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Danaos Corporation Reports Second Quarter and Half Year Results for the Period Ended June 30, 2025

By PR Newswire | August 04, 2025, 4:30 PM

ATHENS, Greece, Aug. 4, 2025 /PRNewswire/ -- Danaos Corporation ("Danaos") (NYSE: DAC), one of the world's largest independent owners of container vessels and drybulk vessels, today reported unaudited results for the period ended June 30, 2025.



Financial Summary

Three Months Ended June 30, 2025 and Three Months Ended June 30, 2024

Unaudited

(Expressed in thousands of United States dollars, except as otherwise stated)







Three Months Ended



Three Months Ended







June 30, 2025



June 30, 2024



Financial &

Operating Metrics



Container

Vessels



Dry bulk

Vessels



Other



Total



Container

Vessels



Dry bulk

Vessels



Other



Total



Operating Revenues



$239,446



$22,708



-



$262,154



$230,586



$15,720



-



$246,306



Voyage Expenses,

excl. commissions



$(442)



$(6,424)



-



$(6,866)



$(448)



$(3,269)



-



$(3,717)



Time Charter

Equivalent Revenues (1)



$239,004



$16,284



-



$255,288



$230,138



$12,451



-



$242,589



Net income



$115,893



$266



$14,745



$130,904



$133,683



$2,290



$5,179



$141,152



Adjusted net income(2)



$116,680



$266



$11



$116,957



$127,063



$2,290



$2,955



$132,308



Earnings per share,

basic















$7.14















$7.30



Earnings per share,

diluted















$7.12















$7.23



Adjusted earnings per

share, diluted (2)















$6.36















$6.78



Operating Days



6,623



908



-







6,088



604



-







Time Charter

Equivalent $/day (1)



$36,087



$17,934



-







$37,802



$20,614



-







Ownership days



6,734



910



-







6,253



694



-







Average number of

vessels



74.0



10.0



-







68.7



7.6



-







Fleet Utilization



98.4 %



99.8 %



-







97.4 %



87.0 %



-







Adjusted EBITDA (2)



$170,163



$5,898



$(20)



$176,041



$169,121



$4,712



$2,955



$176,788







































Consolidated Balance Sheet & Leverage Metrics

As of June 30, 2025   







As of December 31, 2024   



Cash and cash equivalents







$546,164















$453,384



Availability under Revolving Credit Facility







$270,000















$292,500



Marketable securities (3)







$107,919















$60,850



Total cash liquidity & marketable securities(4)







$924,083















$806,734



Debt, gross of deferred finance costs







$770,326















$744,546



Net Debt (5)







$224,162















$291,162



LTM Adjusted EBITDA (6)







$716,338















$722,615



Net Debt / LTM Adjusted EBITDA







0.31x   















0.40x   





























1.

Time charter equivalent revenues and time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided in

the appendix.



2.

Adjusted net income, adjusted earnings per share and adjusted EBITDA are non-GAAP measures. Refer to the reconciliation of net

income to adjusted net income and adjusted earnings per share; and net income to adjusted EBITDA provided below.



3.

Marketable securities refer to fair value of 6,256,181 and 4,070,214 shares of common stock of SBLK on June 30, 2025 and December

31, 2024 respectively.



4.

Total cash liquidity & marketable securities includes: (i) cash and cash equivalents, (ii) availability under our Revolving Credit Facility and

(iii) marketable securities.



5.

Net Debt is defined as total debt gross of deferred finance costs less cash and cash equivalents.



6.

Last twelve months Adjusted EBITDA. Refer to the reconciliation provided below.











































For management purposes, the Company is organized based on operating revenues generated from container vessels and dry-bulk vessels and has two reporting segments: (1) a container vessels segment and (2) a dry-bulk vessels segment. The Company measures segment performance based on net income. Items included in the applicable segment's net income are directly allocated to the extent that the items are directly or indirectly attributable to the segments. With regards to the items that are allocated by indirect calculations, their allocation is commensurate to the utilization of key resources. The Other column includes components that are not allocated to any of the Company's reportable segments and includes investments in an affiliate accounted for using the equity method of accounting and investments in marketable securities.



Financial Summary

Six Months Ended June 30, 2025 and Six Months Ended June 30, 2024

Unaudited

(Expressed in thousands of United States dollars, except as otherwise stated)







Six Months Ended



Six Months Ended







June 30, 2025



June 30, 2024



Financial &

Operating Metrics



Container

Vessels



Dry bulk

Vessels



Other



Total



Container

Vessels



Dry bulk

Vessels



Other



Total



Operating Revenues



$475,636



$39,825



-



$515,461



$463,997



$35,758



-



$499,755



Voyage Expenses,

excl. commissions



$(749)



$(14,794)



-



$(15,543)



$(936)



$(14,096)



-



$(15,032)



Time Charter

Equivalent Revenues (1)



$474,887



$25,031



-



$499,918



$463,061



$21,662



-



$484,723



Net income/(loss)



$234,938



$(6,276)



$17,389



$246,051



$272,042



$2,627



$16,981



$291,650



Adjusted net income /

(loss) (2)



$236,483



$(6,276)



$172



$230,379



$265,919



$2,627



$3,778



$272,324



Earnings per share,

basic















$13.27















$15.05



Earnings per share,

diluted















$13.24















$14.92



Adjusted earnings per

share, diluted (2)















$12.39















$13.93



Operating Days



13,074



1,740



-







12,107



1,200



-







Time Charter

Equivalent $/day (1)



$36,323



$14,386



-







$38,247



$18,052



-







Ownership days



13,371



1,810



-







12,438



1,331



-







Average number of

vessels



73.9



10.0



-







68.3



7.3



-







Fleet Utilization



97.8 %



96.1 %



-







97.3 %



90.2 %



-







Adjusted EBITDA (2)



$343,051



$4,549



$114



$347,714



$343,309



$6,904



$3,778



$353,991





































1.

Time charter equivalent revenues and time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided in the appendix.



2.

