Safe Bulkers (SB) Q2 2025 earnings summary

Executive summary

• Net revenues for Q2 2025 were $65.7 million, down 16% year-over-year, with adjusted EBITDA of $25.5 million and adjusted EPS of $0.01, reflecting lower profitability due to weaker charter rates and higher operating expenses.

• Declared a $0.05 per share dividend for the 15th consecutive quarter, maintaining a 4.7% yield.

• Liquidity and capital resources totaled $343 million as of July 2025, supporting ongoing operations and strategic initiatives.

• Delivered the 12th IMO GHG Phase 3 - NOx Tier III newbuild and sold an older vessel at a premium, advancing fleet renewal and environmental compliance.

• Management remains focused on fleet renewal, liquidity, and long-term value creation despite a softer market.

Financial highlights

• Adjusted EBITDA for Q2 2025 was $25.5 million, down from $41.8 million in Q2 2024; adjusted EPS was $0.01, compared to $0.17 in Q2 2024.

• Net income for Q2 2025 was $1.7 million, down from $27.6 million in Q2 2024; adjusted net income was $3.0 million.

• Average TCE rate for Q2 2025 was $14,857, down from $18,650 in Q2 2024; daily vessel operating expenses increased to $6,607.

• Cash and equivalents at June 30, 2025, were $125.3 million; net debt per vessel stood at $9.1 million with consolidated leverage at 38%.

• Liquidity and capital resources totaled $343 million, with $239.2 million in undrawn borrowing capacity as of July 18, 2025.

Outlook and guidance

• Supply growth is expected to outpace demand in 2025, but a market rebound was noted at the start of Q3.

• Global GDP growth is forecasted at 3% for 2025 and 3.1% for 2026; drybulk demand expected to range from -0.5% to +0.5% in 2025 and 1.5% to 2.5% in 2026.

• Six newbuilds, including dual-fuel methanol vessels, are in the orderbook to meet environmental regulations.

• Contracted revenue as of July 18, 2025, was $171.5 million, with an average remaining charter duration of 0.5 years.

• Management remains focused on fleet renewal, maintaining strong liquidity, and long-term value creation.