GNK

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:30 a.m. ET Chairman and CEO - John Wobensmith Chief Financial Officer - Peter Allen drybulk market analyst - Michael Orr Operator: Good morning, ladies and gentlemen, and welcome to the Genco Shipping & Trading Limited Second Quarter 2026 Earnings Conference Call and Presentation. Before we begin, please note that there will be a slide presentation accompanying today's conference call. That presentation can be obtained from Genco's website at www.gencoshipping.com. To inform everyone, today's conference is being recorded and is now being webcast at the company's website, www.gencoshipping.com. [Operator Instructions] A webcast replay will also be available via the link provided in today's press release as well as on the company website. At this time, I will now turn the conference over to the company. Please go ahead. Unknown Executive: Good morning. Before we begin our presentation, I note that in this conference call, we'll be making certain forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements use words such as anticipate, budget, estimate, expect, project, intend, plan, believe and other words and terms of similar meaning in connection with the discussion of potential future events, circumstances or future operating or financial performance. These forward-looking statements are based on management's current expectations and observations. For a discussion of factors that could cause results to differ, please see the company's press release that was issued yesterday, the materials relating to this call posted on the company's website and the company's filings with the Securities and Exchange Commission, including, without limitation, the company's annual report on Form 10-K for the year ended December 31, 2025, and the company's reports on Form 10-Q and Form 8-K subsequently filed with the SEC. At this time, I would like to introduce John Wobensmith, Chairman and CEO of Genco Shipping Trading Limited. John Wobensmith: Good morning, everyone. Welcome to Genco's Second Quarter 2026 Conference Call. I will begin today's call by reviewing the progress we've made executing our comprehensive value strategy, and then we will review our Q2 2026 highlights and dividend outlook for the remainder of the year. We will then provide additional details on our financial results as well as an update on the industry's current fundamentals before opening the call up for questions. For additional information, please also refer to our earnings presentation posted on the website. Starting on Slide 5. During the second quarter, we continued to make meaningful progress executing our comprehensive value strategy, which is generating compelling returns for shareholders. Since 2021, we have been executing our well-defined capital allocation strategy and have successfully transferred Genco into a low leverage, high dividend company, supported by a fleet of premium earning assets, industry low breakeven levels and a leading commercial operating platform. Today, our shareholders are continuing to see the benefits of our strategy. We have fortified our balance sheet to effectively operate and grow in various rate environments and provide shareholders with consistent and sizable dividends. We have invested $557 million in high-specification modern vessels with a focus on sectors with compelling supply and demand fundamentals and distributed $308 million in dividends to shareholders since 2021. We have also paid down $119 million in debt, significantly reducing our cash flow breakeven rate and further enhancing our earnings power and dividend capacity. Moving to Slide 6. Following a strong first quarter, we are pleased to have carried this positive momentum into Q2 2026. During the second quarter, we generated strong cash flow. This was driven by a time charter equivalent rate of over $24,200 per day, our highest quarterly TCE rate since 2022, resulting in adjusted EBITDA of nearly $57 million. These strong results exceeded expectations for the quarter as the dry bulk market continued to strengthen, and we further capitalized on our growing fleet of premium earning assets across the main sectors in which we operate. We declared a Q2 dividend of $0.80 per share, more than double our first quarter dividend and 433% higher on a year-over-year basis. Notably, our Q2 dividend is the highest we've declared since the inception of our comprehensive value strategy in 2021. This also marks our 28th consecutive quarterly dividend paid to shareholders, the longest uninterrupted period in our dry bulk peer group. Our strong financial performance reflects the deliberate steps we have taken to increase our earnings power and dividend capacity for the benefit of our shareholders. The second quarter marked the first full quarter in which all of our 2025 vessel acquisitions operated for an entire quarter. These well-timed acquisitions, which grew our asset base by approximately 20% directly and significantly contributed to our strong earnings and dividend during the quarter. Later this month, we are set to further strengthen our fleet as we expect to take delivery of a 2019 built Capesize vessel, the Genco Volunteer. This will bring our total investment in Capesize and Newcastlemax vessels to $408 million since 2023, a period in which these vessel types have vastly outperformed all others in the dry bulk sector. Importantly, we have achieved an IRR of over 30% to date on these acquisitions. As we have done with the other vessels we added to our fleet in 2026, we anticipate trading the Genco Volunteer in the spot market and expect the vessel to earn a significant premium to the Baltic Capesize Index given its high specifications. As depicted on Slide 7 and 8, we achieved multiyear highs for the Q2 dividend, TCE and EBITDA and expect to exceed those metrics going into Q3. Including our Q2 dividend of $0.80 per share, we will have paid $8.715 per share in quarterly dividends over the past seven years. With the growth of our premium earning assets, our spot-focused commercial strategy and our considerable operating leverage in a strengthening dry bulk market, we project a Q3 dividend to achieve another record level. Based on our Q3 fixtures to date of $28,600 per day for 66% of our available days and assuming the current FFA curve for the balance of the quarter, we project a third quarter dividend of over $1 per share. We have strong prospects in Q4 as well, which we project another dividend north of $1 per share based on the FFA curve. This would bring a projected full year dividend of over $3.15 per share. The foundation of Genco's strong earnings power and dividend capacity and what we believe drives valuation in public markets is rooted in strong corporate governance and capital allocation decisions, and our strategy is outlined on the next several slides. Moving to Slide 9. Genco continues to maintain industry-leading corporate governance, which has underpinned our shareholder-focused outperformance. We are consistently ranked in the top quartile on corporate governance among public shipping companies, and we are the only U.S.-listed dry bulk shipping company with no related party transactions. Turning to Slide 10. Genco has one of the lowest cash flow breakeven levels in our peer group. This is directly related to our industry low net loan to value as well as having no mandatory debt amortization. In addition to significantly increasing our Q2 and Q3 TTE to date on a year-over-year basis, we continue to markedly exceed our low cash flow breakeven rate. Specifically, our Q3 TCE to date of nearly $29,000 per day is approximately $19,000 per day above our breakeven rate prior to maintenance CapEx of approximately $10,000 per day. On Slide 11, we highlight the strategic benefits of our balanced fleet composition. Following the expected Cape delivery in August, we will own a fleet of 20 Capesize and Newcastlemax vessels as well as 24 Ultramax and Supramax vessels. Importantly, we continue to balance the upside potential of the Capesize sector, along with the steadier earnings profile of minor bulk ships. On a vessel ownership basis, our splits are 45% Capes and 55% Ultramax/Supramax. However, when viewed on a net revenue basis over the last two years, we are over 50% weighted towards the larger Capesize vessels, putting us in a unique position in our peer group to benefit from the strengthening freight rate environment. On Slide 12, we highlight the current operating leverage provided by our pro forma fleet of 44 vessels. Every $1,000 fleet-wide TCE increase equates to $16 million of incremental annualized EBITDA or $0.36 per share. Every $5,000 increase in TCE for our 20 Newcastlemax and Capesize vessels equates to $36 million or $0.81 per share of incremental earnings and dividend capacity. Turning to Slide 13. We also continue to balance our high operating leverage with our low financial leverage, providing us with flexibility to operate across various freight market conditions. In stronger markets, we generate meaningful cash flow with our industry low breakeven rate and scalable fleet. In market downturns, Genco's low financial leverage and undrawn revolver capacity enable us to pursue countercyclical growth opportunities. Importantly, Genco is well positioned today to drive value for our shareholders and play offense in any type of dry bulk market. I will now turn the call over to Peter Allen, our Chief Financial Officer. Peter Allen: Thank you, John. On Slides 15 through 17, we highlight our strong second quarter financial results, which are driven by our sizable operating leverage, growing fleet and industry low breakeven levels. For the second quarter, Genco recorded net income of $16.6 million or $0.38 and $0.37 basic and diluted earnings per share. Adjusted net income is $29.2 million or $0.67 and $0.65 basic and diluted earnings per share, excluding a gain on sale of vessel of $1.9 million, other operating expenses of $13.1 million, impairment on vessel assets of $1.2 million and an unrealized fuel loss of $0.2 million. Other operating expenses primarily relate to shareholder and proxy expenses incurred during the quarter, including financial advisory costs associated with inadequacy opinions received for outstanding tender offers at the time. Such opinions are connected to tender offers and served as important information for both the company to determine that the offers were inadequate and for shareholders in making their own determinations regarding the offers. Adjusted EBITDA for Q2 totaled $56.7 million, an increase of approximately 300% year-over-year. This was led by a time charter equivalent rate of $24,273 per day, which rose by 78% as compared to Q2 2025, while the cost structure was similar on a year-over-year basis, highlighting the operating leverage inherent in our fleet. Our first half of 2026 adjusted EBITDA totaled $92.9 million, which already exceeds the full year 2025 level and is on pace to be our highest earnings year since the 2021 2022 period. We continue to generate meaningful cash flow and maintain significant financial flexibility. Our cash and debt positions as of June 30, 2026, were $74 million and $330 million, respectively. Our undrawn revolver availability at quarter end was $350 million. For the Genco Volunteer, the 2019 built Capesize vessel we expect to be delivered in August. We paid an installment of $6.5 million in Q2, and we have $58.5 million of CapEx remaining for this acquisition