SB

Fleet Renewal & Environmental Strategy

• The company's current total fleet stands at 46 vessels, with an additional 10 new builds on order scheduled for delivery by 2029, resulting in an average fleet age of 10.3 years, approximately 2 years younger than the global dry bulk fleet average of 12.5 years, improving competitive positioning on fuel consumption and operational performance.
• Of the 24 new builds ordered since 2021, 2 are dual-fuel new builds scheduled for delivery in Q1 2027, designed to operate on fossil fuels until alternative fuels become economically viable, to hedge against future carbon intensity regulatory requirements.
• 14 Phase 3 vessels have been delivered since 2022, and 26 vessels have received environmental upgrades over the last 5 years, resulting in a 22% reduction in fleet-wide carbon intensity from improved fuel efficiency, supporting financial performance.
• Safe Bulkers was the first Greek company and sixth globally to achieve the required operational standard for the dry BMS advanced management system certification demanded by major charters, confirming top-tier operational quality.

Financial Health & Capital Allocation

• The company maintains a conservative leverage ratio of 30% as of Q2 2026, with total liquidity of $343 million (composed of $143 million in cash/cash equivalents and $200 million available under revolving credit facilities), plus $154 million in contracted revenue backlog, providing total available capital of nearly $500 million to cover outstanding CAPEX for the order book.
• Total outstanding debt is $519 million, including an unsecured 100 million euro bond, with a weighted average interest rate of 5.10% (the euro bond is fixed at a 2.95% coupon). Net debt per vessel is a comfortable $8 million.
• The company increased its quarterly dividend for the second consecutive quarter to 7.5 cents per share, representing a 4% dividend yield at current share prices, marking the 19th consecutive quarterly dividend. Total returns to shareholders to date include $101 million in common dividends, and the company maintains an active 10 million share repurchase program.
• Outstanding CAPEX for the new build order book totals $277 million, of which $92 million has already been paid, with more than sufficient liquidity and additional borrowing capacity available to cover remaining commitments.

Management based its outlook on two scenarios for the Strait of Hormuz (open vs. closed) and baseline macro forecasts:

• Global dry bulk supply growth is projected at 2% in 2026 if the Strait of Hormuz remains open, and 1% growth if the strait closes, with 1% of current global dry bulk capacity located in the Persian Gulf.
• BIMCO projects global dry bulk demand growth of 3% in 2026, with cargo volume growth of 2% in the open Strait of Hormuz scenario. This results in a favorable supply-demand balance, with 2% supply growth outpaced by 3% demand growth for 2026, and the freight market remained healthy as of the call, with Cape Spot rates near $38,000 per day and Kamsarmax Spot rates near $18,000 per day.
• Specific commodity forecasts: Iron ore demand is projected to grow up to 3% in 2026 (open strait scenario), coal shipments are projected to decline 1-2% in the baseline (though a closed Strait of Hormuz reversed this short-term trend, with Chinese imports supporting demand), grain trade is expected to grow ~5% in 2026 (open scenario), and minor bulks (including energy transition-related ores and fertilizer) are expected to see strong growth for the remainder of 2026.
• Macro growth forecasts align with IMF projections of ~3% global GDP growth for 2026 and 2027, with 4.4% GDP growth forecast for China, 6.5% GDP growth for India (the fastest growing major economy), and continued stimulus-driven growth in Japan.

Safe Bulkers is a pure-play dry bulk shipping company, and does not break out separate product segments in this call. Aggregate consolidated financial performance for Q2 2026: adjusted EBITDA was $50.3 million, nearly double the $25.5 million reported in Q2 2025; adjusted earnings per share was 28 cents, up from 1 cent in the year prior period. The company operated an average of 45.13 vessels in the quarter, earning an average time charter equivalent rate of $20,642 per day, compared to 46.75 average vessels and $14,875 average TCE in Q2 2025. Aggregate revenue for the first half of 2026 totaled $169 million. Daily vessel operating expenses decreased 6% year-over-year to $6,207 in Q2 2026, while daily running expenses excluding dry docking and free delivery expenses held flat at $5,435 year-over-year. All 7 of the company's Cape-sized vessels are on period-time charters, with an average remaining duration of 1.7 years, average daily charter hire of $24,600, and $105 million in contracted revenue backlog from this vessel class alone.

• Persistent global inflationary pressures remain a macro downside risk.
• 30% of the global dry bulk fleet is over 15 years old, leading to rising repair, maintenance, and inspection costs for older vessels, as well as increased operational restrictions.
• Very little of the current dry bulk new build order book consists of dual-fuel vessels that can comply with future carbon intensity regulations, creating industry-wide regulatory risk.
• China's property sector crisis and manufacturing overcapacity are weighing on domestic demand, even as Chinese exports remain strong, and China acts as the central swing factor for global dry bulk demand. China's policy push for greater agricultural self-sufficiency and reduced soybean usage presents downside risk for grain trade.
• Ongoing U.S.-China trade tensions, despite a recent truce, remain a key source of global economic uncertainty.
• A closure of the Strait of Hormuz would alter baseline supply-demand dynamics for dry bulk and key commodities, particularly coal and fertilizer.

No substantive questions were submitted by call participants after the prepared remarks, so the call moved directly to closing comments from management.