest expense due to an increase in our average indebtedness by $326.1 million between the two periods, partially offset by a decrease in our average debt service cost. Average indebtedness was $1,102.9 million in the three months ended June 30, 2026, compared to average indebtedness of $776.8 million in the three months ended June 30, 2025, while our average debt service cost decreased by approximately 1.1%, mainly as a result of lower SOFR rates and a lower weighted average coupon following the refinancing of our bond. As of June 30, 2026, our outstanding debt, gross of deferred finance costs, was $1,232.7 million, which includes $500.0 million principal amount of the 6.875% Senior Notes. This compares to $1,177.8 million of outstanding debt as of December 31, 2025, which included $262.8 million principal amount of the 8.5% Senior Notes and $500.0 million principal amount of the 6.875% Senior Notes. The increase in our outstanding debt was mainly due to the drawdowns of $658.0 million under the Jolco facilities offset by: (i) the repayment in full of the $335.2 million outstanding under the $450 million syndicated credit facility and (ii) the repayment of the $262.8 million principal amount of the 8.5% Senior Notes. Interest income increased by $3.7 million, to $7.4 million in the three months ended June 30, 2026 compared to $3.7 million in the three months ended June 30, 2025, mainly driven by higher average cash balances between the two periods. Loss on Debt ExtinguishmentThe loss on debt extinguishment of $1.4 million in the three months ended June 30, 2026 related to our early extinguishment of debt compared to nil in the three months ended June 30, 2025. Gain on InvestmentsThe $24.0 million gain on investments for the three months ended June 30, 2026 consisted of (i) the change in fair value of our shareholding interest in Star Bulk Carriers Corp. ("SBLK") of $12.5 million, (ii) dividend income on SBLK shares of $3.1 million, and (iii) the change in fair value of our shareholding interest in Yoda PLC of $8.4 million. This compares to a $15.0 million gain on investments for the three months ended June 30, 2025, which consisted of a $14.7 million gain from the change in fair value of our shareholding interest in SBLK and $0.3 million of dividend income on these shares. Loss on Equity InvestmentsLoss on equity investments amounted to $0.5 million and $0.3 million in the three months ended June 30, 2026 and June 30, 2025, respectively. For the three months ended June 30, 2026, loss on equity investments comprised (i) $0.4 million relating to our share of expenses of Carbon Termination Technologies Corporation ("CTTC"), currently engaged in the research and development of decarbonization technologies for the shipping industry, and (ii) $0.1 million relating to our share of expenses of Glenfarne Alaska Partners LLC, in connection with the development of the Alaska LNG project. For the three months ended June 30, 2025, loss on equity investments of $0.3 million related solely to our share of expenses of CTTC. Other Finance ExpensesOther finance expenses decreased by $0.1 million to $0.9 million in the three months ended June 30, 2026 compared to $1.0 million in the three months ended June 30, 2025. Loss on DerivativesAmortization of deferred realized losses on interest rate swaps remained stable at $0.9 million in the three months ended June 30, 2026 and June 30, 2025. Other (Expenses)/Income, netOther (expenses)/income, net, amounted to a net expense of $0.4 million in the three months ended June 30, 2026 compared to a net expense of $1.4 million in the three months ended June 30, 2025. Adjusted EBITDAAdjusted EBITDA increased by 6.1%, or $10.8 million, to $186.8 million for the three months ended June 30, 2026, from $176.0 million for the three months ended June 30, 2025. The increase was primarily attributable to: (i) a $12.2 million increase in operating revenues, (ii) a $2.8 million increase in dividends received, partially offset by: (i) a $4.0 million increase in total operating expenses, and (ii) a $0.2 million increase in loss on equity investments. Adjusted EBITDA for the three months ended June 30, 2026 is adjusted for: (i) a $20.9 million gain from the change in fair value of investments, (ii) a $1.4 million of loss on debt extinguishment, and (iii) stock based compensation of $0.1 million. Tables reconciling Net Income to Adjusted EBITDA can be found at the end of this earnings release. Adjusted EBITDA of container vessels segment decreased by 2.8%, or $4.7 million, to $165.5 million in the three months ended June 30, 2026 from $170.2 million in the three months ended June 30, 2025. Adjusted EBITDA of drybulk vessels segment increased by $12.9 