to be paid in Q3. We drew down $50 million in July to partially fund this acquisition with the remaining CapEx to be funded with cash from the balance sheet. With our full revolving credit facility structure, we plan to continue actively managing our cash and debt positions to reduce interest expense while maintaining access to capital to act on growth opportunities as we have demonstrated in recent years. We view our strong balance sheet as a core component of our comprehensive value strategy and a strategic asset that enables us to act quickly and decisively as we have demonstrated in recent years with our accretive growth initiatives. As outlined on Slide 18, we believe Genco is in an advantageous position. A fleet of 43 high-quality modern dry bulk vessels are significant operating leverage combined with low financial leverage, a $10,000 cash flow breakeven rate and $350 million of undrawn revolver availability collectively provide an attractive risk-reward balance for shareholders. Furthermore, we continue to provide shareholders with compelling quarterly dividends. Our established and transparent dividend policy targets a distribution based on 100% of operating cash flow less a voluntary reserve as described on Slide 19. In the second quarter, our Board declared a dividend of $0.80 per share based on operating cash flow of $55 million and a voluntary quarterly reserve of $19.5 million. Operating cash flow in Q2 increased by 55% relative to the prior quarter, which flowed through the dividend, which more than doubled. The second quarter dividend represents an annualized dividend yield of approximately 12% based on the current stock price. Consistent with previous quarters, other operating expenses are not included in the dividend calculation, which is in line with the methodology used in the previous 4 quarters in which these extraordinary expenses have been incurred. Q2 also marked the first full quarter in which our 2025 acquisitions were integrated into our fleet. These acquisitions alone had a quarterly dividend impact of approximately $0.15 per share in Q2 2026 or nearly 20% of the $0.80 dividend, underscoring how accretive these acquisitions have been. These acquisitions were fully funded with our existing liquidity, highlighting the benefit of our strong balance sheet. As a result, each Genco share immediately received this uplift in earnings, making these transactions highly accretive to cash flows, dividends and overall shareholder value. Looking ahead to Q3 2026, we currently have 66% of owned available days fixed at approximately $28,600 per day as compared to our anticipated cash flow breakeven rate, excluding drydocking-related CapEx of approximately $10,000 per vessel per day. Importantly, Q3 2026 TCE is on pace to increase by nearly 80% year-over-year and our highest level since Q2 2022. As a result, we expect a significantly higher dividend in Q3 2026 as compared to both Q2 2026 and Q3 2025. I will now turn the call over to Michael Orr, our drybulk market analyst, to discuss the industry's current landscape. Michael Orr: Thank you, Peter. Beginning on Slide 21. During the second quarter of 2026, freight rates continue to rise following a strong Q1. Specifically, the Baltic Capesize Index averaged over $36,000 per day in Q2, the highest quarterly level since 2021, while the Baltic Supramax Index averaged over $17,000 per day, the highest mark since 2022. In Q3 to date, rates continue to be firm with the forward freight curve playing to levels in excess of $35,000 and $18,000 per day across the Capesize and Supramax sectors, respectively. We believe the strong dry bulk earnings environment is due to a continued solid iron ore trade, significant growth in bauxite exports and a reemergence of the coal trade. These demand side catalysts have extended trading distances, accentuating the existing capacity constraints of the dry bulk fleet. Turning to Slide 22. China continues to import large volumes of iron ore led by abundant seaborne supplies from Brazil and Australia. Specifically, China's iron ore imports in the first half of 2026 increased by 6% on a year-over-year basis, while Brazilian exports were up by 2% over this period. Importantly, in June, we saw record Chinese iron ore imports of 113 million tons as well as all-time high Brazilian shipments of 42 million tons, which were increases of 8% and 18% year-over-year, respectively. Historically, Brazilian exports are approximately 20% higher in the second half as compared to the first half of the year. The Atlantic Basin for Capesize vessels has also been met with rapidly growing exports of bauxite from West Africa as highlighted on Slides 23 and 24. This trade has been supportive to Capesize vessels in recent months given the ton-mile intensity of the trade route. Furthermore, Simandou iron ore exports have steadily grown since the first shipments in Q4, exceeding 2 million tons in May, with full year volumes expected to be weighted towards the second half of the year following the rainy season. Going forward, given the scale of the expected growth projects from Simandou on the iron ore side as well as continued iron ore growth from Vale in Brazil and bauxite out of West Africa, these incremental volumes could absorb potentially over 200 Capesize vessels. Supply constraints in newbuilding activity, combined with added long-haul trading distances are two key catalysts for the sector. Furthermore, as detailed on Slide 25, with the escalation of geopolitical tensions in recent months, the key theme of energy security has once again risen to the forefront. For dry bulk specifically, that translates to augmented demand for coal as a potential replacement for other sources of energy that have either experienced disruptions or rising prices. Notably, we have seen an increase in coal cargoes originating from the U.S. and Colombia with Asian destinations. These long-haul trade routes once again further stretched the dry bulk fleet. Additionally, a high probability of an El Niño weather event could lead to low water levels in the Panama Canal, resulting in reduced transits, further increasing fleet inefficiencies. On Slide 27, we highlight the global grain trade. China has increased its purchase of U.S. soybeans with year-to-date imports from the U.S. already exceeding all of last year. In terms of newbuilding deliveries in the year-to-date, as outlined on Slide 28, net fleet growth in the first half of 2026 was 3.9%, split between 1% net fleet growth for Capesizes and 4% to 6% net fleet growth from Panamaxes down to Handysize. Specifically, we have only seen 21 Capes delivered to the global fleet so far this year, which represents a reduction of 75% as compared to the 15-year average, highlighting the impact of the low order book coming to fruition in 2026, which is a key pillar of the Capesize and dry bulk pieces. Additionally, as scrapping has remained low in recent years, the age of the global fleet has risen to 13 years old, the highest average age of the global dry bulk fleet since 2010. This has increased the pool of potential scrapping candidates as 12% of the on-the-water fleet is 20 years or older, which is nearly identical to the global dry bulk order book as a percentage of the fleet of 14%. This implies net replacement of tonnage over time as opposed to any material net fleet growth. While we expect volatility in the freight rate market to persist, the foundation of a low supply growth picture provides a solid basis for our positive view of the dry bulk market going forward. I will now turn the call back over to John to conclude the call. John Wobensmith: Thank you, Michael. Turning to Slide 30. The second quarter marked another period of disciplined execution of our comprehensive value strategy, resulting in strong financial results as we generated EBITDA for the first half of the year that exceeded total EBITDA for all of 2025 and increased our Q2 dividend by over 400% to a value strategy high level. We are continuing to realize the significant benefits of our sizable operating leverage, strong balance sheet and industry low breakeven levels that have enabled Genco to increase its earnings power and dividend capacity. We are operating in a strong rate environment and asset values have continued to increase, which together with strong cash flow generation, has contributed to Genco's increasing net asset value. As we look ahead, Genco is well positioned to continue driving returns through sizable dividends and creating value for shareholders. Before we turn the call over to Q&A, I'd like to provide a brief update on the latest proposal we received from Diana Shipping. The Board is continuing to review Diana's nonbinding indicative proposal to acquire all remaining outstanding shares of Genco's common stock in exchange for $24.80 per share in cash, plus 1 share of Diana common stock per Genco share. As part of that review, our advisers have engaged with Diana's advisers to discuss their proposal, including its price structure and terms. Genco's Board has authorized its financial advisers to continue discussions with Diana's financial advisers with the goal of determining whether a transaction that fully and fairly compensates Genco shareholders is achievable. The Board has directed its advisers to engage on several key topics, including Genco's current NAV, an appropriate control premium to NAV that reflects the value of Genco's sizable and industry-leading platform in a rising market, how to protect Genco shareholders from the significant potential dilution associated with Diana's proposed issuance of new stock as part of the contemplated transaction and the limited rights granted to Diana shareholders under its existing governing documents, along with Diana's pre-agreed sale of Genco vessels to Star Bulk at a large discount to current market value. Also, the treatment of Genco's Q2 dividend of $0.80 per share and future dividends as the cash component of Diana's offer is to be reduced by dividends declared. Said differently, Diana's offer is decreasing while Genco's NAV in the dry bulk market is rising. And finally, how to fairly reflect Genco's strong cash flow generation in which dividends to shareholders are projected to be over $1 per share in both Q3 and Q4 of 2026. Our Board is committed to maximizing shareholder value and we will continue to act in the best interest of all Genco shareholders. We will provide a further update on our review of the proposal in due course. Please note that the purpose of today's call is to discuss our second quarter results and opportunities ahead in a strengthening dry bulk market. We ask that you please keep your questions focused on our results, performance and industry trends. Thank you in advance. And this concludes our presentation. We'd be happy to take your questions. Operator: [Operator Instructions] Your first question comes from the line of Omar Nokta with Clarksons. Omar Nokta: Well, it looks like business is looking good. You declared your biggest dividend so far under your comprehensive value strategy. Next one is looking bigger and perhaps the one after that, too. I guess I appreciate your comments that you just made on Diana. I just wanted to ask in terms of managing the business, how has it been here recently? Has that process that you've been dealing with or at least your advisers and the Board, has that affected business at Genco or strategy to any extent? John Wobensmith: Look, I think it's obviously one more