Danaos Corporation

Adjusted net income for Q2 2026 was $133.1 million, or $7.29 per share, versus $117 million, or $6.36 per share in Q2 2025. Adjusted EBITDA rose 6.1% to $186.8 million from $176 million. Container vessel revenue was broadly unchanged at $238.7 million, while Dry Bulk revenue increased 57% to $35.7 million from $22.7 million; Dry Bulk segment adjusted EBITDA increased to $18.8 million from $5.9 million. Vessel operating expenses were $56.7 million versus $56.4 million a year ago, G&A rose to $14.9 million from $11.2 million, and interest expense excluding amortization fell to $7.3 million from $8.9 million. Management said it added about $683 million to contracted revenue backlog, taking backlog to $4.6 billion, with 100% of container operating days contracted for 2026, 93% for 2027, 79% for 2028, and 61% for 2029. As of June 30, net debt was $224.5 million, cash was $1 billion, total liquidity was about $1.5 billion, and the company had 78 of 87 vessels debt free. The company did not provide formal next-quarter or full-year financial guidance on this call; instead, it emphasized strong contract coverage, a fully financed newbuilding program, and continued disciplined capital deployment.

John Coustas said the market backdrop remains highly disrupted, with Ukraine, Iran, Gulf disruptions, Bab el-Mandeb restrictions, and tariffs supporting multiyear-high shipping rates. He framed Danaos’ strategy as continuing to lock in extended charter employment and long-term financing, while being cautious on new investments because asset prices are elevated and accretive growth is harder to find. He sounded constructive but disciplined, emphasizing a ‘fortress balance sheet’ and saying the company will wait for attractive opportunities rather than force growth.

Evangelos Chatzis highlighted the quarter’s earnings improvement, noting adjusted net income of $133.1 million and adjusted EBITDA of $186.8 million. He pointed to Dry Bulk as the main driver, with revenue up to $35.7 million and Capesize TCE at $30,400 per day, while container revenue was essentially flat at $238.7 million. On the cost side, vessel operating expenses were stable at $56.7 million and daily operating costs fell to $7,416 per vessel per day, while net interest expense improved as interest income doubled to $7.4 million and capitalized interest rose to $9 million. He also emphasized balance sheet strength: net debt of $224.5 million, cash of $1 billion, total liquidity of about $1.5 billion, and 78 of 87 vessels debt free.

Analysts focused on how Danaos will use its free cash flow, including whether it will pay down debt, make more investments, or return more capital. Management said it is prioritizing balance-sheet strength and longer-duration financing through JOLCOs, while being very cautious about buying assets at elevated prices and waiting for better opportunities. On dividends, John Coustas said the company has not historically made ‘spectacular’ dividend increases and that the next step is for the Board to decide. On Alaska LNG, he said the project is progressing, expects some legislative steps before FID, and expects that to happen around September; he also said Danaos would not take speculative LNG orders outside that framework.