million to $18.8 million in the three months ended June 30, 2026 from $5.9 million in the three months ended June 30, 2025. Six months ended June 30, 2026 compared to the six months ended June 30, 2025 During the six months ended June 30, 2026, Danaos had an average of 75 container vessels and 10.6 drybulk vessels compared to 73.9 container vessels and 10.0 drybulk vessels during the six months ended June 30, 2025. Our container vessels utilization for the six months ended June 30, 2026 was 97.7% compared to 97.8% in the six months ended June 30, 2025. Our drybulk vessels utilization for the six months ended June 30, 2026 was 91.2% compared to 96.1% in the six months ended June 30, 2025. Our adjusted net income amounted to $255.7 million, or $14.01 per diluted share, for the six months ended June 30, 2026 compared to $230.4 million, or $12.39 per diluted share, for the six months ended June 30, 2025. We have adjusted our net income in the six months ended June 30, 2026 for: (i) a $44.4 million gain from the change in fair value of investments, (ii) a $6.0 million loss on debt extinguishment, and (iii) $1.8 million of non-cash amortization of finance fees and debt discount. Adjusted net income of our container vessels segment amounted to $237.1 million for the six months ended June 30, 2026 compared to $236.5 million for the six months ended June 30, 2025. We adjusted net income of container vessels segment in the six months ended June 30, 2026 for: (i) a $6.0 million loss on debt extinguishment and (ii) $1.8 million of non-cash amortization of finance fees and debt discount. Adjusted net income/(loss) of our drybulk vessels segment amounted to $13.8 million income for the six months ended June 30, 2026, compared to $6.3 million loss for the six months ended June 30, 2025. The $25.3 million increase in adjusted net income for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily attributable to: (i) a $12.6 million increase in operating revenues, (ii) a $7.8 million decrease in net finance expenses, (iii) a $4.8 million increase in dividends received, (iv) a $0.4 million decrease in total operating expenses, partially offset by a $0.3 million increase in loss on equity investments. Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release. On a non-adjusted basis, our net income amounted to $292.2 million, or $16.02 earnings per diluted share, for the six months ended June 30, 2026 compared to net income of $246.1 million, or $13.24 earnings per diluted share, for the six months ended June 30, 2025. Our net income for the six months ended June 30, 2026 includes $44.4 million gain on marketable securities (gross of dividend income) compared to $17.2 million gain on marketable securities (gross of dividend income) in the six months ended June 30, 2025. On a non-adjusted basis, the net income of our container vessels segment amounted to $229.4 million for the six months ended June 30, 2026 compared to $234.9 million for the six months ended June 30, 2025. On a non-adjusted basis, the net income/(loss) of our drybulk vessels segment amounted to $13.8 million net income for the six months ended June 30, 2026 compared to $6.3 million net loss for the six months ended June 30, 2025. Operating RevenuesOperating revenues increased by $12.6 million, to $528.1 million in the six months ended June 30, 2026 from $515.5 million in the six months ended June 30, 2025. Operating revenues of our container vessels segment decreased by 1.6%, or $7.4 million, to $468.2 million in the six months ended June 30, 2026, compared to $475.6 million in the six months ended June 30, 2025, analyzed as follows: $10.6 million lower revenues due to a decrease in non-cash revenue recognition in accordance with US GAAP; $6.3 million decrease in revenues as a result of lower charter rates;partially offset by: $7.1 million increase in revenues as a result of newbuilding containership vessel additions; $2.4 million increase in revenues as a result of lower revenue off-hire in the current period. Operating revenues of our drybulk vessels segment increased by 50.5%, or $20.1 million, to $59.9 million in the six months ended June 30, 2026, compared to $39.8 million of revenues in the six months ended June 30, 2025. The increase was primarily driven by a significant improvement in Time Charter Equivalent rate per day, which increased to $28,007 per day in the six months ended June 30, 2026, from $14,386 per day in the six months ended June 30, 2025, reflecting improved market conditions, as well as the operation of an additional vessel in our drybulk fleet. This improvement was partially offset by a lower fleet utilization rate of 91.2% in the six months ended June 30, 2026 compared to 