Adjusted net income/(loss), adjusted earnings per share and adjusted EBITDA are non-GAAP measures. Refer to the reconciliation of

net income to adjusted net income and adjusted earnings per share; and net income to adjusted EBITDA provided below.











































Highlights for the Second Quarter and Half Year Results Ended June 30, 2025:

  • In June 2025, we added one 6,014 TEU newbuilding containership to our orderbook, which has expected delivery in 2027. We took delivery of 6 newbuilding containerships in 2024 and 1 in January 2025.
  • Our remaining orderbook currently consists of 16 newbuilding containership vessels with an aggregate capacity of 134,234 TEU with expected deliveries of one vessel in 2025, three vessels in 2026, ten vessels in 2027 and two vessels in 2028. All the vessels in our orderbook are designed with the latest eco characteristics, will be methanol fuel ready, fitted with open loop scrubbers (except for two 6,014 TEU vessels) and Alternative Maritime Power (AMP) units and will be built in accordance with the latest requirements of the International Maritime Organization (IMO) in relation to Tier III emission standards and Energy Efficiency Design Index (EEDI) Phase III.
  • We have secured multi-year charter arrangements for all of our 16 newbuilding vessels orderbook, with an average charter duration of approximately 5.2 years weighted by aggregate contracted charter hire.
  • Since the date of the previous earnings release, we added approximately $113 million to our contracted revenue backlog through a combination of a new charter for our recent containership newbuilding vessel and charter extensions for three of our existing container vessels.
  • As a result, total contracted cash operating revenues, on the basis of concluded charter contracts through the date of this release, currently stand at $3.6 billion, including newbuildings. The remaining average contracted charter duration for our containership fleet is 3.8 years, weighted by aggregate contracted charter hire.
  • Contracted operating days charter coverage for our container vessel fleet is currently 99% for 2025 and 88% for 2026. This includes newbuildings based on their scheduled delivery dates.
  • As of the date of this release, Danaos has repurchased a total of 2,937,158 shares of its common stock in the open market for $205.7 million under its recently upsized $300 million authorized share repurchase program that was originally introduced in June 2022 and was upsized twice in $100 million increments, in November 2023 and in April 2025. 
  • Danaos has declared a dividend of $0.85 per share of common stock for the Second Quarter of 2025. The dividend is payable on August 28, 2025, to stockholders of record as of August 19, 2025.

Danaos' CEO Dr. John Coustas commented:

As we move through the second half of the year, some uncertainties around global trade are beginning to subside. In particular, there is increasing clarity about tariffs, many of which have been or are being finalized at much lower rates than feared. While tariffs on imports to the U.S. will be much higher than historic averages, the U.S. economy is stable, and the American consumer keeps purchasing foreign goods. As inventories normalize, we anticipate a gradual improvement in trade flows.

Geopolitically, there have been no major shifts, with the conflicts in Ukraine and Gaza ongoing. The absence of further escalation is somewhat reassuring, though the potential for volatility remains elevated. We continue to monitor developments closely, but we have not seen any new disruptions to global shipping routes in the past quarter.

Against this backdrop, we are maintaining our disciplined approach to capital allocation. We are not broadly participating in the current wave of speculative ordering, particularly in the feeder segment, where pricing appears disconnected from long-term fundamentals, and are only pursuing investments that meet our return criteria. In the second quarter, we added one additional 6,000 TEU vessel to our orderbook at a shipyard with which we have an existing relationship. Importantly, this vessel has already been fixed on a five year charter to a long standing client, locking in visibility and attractive returns.

Our chartering strategy continues to deliver results. We added approximately $113 million to our contracted revenue backlog since the previous earnings release, and our $3.6 billion total contracted revenue base provides meaningful insulation from short-term market fluctuations. Our contracted charter coverage stands at 99% for 2025 and 88% for 2026, including newbuildings scheduled for delivery during this period.

On the dry bulk side, we saw some seasonal firming in the market, but broader weakness persists, largely due to deflationary conditions in China. While we continue to evaluate opportunities in the sector, asset values for modern tonnage remain elevated, and we are in no rush to commit capital in an uncertain macroeconomic environment.

From a financial perspective, we remain in an enviable position. With minimal leverage and a growing base of contracted earnings, we have the luxury of patience. Our strong balance sheet and cash generation capacity provide ample firepower to support our strategic priorities and position Danaos for long-term success. We continue to focus on disciplined execution, operational excellence, and value creation for our shareholders.

Three months ended June 30, 2025 compared to the three months ended June 30, 2024

During the three months ended June 30, 2025, Danaos had an average of 74 container vessels and 10 drybulk vessels compared to 68.7 container vessels and 7.6 drybulk vessels during the three months ended June 30, 2024. Our container vessels utilization for the three months ended June 30, 2025 was 98.4% compared to 97.4% in the three months ended June 30, 2024. Our drybulk vessels utilization for the three months ended June 30, 2025 was 99.8% compared to 87.0% in the three months ended June 30, 2024.

Our adjusted net income amounted to $117.0 million, or $6.36 per diluted share, for the three months ended June 30, 2025 compared to $132.3 million, or $6.78 per diluted share, for the three months ended June 30, 2024. We have adjusted our net income in the three months ended June 30, 2025 for a $14.7 million change in fair value of investments and a $0.8 million of non-cash finance fees amortization.

Adjusted net income of our container vessels segment amounted to $116.7 million for the three months ended June 30, 2025 compared to $127.1 million for the three months ended June 30, 2024. We adjusted net income of container vessels segment in the three months ended June 30, 2025 for a $0.8 million of non-cash finance fees amortization.

Adjusted net income of our drybulk vessels segment amounted to $0.3 million income for the three months ended June 30, 2025 compared to $2.3 million income for the three months ended June 30, 2024.

The $15.3 million decrease in adjusted net income for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 is primarily attributable to a $24.7 million increase in total operating expenses, a $3.6 million increase in net finance expenses, a $2.7 million decrease in dividends received, and a $0.2 million increase in equity loss on investments, partially off-set by a $15.9 million increase in operating revenues.

Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release.

On a non-adjusted basis, our net income amounted to $130.9 million, or $7.12 earnings per diluted share, for the three months ended June 30, 2025 compared to net income of $141.2 million, or $7.23 earnings per diluted share, for the three months ended June 30, 2024. Our net income for the three months ended June 30, 2025 includes $14.7 million gain on marketable securities compared to $2.2 million gain on marketable securities in the three months ended June 30, 2024. On a non-adjusted basis, the net income of our container vessels segment amounted to $115.9 million for the three months ended June 30, 2025 compared to $133.7 million for the three months ended June 30, 2024. On a non-adjusted basis, the net income of our drybulk vessels segment amounted to $0.3 million net income for the three months ended June 30, 2025 compared to $2.3 million income for the three months ended June 30, 2024.

