Danaos (DAC) Q1 2026 earnings summary

Executive summary

• Q1 2026 was marked by higher adjusted net income and EBITDA, driven by improved dry bulk earnings, disciplined cost control, and limited direct impact from Gulf disruptions due to charter coverage.

• The pro forma fleet includes 104 containerships and 15 Capesize/Newcastlemax vessels, with a $4.1 billion contracted revenue backlog and $1.3 billion in liquidity.

• Charter coverage stands at 100% 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 $300 million share buyback program.

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

Financial highlights

• Adjusted net income for Q1 2026 was $122.5 million, up from $113.4 million year-over-year; adjusted EBITDA rose 5.2% to $180.6 million.

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

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

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

• Cash and cash equivalents stood at $876.2 million; total liquidity was $1.3 billion.

Outlook and guidance

• Optimistic outlook for dry bulk and mid-sized containership segments, with newbuild orders and charter coverage supporting future earnings.

• Multi-year revenue visibility with significant contract coverage and a focus on environmental compliance and digital innovation.

• Management expects continued value creation through disciplined expansion and capital deployment.