thing that has been added to our list, but we have a very well thought out comprehensive value strategy, as you just said, with low leverage, high dividends and growth opportunities. So that is in place. And again, it was a strategy that the Board put in place several years ago at this point. It's been working well. So we're continuing to follow that strategy. We -- strong governance and capital allocation, the two main components that we believe creates real value for shipping companies in the public market. So we're very focused on those two aspects as well. We did grow our fleet by 20% on an asset value basis in 2025. So acquisitions are still very much on the table. We still have the Genco Volunteer that we're taking delivery of, I believe, next week. And the investments that we've -- so far since 2023 on the Capesize side, over 30% IRR. So company is running on all cylinders, irrespective of the proxy issues that are now behind us and concluded for the time being. So we're going to continue to look at growth opportunities. We're going to continue to run under the value strategy and return cash to shareholders in the form of dividends. Omar Nokta: Yes. And maybe just as a follow-up on that point, just kind of talking about the fleet. As you mentioned, you've got the Volunteer coming in perhaps next week, and you've got those two Newcastlemaxes from earlier this year that were well timed. It looks like you'll be at basically a fleet split of 20 Capes, 24 Ultra Supras. How do you see that balance in general? Yes. And does the secondhand market, as you mentioned, they're going up in terms of values and your NAV is rising with that. Is it still compelling to look at the secondhand market? And what are your thoughts just on, say, newbuildings in general? John Wobensmith: Okay. So in the secondhand market, yes, values continue to firm. Freight rates also have moved back up and started to recover from the early part of the year, which has all been positive. So -- and we are still in a mode of fleet renewal. So even if we were buying assets at higher numbers, we're also selling our older assets at higher numbers. So we're -- again, we want to continue fleet renewal. We're going to do that. We'll have to see on just on large-scale growth, how we accomplish that. But it is nice that our shares are trading fairly well. So at some point, if there is an attractive transaction, there's a possibility of using shares as currency along with cash. On the newbuilding side, we have -- I wouldn't say we're full scale against them, but it's not something that we typically focus on. And the reason is because you're really talking about 2029 delivery dates at this point in the dry bulk sector. And so you have money that is what I'll call dead money. It's money out the door, but it's not earning anything, which we don't believe works well for public companies. And probably more importantly, when we're buying assets, we like to be able to derisk them on the front end. So we like to get the cash flows as soon as possible. So I think you'll see us focus mostly on the secondhand market rather than looking at newbuilds at this point. Operator: Your next question comes from the line of Liam Burke with B. Riley Securities. Liam Burke: Peter, you're taking delivery of that Capesize. John and Omar went over the puts and takes of the potential adding of assets. But you add about additional debt when you take delivery of that Cape, but how are you going to manage your debt balance, which is fine as it is as well as potential asset acquisitions plus your dividend strategy? John Wobensmith: Pete, do you want to. Peter Allen: Sure. Yes, I'll take that. Thanks for the question, Liam. So yes, in terms of our overall debt balance, so we ended the quarter with $330 million of debt outstanding. And in July, we drew down $50 million to fund -- to partially fund the balance of the acquisition that John said we'll be getting shortly here in the month of August. Overall, on a pro forma basis, we're still around a 20% net loan to value, and we'll still have about $300 million of undrawn revolver availability. So a lot of flexibility to continue to grow on an accretive basis as we've shown over the last several years under the value strategy. But like John said, there's opportunities for fleet renewal, and we'll continue to assess various growth opportunities. The great thing about the revolver is that as we build cash, if there aren't immediate needs for acquisition CapEx, we can pay down the revolver and save interest expense and all that savings flows right into the dividend. So lot of flexibility both to play offense, as John said in the prepared remarks, in all types of earnings environments. Liam Burke: Great. Thank you, Peter. Michael, you talked about iron ore demand in China being so strong, and I get it, you can't argue with the numbers. But steel production generally, not only in China, but worldwide is sort of down single digits. What's creating this demand for the iron ore? Michael Orr: Thank you, Liam. It has not been the traditional construction demand that we've seen in past years. It is a lot of secondary markets such as infrastructure and manufacturing, particularly solar panels as well as electric vehicles that has seen an uptick in demand for this iron ore. Peter Allen: And just to build on that a little bit here, Liam, is we've seen record amounts of iron ore being exported out of Brazil, over 42 million tons in the month of June. And typically, those shipments are weighted towards the second half of the year, and we've also seen a record amount of imports into China in the month of June. So still strong commodity demand. And then when you add that on top of the bauxite trade as well as continued coal demand from an energy security perspective, you have the three main commodities from a major bulk perspective really working at the same time here. So a lot of positives, longer ton miles, longer trading distances, and that accentuates the capacity constraints with the limited net fleet growth. Operator: Your next question comes from the line of Chris Robertson with Deutsche Bank Securities Inc. Christopher Robertson: I just wanted to kind of follow up here on Liam's line of questions related to iron ore and then especially how it relates to trade patterns through the Panama Canal, and you guys have a nice slide laying out the potential impact here from El Nino. Just wanted to check in on the current status of the wait times at the Panama Canal, if the fees have gone up there? And has that caused any rerouting generally, not only for your fleet, but others in the dry bulk fleet rerouting, just pushing more vessels around Cape of Good Hope rather than going through the canal. John Wobensmith: Yes. So there's a few things going on. We obviously have the El Nino and a high probability of it. I think it's 80% in Q4 and all the way up to 97% in the first half of 2027. So we could easily have a situation like what we saw in 2023. They have cut booking capacity down from 36 to 34 effective the end of July. That doesn't sound like a lot, but it is early to be doing that. And if you remember, I think that number went down to 22 transits in 2023. So we could easily be looking at that situation, which will create more inefficiencies in the dry bulk market, particularly as we get into the fourth quarter when we're into grain season and U.S. agriculture exports ramp up. So stay tuned on how that plays out. The other thing that's been going on is, obviously, there have been -- because of our moves, there's been a lot of tankers and gas that have been going through the canal. So I think the sheer number of vessels that have canal demand use has also gone up. Christopher Robertson: Yes, that makes sense. John, if you could further elaborate when it comes to the number of transits per day, how does that wait time look in terms of people bidding for priority slots? I guess, is it kind of a two-lane traffic there? And what are the logistics around that? John Wobensmith: Well, there's definitely -- so everybody, for the most part, is securing slots ahead of time. There's no transit that they're allowing to occur without a book slot. We have definitely seen auction prices go up again, but it's volatile. There's been a range of $0.5 million to $1.5 million. I think there was even one as high as 2.9 million this week. So it's a little bit all over the place, but we expect that auction system to remain, and those numbers will probably go up as you get into the end of this year and early next year if El Nino does what everyone thinks it's going to do. Operator: This concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. 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Interested in Genco Shipping & Trading Limited? Here are five stocks we like better. Strong Q2 performance: Genco reported $29.2 million in adjusted net income and $56.7 million in adjusted EBITDA, while TCE rates rose 78% year over year to $24,273 per day. Record dividend and higher payout outlook: The company declared an $0.80-per-share dividend, its largest under the value strategy, and expects quarterly dividends above $1 in Q3 and Q4 based on current freight-rate projections. Positive market and strategic developments: Robust iron ore, bauxite and coal trade, limited Capesize fleet growth and the addition of the Genco Volunteer are supporting earnings, while Genco continues reviewing Diana Shipping’s non-binding acquisition proposal. MarketBeat’s Top-Rated Dividend Stocks for 2026 Genco Shipping & Trading (NYSE:GNK) reported stronger second-quarter results as dry bulk freight rates rose, supported by higher earnings from its expanded fleet and a continued focus on low leverage and shareholder dividends. The company generated net income of $16.6 million, or $0.37 per diluted share, for the second quarter of 2026. Adjusted net income was $29.2 million, or $0.65 per diluted share, excluding items including shareholder and proxy-related expenses, vessel impairment and an unrealized fuel loss. Adjusted EBITDA totaled $56.7 million, up about 300% from a year earlier. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Spotlight on ZIM: Take Advantage of Shipping Stock Upside Genco's time charter equivalent, or TCE, rate reached $24,273 per day during the quarter, rising 78% year over year and representing its highest quarterly TCE rate since 2022. CEO John Wobensmith said the result exceeded the company's expectations as the dry bulk market strengthened and Genco benefited from its fleet of higher-specification vessels. The board declared a second-quarter dividend of $0.80 per share, more than twice the first-quarter dividend and 433% above the dividend declared a year earlier. Wobensmith said it was Genco's largest quarterly dividend since the company began its comprehensive value strategy in 2021 and its 28th consecutive quarterly dividend. