Danaos Corp. Q4 FY2025 earnings call

• Geopolitical disruptions haven't caused a slowdown despite concerns; container volumes reached record highs with midsized vessel demand strong.
• Secured long-term employment for vessels via forward fixtures, ordered new vessels including 1,800 TEU, 5,300 TEU, and Newcastle MAX dry bulk vessels with ten-year charters for some.
• Completed a €500 million unsecured bond offering, liquidity at year-end was $1.4 billion.
• Began exploring investments in the energy sector, becoming a strategic investor in the Alaska LNG project.
• Contract revenue backlog increased by $428 million to $4.3 billion with strong contract coverage for future years.

For the quarter, operating revenues increased by $8.1 million. The containership fleet contributed $5.2 million in incremental operating revenues but had a $7.8 million decrease in revenues due to lower contracted charter rates and $2 million lower non-cash U.S. GAAP revenue recognition. The dry bulk fleet contributed $2.2 million in additional revenues from higher charter income. Adjusted EPS for Q4 2025 was $7.14 per share with adjusted net income of $131.2 million, compared to $6.93 per share and $133.3 million in 2024. The container segment's revenue contribution and dry bulk's contribution are part of the overall financials.

• Contract backlog from containerships is $4.3 billion with a 4.3-year average charter duration; 100% contracted for 2026, 87% for 2027, 64% for 2028 in terms of operating days.
• Declared a dividend of $90 per share.
• $65 million remaining authority for share repurchase under $300 million program.
• Cash stood at $1 billion, total liquidity at $1.4 billion for accretive capital deployment.

Q: Omar Nokta asked about the Alaska LNG project timing, number of ships, and charter duration.

A: John Coustas said project completion is in 2030, 6-10 ships needed, long-term charters (20 years+).

Q: Clement Molins asked about Newcastle MAX orders and underwater Capesizes.

A: John Coustas said Newcastle MAX vessels will be chartered on index, underwater Capesizes mainly employed on spot but may secure medium-term if warranted.