PANL · Pangaea Logistics Solutions, Ltd.

Pangaea’s Q1 2026 results reflect a decisive turnaround in profitability and operating performance, with GAAP net income reversing from a $1.98 million loss in Q1 2025 to $13.3 million — its first positive quarterly result in over a year. This improvement was driven by two primary levers: a 34% year-over-year increase in Time Charter Equivalent (TCE) rates to $15,252/day, and a 14% rise in total shipping days to 5,947, both underpinned by robust dry bulk demand, particularly from elevated Chinese iron ore imports and Indonesian coal exports. Management attributes the TCE outperformance — 20% above benchmark Baltic indices — to its differentiated model: long-term contracts of affreightment (COAs), a specialized dry bulk fleet, and disciplined deployment into premium cargo opportunities. Adjusted EBITDA surged 70% YoY to $25.2 million, expanding marginally from 12.1% to 14.8%, reflecting improved operating leverage and cost discipline despite rising fuel costs linked to Middle East geopolitical tensions. The Company advanced its integrated logistics strategy during the quarter, launching port operations in Lake Charles, Louisiana and Port Aransas, Texas, and preparing for Tampa Bay, Florida — all designed to deepen customer relationships and capture incremental margins beyond ocean freight. Liquidity remains strong ($89.7M unrestricted cash), and net leverage is conservatively managed at 2.4x, enabling continued capital allocation across fleet renewal (e.g., sale of Bulk Xaymaca for $9.6M), organic growth, and shareholder returns — evidenced by the sustained $0.05 quarterly dividend. Forward-looking commentary highlights continued momentum: as of May 11, 2026, 4,051 shipping days were booked for Q2 at an average TCE of $18,808/day, reinforcing commercial discipline and pricing power in a firming market.