Pangaea Logistics Solutions, Ltd. Q2 FY2025 earnings call

• Continued disciplined execution of business strategy despite challenging market environment, with TCE rates 17% above broader market.
• Second quarter adjusted net loss $1.4 million, adjusted EBITDA $15.3 million. Total shipping days rose 51% YOY due to addition of SSI Handymax fleet and chartered-in ships.
• Mixed market conditions with larger vessel classes outperforming, and South American grain harvest lifted dry bulk pricing. Niche ice class capabilities and vertically integrated offering position well for premium TCEs.
• Nearing completion of Port of Tampa infrastructure expansion; starting new terminal operations in Texas, Louisiana, Mississippi; completed purchase of remaining 49% equity stake in Seamar management; initiated financing process for 2 unlevered ships and sold strategic endeavor.
• Long-term strategy focuses on disciplined capital allocation, fleet optimization, returning capital to shareholders, and strong balance sheet.

For the second quarter of 2025, Pangaea Logistics Solutions reported an adjusted net loss of $1.4 million and adjusted EBITDA of $15.3 million. TCE rates were 17% above the broader market. Total shipping days rose 51% year-over-year. Second quarter TCE rates were $12,108 per day, a premium of approximately 17% over the average published market rates for Panamax, Supramax and Handysize vessels in the period. Adjusted EBITDA margin decreased from 12.1% last year to 9.8% in Q2 2025 due to lower market rates. Total cash from operations increased by approximately $5 million year-over-year to $14.4 million.

• Third quarter 2025 booked 3,671 shipping days with TCE of $14,272 per day.
• Capital allocation priorities remain unchanged, focusing on financial flexibility, balanced return of capital to shareholders, selective investment in logistics and stevedoring operations, and fleet renewal.

• Geopolitical uncertainty driven by evolving U.S. tariff policies and global trade dynamics causing shippers to delay longer-term trade route decisions.
• Vessel supply growth may weigh on rates in the short term, though longer-term global emission standards and aging fleet will reduce supply.

Q: Can you explain the asset held for sale, specifically the strategic endeavor?

A: The strategic endeavor was the oldest and smallest ship acquired with the 15 Handyships. We moved it out of the fleet to look for a replacement when the time is right.

Q: Can you talk about the S&P market?

A: The decision on the strategic endeavor involves evaluating whether to put the ship through a special survey or sell it. With macro uncertainty, we are being picky and not rushing into S&P decisions as asset values and market trading aren't compelling currently.

Q: Which specific markets or routes are seeing deferred decisions due to macro uncertainty?

A: Some movements from the Far East to the U.S. earlier this year had contracts committed but were deferred due to tariff rate uncertainty, though they became profitable again as tariffs came down.

Q: Any acquisition opportunities on the horizon for port logistics?

A: Currently, we're focusing on organic growth through leases and port licenses rather than buying big terminals as it doesn't align with our objective of linking with ocean transportation directly. Maybe in the future when our business is built up, we'll consider the next step, but right now we're keeping things related to our ocean transportation