96.1% in the six months ended June 30, 2025. Vessel Operating ExpensesVessel operating expenses decreased by $1.4 million to $106.7 million for the six months ended June 30, 2026, from $108.1 million for the six months ended June 30, 2025. This decrease occurred despite an increase in the average number of vessels in our fleet and reflects a reduction in average daily operating costs to $7,052 per day from $7,294 per day in the prior-year period. Management believes that our daily operating costs remain among the most competitive in the industry. Depreciation & AmortizationDepreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs. DepreciationDepreciation expense increased by $1.9 million, to $82.6 million in the six months ended June 30, 2026 from $80.7 million in the six months ended June 30, 2025, due to the increase in the average number of vessels in our fleet. Amortization of Deferred Dry-docking and Special Survey CostsAmortization of deferred dry-docking and special survey costs increased by $0.3 million to $22.8 million in the six months ended June 30, 2026 from $22.5 million in the six months ended June 30, 2025. General and Administrative ExpensesGeneral and administrative expenses increased by $6.1 million to $29.5 million for the six months ended June 30, 2026, from $23.4 million for the six months ended June 30, 2025. The increase was mainly attributable to $2.7 million in higher management fees which was partially driven by the increase in the average number of vessels in our fleet, as well as a $3.4 million increase in corporate general and administrative expenses. Other Operating ExpensesOther Operating Expenses include Voyage Expenses. Voyage ExpensesVoyage expenses decreased by $6.4 million to $28.5 million in the six months ended June 30, 2026 from $34.9 million in the six months ended June 30, 2025, mainly driven by (i) a $5.1 million gain arising from early termination agreements for certain container vessels operating under time charter arrangements, with retention of bunkers on redelivery at no consideration partially offset by an increase in commissions during the six months ended June 30, 2026, and (ii) a $2.4 million decrease in voyage expenses of our drybulk vessels, attributed to the different mix of time charter and voyage charter contracts under which our drybulk vessels were deployed between the two periods. Voyage expenses of our container vessels segment decreased by $4.0 million to $13.7 million in the six months ended June 30, 2026 from $17.7 million in the six months ended June 30, 2025, driven by a $5.1 million gain arising from early termination agreements for certain vessels operating under time charter arrangements, with retention of bunkers on redelivery at no consideration partially offset by an increase in commissions during the six months ended June 30, 2026. Voyage expenses of our drybulk vessels segment decreased by $2.4 million to $14.8 million in the six months ended June 30, 2026, compared to $17.2 million in the six months ended June 30, 2025. For the six months ended June 30, 2026, voyage expenses of our drybulk vessels comprised $3.8 million in commissions and $11.0 million in other voyage expenses, mainly comprised of bunkers costs and port expenses, compared to $2.4 million in commissions and $14.8 million in other voyage expenses for the six months ended June 30, 2025, reflecting an increase in time charter employment of our drybulk vessels during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Interest Expense and Interest IncomeInterest expense increased by $0.3 million, to $20.0 million in the six months ended June 30, 2026 from $19.7 million in the six months ended June 30, 2025. The increase in interest expense is a result of: $7.1 million increase in interest expense due to an increase in our average indebtedness by $327.9 million between the two periods, partially offset by a decrease in our average debt service cost. Average indebtedness was $1,105.1 million in the six months ended June 30, 2026, compared to average indebtedness of $777.2 million in the six months ended June 30, 2025, while our average debt service cost decreased by approximately 0.8%, mainly as a result of lower SOFR rates and a lower weighted average coupon following the refinancing of our bond; $0.2 million increase in the amortization of deferred finance costs and debt discount between the two periods;partially off-set by: $7.0 million decrease in interest expense due to an increase in the amount of interest expense capitalized on our vessels under construction that was $16.3 million in the six months ended June 30, 2026, when compared to capitalized interest of $9.3 million in the six months ended June 30, 2025. As