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Danaos Benefits from Increasing Demand in Container Shipping Under Genco's dividend framework, the company targets distributions based on 100% of operating cash flow less a voluntary reserve. CFO Peter Allen said the second-quarter dividend was based on $55 million in operating cash flow and a $19.5 million voluntary quarterly reserve. The dividend represented an annualized yield of about 12% based on the stock price cited by the company. Genco said its vessel acquisitions completed in 2025, which increased its asset base by roughly 20%, were fully incorporated into operations for the first full quarter during the second quarter. Allen said those acquisitions contributed approximately $0.15 per share to the quarterly dividend, or nearly 20% of the $0.80 distribution. → No Hangover: Revisiting Microsoft One Week After Earnings The company expects a higher dividend in the third quarter. It had fixed 66% of its available third-quarter days at about $28,600 per day as of the call, and management projected a third-quarter dividend above $1 per share using the forward freight agreement curve for the remaining available days. It also projected a dividend above $1 per share in the fourth quarter based on the FFA curve, which would result in a full-year dividend above $3.15 per share. Genco expects to take delivery in August of the 2019-built Capesize vessel Genco Volunteer. The vessel will bring the company's total investment in Capesize and Newcastlemax vessels since 2023 to $408 million. Wobensmith said the company has achieved an internal rate of return above 30% to date on those investments. Following the delivery, Genco expects to own 20 Capesize and Newcastlemax vessels as well as 24 Ultramax and Supramax vessels. Wobensmith said the company intends to deploy the Genco Volunteer in the spot market and expects it to earn a premium to the Baltic Capesize Index because of its specifications. The company ended the second quarter with $74 million in cash and $330 million in debt, along with $350 million of undrawn revolver availability. Allen said Genco paid a $6.5 million installment for the Genco Volunteer in the second quarter and had $58.5 million of remaining capital expenditures for the purchase to be paid in the third quarter. The company drew $50 million in July to partially finance the acquisition, with the balance to be funded from cash. Allen said the company expects to maintain approximately 20% net loan-to-value on a pro forma basis after the vessel delivery. Genco cited a cash-flow breakeven rate of approximately $10,000 per vessel per day before maintenance capital expenditures and no mandatory debt amortization. Every $1,000 increase in fleet-wide TCE equates to an estimated $16 million of incremental annualized EBITDA, or $0.36 per share, according to Genco. Every $5,000 increase in TCE for its 20 Capesize and Newcastlemax vessels equates to an estimated $36 million, or $0.81 per share, of incremental earnings and dividend capacity. Vice President of Finance Michael Orr said the Baltic Capesize Index averaged more than $36,000 per day in the second quarter, its highest quarterly level since 2021. The Baltic Supramax Index averaged more than $17,000 per day, its highest level since 2022. In the third quarter to date, the forward curve indicated levels above $35,000 per day for Capesize vessels and above $18,000 per day for Supramax vessels, he said. Orr attributed the freight environment to solid iron ore trade, growing bauxite exports and a re-emergence of coal trade. China’s iron ore imports rose 6% year over year in the first half, while Brazilian iron ore exports increased 2%. In June, China imported a record 113 million tons of iron ore and Brazil shipped a record 42 million tons, according to the company. Management also pointed to West African bauxite exports, including growing shipments from Simandou, as supportive of Capesize demand because of the longer distances involved. Orr said anticipated iron ore growth from Simandou and Brazil, alongside bauxite growth from West Africa, could potentially absorb more than 200 Capesize vessels. Coal shipments from the U.S. and Colombia to Asian destinations have also increased, according to Genco. Wobensmith said concerns over energy security have contributed to demand for coal cargoes, extending trade distances and increasing fleet utilization. The company said global dry bulk fleet growth was 3.9% in the first half, including net fleet growth of 1% for Capesize vessels. Only 21 Capesize vessels were delivered year to date, a 75% reduction from the 15-year average, Orr said. He added that 12% of the existing dry bulk fleet is at least 20 years old, compared with an orderbook equal to 14% of the global fleet. During the question-and-answer session, Wobensmith said a potential El Niño weather event could reduce Panama Canal capacity, particularly during the fourth-quarter grain season. He said the canal had reduced booking capacity from 36 to 34 transits effective at the end of July and noted that transits had fallen as low as 22 during 2023. Wobensmith said auction prices for canal transit slots have ranged from about $500,000 to $1.5 million, with one recent transaction reaching $2.9 million. He said higher demand from tanker and gas shipping traffic has also increased demand for canal access. Genco also provided an update on Diana Shipping’s non-binding proposal to acquire Genco shares for $24.80 in cash plus one Diana share for each Genco share. Wobensmith said Genco’s board and advisers continue to review and discuss the proposal with Diana and its advisers. According to Wobensmith, Genco’s board has directed advisers to address subjects including Genco’s net asset value, an appropriate control premium, potential dilution tied to Diana’s stock issuance, shareholder rights under Diana’s governing documents, and the treatment of Genco dividends. The company said it would provide a further update on the review in due course. Genco Shipping & Trading Limited is a leading global owner and operator of drybulk vessels, providing seaborne transportation services for major commodities such as iron ore, coal, grain and fertilizers. The company's fleet comprises Capesize, Panamax and Supramax vessels, which are chartered to a broad base of international charterers under both spot and period contracts. Genco's focus on modern, fuel-efficient tonnage supports reliable cargo delivery across a variety of trade routes and market conditions. In addition to vessel ownership and operation, Genco offers ship management, maintenance and technical support services designed to maximize fleet performance and safety. 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 "Genco Shipping & Trading Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Genco Shipping & Trading Ltd (NYSE:GNK) reported a record Q2 2026 dividend of $0.80 per share, the highest since the inception of its comprehensive value strategy in 2021, and projects Q3 and Q4 dividends of over $1 per share each. The company achieved its highest quarterly TCE rate since 2022 at over $24,200 per day, with Q2 adjusted EBITDA of nearly $57 million, a 300% increase year-over-year. Genco Shipping & Trading Ltd (NYSE:GNK) maintains a strong balance sheet with a low cash flow breakeven rate of approximately $10,000 per day and $350 million in undrawn revolver availability, providing flexibility for growth and dividends. The company's strategic fleet expansion, including the upcoming delivery of the 2019-built cape size vessel Genco Volunteer, has generated an IRR of over 30% on its cape size and Newcastlemax acquisitions since 2023. Genco Shipping & Trading Ltd (NYSE:GNK) benefits from a favorable dry bulk market outlook, driven by strong iron ore demand, growing bauxite exports, and a reemergence of coal trade, which are expected to support freight rates. The company has a strong track record of shareholder returns, having paid 28 consecutive quarterly dividends, the longest uninterrupted period in its dry bulk peer group. Genco Shipping & Trading Ltd (NYSE:GNK) faces potential dilution and uncertainty from Diana Shipping's non-binding indicative proposal to acquire the company, which includes a cash and stock component that could dilute existing shareholders. The company incurred significant other operating expenses of $13.1 million in Q2 2026, primarily related to shareholder and proxy expenses, which negatively impacted net income. Genco Shipping & Trading Ltd (NYSE:GNK) is exposed to potential disruptions from a high probability of an El Nino weather event, which could lead to low water levels in the Panama Canal, increasing fleet inefficiencies and costs. The company's dividend is subject to market volatility, and while Q3 and Q4 projections are strong, they are based on current FFA curves and fixtures, which could change if freight rates decline. Genco Shipping & Trading Ltd (NYSE:GNK) has a significant capital expenditure obligation of $58.5 million for the Genco Volunteer in Q3 2026, which will require drawing down on its revolver and using cash reserves. The company's fleet is weighted towards cape size vessels, which, while providing upside in strong markets, also exposes it to higher volatility compared to more stable minor bulk segments. Warning! GuruFocus has detected 14 Warning Signs with GNK. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock? Is GNK fairly valued? Test your thesis with our free DCF calculator. Q: How has the ongoing review of Diana Shipping's acquisition proposal affected Genco's business operations or strategy? A: John Wilbensmith, Chairman and CEO, stated that while the proposal adds to their workload, the company's comprehensive value strategy remains firmly in place. The strategy, focused on low leverage, high dividends, and growth opportunities, is being executed as planned. He emphasized that the company is "running on all cylinders," with fleet growth, the upcoming delivery of the Genco Volunteer, and a continued focus on returning cash to shareholders, irrespective of the proxy issues that are now behind them. Q: Can you elaborate on the company's fleet composition strategy and its views on the second-hand and newbuilding markets? A: John Wilbensmith, Chairman and CEO, explained that while second-hand asset values are firming, the company is in a fleet renewal mode, selling older assets at higher prices to fund acquisitions. He noted that large-scale growth could potentially involve using shares as currency given the current stock price. Regarding newbuildings, he stated the company is not focused on them due to 2029 delivery dates, which tie up capital without earning returns ("dead money"). The preference is to buy second-hand assets to derisk and generate cash flows immediately. Q: How will Genco manage its debt balance, potential asset acquisitions, and dividend strategy going forward? A: Peter Allen, CFO, detailed that the company ended Q2 with $330 million in debt and drew down $50 million in July to partially fund the Genco Volunteer acquisition. On a pro forma basis, net loan-to-value remains around 20%, with approximately $300 million of undrawn revolver availability. He highlighted the flexibility of the revolver structure, which allows the company to pay down debt to save interest expense when there are no immediate acquisition needs, with those savings flowing directly into the dividend. Q: Given the strong iron ore demand, what is driving this demand if traditional steel production is down? A: Michael Oar, Dry Bulk Market Analyst, attributed the demand to secondary markets such as infrastructure, manufacturing, solar panels, and electric vehicles, rather than traditional construction. Peter Allen, CFO, added that record iron ore exports from Brazil (42 million tons in June) and record imports into China (113 million tons in June) are combining with the bauxite trade and coal demand from an energy security perspective, creating longer trading distances and accentuating capacity constraints. Q: What is the current status of the