Teekay Tankers (TNK) investor relations material

Executive summary

• Q3 GAAP net income was $195.2 million ($5.60/share) and adjusted net income was $175.8 million ($5.04/share); earnings declined QoQ but rose YoY.

• Nine-month adjusted net income reached $497.7 million; management expects the highest-ever Q4 and FY 2026 results.

• Record Q4-to-date spot rates and strong cash generation support the outlook, while fleet renewal and geopolitical uncertainty remain key factors.

Financial highlights

• Q3 revenue was $369.2 million, operating income $190.4 million and adjusted EBITDA $188.4 million; Q3 adjusted net income was $175.8 million.

• Q3 free cash flow was $178.5 million; 9M free cash flow was $520.6 million, or $14.96/share.

• At September 30, cash, cash equivalents, restricted cash and short-term investments totaled $1.419 billion; there was no debt.

• 9M revenue was $1.035 billion, operating income $560.0 million and GAAP net income $574.7 million.

• Four vessels were sold YTD for $211.0 million, generating $77.8 million in gains; four vessels were acquired or agreed to be acquired for $190.3 million.

Outlook and guidance

• Q4-to-date average spot rates were $236,000/day, versus free cash flow breakeven of ~ $7,000/day; management expects the highest-ever Q4 and FY 2026 results.

• Suezmax Q4 spot rates were $272,000/day with 63% of days booked; Aframax/LR2 rates were $208,300/day with 53% booked.

• Q4 net revenue days are expected to increase by 28, including 79 more spot days and 51 fewer fixed days, primarily due to fewer scheduled dry-docking off-hire days.

• The board expects to consider a 2026 special dividend alongside full-year results in February 2027, at its discretion.