of June 30, 2026, our outstanding debt, gross of deferred finance costs, was $1,232.7 million, which includes $500.0 million principal amount of the 6.875% Senior Notes. This compares to $1,177.8 million of outstanding debt as of December 31, 2025, which included $262.8 million principal amount of the 8.5% Senior Notes and $500.0 million principal amount of the 6.875% Senior Notes. The increase in our outstanding debt was mainly due to the drawdowns of $658.0 million under the Jolco facilities offset by: (i) the repayment in full of the $335.2 million outstanding under the $450 million syndicated credit facility and (ii) the repayment of the $262.8 million principal amount of the 8.5% Senior Notes. Interest income increased by $7.7 million, to $15.0 million in the six months ended June 30, 2026 compared to $7.3 million in the six months ended June 30, 2025, mainly driven by higher average cash balances between the two periods, partially offset by lower interest rates on cash deposits between the corresponding periods. Gain on InvestmentsThe $49.8 million gain on investments for the six months ended June 30, 2026 consisted of (i) the change in fair value of our shareholding interest in Star Bulk Carriers Corp. ("SBLK") of $36.0 million, (ii) dividend income on SBLK shares of $5.4 million and (iii) the change in fair value of our shareholding interest in Yoda PLC of $8.4 million. This compares to a $17.9 million gain on investments for the six months ended June 30, 2025, which consisted of a $17.2 million gain from the change in fair value of our shareholding interest in SBLK and $0.7 million of dividend income on these shares. Loss on Debt ExtinguishmentThe loss on debt extinguishment of $6.0 million in the six months ended June 30, 2026 related to our early extinguishment of debt compared to nil in the six months ended June 30, 2025. Loss on Equity InvestmentsLoss on equity investments amounted to $0.8 million and $0.6 million in the six months ended June 30, 2026 and June 30, 2025, respectively. For the six months ended June 30, 2026, loss on equity investments comprised (i) $0.7 million relating to our share of expenses of CTTC, currently engaged in the research and development of decarbonization technologies for the shipping industry, and (ii) $0.1 million relating to our share of expenses of Glenfarne Alaska Partners LLC, in connection with the development of the Alaska LNG project. For the six months ended June 30, 2025, loss on equity investments of $0.6 million related solely to our share of expenses of CTTC. Other Finance ExpensesOther finance expenses decreased by $0.2 million to $1.8 million in the six months ended June 30, 2026 compared to $2.0 million in the six months ended June 30, 2025. Loss on DerivativesAmortization of deferred realized losses on interest rate swaps remained stable at $1.8 million in the six months ended June 30, 2026 and June 30, 2025. Other (Expenses)/Income, netOther (expenses)/income, net, amounted to an expense of $0.01 million in the six months ended June 30, 2026 compared to an expense of $0.9 million in the six months ended June 30, 2025. Adjusted EBITDAAdjusted EBITDA increased by 5.7%, or $19.7 million, to $367.4 million for the six months ended June 30, 2026, from $347.7 million for the six months ended June 30, 2025. The increase was primarily attributable to: (i) a $12.6 million increase in operating revenues, (ii) a $4.8 million increase in dividends received, (iii) a $2.6 million decrease in total operating expenses, partially offset by a $0.3 million increase in loss on equity investments. Adjusted EBITDA for the six months ended June 30, 2026 is adjusted for: (i) a $44.4 million gain from the change in fair value of investments, (ii) a $6.0 million of loss on debt extinguishment and (iii) stock based compensation of $0.3 million. Tables reconciling Net Income/(Loss) to Adjusted EBITDA can be found at the end of this earnings release. Adjusted EBITDA of container vessels segment decreased by 2.2%, or $7.5 million, to $335.6 million in the six months ended June 30, 2026 from $343.1 million in the six months ended June 30, 2025. Adjusted EBITDA of drybulk vessels segment increased by $22.7 million to $27.2 million in the six months ended June 30, 2026 from $4.5 million in the six months ended June 30, 2025. Dividend PaymentOn July 6, 2026, Danaos declared a dividend of $0.90 per share of common stock for the second quarter of 2026, which was paid on July 30, 2026, to stockholders of record as of July 21, 2026. Recent DevelopmentsIn July 2026, we took delivery of the 8,258 TEU under-construction container vessel with Hull No. YZJ2023-1556, named "Santorini Express", which commenced a long-term charter upon