Operating Revenues

Operating revenues increased by $15.9 million, to $262.2 million in the three months ended June 30, 2025 from $246.3 million in the three months ended June 30, 2024.

Operating revenues of our container vessels segment increased by 3.9%, or $8.9 million, to $239.4 million in the three months ended June 30, 2025, compared to $230.5 million in the three months ended June 30, 2024, analyzed as follows:

  • $19.7 million increase in revenues as a result of newbuilding containership vessel additions;
  • $2.7 million increase in revenues as a result of higher fleet utilization between the two periods;
  • $8.2 million decrease in revenues as a result of lower charter rates between the two periods; and
  • $5.3 million decrease in revenues due to lower non-cash revenue recognition in accordance with US GAAP.

Operating revenues of our drybulk vessels segment increased by 44.3%, or $7.0 million, to $22.8 million in the three months ended June 30, 2025, compared to $15.8 million of revenues in the three months ended June 30, 2024, analyzed as follows:

  • $6.9 million increase in revenues as a result of dry bulk vessel acquisitions; and
  • $0.1 million net increase in revenues as a result of higher dry bulk vessel utilization partially offset by lower charter rates between the two periods.

Vessel Operating Expenses

Vessel operating expenses increased by $9.3 million to $56.4 million in the three months ended June 30, 2025 from $47.1 million in the three months ended June 30, 2024, primarily as a result of the increase in the average number of vessels in our fleet due to container vessel newbuilding deliveries and dry bulk vessels acquisitions, combined with an increase in the average daily operating cost of our vessels to $7,556 per vessel per day for the three months ended June 30, 2025 compared to $6,961 per vessel per day for the three months ended June 30, 2024, mainly due to increased total repairs & maintenance expenses between the two periods. Management believes that our daily operating costs remain among the most competitive in the industry.

Depreciation & Amortization

Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.

Depreciation

Depreciation expense increased by $5.3 million, to $40.7 million in the three months ended June 30, 2025 from $35.4 million in the three months ended June 30, 2024, due to the increase in the average number of vessels in our fleet.

Amortization of Deferred Dry-docking and Special Survey Costs

Amortization of deferred dry-docking and special survey costs increased by $4.5 million to $11.5 million in the three months ended June 30, 2025, from $7.0 million in the three months ended June 30, 2024, reflecting a larger number of vessels drydocked for which vessels drydocking amortization costs were recognized during the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

General and Administrative Expenses

General and administrative expenses decreased by $0.1 million, to $11.2 million in the three months ended June 30, 2025 from $11.3 million in the three months ended June 30, 2024.

Other Operating Expenses

Other Operating Expenses include Voyage Expenses.

Voyage Expenses

Voyage expenses increased by $4.1 million to $16.8 million in the three months ended June 30, 2025 from $12.7 million in the three months ended June 30, 2024, mainly driven by a $3.6 million increase in voyage expenses of our dry bulk vessels, attributed to the different mix of time charter and voyage charter contracts under which our dry bulk vessels were deployed between the two periods.

Voyage expenses of our container vessels segment increased by $0.4 million to $8.9 million in the three months ended June 30, 2025, from $8.5 million in the three months ended June 30, 2024, mainly due to increased commissions. For the three months ended June 30, 2025, total voyage expenses of our container vessels comprised of $8.5 million in commissions and $0.4 million in other voyage expenses, compared to $8.0 million in commissions and $0.5 million in other voyage expenses for the three months ended June 30, 2024.

Voyage expenses of our drybulk vessels segment increased by $3.7 million to $7.9 million in the three months ended June 30, 2025 compared to $4.2 million voyage expenses in the three months ended June 30, 2024. For the three months ended June 30, 2025, voyage expenses of our drybulk vessels comprised of $1.5 million in commissions and $6.4 million in other voyage expenses, mainly comprised of bunkers cost and port expenses, compared to $0.9 million in commissions and $3.3 million in other voyage expenses for the three months ended June 30, 2024.

Interest Expense and Interest Income

Interest expense increased by $4.6 million, to $9.7 million, in the three months ended June 30, 2025 from $5.1 million in the three months ended June 30, 2024. The increase in interest expense is a result of:

  • $3.5 million increase in interest expense due to an increase in our average indebtedness by $264.9 million between the two periods. Average indebtedness was $776.9 million in the three months ended June 30, 2025, compared to average indebtedness of $512.0 million in the three months ended June 30, 2024. This increase was also partially offset by a decrease in our debt service cost by approximately 0.9% as a result of lower SOFR rates between the two periods;
  • $0.8 million increase in interest expense due to a decrease in the amount of interest expense capitalized on our vessels under construction that was $4.8 million in the three months ended June 30, 2025, when compared to capitalized interest of $5.6 million in the three months ended June 30, 2024; and
  • $0.3 million increase in the amortization of deferred finance costs between the two periods.

As of June 30, 2025, our outstanding debt, gross of deferred finance costs, was $770.3 million, which included $262.8 million principal amount of our Senior Notes. These balances compare to debt of $577.8 million, which included $262.8 million principal amount of our Senior Notes, gross of deferred finance costs, as of June 30, 2024. The increase in our outstanding debt is due to loans drawn down to partially finance our container vessel newbuilding deliveries.

Interest income increased by $0.8 million to $3.7 million in the three months ended June 30, 2025 compared to $2.9 million in the three months ended June 30, 2024, mainly driven by higher average cash balances between the two periods.

Gain on investments

The $15.0 million gain on investments in the three months ended June 30, 2025 consisted of the change in fair value of our shareholding interest in Star Bulk Carriers Corp. ("SBLK") of $14.7 million and dividend income on these shares of $0.3 million. This compares to a $5.3 million gain on investments in the three months ended June 30, 2024, representing a $2.2 million change in fair value on our Star Bulk Carriers Corp. ("SBLK") shareholding interest and dividend income on these shares of $3.1 million.

Equity loss on investments

Equity loss on investments amounting to $0.3 million loss and $0.1 million loss in the three months June 30, 2025 and June 30, 2024, respectively, relates to our share of expenses of Carbon Termination Technologies Corporation ("CTTC"), currently engaged in the research and development of decarbonization technologies for the shipping industry.

Other finance expenses

Other finance expenses increased by $0.1 million to $1.0 million in the three months ended June 30, 2025 compared to $0.9 million in the three months ended June 30, 2024.