Panama Canal, and how are El Nino conditions affecting transit times and routing? A: John Wilbensmith, Chairman and CEO, noted an 80% probability of El Nino in Q4, rising to 97% in the first half of 2027. The canal has cut booking capacity from 36% to 34%, which is early, and could lead to a situation similar to 2023 when transits dropped to 22 per day. Auction prices for transit slots have been volatile, ranging from $0.5 million to $1.5 million, with one as high as $2.9 million. This is expected to create more fleet inefficiencies, particularly during the Q4 grain season. Q: Can you provide more detail on the logistics of bidding for priority slots at the Panama Canal? A: John Wilbensmith, Chairman and CEO, explained that all transits require a pre-booked slot, and the auction system is active. He reiterated that auction prices are volatile and expected to increase further if El Nino materializes as predicted, impacting the dry bulk market's efficiency. Q: What were the key drivers behind the record Q2 dividend and the strong financial results? A: Peter Allen, CFO, highlighted that the Q2 dividend of $0.80 per share was driven by a TCE rate of $24,273 per day, a 78% increase year-over-year, and adjusted EBITDA of $56.7 million, up approximately 300%. The first full quarter of integration for the 2025 vessel acquisitions contributed approximately $0.15 per share to the dividend, underscoring the accretive nature of these transactions, which were fully funded with existing liquidity. Q: What is the outlook for the Q3 2026 dividend and the remainder of the year? A: John Wilbensmith, Chairman and CEO, projected a Q3 dividend of over $1.00 per share based on current fixtures of $28,600 per day for 66% of available days and the FFA curve. He also projected another dividend north of $1.00 per share in Q4, bringing the full-year 2026 dividend to over $3.15 per share. This would mark a significant increase and a new record for the company. Q: What are the key supply-side factors supporting the positive dry bulk market outlook? A: Michael Oar, Dry Bulk Market Analyst, highlighted that net fleet growth in the first half of 2026 was only 3.9%, with just 21 capes delivered, a 75% reduction compared to the 15-year average. The global fleet's average age has risen to 13 years, the highest since 2010, with 12% of the fleet over 20 years old, nearly matching the order book as a percentage of the fleet (14%). This implies net replacement of tonnage over time, providing a solid foundation for the market. Q: What are the key demand-side catalysts currently driving the dry bulk market? A: Michael Oar, Dry Bulk Market Analyst, cited continued solid iron ore trade, significant growth in bauxite exports from West Africa, and a reemergence of the coal trade driven by energy security concerns. These factors have extended trading distances, particularly with increased coal cargoes from the US and Colombia to Asian destinations, further stretching the dry bulk fleet and accentuating capacity constraints. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Genco Shipping & Trading (GNK) came out with quarterly earnings of $0.65 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to a loss of $0.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +27.45%. A quarter ago, it was expected that this transporter of drybulk cargo would post a loss of $0.04 per share when it actually produced earnings of $0.26, delivering a surprise of +750%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Genco Shipping, which belongs to the Zacks Transportation - Shipping industry, posted revenues of $92.33 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.62%. This compares to year-ago revenues of $48.93 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Genco Shipping shares have added about 40.9% since the beginning of the year versus the S&P 500's gain of 13%. While Genco Shipping has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Genco Shipping was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.76 on $97.57 million in revenues for the coming quarter and $2.12 on $356.67 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Shipping is currently in the top 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Heidmar Maritime Holdings Corp. (HMR), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of +900%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Heidmar Maritime Holdings Corp.'s revenues are expected to be $24.43 million, up 155% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Genco Shipping & Trading Limited (GNK) : Free Stock Analysis Report Heidmar Maritime Holdings Corp. (HMR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Declares Dividend of $0.80 per Share for Q2 2026, a Record Value Strategy Dividend Projects Another Record Dividend in Q3 2026 NEW YORK, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Genco Shipping & Trading Limited (NYSE:GNK) (“Genco” or the “Company”), the largest U.S. headquartered drybulk shipowner focused on the global transportation of commodities, today reported its financial results for the three months and six months ended June 30, 2026. Second Quarter 2026 and Year-to-Date Highlights Dividend Q2 2026 financial results Estimated Q3 2026 TCE to date John C. Wobensmith, Chairman and Chief Executive Officer, commented, “We have transformed Genco into a low-leverage, high-dividend company, supported by a fleet of premium-earning assets, industry low breakeven levels and a leading commercial operating platform. We continue to execute our Comprehensive Value Strategy and generate compelling returns for shareholders. Our strategy of purchasing high-specification assets, with over $550 million of investments made since 2021, has enhanced Genco’s earnings power and dividend capacity. Our Q2 dividend of $0.80 per share increased by 433% on a year-over-year basis, marking a value strategy record. This represents our 28th consecutive quarterly dividend, the longest stretch in the drybulk peer group with dividends totaling $8.715 per share over that time. Based on our significant operating leverage in a strengthening market, firm fixtures to date and assuming the current FFA curve, we project a record Q3 dividend of over $1 per share, an increase of more than 560% year-over-year. Our Q3 TCE to date is 18% higher than Q2 levels and the highest level since Q2 2022. Complementing the strong rate environment, asset values have continued to rise, contributing to Genco’s increasing net asset value (NAV). The drybulk market remains strong and we are well positioned to continue to deliver compelling returns and value to shareholders in 2026 and beyond.” 1 Genco share price as of August 4, 2026.2 Q3 2026 projected dividend shown is based on fixtures to date (representing 66% of our owned fleet available days), assuming the current FFA curve for the balance of the quarter and estimated expense levels and utilization as described in the appendix to our Q2 2026 earnings presentation posted on our website under “Investors – Events and Presentations.” Given freight market volatility, the FFA curve is subject to change.3 We believe the non-GAAP measure presented provides investors with a means of better evaluating and understanding the Company’s operating performance. Adjusted net income and adjusted EBITDA exclude non-cash impairment charges, other operating expense, net gains on vessel sales and unrealized losses on fuel hedges. Please see Summary Consolidated Financial and Other Data below for further reconciliation. Regarding Q3 2026 TCE, this estimate is based on both period and current spot fixtures, actual results will vary from current estimates. Net revenue is defined as voyage revenues minus voyage expenses, charter hire expenses and realized gains or losses on fuel hedges. Comprehensive Value Strategy Genco’s consistent comprehensive value strategy is centered on three pillars: Dividends: paying sizeable quarterly cash dividends to shareholders Deleveraging: maintain low financial leverage and a low cash flow breakeven rate, and Growth: opportunistically renewing and growing our asset base Key characteristics of our strategy include: Net loan-to-value of 18% at June 30, 20264 Strong liquidity position of $423.6 million at June 30, 2026, which consists of: High operating leverage with our scalable fleet across the major and minor bulk sectors 4 Represents the principal amount of our credit facility debt outstanding less our cash and cash equivalents as of June 30, 2026 divided by estimates of the market value of our fleet based on the average of broker valuations received from two independent third-party firms as of July 15, 2026. The actual market value of our vessels may vary. Fleet Renewal and Growth The Company expects to take delivery of the Genco Volunteer, a 2019 Imabari built 182,000 dwt scrubber-fitted Capesize vessel, in August 2026. We drew down $50.0 million under our $680 million revolving credit facility (the “$680 Million Revolver”) in July 2026 to partially fund this acquisition. We have $58.5 million of remaining capital expenditures for this acquisition after funding $6.5 million in Q2 2026. Pro forma for this vessel acquisition, we expect to have $380 million of debt outstanding and $300 million of undrawn revolver availability. Dividend Policy Genco declared a cash dividend of $0.80 per share for the second quarter of 2026. The Q2 2026 dividend is payable on or about August 24, 2026 to all shareholders of record as of August 17, 2026. Quarterly dividend policy: 100% of quarterly operating cash flow less a voluntary reserve. Under the quarterly dividend policy adopted by our Board of Directors, the amount available for quarterly dividends is to be calculated based on the formula in the table below. The table includes the calculation of the actual Q2 2026 dividend: Operating cash flow is defined as net revenue (consisting of voyage revenue less voyage expenses, charter hire expenses, and realized gains or losses on fuel hedges), less operating expenses (consisting of vessel operating expenses, general and administrative expenses other than non-cash restricted stock expenses, technical management expenses, and interest expense other than non-cash deferred financing costs), for purposes of the foregoing calculation. The voluntary quarterly reserve for the third quarter of 2026 under the Company’s dividend formula is targeted at $19.5 million, which remains fully within our discretion. A key component of Genco’s value strategy is maintaining a voluntary quarterly reserve, as well as the optionality for the use of the reserve as Genco seeks to pay sizeable dividends across the cyclicality of the drybulk market while continuing to invest in our fleet. Subject to the development of freight rates for the remainder of the third quarter and our assessment of our liquidity and forward outlook, we maintain flexibility to reduce the quarterly reserve to pay dividends or increase the amount of dividends otherwise payable under our formula. The reserve is set by our Board of Directors at its discretion, and our Board has generally allotted an amount for anticipated debt prepayments plus an additional amount. We plan to set the voluntary reserve on a quarterly basis for the subsequent quarter. Anticipated uses for the voluntary reserve include, but are not limited to: Vessel acquisitions Debt repayments, and General corporate purposes The Board expects to reassess the payment of dividends as appropriate from time to time. Our