This article first appeared on GuruFocus .
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Adjusted EBITDA:$50.3 million in Q2 2026, up from $25.5 million in Q2 2025.
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Adjusted Earnings Per Share:$0.28 in Q2 2026, compared to $0.01 in Q2 2025.
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Revenue:$169 million for the first half of 2026.
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Average Time Charter Equivalent:$20,642 per day in Q2 2026, versus $14,875 per day in Q2 2025.
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Daily Vessel Operating Expenses:Decreased 6% to $6,207 in Q2 2026, from $6,607 in Q2 2025.
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Daily Running Expenses (excluding dry docking and crew delivery):Decreased 3% to $5,455 in Q2 2026, from $5,604 in Q2 2025.
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Quarterly Dividend:Increased to $0.075 per share, marking the 19th consecutive quarterly dividend.
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Liquidity and Capital Resources:Approximately $343 million, including $143 million in cash and equivalents and $200 million in available revolving credit facilities.
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Contracted Revenue Backlog:Approximately $154 million.
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Net Debt per Vessel:$8 million.
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Leverage Ratio:30% as of quarter end.
Release Date: July 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Increased quarterly dividend for the second consecutive quarter to $0.075 per share, reflecting strong financial performance.
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Adjusted EBITDA nearly doubled to $50.3 million in Q2 2026 from $25.5 million in Q2 2025, with adjusted EPS rising to $0.28 from $0.01.
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Fleet renewal program with 14 Phase 3 vessels on the water and 10 newbuilds on order, maintaining a young average fleet age of 10.3 years, younger than the global average.
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Achieved a 22% reduction in fleet carbon intensity and zero vessels with a CII rating of E, enhancing operational efficiency and compliance.
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Strong liquidity and capital resources of $343 million, including cash and undrawn credit facilities, with a conservative leverage ratio of 30% and net debt per vessel at $8 million.
Negative Points
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Global economic uncertainty persists due to US-China trade tensions, which could impact dry bulk demand.
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Coal shipments are projected to decline by 1% to 2% in 2026, with thermal coal trade weakening.
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Increased Chinese iron ore inventories may soften import demand in the second half of 2026.
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China's policy toward greater self-sufficiency and reduced soy meal usage presents a downside risk to grain trade.
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The order book for dry bulk vessels stands at 13% of the fleet, and asset prices remain elevated, potentially affecting future fleet expansion costs.
Q & A Highlights
Q: What is the company's outlook on the dry bulk supply and demand balance for 2026, and how does the potential closure of the Strait of Hormuz factor into these projections? A: Loukas Barmparis (President) explained that in an open Hormuz scenario, supply growth is expected to be 2% versus demand growth of 3% for 2026. The order book stands at about 13% of the fleet. If the Strait of Hormuz were closed, supply growth would be reduced to about 1%, as roughly 1% of dry bulk capacity is currently within the Persian Gulf. The freight market has shown strength in the first half of 2026, with Capesize spot rates at approximately $38,000 and Kamsarmax spot rates at about $18,000.
Q: Can you provide details on the company's fleet renewal strategy and its competitive positioning regarding vessel age and environmental standards? A: Loukas Barmparis (President) highlighted that Safe Bulkers' fleet now averages 10.3 years of age, approximately two years younger than the global fleet average of 12.5 years. The company has taken delivery of 14 Phase 3 newbuilds in the last five years, bringing the fleet to 46 vessels, with 10 more newbuilds on order until 2029. Notably, 30% of the global dry bulk fleet is above 15 years old, which will face increased maintenance costs. Safe Bulkers has achieved a 22% reduction in fleet carbon intensity through environmental upgrades and newbuilds, and has zero vessels with a CII rating of E, which would require additional CapEx.
Q: What is the company's current financial position and how does it plan to finance its newbuild program? A: Konstantinos Adamopoulos (CFO) stated that the company maintains a comfortable leverage ratio of 30%, with total liquidity, capital resources, and revenue backlog just shy of $500 million against a debt of $519 million. This includes $143 million in cash and cash equivalents and $200 million available under revolving credit facilities, totaling $343 million in firepower. The company has already paid $92 million of the $277 million CapEx for its newbuild program, and the contracted revenue backlog of $154 million, along with additional borrowing capacity on the 9 newbuilds upon delivery, adequately covers the standing capital expenditure.
Q: How did the company's financial performance in Q2 2026 compare to the same period in 2025? A: Konstantinos Adamopoulos (CFO) reported that adjusted EBITDA for Q2 2026 stood at $50.3 million, compared to $25.5 million in Q2 2025. Adjusted earnings per share were $0.28, up from $0.01 in the prior year period. The average time charter equivalent rate improved to $20,642 per day from $14,875, while daily vessel operating expenses decreased by 6% to $6,207. The improved performance was driven by higher charter hires and increased earnings from strong bareboat charter vessels.
Q: What is the company's dividend policy and how does it balance shareholder returns with fleet growth investments? A: Loukas Barmparis (President) announced that the board has increased the quarterly dividend for a second consecutive quarter to $0.075 per share, representing a healthy 4% dividend yield. This marks the 19th consecutive quarterly dividend. Since 2022, the company has paid $101 million in common dividends and $78 million in common share repurchases. While rewarding shareholders, the company continues to direct a substantial portion of its cash flows to its newbuild program, which is the basis of its operational competitiveness.
Q: What are the key demand drivers and risks for dry bulk commodities in 2026? A: Loukas Barmparis (President) noted that BIMCO forecasts global dry bulk demand growth of about 3% in 2026. Iron ore demand is expected to grow up to 3%, though increased Chinese inventories may soften import demand in H2 2026. Coal shipments are projected to decline by 1% to 2%, with thermal coal weakening but coking coal remaining resilient. Grains remain a strong performer with shipments estimated to grow about 5%. China remains the central swing factor, with its GDP forecast to grow by 4.4%, while India is projected to experience the fastest growth among major economies at 6.5%. Trade tensions between the US and China remain a key source of uncertainty.
Q: Can you elaborate on the company's Capesize charter coverage and contracted revenue backlog? A: Loukas Barmparis (President) stated that all seven Capesize vessels are chartered under period time charters, with an average remaining charter duration of 1.7 years and an average daily charter hire of approximately $24,600. This tops $105 million in contracted revenue backlog from Capes alone. The company's total contracted revenue backlog stands at about $154 million, providing strong visibility into future cash flows.
Q: What is the company's strategy regarding dual-fuel newbuilds and alternative fuels? A: Loukas Barmparis (President) mentioned that about 10% of ship capacity in the dry bulk order book will be able to use alternative fuels upon delivery, though the dual-fuel order book remains small in the segment. Safe Bulkers has two dual-fuel newbuilds on order with delivery in Q1 2027, which are able to operate with fossil fuels until alternative fuels become available and economically viable. This positions the company to hedge against future cargo intensity requirements related to environmental schemes.
Q: How does the company's operational efficiency compare to its peers, and what recent achievements support this? A: Loukas Barmparis (President) highlighted that Safe Bulkers was among the very few companies worldwide to successfully complete the designated owners and operators audit process related to DryBMS, an advanced monitoring system required by specific charters. The company was the first in Greece and the sixth globally to reach this level of operational standard of excellence. Daily operating expenses have been in the region of $5,500 to $6,500, with daily time charter equivalent rates improving, demonstrating the company's hands-on management and focus on constant operational improvement.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