Loss on derivatives

Amortization of deferred realized losses on interest rate swaps remained stable at $0.9 million in each of the three months ended June 30, 2025 and June 30, 2024.

Other income/(expenses), net

Other income/(expenses), net amounted to an expense of $1.4 million in the three months ended June 30, 2025 compared to an expense of $0.1 million in the three months ended June 30, 2024.

Adjusted EBITDA

Adjusted EBITDA decreased by 0.5%, or $0.8 million, to $176.0 million in the three months ended June 30, 2025 from $176.8 million in the three months ended June 30, 2024. The decrease was attributed to (i) $14.6 million increase in total operating expenses, (ii) $0.1 million increase in net financing expenses, (iii) $2.7 million decrease in dividends received and (iv) $0.2 million increase in equity loss on investments offset by (v) $16.8 million increase in operating revenues. Adjusted EBITDA for the three months ended June 30, 2025 is adjusted for a $14.7 million change in fair value of investments and stock based compensation of $0.1 million. Tables reconciling Adjusted EBITDA to Net Income can be found at the end of this earnings release.

Adjusted EBITDA of container vessels segment increased by 0.7%, or $1.1 million, to $170.2 million in the three months ended June 30, 2025 from $169.1 million in the three months ended June 30, 2024.

Adjusted EBITDA of drybulk vessels segment increased by $1.2 million to $5.9 million in the three months ended June 30, 2025 from $4.7 million in the three months ended June 30, 2024.

Six months ended June 30, 2025 compared to the six months ended June 30, 2024

During the six months ended June 30, 2025, Danaos had an average of 73.9 container vessels and 10 drybulk vessels compared to 68.3 container vessels and 7.3 drybulk vessels during the six months ended June 30, 2024. Our container vessels utilization for the six months ended June 30, 2025 was 97.8% compared to 97.3% in the six months ended June 30, 2024. Our drybulk vessels utilization for the six months ended June 30, 2025 was 96.1% compared to 90.2% in the six months ended June 30, 2024.

Our adjusted net income amounted to $230.4 million, or $12.39 per diluted share, for the six months ended June 30, 2025 compared to $272.3 million, or $13.93 per diluted share, for the six months ended June 30, 2024. We have adjusted our net income in the six months ended June 30, 2025 for a $17.2 million change in fair value of investments and a $1.5 million of non-cash finance fees amortization.

Adjusted net income of our container vessels segment amounted to $236.5 million for the six months ended June 30, 2025 compared to $265.9 million for the six months ended June 30, 2024. We adjusted net income of container vessels segment in the six months ended June 30, 2025 for a $1.5 million of non-cash finance fees amortization.

Adjusted net income / loss of our drybulk vessels segment amounted to $6.3 million loss for the six months ended June 30, 2025 compared to $2.6 million income for the six months ended June 30, 2024.

The $41.9 million decrease in adjusted net income for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 is primarily attributable to a $44.2 million increase in total operating expenses, a $9.7 million increase in net finance expenses, a $3.3 million decrease in dividends received, a $0.4 million increase in equity loss on investments, partially off-set by a $15.7 million increase in operating revenues.

Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release.

On a non-adjusted basis, our net income amounted to $246.1 million, or $13.24 earnings per diluted share, for the six months ended June 30, 2025 compared to net income of $291.7 million, or $14.92 earnings per diluted share, for the six months ended June 30, 2024. Our net income for the six months ended June 30, 2025 includes $17.2 million gain on marketable securities compared to $13.2 million gain on marketable securities in the six months ended June 30, 2024. On a non-adjusted basis, the net income of our container vessels segment amounted to $234.9 million for the six months ended June 30, 2025 compared to $272.0 million for the six months ended June 30, 2024. On a non-adjusted basis, the net income / loss of our drybulk vessels segment amounted to $6.3 million loss for the six months ended June 30, 2025 compared to $2.6 million income for the six months ended June 30, 2024.

Operating Revenues

Operating revenues increased by $15.7 million, to $515.5 million in the six months ended June 30, 2025 from $499.8 million in the six months ended June 30, 2024.

Operating revenues of our container vessels segment increased by 2.5%, or $11.7 million, to $475.7 million in the six months ended June 30, 2025, compared to $464.0 million in the six months ended June 30, 2024, analyzed as follows:

  • $43.6 million increase in revenues as a result of newbuilding containership vessel additions;
  • $17.5 million decrease in revenues as a result of lower charter rates between the two periods;
  • $10.7 million decrease in revenues due to lower non-cash revenue recognition in accordance with US GAAP;
  • $3.5 million decrease in revenues as a result of lower fleet utilization between the two periods; and
  • $0.2 million decrease in revenues due to the disposal of one containership vessel.

Operating revenues of our drybulk vessels segment increased by 11.2%, or $4.0 million, to $39.8 million in the six months ended June 30, 2025, compared to $35.8 million of revenues in the six months ended June 30, 2024, analyzed as follows:

  • $13.0 million increase in revenues as a result of dry bulk vessel acquisitions; and
  • $9.0 million net decrease in revenues as a result of lower charter rates partially offset by higher fleet utilization between the two periods.

Vessel Operating Expenses

Vessel operating expenses increased by $17.9 million to $108.1 million in the six months ended June 30, 2025 from $90.2 million in the six months ended June 30, 2024, primarily as a result of the increase in the average number of vessels in our fleet due to container vessel newbuilding deliveries and dry bulk vessels acquisitions, combined with an increase in the average daily operating cost of our vessels to $7,294 per vessel per day for the six months ended June 30, 2025 compared to $6,729 per vessel per day for the six months ended June 30, 2024, mainly due to increased total repairs & maintenance expenses between the two periods. Management believes that our daily operating costs remain among the most competitive in the industry.

Depreciation & Amortization

Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.

Depreciation

Depreciation expense increased by $11.5 million, to $80.7 million in the six months ended June 30, 2025 from $69.2 million in the six months ended June 30, 2024, due to the increase in the average number of vessels in our fleet.

Amortization of Deferred Dry-docking and Special Survey Costs

Amortization of deferred dry-docking and special survey costs increased by $10.1 million to $22.5 million in the six months ended June 30, 2025, from $12.4 million in the six months ended June 30, 2024, reflecting a larger number of vessels drydocked for which vessels drydocking amortization costs were recognized during the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

General and Administrative Expenses

General and administrative expenses increased by $1.9 million, to $23.4 million in the six months ended June 30, 2025 from $21.5 million in the six months ended June 30, 2024. The increase was mainly attributable to $1.6 million higher management fees due to the increase in the average number of vessels in our fleet and a $0.3 million increase in corporate general and administrative expenses.