quarterly dividend policy and declaration and payment of dividends are subject to legally available funds, compliance with applicable law and contractual obligations (including our credit facility) and the Board of Directors’ determination that each declaration and payment is at the time in the best interests of the Company and its shareholders after its review of our financial performance. Peter Allen, Chief Financial Officer, commented, “We delivered strong second quarter results, driven by our considerable operating leverage and growing asset base of high quality vessels. The investments we have made in our fleet have strengthened our cash flow generation and increased our net asset value, demonstrating the value of our disciplined and strategic approach to capital allocation. We generated adjusted EBITDA of $56.7 million in the second quarter and $92.9 million during the first half of 2026, exceeding our total EBITDA in all of 2025. Building on our strong Q2 dividends, we are well positioned to continue to take advantage of the strong drybulk market and our industry low breakeven levels to deliver even higher dividends to shareholders in Q3 2026. We continue to balance our high operating leverage and low financial leverage, enabling Genco to take capture growth opportunities that expand our earnings power and dividend capacity for the benefit of all Genco shareholders.” Genco’s Active Commercial Operating Platform and Fleet Deployment Strategy We utilize a portfolio approach towards revenue generation through a combination of: Short-term, spot market employment, and Strategically booking longer term fixed rate coverage based on market timing and management’s outlook Our fleet deployment strategy currently remains weighted towards short-term fixtures, which provide us with optionality on our sizeable fleet. Based on current fixtures to date, our estimated TCE to date for the third quarter of 2026 on a load-to-discharge basis is presented below. Actual rates for the third quarter will vary based upon future fixtures. These estimates are based on time charter contracts entered by the Company as well as current spot fixtures on the load-to-discharge method, whereby revenue is recognized ratably over the voyage from the commencement of loading to the completion of discharge. The actual TCE rates to be earned will depend on the number of contracted days and the number of ballast days at the end of the period. According to the load-to-discharge accounting method, the Company does not recognize revenue for any ballast days or uncontracted days at the end of the third quarter of 2026. At the same time, expenses for uncontracted days will be recognized as incurred. Our index-linked charters are listed below Financial Review: Second Quarter 2026 The Company recorded net income for the second quarter of 2026 of $16.6 million, or $0.38 and $0.37 basic and diluted earnings per share, respectively. Adjusted net income of $29.2 million or basic and diluted earnings per share of $0.67 and $0.65, respectively, excluding a net gain on sale of vessels of $1.9 million, impairment of vessel assets of $1.2 million, other operating expense of $13.1 million and unrealized loss on fuel hedges of $0.2 million. Comparatively, for the three months ended June 30, 2025, the Company recorded a net loss of $6.8 million, or $0.16 basic and diluted net loss per share. Adjusted net loss for the three months ended June 30, 2025 amounted to $6.2 million, or $0.14 basic and diluted net loss per share, excluding a non-cash vessel impairment charge of $0.7 million. Revenue / TCEThe Company’s revenues increased to $136.4 million for the three months ended June 30, 2026 as compared to $80.9 million recorded for the three months ended June 30, 2025, primarily due to higher rates earned by our major and minor bulk vessels, the operation of a larger fleet, as well as fewer drydocking days during the second quarter of 2026 as compared to the second quarter of 2025. The average daily time charter equivalent, or TCE, rates for the Company’s fleet was $24,273 per day for the three months ended June 30, 2026 as compared to $13,631 per day for the three months ended June 30, 2025. Voyage expensesVoyage expenses increased to $44.1 million for the three months ended June 30, 2026 from $32.0 million during the prior year period. The increase was primarily due to the operation of a larger fleet, higher bunker consumption and higher overall port and agency fees, partially offset by the operation of a lower number of third-party chartered-in vessels. Vessel operating expensesVessel operating expenses increased to $26.5 million for the three months ended June 30, 2026 from $23.7 million for the three months ended June 30, 2025. Daily vessel operating expenses, or DVOE, amounted to $6,757 per vessel per day for the second quarter of 2026 compared to $6,213 per vessel per day for the second quarter of 2025. The increase in DVOE was primarily due to higher crew costs and insurance costs, as well as the timing of the purchase of stores and spares. We believe daily vessel operating expenses are best measured for comparative purposes over a 12-month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation. Based on current estimates, our DVOE budget for Q3 2026 is $6,750 per vessel per day on a fleet-wide basis. General and administrative expensesGeneral and administrative expenses increased to $7.9 million for the second quarter of 2026 compared to $7.4 million for the second quarter of 2025. Depreciation and amortization expensesDepreciation and amortization expenses increased to $22.4 million for the three months ended June 30, 2026 from $18.1 million for the three months ended June 30, 2025 primarily due to an increase in vessel depreciation expense for vessels delivered during the fourth quarter of 2025 and the first quarter of 2026, as well as an increase in drydocking amortization expense for certain vessels in our fleet. EBITDAEBITDA for the three months ended June 30, 2026 was $44.2 million compared to $13.6 million during the prior year period. During the three months ended June 30, 2026 and 2025, EBITDA included a gain on sale of vessels, impairment of vessel assets, other operating expenses, as well as unrealized gains and losses on fuel hedges. Excluding these items, our adjusted EBITDA was $56.7 million and $14.3 million, for the respective periods. Financial Review: Six Months 2026 The Company recorded net income of $26.0 million, or $0.59 and $0.58 basic and diluted earnings per share, respectively, for the six months ended June 30, 2026. This compares to a net loss of $18.7 million, or $0.43 basic and diluted net loss per share, for the six months ended June 30, 2025. Revenue / TCEThe Company’s revenues increased to $250.8 million for the six months ended June 30, 2026 compared to $152.2 million for the six months ended June 30, 2025, primarily due to higher rates earned by our major and minor bulk vessels, the operation of a larger fleet, as well as fewer drydocking days during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. TCE rates obtained by the Company increased to $21,836 per day for the six months ended June 30, 2026 from $12,750 per day for the six months ended June 30, 2025. Voyage expensesVoyage expenses increased to $80.4 million for the six months ended June 30, 2026 from $59.4 million for the same period in 2025. The increase was primarily due to the operation of a larger fleet, higher bunker consumption, as well as higher overall port and agency fees. Vessel operating expensesVessel operating expenses increased to $53.1 million for the six months ended June 30, 2026 from $48.7 million for the six months ended June 30, 2025. DVOE was $6,781 for the six months of 2026 versus $6,401 in the six months of 2025. The increase in DVOE was primarily due to the higher crew costs and insurance costs, as well as the timing of the purchase of stores. General and administrative expensesGeneral and administrative expenses for the six months ended June 30, 2026 increased to $16.0 million as compared to $14.9 million in the same period of 2025, primarily due to higher nonvested stock amortization expense. Depreciation and amortization expensesDepreciation and amortization expenses increased to $43.4 million for the six months ended June 30, 2026 from $35.8 million for the six months ended June 30, 2025 due to an increase in drydocking amortization expense for certain vessels in our fleet, as well as an increase in vessel depreciation expense for vessels delivered during the fourth quarter of 2025 and the first quarter of 2026. EBITDAEBITDA for the six months ended June 30, 2026 amounted to $78.3 million compared to $21.6 million during the prior year period. During the six months of 2026 and 2025, EBITDA included a gain on sale of vessels, impairment of vessel assets, other operating expenses, as well as unrealized gains and losses on fuel hedges. Excluding these items, our adjusted EBITDA amounted to $92.9 million and $22.2 million, for the respective periods. Liquidity and Capital Resources Cash Flow Net cash provided by operating activities for the six months ended June 30, 2026 and 2025 was $48.9 million and $8.3 million, respectively. This increase in cash provided by operating activities was primarily due to higher rates earned by our major and minor bulk vessels, as well as changes in working capital. Additionally, there was a decrease in drydocking costs incurred during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Net cash used in investing activities for the six months ended June 30, 2026 and 2025 was $122.2 million and $6.7 million, respectively. This fluctuation was primarily a result of a $137.4 million increase in the purchase of vessel assets due to the purchase of the Genco Stars and Stripes and the Genco Valkyrie, which were delivered on March 5, 2026 and March 24, 2026, respectively, as well as the deposit made on May 1, 2026 for the Genco Volunteer, which is expected to be delivered in August 2026. The increase in net cash used in investing activities was partially offset by $21.1 million net proceeds from the sale of the Genco Picardy and the Genco Predator on March 30, 2026 and April 15, 2026, respectively. Net cash provided by (used in) financing activities during the six months ended June 30, 2026 and 2025 was $91.3 million and ($9.9) million, respectively.  