SB — Safe Bulkers, Inc.

Summary of Safe Bulker's Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Adjusted Earnings Per Share (EPS): $0.14, down from $0.15 in Q4 2024.
• Adjusted EBITDA: $37.4 million, compared to $40.7 million in Q4 2024.
• Daily Vessel Operating Expenses: Increased by 13% to $5,686 from $5,047 in Q4 2024.
• Dividend Declared: $0.05 per share, reflecting the company's commitment to returning value to shareholders.
• Contracted Revenue Backlog: Approximately $178 million, with a significant portion coming from Capesize vessels.

2. Strategic Updates and Business Highlights

• The company operates a balanced charter strategy, maintaining a mix of spot and time charters to optimize cash flow and capital allocation.
• Focus on fleet renewal with an emphasis on high-quality, Japanese-built vessels. Currently, 80% of the fleet is Japanese-built, which is above the global average.
• The fleet is technologically advanced, with a younger average age of 10.4 years compared to the global average of 12.6 years.
• The company has a strong liquidity position with $167 million in cash and $218 million available in revolving credit facilities.

3. Forward Guidance and Outlook

• Market Conditions: The dry bulk market is expected to experience continued volatility due to geopolitical factors, but there are signs of improvement in freight rates.
• Supply and Demand: Supply growth is projected to match demand in 2026, with global GDP growth expected around 3%. Dry bulk demand is forecasted to grow by 2% to 3%.
• Charter Market: Short-term charters (6-12 months) are currently more favorable, with rates approaching $18,000-$19,000 per day for Kamsarmax vessels.

4. Bad News, Challenges, or Points of Concern

• Increased Operating Costs: Operating expenses have risen significantly, which could impact profitability if not managed effectively.
• Market Volatility: Geopolitical tensions and economic uncertainties, particularly in China, pose risks to demand, especially for coal and iron ore.
• Fleet Renewal Challenges: The secondhand market for quality vessels is limited, and shipyards are booked until 2028, complicating future fleet expansion efforts.

5. Notable Q&A Insights

• Fleet Renewal Strategy: Management indicated a preference for new builds over secondhand vessels due to limited availability of quality tonnage.
• Charter Market Dynamics: There is currently no appetite for longer-term contracts (2-3 years), with the market still recovering from previous downturns. Management expressed a preference for fixed-rate contracts in the current environment.
• Economic Factors: Analysts raised concerns about the impact of declining coal demand and trade tensions between the U.S. and China on overall dry bulk trade.

This summary encapsulates the key points from Safe Bulker's Q4 2025 earnings call, highlighting both the company's strengths and the challenges it faces in the current market environment.