Teekay (TK) investor relations material

Executive summary

• Achieved record GAAP net income of $226 million ($6.49/share) and adjusted net income of $194 million ($5.56/share) in Q2 2026, up 50% sequentially.

• Generated approximately $200 million in free cash flow, increasing cash position to over $1.2 billion with no debt at quarter end.

• Spot tanker rates reached all-time highs, with Suezmax at up to $123,200/day and Aframax LR2 at $74,100/day.

• Continued fleet renewal by selling older vessels and acquiring modern ones, including two Suezmax newbuilds for $190 million.

• Declared a regular quarterly dividend of $0.25 per share and paid a special dividend of $1.00 per share in June 2026.

Financial highlights

• Highest ever quarterly adjusted net income and record spot rates for Suezmax and Aframax/LR2 fleets.

• Sold nine older vessels for $369.5 million since mid-2025, with estimated gains of $125.4 million.

• Completed sale of a 2009-built Suezmax for $53.5 million, recording a $32.3 million gain.

• Free cash flow breakeven at approximately $9,700/day over the next 12 months.

• Cash, cash equivalents, and short-term investments totaled $1,215 million as of June 30, 2026.

Outlook and guidance

• Secured Q3 spot rates of $104,800/day (Suezmax) and $59,900/day (Aframax LR2) for 44% of available days.

• Projected 260 days of off-hire in Q3 due to dry dockings; OpEx and G&A expected to decrease by $3 million.

• Oil inventory restocking expected to boost tanker demand, but a high orderbook may pressure future rates.

• Near-term outlook remains complex and unpredictable due to geopolitical events.