On February 27, 2026, our $600 million credit facility (the “$600 Million Revolver”) was refinanced with the $680 Million Revolver. As part of the debt modification, $4.3 million was settled net among the lenders of the $600 Million Revolver and $680 Million Revolver. The fluctuation resulted primarily from drawdowns totaling $130.0 million on the $600 Million Revolver and the $680 Million Revolver made by the Company during the six months ended June 30, 2026 as compared to drawdowns of only $10.0 million on the $500 Million Revolver during the six months ended June 30, 2025. This increase in cash provided by financing activities was partially offset by a $18.0 million increase in the payment of dividends and a $0.8 million increase in the payment of deferred financing costs related to the $680 Million Revolver during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Capital Expenditures Genco’s current fleet consists of 43 vessels with an average age of 12.8 years and an aggregate capacity of approximately 4,935,000 dwt: Two Newcastlemaxes and 17 Capesizes 15 Ultramaxes and 9 Supramaxes In addition to acquisitions that we may undertake, we will incur additional capital expenditures due to special surveys and drydockings. Furthermore, we plan to upgrade a portion of our fleet with energy saving devices and apply high performance paint systems to our vessels in order to reduce fuel consumption and emissions. We estimate our capital expenditures related to drydocking, including capitalized costs incurred during drydocking related to vessel assets and vessel equipment, ballast water treatment system costs, fuel efficiency upgrades and scheduled off-hire days for our fleet for the balance of 2026 and 2027 to be: (1) Estimates are based on our budgeted cost of drydocking our vessels in China. Actual costs will vary based on various factors, including where the drydockings are actually performed. We expect to fund these costs with cash on hand. These costs do not include drydock expense items that are reflected in vessel operating expenses. (2) Estimated costs associated with the installation of fuel efficiency and other upgrades are expected to be funded with cash on hand. (3) Actual length will vary based on the condition of the vessel, yard schedules and other factors. The estimated offhire days per sector scheduled for Q3 2026 consists of 90 total days for two Capesizes, 55 total days for two Ultramaxes and 5 days for one Supramax. Summary Consolidated Financial and Other Data The following table summarizes Genco Shipping & Trading Limited’s selected consolidated financial and other data for the periods indicated below. 1)   EBITDA represents net income (loss) attributable to Genco Shipping & Trading Limited plus net interest expense, taxes, and depreciation and amortization. EBITDA is included because it is used by management and certain investors as a measure of operating performance. EBITDA is used by analysts in the shipping industry as a common performance measure to compare results across peers. Our management uses EBITDA as a performance measure in consolidating internal financial statements and it is presented for review at our board meetings. We believe that EBITDA is useful to investors as the shipping industry is capital intensive which often results in significant depreciation and cost of financing. EBITDA presents investors with a measure in addition to net income to evaluate our performance prior to these costs. EBITDA is not an item recognized by U.S. GAAP (i.e. non-GAAP measure) and should not be considered as an alternative to net income, operating income or any other indicator of a company’s operating performance required by U.S. GAAP. EBITDA is not a measure of liquidity or cash flows as shown in our consolidated statement of cash flows. The definition of EBITDA used here may not be comparable to that used by other companies. 2)   Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was part of our fleet during the period divided by the number of calendar days in that period.3)   We define ownership days as the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during a period.4)   We define chartered-in days as the aggregate number of days in a period during which we chartered-in third-party vessels. 5)   We define available days as the number of our ownership days and chartered-in days less the aggregate number of days that our vessels are off-hire due to familiarization upon acquisition, repairs or repairs under guarantee, vessel upgrades or special surveys. Companies in the shipping industry generally use available days to measure the number of days in a period during which vessels should be capable of generating revenues. 6)   We define available days for the owned fleet as available days less chartered-in days.7)   We define operating days as the number of our total available days in a period less the aggregate number of days that the vessels are off-hire due to unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues. 8)   We calculate fleet utilization as the number of our operating days during a period divided by the number of ownership days plus chartered-in days less drydocking days. 9)   We define TCE rates as our voyage revenues less voyage expenses, charter hire expenses, and realized gain or losses on fuel hedges, divided by the number of the available days of our owned fleet during the period. TCE rate is not an item recognized by U.S. GAAP (i.e., it is a non-GAAP measure). However it is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charterhire rates for vessels on voyage charters are generally not expressed in per-day amounts while charterhire rates for vessels on time charters generally are expressed in such amounts. Our estimated TCE for the third quarter of 2026 is based on fixtures booked to date. Actual results may vary based on the actual duration of voyages and other factors. Accordingly, we are unable to provide, without unreasonable efforts, a reconciliation of estimated TCE for the third quarter to the most comparable financial measures presented in accordance with GAAP. 10)   We define daily vessel operating expenses to include crew wages and related costs, the cost of insurance expenses relating to repairs and maintenance (excluding drydocking), the costs of spares and consumable stores, tonnage taxes and other miscellaneous expenses. Daily vessel operating expenses are calculated by dividing vessel operating expenses by ownership days for the relevant period. About Genco Shipping & Trading Limited Genco Shipping & Trading Limited is a U.S. based drybulk ship owning company focused on the seaborne transportation of commodities globally. We transport key cargoes such as iron ore, coal, grain, steel products, bauxite, cement, nickel ore among other commodities along worldwide shipping routes. Our wholly owned high quality, modern fleet of dry cargo vessels consists of the larger Newcastlemax and Capesize vessels (major bulk) and the medium-sized Ultramax and Supramax vessels (minor bulk), enabling us to carry a wide range of cargoes. Genco’s fleet consists of 43 vessels with an average age of 12.8 years and an aggregate capacity of approximately 4,935,000 dwt. Conference Call Announcement Genco Shipping & Trading Limited will hold a conference call on Thursday, August 6, 2026 at 8:30 a.m. Eastern Time to discuss its 2026 second quarter financial results. The conference call and a presentation will be simultaneously webcast and will be available on the Company’s website, www.GencoShipping.com. To access the call by phone, please register via the live call registration link, https://events.q4inc.com/analyst/490293343?pwd=L8odJU9o, and you will be provided with dial-in instructions and details. Please dial in at least 10 minutes prior to 8:30 a.m. Eastern Time to ensure a prompt start to the call. The conference call will be broadcast live and available for replay on the Company’s website: http://www.gencoshipping.com. Website Information We intend to use our website, www.GencoShipping.com, as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in our website’s Investor Relations section. Accordingly, investors should monitor the Investor Relations portion of our website, in addition to following our press releases, SEC filings, public conference calls, and webcasts. To subscribe to our e-mail alert service, please click the “Receive E-mail Alerts” link in the Investor Relations section of our website and submit your email address. The information contained in, or that may be accessed through, our website is not incorporated by reference into or a part of this document or any other report or document we file with or furnish to the SEC, and any references to our website are intended to be inactive textual references only. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995 This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements use words such as “anticipate,” “budget,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance.  These forward-looking statements are based on our management’s current expectations and observations.  Included among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this release are the following: (i) declines or sustained weakness in demand in the drybulk shipping industry; (ii) weakness or declines in drybulk shipping rates; (iii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iv) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (v) changes in rules and regulations applicable to the cargo industry, including, without limitation, legislation adopted by international organizations or by individual countries and actions taken by regulatory authorities; (vi) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, lube oil, bunkers, repairs, maintenance, general and administrative expenses, and management expenses; (vii) whether our insurance arrangements are adequate; (viii) changes in general domestic and international political conditions; (ix) military actions, terrorism, or piracy, including without limitation the ongoing conflicts in Ukraine and Iran, related attacks on commercial vessels, and other conflicts in the Middle East; (x) changes in the condition of the Company’s vessels or applicable maintenance or regulatory standards (which may affect, among other things, our anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; (xi) the Company’s acquisition or disposition of vessels; (xii) the amount of offhire time needed to complete maintenance, repairs, and installation of equipment to comply with applicable regulations on vessels and the timing and amount of any reimbursement by our insurance carriers for insurance claims, including offhire days; (xiii) the completion of definitive documentation with respect to charters; (xiv) charterers’ compliance with the terms of their charters in the current market environment; (xv) the extent to which our operating results are affected by weakness in market conditions and freight and charter rates; (xvi) our ability to maintain contracts that are critical to our operation, to obtain and maintain acceptable terms with our vendors, customers and service providers and to retain key executives, managers and employees; (xvii) completion of documentation for vessel transactions and the performance of the terms thereof by buyers or sellers of vessels and us; (xviii) the relative cost and availability of low sulfur and high sulfur fuel, worldwide compliance with sulfur emissions regulations that took effect on January 1, 2020 and our ability to realize the economic benefits or recover the cost of the scrubbers we have installed; (xix) our financial results for the year ending December 31, 2026 and other factors relating to determination of the tax treatment of dividends we have declared; (xx) the financial results we achieve for each quarter that apply to the formula under our dividend policy, including without limitation the actual amounts earned by our vessels and the amounts of various expenses we incur, as a significant decrease in such earnings or a significant increase in such expenses may affect our ability to carry out our new value strategy; (xxi) the exercise of the discretion of our Board regarding the declaration of dividends, including without limitation the amount that our Board determines to set aside for reserves under our dividend policy; (xxii) outbreaks of disease such as the COVID-19 pandemic; (xxiii) trade conflicts, the imposition or modification of port fees, tariffs and other import restrictions, and the effectiveness and cost of any measures the Company may adopt to avoid or mitigate the impact of the foregoing, including alternate trade routes and repositioning vessels; and (xxiv) other factors listed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent reports on Form 8-K and Form 10-Q). Our ability to pay dividends in any period will depend upon various factors, including the limitations under any credit agreements to which we may be a party, applicable provisions of Marshall Islands law and the final determination by the Board of Directors each quarter after its review of our financial performance, market developments, and the best interests of the Company and its shareholders. The timing and amount of dividends, if any, could also be affected by factors affecting cash flows, results of operations, required capital expenditures, or reserves. As a result, the amount of dividends actually paid may vary. Our Q3 2026 estimated dividend range is based on TCE estimates to date and estimated expense levels as detailed above under “Genco’s Active Commercial Operating Platform and Fleet Deployment Strategy” and “Dividend Policy” and in the appendix to our Q2 2026 earnings presentation posted on our website on August 5, 2026 under “Investors – Events and Presentations.” We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. CONTACT:Peter AllenChief Financial OfficerGenco Shipping & Trading Limited(646) 443-8550