delivery. Conference Call and WebcastOn Tuesday, August 4, 2026 at 9:00 A.M. ET, the Company's management will host a conference call to discuss the results. Participants should dial into the call 10 minutes before the scheduled time using the following numbers: +1 833 890 6464 (U.S. Toll Free Dial-in), +1 412 317 5130 (International Dial-in) or +44 (0) 2037 694 533 (International Dial-in (London LT)). Please indicate to the operator that you wish to join the Danaos Corporation earnings call. A telephonic replay of the conference call will be available until August 11, 2026 by dialing 1 855 669 9658 (U.S. Toll Free Dial In) or 1-412-317-0088 (Standard International Dial-in) and using 1304645# as your access code. Audio WebcastThere will also be a live and then archived webcast of the conference call on the Danaos website (www.danaos.com). Participants of the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. An archived version of the audio webcast will be available on the website within 48 hours of the completion of the call. Slide PresentationA slide presentation regarding the Company and the container and drybulk industry will also be available on the Danaos website (www.danaos.com). About Danaos CorporationDanaos Corporation is one of the largest independent owners of modern, large-size containerships. Our current fleet of 76 containerships aggregating 485,749 TEUs and 28 under construction container vessels aggregating 176,292 TEUs ranks Danaos among the largest container vessels charter owners in the world based on total pro-forma capacity of 662,041 TEUs. Danaos has also invested in the drybulk sector through the acquisition of 11 capesize drybulk vessels and the recent order of four Newcastlemax drybulk newbuildings, which, on a fully delivered basis, will aggregate approximately 2,787,286 DWT in capacity. Our container vessels fleet is chartered to many of the world's largest liner companies on fixed-rate charters. Our long track record of success is predicated on our efficient and rigorous operational standards and environmental controls. Danaos Corporation's shares trade on the New York Stock Exchange under the symbol "DAC". Forward-Looking StatementsMatters discussed in this release may constitute forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements reflect our current views with respect to future events and financial performance, including contracted revenue, fleet growth and market conditions, and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions. Although Danaos Corporation believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Danaos Corporation cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, geopolitical conditions, including any trade disruptions resulting from tariffs, port fees or other protectionist measures imposed by the United States, China or other countries, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in Danaos Corporation's operating expenses, including bunker prices, drydocking and insurance costs, our ability to operate profitably in the drybulk sector, our ability to realize returns on our investment in the LNG sector and in marketable securities, performance of shipyards constructing our contracted newbuilding vessels, ability to obtain financing and comply with covenants in our financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, including the conflict in Ukraine and related sanctions, conflicts in the Middle East, potential disruption of shipping routes such as Houthi attacks in the Red Sea and the Gulf of Aden and the effective closure of the Persian Gulf, including the Strait of Hormuz, due to the conflict between Iran and the U.S. and Israel, due to accidents and political events or acts by terrorists. Risks and uncertainties are further described in reports filed by Danaos Corporation with the U.S. Securities and Exchange Commission. Visit our website at www.danaos.com APPENDIX Three months endedSix months endedSix months endedJune 30,June 30,June 30,June 30,2026202520262025Ownership Days 1,0019101,9141,810Less Off-hire Days:Scheduled Off-hire Days--(163)(56)Other Off-hire Days (5)(2)(6)(14)Operating Days(1)9969081,7451,740Vessel Utilization(2) 99.5 %99.8 %91.2 %96.1 %Operating Revenues (in '000s of US$)$35,720$22,708$59,868$39,825Less: Voyage Expenses excluding commissions (in'000s of US$)$(5,441)$(6,424)$(10,995)$(14,794)Time Charter Equivalent Revenues (in '000s of US$)$30,279$16,284$48,873$25,031Time Charter Equivalent US$/per day(3)$30,401$17,934$28,007$14,386 Fleet List Operating Container Vessels The following table describes in detail our 76 container vessels deployment profile as of August 3, 2026: Under Construction Container Vessels The following table describes in detail our 28 container vessels under construction as of August 3, 2026: Operating Drybulk Vessels The following table describes the details of our 11 Capesize drybulk vessels as of August 3, 2026: Under Construction Drybulk Vessels The following table describes the details of our four Newcastlemax drybulk vessels as of August 3, 2026: View original content:https://www.prnewswire.com/news-releases/danaos-corporation-reports-second-quarter-and-half-year-results-for-the-period-ended-june-30-2026-302841542.html

