Danaos (DAC) Q1 2026 earnings summary

Executive summary

• Q1 2026 was marked by higher net income of $140.4 million and adjusted net income of $122.5 million, with adjusted EBITDA rising to $180.6 million, driven by improved dry bulk performance and disciplined cost control.

• The company operates a diverse fleet, including 75 containerships, 11 Capesize bulk carriers, and has 29 containership and 4 Newcastlemax newbuildings on order, supporting a pro forma fleet of 104 containerships and 15 Capesize/Newcastlemax vessels.

• Contracted revenue backlog stands at $4.1 billion, with 100% charter coverage for 2026, 88% for 2027, and 65% for 2028, providing strong cash flow visibility.

• Strategic investments include LNG projects, equity stakes in Yoda PLC and Star Bulk Carriers, and a partnership with Glenfarne Group for the Alaska LNG project.

• Achieved a 56.2% CO2 reduction per ton mile in 2025, meeting IMO 2030 targets 11 years early.

Financial highlights

• Adjusted EPS for Q1 2026 was $6.72, up from $6.04 in Q1 2025; diluted EPS was $7.70.

• Adjusted EBITDA increased by 5.2% to $180.6 million from $171.7 million year-over-year; LTM adjusted EBITDA was $728.3 million.

• Operating revenues for Q1 2026 were $253.7 million, nearly flat year-over-year; LTM revenues reached $1.04 billion.

• Free cash flow for LTM ended March 31, 2026 was $639.6 million.

• Cash and cash equivalents stood at $876.2 million as of March 31, 2026; total liquidity was $1.3 billion.

Outlook and guidance

• Optimistic outlook for dry bulk and mid-sized containership segments, supported by multilateral trade trends and disciplined fleet expansion.

• Contract coverage is 100% for 2026, 88% for 2027, and 65% for 2028, with average charter duration of 4.2 years for containerships.

• Management expects continued value creation through strategic investments, capital deployment, and a focus on environmental compliance and digital innovation.