Other Operating Expenses

Other Operating Expenses include Voyage Expenses.

Voyage Expenses

Voyage expenses increased by $1.9 million to $34.9 million in the six months ended June 30, 2025 from $33.0 million in the six months ended June 30, 2024, mainly driven by a $1.4 million increase in commissions.

Voyage expenses of our container vessels segment increased by $1.0 million to $17.7 million in the six months ended June 30, 2025, from $16.7 million in the six months ended June 30, 2024, mainly due to increased commissions. For the six months ended June 30, 2025, total voyage expenses of our container vessels comprised of $17.0 million in commissions and $0.7 million in other voyage expenses compared to $15.8 million in commissions and $0.9 million in other voyage expenses for the six months ended June 30, 2024.

Voyage expenses of our drybulk vessels segment increased by $0.9 million to $17.2 million in the six months ended June 30, 2025 compared to $16.3 million voyage expenses in the six months ended June 30, 2024. For the six months ended June 30, 2025, voyage expenses of our drybulk vessels comprised of $2.4 million in commissions and $14.8 million in other voyage expenses, mainly comprised of bunkers cost and port expenses, compared to $2.2 million in commissions and $14.1 million in other voyage expenses for the six months ended June 30, 2024.

Interest Expense and Interest Income

Interest expense increased by $11.5 million, to $19.7 million, in the six months ended June 30, 2025 from $8.2 million in the six months ended June 30, 2024. The increase in interest expense is a result of:

  • $8.7 million increase in interest expense due to an increase in our average indebtedness by $314.4 million between the two periods. Average indebtedness was $777.2 million in the six months ended June 30, 2025, compared to average indebtedness of $462.8 million in the six months ended June 30, 2024. This increase was also partially offset by a decrease in our debt service cost by approximately 1% as a result of lower SOFR rates between the two periods;
  • $2.2 million increase in interest expense due to a decrease in the amount of interest expense capitalized on our vessels under construction that was $9.3 million in the six months ended June 30, 2025, when compared to capitalized interest of $11.5 million in the six months ended June 30, 2024; and
  • $0.6 million increase in the amortization of deferred finance costs between the two periods.

As of June 30, 2025, our outstanding debt, gross of deferred finance costs, was $770.3 million, which included $262.8 million principal amount of our Senior Notes. These balances compare to debt of $577.8 million, which included $262.8 million principal amount of our Senior Notes, gross of deferred finance costs, as of June 30, 2024. The increase in our outstanding debt is due to loans drawn down to partially finance our container vessel newbuilding deliveries.

Interest income increased by $1.5 million to $7.3 million in the six months ended June 30, 2025 compared to $5.8 million in the six months ended June 30, 2024, mainly driven by higher average cash balances between the two periods.

Gain on investments

The $17.9 million gain on investments in the six months ended June 30, 2025 consisted of the change in fair value of our shareholding interest in Star Bulk Carriers Corp. ("SBLK") of $17.2 million and dividend income on these shares of $0.7 million. This compares to a $17.2 million gain on investments in the six months ended June 30, 2024, representing an $13.2 million change in fair value on our Star Bulk Carriers Corp. ("SBLK") shareholding interest and dividend income on these shares of $4.0 million.

Equity loss on investments

Equity loss on investments amounting to $0.6 million and $0.2 million loss in the six months June 30, 2025 and June 30, 2024, respectively, relates to our share of expenses of Carbon Termination Technologies Corporation ("CTTC"), currently engaged in the research and development of decarbonization technologies for the shipping industry.

Other finance expenses

Other finance expenses increased  by $0.3 million to $2.0 million in the six months ended June 30, 2025 compared to $1.7 million in the six months ended June 30, 2024.

Loss on derivatives

Amortization of deferred realized losses on interest rate swaps remained stable at $1.8 million in each of the six months ended June 30, 2025 and June 30, 2024.

Other income/(expenses), net

Other income/expenses, net amounted to  expense of $0.9 million in the six months ended June 30, 2025 compared to income of $0.2 million in the six months ended June 30, 2024.

Adjusted EBITDA

Adjusted EBITDA decreased by 1.8%, or $6.3 million, to $347.7 million in the six months ended June 30, 2025 from $354.0 million in the six months ended June 30, 2024. This decrease was attributed to (i) a $22.5 million increase in total operating expenses, (ii) a $0.4 million increase in net finance expenses, (iii) a $3.3 million decrease in dividends received and (iv) a $0.4 million increase in equity loss on investments partially offset by (v) a $20.3 million increase in operating revenues (excluding $4.5 million decrease in amortization of assumed time-charters). Adjusted EBITDA for the six months ended June 30, 2025 is adjusted for a $17.2 million change in fair value of investments and stock based compensation of $0.3 million.

Adjusted EBITDA of container vessels segment decreased by 0.1%, or $0.2 million, to $343.1 million in the six months ended June 30, 2025 from $343.3 million in the six months ended June 30, 2024.

Adjusted EBITDA of drybulk vessels segment decreased by $2.4 million to $4.5 million in the six months ended June 30, 2025 from $6.9 million in the six months ended June 30, 2024.

Dividend Payment

Danaos has declared a dividend of $0.85 per share of common stock for the Second Quarter of 2025, which is payable on August 28, 2025, to stockholders of record as of August 19, 2025.

Conference Call and Webcast

On Tuesday, August 5, 2025 at 9:00 A.M. ET, the Company's management will host a conference call to discuss the results.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 877 270 2148 (US Toll Free Dial In), 0800 279 9489 (UK Toll Free Dial In) or +44 (0) 2075 441 375 (Standard International Dial In). Please indicate to the operator that you wish to join the Danaos Corporation earnings call.

A telephonic replay of the conference call will be available until August 12, 2025 by dialing 1 877 344 7529 (US Toll Free Dial In) or 1-412-317-0088 (Standard International Dial In) and using 5422088# as the access code.

Audio Webcast

There will also be a live and then archived webcast of the conference call on the Danaos website (www.danaos.com). Participants of the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Slide Presentation

A slide presentation regarding the Company and the container and dry bulk industry will also be available on the Danaos website (www.danaos.com).