A.P. Moller-Maersk (AMKBY) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +5%. Revenues are expected to be $14.6 billion, up 11.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 282.93% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For A.P. Moller-Maersk, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that A.P. Moller-Maersk will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that A.P. Moller-Maersk would post earnings of $0.11 per share when it actually produced earnings of $0.06, delivering a surprise of -45.45%. Over the last four quarters, the company has beaten consensus EPS estimates just once. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. A.P. Moller-Maersk doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Transportation - Shipping industry, Genco Shipping & Trading (GNK), is soon expected to post earnings of $0.51 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +464.3%. This quarter's revenue is expected to be $86.6 million, up 77% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Genco Shipping has been revised 27.4% up to the current level. Nevertheless, the company now has an Earnings ESP of +29.04%, reflecting a higher Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #1 (Strong Buy), suggests that Genco Shipping will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report A.P. Moller-Maersk (AMKBY) : Free Stock Analysis Report Genco Shipping & Trading Limited (GNK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when Genco Shipping & Trading (GNK) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This transporter of drybulk cargo is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of +464.3%. Revenues are expected to be $86.6 million, up 77% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 27.38% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Genco Shipping, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +29.04%. On the other hand, the stock currently carries a Zacks Rank of #1. So, this combination indicates that Genco Shipping will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Genco Shipping would post a loss of$0.04 per share when it actually produced earnings of $0.26, delivering a surprise of +750.00%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Genco Shipping appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Genco Shipping & Trading Limited (GNK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Genco Shipping & Trading has delivered a 131.1% total return over 5 years, yet its current checks point to a stock that screens on the expensive side rather than as an obvious bargain. A 131.1% return over 5 years highlights that long term holders have already seen substantial value created, so fresh buyers need to think carefully about what is priced in. Recent earnings strength and dividends can support confidence in the business, but the stock’s valuation may be sensitive if shipping demand or freight rates weaken from here. With a value score of 2 out of 6, Genco Shipping & Trading currently looks more like a stock that leans expensive than a clear-cut value opportunity. The issue now is whether Genco Shipping & Trading’s current share price still offers enough potential to compensate for that richer valuation profile. Genco Shipping & Trading delivered 84.7% returns over the last year. See how this stacks up to the rest of the Shipping industry. For Genco Shipping & Trading, the P/E ratio is a useful yardstick because earnings are a key driver of how investors value shipping stocks. The company currently trades on a P/E of 65.8x, which is much higher than both the Shipping industry average of 12.8x and the peer group average of 9.7x. On Simply Wall St’s tailored “fair” P/E of 33.4x, which reflects factors such as sector, profitability, size and risk, the stock is also priced at a substantial premium. Recent earnings headlines for Genco Shipping & Trading have been strong, with reports of higher adjusted net income and a series of regular dividends, and that backdrop helps explain why the market is willing to pay a higher multiple. Even so, that 65.8x P/E suggests investors are already paying up heavily for those results compared with typical shipping peers. Based on the P/E multiple alone, Genco Shipping & Trading appears expensive, with the share price implying a much richer earnings valuation than either the industry or the modelled fair ratio would suggest. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Genco Shipping & Trading pick up where this valuation puzzle leaves off by spelling out which paths for the company’s growth, margins and earnings would need to play out for today’s price to look either stretched or conservative. Each narrative links its number to a clear view on where Genco Shipping & Trading's growth, profitability and risk profile could head next, giving you something concrete to revisit as fresh information appears. One of the top community narratives on Genco Shipping & Trading: 13% undervalued Read one of the top narratives on Genco Shipping & Trading Do you think there's more to the story for Genco Shipping & Trading? Head over to our Community to see what others are saying! For Genco Shipping & Trading, the current setup points to a stock that screens as overvalued on market multiples, even after accounting for its sector and risk profile. The valuation increasingly hinges on the idea that current earnings strength and freight conditions prove resilient enough to support a richer P/E for longer. For you, the key question is whether that premium can hold if shipping demand or rates soften, or if expectations around earnings reset toward industry norms. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GNK. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Genco (NYSE:GNK) and the best and worst performers in the marine transportation industry. The growth of e-commerce and global trade continues to drive demand for shipping services, presenting opportunities for marine transportation companies. While ocean freight is more fuel efficient and therefore cheaper than its air and ground counterparts, it results in slower delivery times, presenting a trade off. To improve transit speeds, the industry continues to invest in digitization to optimize fleets and routes. However, marine transportation companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs can influence profit margins. Geopolitical tensions can also affect access to trade routes, and if certain countries are banned from using passageways like the Panama Canal, costs can spiral out of control. The 5 marine transportation stocks we track reported an exceptional Q1. As a group, revenues beat analysts’ consensus estimates by 3.5%. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Headquartered in NYC, Genco (NYSE:GNK) is a shipping company that transports dry bulk cargo along worldwide maritime routes. Genco reported revenues of $72.02 million, up 73% year on year. This print exceeded analysts’ expectations by 8.1%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS and EBITDA estimates. John C. Wobensmith, Chairman and Chief Executive Officer, commented, “Following a strong end to 2025, we are pleased to have continued our positive momentum in 2026. The first quarter marked another period of strong execution of our Comprehensive Value Strategy and significant progress increasing our earnings power and dividend capacity. During a seasonally softer period, we generated strong cash flows and declared a $0.35 per share dividend, representing a year-over-year increase of 133%. This also marked our 27th consecutive quarterly dividend, the longest uninterrupted period of dividends in our drybulk peer group. Including the Q1 payment, total dividends to shareholders over the past seven years will increase to $340 million, or $7.915 per share. Based on our significant operating leverage in a strengthening market, firm fixtures to date and assuming the current FFA curve, projections show a Q2 dividend of $0.70 per share, a 367% increase year-over-year.” Genco achieved the biggest analyst estimate beat and fastest revenue growth of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $25.25. Is now the time to buy Genco? Access our full analysis of the earnings results here, it’s free. Established in 1996, Pangaea Logistics (NASDAQ:PANL) specializes in global logistics and transportation services, focusing on the shipment of dry bulk cargoes. Pangaea reported revenues of $170.6 million, up 38.9% year on year, outperforming analysts’ expectations by 2.9%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 7.6% since reporting. It currently trades at $7.10. Is now the time to buy Pangaea? Access our full analysis of the earnings results here, it’s free. Founded by a Swedish orphan, Matson (NYSE:MATX) is a provider of ocean transportation and logistics services. Matson reported revenues of $757.8 million, down 3.1% year on year, falling short of analysts’ expectations by 2.5%. It was a mixed quarter as it posted a beat of analysts’ EPS estimates. Matson delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 19.8% since the results and currently trades at $204.70. Read our full analysis of Matson’s results here. Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum. Scorpio Tankers reported revenues of $303 million, up 48.4% year on year. This result surpassed analysts’ expectations by 6.3%. Overall, it was a stunning quarter as it also produced an impressive beat of analysts’ EBITDA and EPS estimates. The stock is down 5.7% since reporting and currently trades at $78.49. Read our full, actionable report on Scorpio Tankers here, it’s free. Transporting goods along all U.S. coasts, Kirby (NYSE:KEX) provides inland and coastal marine transportation services. Kirby reported revenues of $844.1 million, up 7.4% year on year. This number topped analysts’ expectations by 2.7%. It was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA and EPS estimates. The stock is down 5.8% since reporting and currently trades at $143.71. Read our full, actionable report on Kirby here, it’s free. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.