ATHENS, Greece, July 22, 2026 /PRNewswire/ -- Danaos Corporation (NYSE: DAC), one of the world's largest independent owners of containerships, announced today that it will release its results for the second quarter ended June 30, 2026, after the close of the market in New York on Monday, August 3, 2026. The Company's management team will host a conference call to discuss the results on Tuesday, August 4, 2026 at 9:00 A.M. ET. Conference Call Details:Participants should dial into the call 10 minutes before the scheduled time using the following numbers: U.S. Toll Free Dial-in: +1 833 890 6464International Dial-in: +1 412 317 5130International Dial-in (London LT): +44 (0) 2037 694 533 Please indicate to the operator that you wish to join the Danaos Corporation earnings call. A telephonic replay of the conference call will be available until August 11, 2026 by dialing 1 855 669 9658 (US Toll Free Dial In) or 1-412-317-0088 (Standard International Dial In) and using 1304645# as your access code. Audio Webcast:A live audio webcast of the conference call will be available through the Danaos Corporation website (www.danaos.com). Participants of the live audio webcast should register on the website approximately 10 minutes prior to the start of the webcast. An archived version of the audio webcast will be available on the website within 48 hours of the completion of the call. About Danaos CorporationDanaos Corporation is one of the largest independent owners of modern, large-size containerships. Our current fleet of 75 containerships, aggregating 477,491 TEUs, together with 29 containerships under construction, aggregating 184,550 TEUs, ranks Danaos among the world's largest containership charter owners based on total pro-forma capacity of 662,041 TEUs. Danaos has also invested in the dry bulk sector through the acquisition of 11 Capesize dry bulk vessels and the recent order of four Newcastlemax dry bulk newbuildings, which, on a fully delivered basis, will aggregate approximately 2,787,286 dwt of capacity. Our containership fleet is chartered to many of the world's largest liner companies on fixed-rate charters. Our long track record of success is built on efficient and rigorous operational standards and environmental controls. Danaos Corporation's shares trade on the New York Stock Exchange under the symbol "DAC." Visit our website at www.danaos.com View original content:https://www.prnewswire.com/news-releases/danaos-corporation-announces-date-for-the-release-of-second-quarter-2026-results-conference-call-and-webcast-302832481.html

This article first appeared on GuruFocus. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Danaos Corp (NYSE:DAC) reported an increase in adjusted EPS to $6.72 per share, up from $6.04 per share in the first quarter of 2025. The company has a strong contracted revenue backlog of $4.1 billion with a 4.2-year average charter duration. Danaos Corp (NYSE:DAC) has a significant liquidity position with $1.3 billion, providing flexibility for future investments. The dry bulk market has improved considerably, with time charter equivalent earnings increasing significantly. Danaos Corp (NYSE:DAC) maintains competitive operating costs, with vessel operating expenses dropping despite an increase in fleet size. Operating revenues of the container ship fleet decreased by $6.6 million due to lower contracted charter rates and non-cash U.S. GAAP revenue recognition. G&A expenses increased by $2.4 million, driven by higher management fees and corporate expenses. Interest expense increased by $1.7 million due to higher average indebtedness. The company's revenue backlog decreased slightly from $4.3 billion in the previous quarter. Danaos Corp (NYSE:DAC) is cautious about continuing share buybacks due to the stock reaching all-time highs, despite believing it is undervalued. Warning! GuruFocus has detected 5 Warning Signs with TONX. Is DAC fairly valued? Test your thesis with our free DCF calculator. Q: Your recent investments seem to focus on LNG, including stakes in Yoda and the Alaska LNG project. Is this a strategic shift towards LNG, and should we expect more investments in this sector? A: Yes, the energy sector, particularly