SB-PD — Safe Bulkers, Inc.

Summary of Safe Bulkers Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Adjusted EBITDA: $50.3 million, up from $25.5 million in Q2 2025.
• Adjusted Earnings Per Share: $0.28, compared to $0.01 in Q2 2025.
• Average Time Charter Equivalent: $20,642 for 45.13 vessels, an increase from $14,875 for 46.75 vessels in the prior year.
• Daily Vessel Operating Expenses: Decreased by 6% to $6,207 from $6,607 in Q2 2025.
• Net Debt per Vessel: $8 million, with a leverage ratio of 30%.
• Quarterly Dividend: Increased to $0.075 per share, marking the 19th consecutive quarterly dividend.

2. Strategic Updates and Business Highlights

• The company is focused on fleet renewal, with 24 Phase 3 vessels ordered since 2021, including two dual-fuel newbuilds scheduled for delivery in Q1 2027.
• The average fleet age is 10.3 years, younger than the global average of 12.5 years, enhancing operational performance and fuel efficiency.
• Strong charter market conditions supported revenue growth, with a backlog of $154 million from contracted revenues.
• The company has successfully completed audits related to operational standards, enhancing its competitive position.

3. Forward Guidance and Outlook

• Global dry bulk demand is projected to grow by 3% in 2026, with supply growth expected at 2% in an open trade scenario.
• The freight market remains healthy, with Cape and Kamsarmax spot rates at approximately $38,000 and $18,000, respectively.
• The company anticipates continued strong performance in the dry bulk sector, supported by a robust economic outlook in key markets like India and Japan.

4. Bad News, Challenges, or Points of Concern

• Potential risks include the impact of increased Chinese inventories on iron ore demand and the weakening thermal coal trade.
• Trade tensions between the U.S. and China continue to pose uncertainties for global economic stability.
• The aging fleet segment (30% over 15 years old) may lead to higher maintenance costs and additional inspections.

5. Notable Q&A Insights

• There were no questions during the Q&A session, indicating either a lack of inquiries from analysts or potential technical issues with the call.

Overall, Safe Bulkers reported strong financial performance in Q2 2026, driven by favorable market conditions and strategic fleet management, while also highlighting potential challenges in the broader economic landscape.