Himalaya Shipping (HSHP) Q2 2026 earnings summary

Executive summary

• Net profit reached $24.6 million in Q2 2026, with EBITDA at $44 million and EPS of $0.52, reflecting significant year-over-year growth and strong operational performance.

• Time charter equivalent earnings rose to $50,600 per day, driven by new and renewed charter agreements at significant premiums to market indices.

• Cash distributions for Q2 totaled $0.59 per share, with an additional $0.22 declared for July, continuing a 31-month streak of monthly distributions.

• Entered new time charter agreements for Mount Emei and Mount Aconcagua at significant premiums to the Baltic Capesize Index.

Financial highlights

• Operating revenues increased to $53.7 million in Q2 2026 from $29.9 million in Q2 2025, supported by higher charter rates.

• Operating profit rose to $36.7 million from $13.6 million year-over-year.

• Cash and cash equivalents stood at $34.8 million at quarter-end, up from $24.5 million at the end of Q1 2026.

• Cash flow from operations was $34.2 million, up from $8.3 million in Q2 2025.

• Vessel operating expenses remained stable at $7.1 million, with OpEx per vessel at $6,500 per day.

Outlook and guidance

• Most of the fleet is on long-term index-linked contracts with conversion options, providing flexibility to capture market upside.

• Management expects continued strong market conditions in the second half of 2026, with 10 out of 12 ships exposed to the spot market.

• Maintains a positive long-term outlook for large dry bulk ships, citing strong demand from China, increased exports from Brazil and West Africa, and limited supply growth.

• Q1 2027 is expected to be more balanced, with management opting to delay coverage until market conditions warrant.

• Illustrative free cash flow per share remains robust at various Capesize index rates, supporting ongoing dividend capacity.