DAC · Danaos Corporation

Danaos Corporation's Q1 2026 results reflect resilience in its container-heavy fleet amid transitional pressures. Total operating revenues edged up to $253.7 million, with container segment revenues dipping 2.8% to $229.6 million due to $7.2 million in non-cash US GAAP adjustments and $6.9 million from softer charter rates, though mitigated by $3.9 million from newbuild additions and $3.6 million from utilization improving to 97.7% (from 97.2%). Drybulk shone brighter, with revenues surging 40.9% to $24.1 million on TCE rates jumping to $24,825/day from $10,513/day, despite utilization slipping to 82.0% from 92.4%. Cost controls bolstered efficiency: voyage expenses plunged $7.4 million to $10.7 million, anchored by a $4.9 million gain from early container charter terminations retaining bunkers. Vessel opex fell $1.7 million to $50.0 million, with daily costs dropping to $6,680 from $7,028, underscoring competitive positioning. Depreciation rose modestly to $40.9 million and drydocking amortization to $12.3 million on fleet growth to 75.0 containers and 10.1 drybulk vessels. G&A climbed $2.4 million to $14.6 million on higher management fees. Interest expense increased $1.9 million to $11.9 million despite lower rates, tied to higher average debt of $1,107.3 million, offset by more capitalized interest. Balance sheet strengthened with debt down to $1,046.3 million post-$262.8 million 8.5% notes repayment and facility prepayments, cash at $876.2 million, and $4,056.4 million in contracted revenues providing backlog visibility ($734.9 million remainder 2026). New JOLCO draws support expansion, positioning Danaos for sustained cash generation.