Teekay Tankers (TNK) investor relations material

Executive summary

• Reported GAAP net income of $154 million ($4.42/share) and adjusted net income up to $143 million ($3.69/share) for Q1 2026, both significantly higher year-over-year and sequentially, driven by record spot tanker rates and fleet renewal activities.

• Achieved near-record Q1 spot tanker rates, with Q2 2026 rates trending even higher due to geopolitical disruptions and oil supply shifts.

• Continued disciplined fleet renewal: acquired/committed to up to five modern vessels ($332 million) and sold/agreed to sell up to four vessels ($211 million) year-to-date, with additional sales and acquisitions ongoing.

• Declared a combined regular and special dividend of $1.25/share for Q1 2026, payable in June 2026.

Financial highlights

• Q1 2026 revenues reached $286.1 million, up from $258.3 million in Q4 2025; adjusted EBITDA was $141.4 million, up from $109.7 million in Q4 2025.

• Free cash flow for Q1 2026 was $143 million, with cash and equivalents at $996 million at quarter end and no debt.

• Net operating cash flow for Q1 2026 was $119.6 million, more than double the prior year.

• Spot tanker rates for Suezmax and Aframax/LR2 averaged $61,000/day in Q1 2026, with record rates booked for Q2 2026.

Outlook and guidance

• Q2 2026 spot rates booked to date are at record highs: $141,800/day (VLCC), $121,800/day (Suezmax), $98,000/day (Aframax/LR2); 71% of VLCC, 60% of Suezmax, and 53% of Aframax/LR2 days booked.

• Net revenues expected to decrease in Q2 2026 due to fewer spot days and more scheduled dry dockings, partially offset by more fixed days.

• Management expects continued strong free cash flow and ongoing fleet renewal, supported by low cash flow break-even levels and significant liquidity.

• Vessel operating expenses projected to rise by $4 million in Q2 2026 due to operational activities and maintenance.