LNG, is our next focus area. We are closely monitoring geopolitical changes and addressing them from both transportation and LNG production angles, which will also enhance our transportation capabilities. - Dr. John Koustos, CEO Q: Your revenue backlog is strong at $4.1 billion, but it's slightly down from last quarter's $4.3 billion. Can you explain the current trends in liner interest for charter coverage? A: The backlog reduction is circumstantial. Most of our fleet for 2026 and 2027 is already fixed, and discussions for 2028 are premature, especially for second-hand ships. We've been actively fixing charters, and the current situation doesn't signify any negative trend. - Dr. John Koustos, CEO Q: Regarding your share buyback program, how are you approaching it given the stock's recent highs and its valuation metrics? A: We have $65 million remaining in our buyback authority. While the stock is at an all-time high, we believe it's still undervalued. However, we are cautious about continuing buybacks during this period of high stock prices. - Dr. John Koustos, CEO Q: Can you discuss the utilization on the Cape Safe side of the fleet and the drivers behind the significant schedule to hire for the quarter? A: The utilization was impacted by two vessels undergoing dry docking in Q1. We don't have any more scheduled dry dockings for the dry side of the fleet for the remainder of the year. - Ivan Gulos Hedzis, CFO Q: Were all the off-hire days in Q1 due to the dry docking? A: Yes, all the off-hire days were attributable to the dry docking of the two vessels. - Ivan Gulos Hedzis, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was significantly influenced by geopolitical events in the Gulf and the closure of the Strait of Hormuz, which primarily drove a temporary spike in tanker rates. The drybulk market has shown considerable improvement and continued strengthening, prompting a strategic expansion into the Newcastlemax segment. Management attributes the container sector's stability to these disruptions, though the direct impact on box rates was less pronounced than in the tanker sector. Strategic positioning is focused on the mid-sized containership segment, which management believes will benefit from increasingly multilateral global trade patterns. Operational efficiency remains a core driver, with daily vessel operating costs declining to $6.68 thousand despite an increase in the total fleet size. The company maintains a massive $4.1 billion contracted revenue backlog, providing high visibility with 100% contract coverage for the remainder of 2026. The company is expanding its order book with 4 Newcastlemaxes for 2028 delivery and 2 container ships for 2027 delivery to capture market strength. Management anticipates that the resolution of conflicts in the Gulf and Ukraine would provide meaningful global market stability for years to come. The energy sector, specifically LNG production and transportation, is the next primary point of focus for capital allocation and strategic growth. Guidance assumes a resilient globalization trend where protectionism remains the exception, supporting the company's investment in multilateral trade routes. Two vessels currently remain in the Gulf due to regional instability, though management notes this has no earnings impact as they remain on charter. Liquidity stands at $1.3 billion, including cash and revolving credit facilities, intended for pursuing accretive acquisition opportunities. The company maintains a very low leverage profile with a net debt to adjusted EBITDA ratio of 0.2x and 67 unencumbered vessels. A $300 million share repurchase program has $65 million in remaining authority, though management is exercising caution due to recent stock price appreciation. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed a concerted effort to focus on the energy sector due to shifting geopolitical dynamics. The strategy involves addressing the market from both the transportation side and the production side to secure integrated access. Management explained that the slight dip in backlog is circumstantial because 2026 and 2027 are already almost entirely fixed. Liner companies view discussions for 2028 charters as premature at this stage, particularly for secondhand vessels. Management expressed caution regarding the pace of buybacks during the current 'hype' and stock price run-up. Despite the caution, they reiterated the belief that the stock remains deeply undervalued relative to its intrinsic value. The off-hire days were entirely attributable to scheduled dry-docking for two specific vessels. Management indicated there are no further scheduled dry-dockings for the drybulk fleet for the remainder of the year.