0001104659-26-021574
SEC filingDanaos Corporation (DAC) reported record FY 2025 results with operating revenues of $1.04B, up 2.8% YoY from $1.01B in 2024, driven by fleet expansion to 75 containerships (477,491 TEUs) and 10 Capesize drybulk carriers (1.76M DWT). Container segment revenues rose 2.0% to $955.4M on higher utilization (98.2% vs 97.2%) despite lower rates, while drybulk revenues grew 13.0% to $87.0M from increased vessel count and utilization (98% vs 87%). Operating income declined 7.8% to $498.8M due to higher expenses from fleet growth. Net income fell 2.1% to $494.6M ($27 basic/diluted EPS), impacted by $29.5M gain on Star Bulk investment and $2.5M debt extinguishment loss. Cash from operations hit $644.8M, up 3.7% YoY, supporting $583.9M cash increase to $1.04B. Balance sheet strengthened with $5.11B assets, $3.80B equity, and $1.18B debt (gross). Forward contracted revenues total $4.15B through 2038, with 25 newbuilds (164K TEUs) deliveries 2026-2029. Strategic LNG partnership and $300M buyback signal growth amid volatile markets.
Danaos Corporation delivered strong FY 2025 results with operating revenues of $1.04B (up 2.8% YoY from $1.01B) and net income of $494.6M (down 2.1% YoY from $505.1M). EPS was $27 basic/diluted (vs $26.15 prior year). Operating income fell 7.8% to $498.8M due to fleet expansion costs, but cash from operations rose 3.7% to $644.8M. Balance sheet robust: $5.11B assets, $1.04B cash (up 129%), $3.80B equity. Debt $1.18B gross (up from $745M), with $1.18B undrawn capacity. Fleet grew to 75 containerships (477K TEUs, 98.2% utilization) and 10 Capesize drybulk (1.76M DWT, 98% utilization).
Container segment: $955.4M (+2.0% YoY), driven by newbuild deliveries (Phoebe, Greenhouse) and higher utilization (98.2% vs 97.2%), offset by lower rates. Drybulk: $87.0M (+13.0% YoY) from vessel acquisitions and improved utilization (98% vs 87%). Geographic: Australia-Asia 48%, Europe 52%. Contracted revenues $4.15B (96 vessels through 2038), with $946M in 2026. Voyage expenses $63.1M (down 1.6% YoY).
Operating margin 47.9% (vs 53.3% prior year) pressured by 23.1% higher vessel expenses ($208.8M) and 51.1% higher drydocking amortization ($44.1M) from fleet growth. Depreciation up 10.2% to $163.4M. G&A $64.4M (+18.8% YoY) includes $4.8M bonus, $16.8M stock comp. Net other expenses $4.2M vs $35.8M loss prior (investment gains $29.5M). Taxes nil.
Operating cash $644.8M (+3.7% YoY). Investing outflow $325.7M (newbuilds $296.7M). Financing inflow $264.9M (debt proceeds $620.7M, offset by $190.8M repayments, $75.7M buybacks, $63.5M dividends). Net cash increase $583.9M. Debt $1.18B (6.9% cost), $1.18B undrawn. Current ratio 3.3x, equity 74% of assets. $4.15B contracted backlog supports liquidity.
25 newbuilds (164K TEUs) deliveries 2026-2029 with charters (avg 5.8yrs). $300M buyback (3.2M shares repurchased). LNG partnership ($50M equity, 6 carriers). Debt prepayments planned (Syndicated $450M $217M Q1 2026). Risks: charter renewals (23 vessels 2026-27), vessel values, rates volatility.