Star Bulk Carriers Corp. Q4 FY2025 earnings call

Developments on the regulatory front, adjusted EBITDA demonstrated strong cash-generating capacity. Actively returned capital to shareholders, repurchased shares and declared dividends. Balance sheet remains strong with substantial cash and unencumbered assets. Operated one of the most cost-efficient platforms, ranked top in RightShip safety scores. Newbuildings on track for delivery in 2026, fleet investment program advanced. Vessel upgrades made progress with energy-saving devices and propellers installed. Continued to optimize fleet through selective disposals. Made progress on ESG priorities, including greenhouse gas emission reduction and AI deployment. Market update on supply and demand, noting fleet growth, newbuilding orderbook, and demand projections.

Adjusted EPS was $0.16. Fourth quarter adjusted EBITDA was $126,400,000. Net income for 2025 was $65,200,000, while adjusted net income reached $74,500,000. Repurchased 1,200,000 shares totaling $37,900,000 in Q4, and approximately 1,900,000 shares year-to-date in 2026. Declared a $0.37 per share dividend for Q4. Total cash and cash equivalents ~$459,000,000, outstanding debt ~$1,000,000,000, undrawn revolving capacity $110,000,000. 27 debt-free vessels with aggregate market value ~$630,000,000. Time charter equivalent came at $19,012 per day per vessel. Combined daily operating expenses and net cash G&A expenses came at $6,444 per day per vessel, resulting in a daily cash margin of approximately $12,570 per vessel per day before debt service and CapEx.

Intend to distribute 1% of free cash flow as dividends, ~$0.5 per share. Authorized a new $100,000,000 share repurchase program. Anticipate drybulk demand to grow by 0.6% in tons and 1.9% in ton miles in 2026.

Uncertainty from IMO net-zero framework postponement. Geopolitical risk in Red Sea region. Elevated Chinese stockpiles, slower industrial production, and softer fixed asset investment present downside risk.

Q: Just related to the underlying demand and ton mile expansion happening in the iron ore market with Brazil and West Africa...

A: Hi, Chris. So besides bauxite and iron ore, we see a very strong trade on grains...

Q: I just wanted to ask maybe just about the capital return policy...

A: Hi, Omar, it is Hamish Norton. Basically, the better the share does, the stronger the incentive to pay dividends as opposed to a share repurchase...