About Danaos Corporation

Danaos Corporation is one of the largest independent owners of modern, large-size container vessels. Our current fleet of 74 container vessels aggregating 471,477 TEUs and 16 under construction container vessels aggregating 134,234 TEUs ranks Danaos among the largest container vessels charter owners in the world based on total TEU capacity. Danaos has also recently invested in the dry bulk sector with the acquisition of 10 capesize drybulk vessels aggregating 1,760,861 DWT. Our container vessels fleet is chartered to many of the world's largest liner companies on fixed-rate charters. Our long track record of success is predicated on our efficient and rigorous operational standards and environmental controls. Danaos Corporation's shares trade on the New York Stock Exchange under the symbol "DAC".

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions. Although Danaos Corporation believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Danaos Corporation cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, geopolitical conditions, including any trade disruptions resulting from tariffs or other protectionist measures imposed by the United States or other countries, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in Danaos Corporation's operating expenses, including bunker prices, drydocking and insurance costs, our ability to operate profitably in the drybulk sector, performance of shipyards constructing  our contracted newbuilding vessels, ability to obtain financing and comply with covenants in our financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, including the conflict in Ukraine and related sanctions, the conflict in Israel and the Gaza Strip, potential disruption of shipping routes such as Houthi attacks in the Red Sea and the Gulf of Aden, due to accidents and political events or acts by terrorists. 

Risks and uncertainties are further described in reports filed by Danaos Corporation with the U.S. Securities and Exchange Commission.

Visit our website at www.danaos.com

APPENDIX

Container vessels fleet utilization

















Vessel Utilization (No. of Days)



Three

months

ended



Three

months

ended



Six

months

ended



Six

months

ended



June 30,

June 30,

June 30,

June 30,



2025

2024

2025

2024

Ownership Days



6,734



6,253



13,371



12,438

Less Off-hire Days:

















Scheduled Off-hire Days



(103)



(95)



(270)



(162)

Other Off-hire Days



(8)



(70)



(27)



(169)

Operating Days



6,623



6,088



13,074



12,107

Vessel Utilization



98.4 %



97.4 %



97.8 %



97.3 %



















Operating Revenues (in '000s of US$)



$239,446



$230,586



$475,636



$463,997

Less: Voyage Expenses excluding commissions (in

'000s of US$)

(442)



(448)



(749)



(936)

Time Charter Equivalent Revenues (in '000s of

US$)



239,004



230,138



474,887



463,061

Time Charter Equivalent US$/per day



$36,087



$37,802



$36,323



$38,247



















Drybulk vessels fleet utilization

















Vessel Utilization (No. of Days)



Three

months

ended



Three

months

ended



Six

months

ended



Six

months

ended



June 30,

June 30,

June 30,

June 30,



2025

2024

2025

2024

Ownership Days



910



694



1,810



1,331

Less Off-hire Days:

















Scheduled Off-hire Days



-



(90)



(56)



(121)

Other Off-hire Days



(2)



-



(14)



(10)

Operating Days



908



604



1,740



1,200

Vessel Utilization



99.8 %



87.0 %



96.1 %



90.2 %



















Operating Revenues (in '000s of US$)



$22,708



$15,720



$39,825



$35,758

Less: Voyage Expenses excluding commissions (in

'000s of US$)

(6,424)



(3,269)



(14,794)



(14,096)

Time Charter Equivalent Revenues (in '000s of

US$)



16,284



12,451



25,031



21,662

Time Charter Equivalent US$/per day



$17,934



$20,614



$14,386



$18,052



1)

We define Operating Days as the total number of Ownership Days net of Scheduled off-hire days (days associated with scheduled repairs, drydockings or special or intermediate surveys or days) and net of off-hire days associated with unscheduled repairs or days waiting to find employment but including days our vessels were sailing for repositioning. The shipping industry uses Operating Days to measure the number of days in a period during which vessels actually generate revenues or are sailing for repositioning purposes. Our definition of Operating Days may not be comparable to that used by other companies in the shipping industry.

2)

Time charter equivalent US$/per day ("TCE rate") represents the average daily TCE rate of our container vessels segment and drybulk vessels segment calculated dividing time charter equivalent revenues of each segment by operating days of each segment. TCE rate is a standard shipping industry performance measure used primarily to compare period to period changes in a shipping company's performance despite changes in the mix of charter types i.e., voyage charters, time charters, bareboat charters under which its vessels may be employed between the periods. Our method of computing TCE rate may not necessarily be comparable to TCE rates of other companies due to differences in methods of calculation. We include TCE rate, a non- GAAP measure, as it provides additional meaningful information in conjunction with operating revenues, the most directly comparable GAAP measure, and it assists our management in making decisions regarding the deployment and use of our operating vessels and assists investors and our management in evaluating our financial performance.

Fleet List

The following table describes in detail our container vessels deployment profile as of August 1, 2025:

Vessel Name

Vessel

Size



Year Built



Expiration of Charter(2)

(TEU) (1)

Ambition (ex Hyundai Ambition)

13,100



2012



April 2027

Speed (ex Hyundai Speed)

13,100



2012



March 2027

Kota Plumbago (ex Hyundai Smart)

13,100



2012



July 2027

Kota Primrose (ex Hyundai Respect)

13,100



2012



April 2027

Kota Peony (ex Hyundai Honour)

13,100



2012



March 2027

Express Rome

10,100



2011



May 2027

Express Berlin

10,100



2011



December 2029

Express Athens

10,100



2011



May 2027

Le Havre

9,580



2006



June 2028

Pusan C

9,580



2006



May 2028

Bremen

9,012



2009



January 2028

C Hamburg

9,012



2009



January 2028

Niledutch Lion

8,626



2008



May 2028

Kota Manzanillo

8,533



2005



December 2028

Belita

8,533



2006



June 2028

CMA CGM Melisande

8,530



2012



January 2028

CMA CGM Attila

8,530



2011



May 2027

CMA CGM Tancredi

8,530



2011



July 2027

CMA CGM Bianca

8,530



2011



September 2027

CMA CGM Samson

8,530



2011



November 2027

America

8,468



2004



April 2028

Europe

8,468



2004



May 2028

Kota Santos

8,463



2005



June 2029

Catherine C(3)

8,010



2024



June 2029

Greenland(3)

8,010



2024



August 2029

Greenville(4)

8,010



2024



October 2029

Greenfield(5)

8,010



2024



November 2029

Interasia Accelerate(3)

7,165



2024



April 2027

Interasia Amplify(4)

7,165



2024



September 2027

CMA CGM Moliere

6,500



2009



March 2027

CMA CGM Musset

6,500



2010



July 2027

CMA CGM Nerval

6,500



2010



November 2025

CMA CGM Rabelais

6,500



2010



January 2026

Racine

6,500



2010



June 2029

YM Mandate

6,500



2010



January 2028

YM Maturity

6,500



2010



April 2028

Savannah (ex Zim Savannah)

6,402



2002



June 2027

Dimitra C

6,402



2002



April 2027

Phoebe(6)

6,014



2025



October 2031

Suez Canal

5,610



2002



April 2028

Kota Lima

5,544



2002



September 2025

Wide Alpha 

5,466



2014



January 2030

Stephanie C

5,466



2014



September 2028

Euphrates (ex Maersk Euphrates)

5,466



2014



September 2028

Wide Hotel

5,466



2015



March 2030

Wide India

5,466



2015



October 2028

Wide Juliet

5,466



2015



August 2026

Seattle C

4,253



2007



October 2026

Vancouver

4,253



2007



November 2026

Derby D

4,253



2004



January 2027

Tongala

4,253



2004



November 2026

Rio Grande

4,253



2008



November 2026

Merve A

4,253



2008



August 2027

Kingston

4,253



2008



June 2027

Monaco (ex ZIM Monaco)

4,253



2009



September 2026

Dalian

4,253



2009



April 2028

ZIM Luanda

4,253



2009



August 2028

Dimitris C

3,430



2001



September 2027

Express Black Sea

3,400



2011



January 2027

Express Spain

3,400



2011



January 2027

Express Argentina

3,400



2010



December 2026

Express Brazil

3,400



2010



April 2027

Express France

3,400



2010



July 2027

Singapore

3,314



2004



March 2027

Colombo

3,314



2004



January 2027

Zebra

2,602



2001



November 2025

Artotina

2,524



2001



January 2026

Advance

2,200



1997



June 2026

Future

2,200



1997



May 2026

Sprinter

2,200



1997



May 2026

Bridge

2,200



1998



January 2028

Progress C

2,200



1998



April 2026

Phoenix D

2,200



1997



March 2026

Highway

2,200



1998



January 2028





(1)

Twenty-feet equivalent unit, the international standard measure for containers and container vessels capacity.

(2)

Earliest date charters could expire. Some charters include options for the charterer to extend their terms.

(3)

The newbuilding vessels were delivered in the second quarter of 2024.

(4)

The newbuilding vessels were delivered in the third quarter of 2024.

(5)

The newbuilding vessel was delivered in the fourth quarter of 2024.

(6)

The newbuilding vessel was delivered in the first quarter of 2025.

 

Container vessels under construction as of August 1, 2025:







Hull Number

Vessel Size

(TEU)



Expected Delivery Year





Minimum Charter Duration

Hull No. CV5900-08

6,014



2025





6.8 Years

Hull No. YZJ2023-1556

8,258



2026





5 Years

Hull No. YZJ2023-1557

8,258



2026





5 Years

Hull No. YZJ2024-1612

8,258



2026





5 Years

Hull No. YZJ2024-1613

8,258



2027





5 Years

Hull No. YZJ2024-1625

8,258



2027





5 Years

Hull No. YZJ2024-1626

8,258



2027





5 Years

Hull No. YZJ2024-1668

8,258



2027





5 Years

Hull No. C9200-7

9,200



2027





4.8 Years

Hull No. C9200-8

9,200



2027





4.8 Years

Hull No. C9200-9

9,200



2027





4.8 Years

Hull No. C9200-10

9,200



2028





4.8 Years

Hull No. C9200-11

9,200



2028





4.8 Years

Hull No. H2596

9,200



2027





6 Years

Hull No. H2597

9,200



2027





6 Years

Hull No. CV5900-09

6,014



2027





4.8 Years

 

The following table describes the details of our Capesize drybulk vessels as of August 1, 2025:

Vessel Name

Capacity

(DWT) (1)



Year Built



Achievement

175,966



2011



Genius

175,580



2012



Ingenuity

176,022



2011



Integrity

175,966



2010



Peace

175,858



2010



W Trader

175,879



2009



E Trader

175,886



2009



Gouverneur (ex Xin Hang) (2)

178,043



2010



Valentine (ex Star Audrey) (2)

175,125



2011



Danaos (ex Guo May) (3)

176,536



2011







(1)

DWT, dead weight tons, the international standard measure for drybulk vessels capacity.

(2)

The vessels were delivered in the second quarter of 2024.

(3)

The vessel was delivered in the third quarter of 2024.

 



DANAOS CORPORATION

Condensed Consolidated Statements of Income - Unaudited

(Expressed in thousands of United States dollars, except per share amounts)









Three months

ended



Three months

ended



Six months

ended



Six months

ended

June 30,

June 30,

June 30,

June 30,





2025



2024



2025



2024



















OPERATING REVENUES

$262,154



$246,306



$515,461



$499,755

OPERATING EXPENSES

















Vessel operating expenses

(56,385)



(47,090)



(108,087)



(90,204)



Depreciation & amortization

(52,213)



(42,352)



(103,211)



(81,667)



General & administrative

(11,206)



(11,297)



(23,428)



(21,541)



Other operating expenses

(16,810)



(12,678)



(34,945)



(33,020)



Net gain on disposal of vessel

-



7,094



-



7,094

Income From Operations

125,540



139,983



245,790



280,417

OTHER INCOME/(EXPENSES)

















Interest income

3,661



2,923



7,266



5,859



Interest expense

(9,711)



(5,106)



(19,714)



(8,230)



Gain on investments

15,047



5,276



17,896



17,187



Other finance expenses

(973)



(868)



(1,960)



(1,750)



Equity loss on investments

(333)



(97)



(565)



(206)



Other income/(expenses), net

(1,424)



(56)



(866)



179



Realized loss on derivatives

(903)



(903)



(1,796)



(1,806)

Total Other Income/(Expenses), net

5,364



1,169



261



11,233

Net Income

130,904



141,152



246,051



291,650

EARNINGS PER SHARE















Basic earnings per share

$7.14



$7.30



$13.27



$15.05

Diluted earnings per share

$7.12



$7.23



$13.24



$14.92

Basic weighted average number of common shares

(in thousands of shares)

18,344



19,348



18,546



19,380

Diluted weighted average number of common

shares (in thousands of shares)

18,396



19,520



18,588



19,552

 

Non-GAAP Measures1

Reconciliation of Net Income to Adjusted Net Income – Unaudited





Three

months

ended



Three

months

ended



Six

months

ended



Six

months

ended

June 30,

June 30,

June 30,

June 30,



2025



2024



2025



2024

Net Income

$130,904



$141,152



$246,051



$291,650

Change in fair value of investments

(14,734)



(2,224)



(17,217)



(13,203)

Net gain on disposal of vessel

-



(7,094)



-



(7,094)

Amortization of financing fees

787



474



1,545



971

Adjusted Net Income

$116,957



$132,308



$230,379



$272,324

Adjusted Earnings Per Share, diluted

$6.36



$6.78



$12.39



$13.93

Diluted weighted average number of shares (in thousands of

shares)

18,396



19,520



18,588



19,552







1 The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Table above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and six months ended June 30, 2025 and 2024. The non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.

 



DANAOS CORPORATION

Condensed Consolidated Balance Sheets - Unaudited

(Expressed in thousands of United States dollars)











As of



As of

June 30,

December 31,







2025



2024

ASSETS









CURRENT ASSETS











Cash, cash equivalents and restricted cash



$546,164



$453,384



Accounts receivable, net



27,454



25,578



Other current assets



233,824



192,005







807,442



670,967

NON-CURRENT ASSETS











Fixed assets, net



3,284,665



3,290,309



Advances for vessels acquisition and vessels under

construction



304,686



265,838



Deferred charges, net



64,079



58,759



Other non-current assets



60,288



57,781







3,713,718



3,672,687

TOTAL ASSETS



$4,521,160



$4,343,654













LIABILITIES AND STOCKHOLDERS' EQUITY









CURRENT LIABILITIES











Long-term debt, current portion



$37,660



$35,220



Accounts payable, accrued liabilities & other current liabilities



113,058



133,734







150,718



168,954

LONG-TERM LIABILITIES











Long-term debt, net



723,534



699,563



Other long-term liabilities



54,355



50,337







777,889



749,900













STOCKHOLDERS' EQUITY











Common stock



183



190



Additional paid-in capital



601,653



650,864



Accumulated other comprehensive loss



(68,053)



(70,430)



Retained earnings



3,058,770



2,844,176







3,592,553



3,424,800

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY



$4,521,160



$4,343,654

 



DANAOS CORPORATION

Condensed Consolidated Statements of Cash Flows - Unaudited

(Expressed in thousands of United States dollars)









Three

months

ended



Three

months

ended



Six

months

ended



Six

months

ended

June 30,

June 30,

June 30,

June 30,





2025



2024



2025



2024

Operating Activities:

















Net income

$130,904



$141,152



$246,051



$291,650



Adjustments to reconcile net income to net cash

provided by operating activities:

















Depreciation

40,698



35,380



80,726



69,243



Amortization of deferred drydocking & special survey

costs and finance costs

12,302



7,446



24,030



13,395



Amortization of assumed time charters

-



(1,036)



-



(4,534)



Prior service cost and periodic cost

1,722



458



2,807



715



Gain on investments

(14,734)



(2,224)



(17,217)



(13,203)



Net gain on disposal of vessel

-



(7,094)



-



(7,094)



Payments for drydocking/special survey

(12,016)



(10,449)



(27,805)



(14,618)



Amortization of deferred realized losses on cash flow

interest rate swaps

903



903



1,796



1,806



Equity loss on investments

333



97



565



206



Stock based compensation

1,723



1,577



3,428



3,153



Accounts receivable

(2,758)



(9,343)



(2,586)



(12,795)



Other assets, current and non-current

17,909



9,320



11,525



21,207



Accounts payable and accrued liabilities

(3,148)



11,995



(5,703)



5,767



Other liabilities, current and long-term

(11,059)



(23,907)



(20,978)



(47,331)

Net Cash provided by Operating Activities

162,779



154,275



296,639



307,567



















Investing Activities:

















Vessel additions and advances for vessels under

construction

(21,331)



(217,728)



(107,021)



(341,855)



Net proceeds and insurance proceeds from disposal

of vessel

-



9,923



1,681



10,639



Investments in affiliates/marketable securities

(30,270)



-



(30,270)



-

Net Cash used in Investing Activities

(51,601)



(207,805)



(135,610)



(331,216)



















Financing Activities:

















Proceeds from long-term debt

-



126,000



44,000



181,000



Debt repayment

(9,415)



(6,875)



(18,220)



(13,750)



Dividends paid

(15,559)



(15,476)



(31,449)



(31,011)



Repurchase of common stock

(19,438)



(1,094)



(53,212)



(5,223)



Finance costs

(1,145)



(905)



(9,368)



(6,730)

Net Cash (used in) / provided by Financing

Activities

(45,557)



101,650



(68,249)



124,286

Net increase in cash and cash equivalents

65,621



48,120



92,780



100,637

Cash and cash equivalents, beginning of period

480,543



324,326



453,384



271,809

Cash and cash equivalents, end of period

$546,164



$372,446



$546,164



$372,446

 

DANAOS CORPORATION

Reconciliation of Net Income to Adjusted EBITDA - Unaudited

(Expressed in thousands of United States dollars) 





Three

months

ended



Three

months

ended



Six

months

ended



Six

months

ended

June 30,

June 30,

June 30,

June 30,



2025



2024



2025



2024

Net income

$130,904



$141,152



$246,051



$291,650

Depreciation

40,698



35,380



80,726



69,243

Amortization of deferred drydocking & special survey costs

11,515



6,972



22,485



12,424

Amortization of assumed time charters

-



(1,036)



-



(4,534)

Amortization of deferred finance costs and commitment fees

1,349



1,026



2,685



2,299

Amortization of deferred realized losses on interest rate swaps

903



903



1,796



1,806

Interest income

(3,661)



(2,923)



(7,266)



(5,859)

Interest expense excluding amortization of finance costs

8,924



4,632



18,169



7,259

Change in fair value of investments

(14,734)



(2,224)



(17,217)



(13,203)

Stock based compensation

143



-



285



-

Net gain on disposal of vessel

-



(7,094)



-



(7,094)

Adjusted EBITDA(1)

$176,041



$176,788



$347,714



$353,991

 



Last twelve

months

ended



Last twelve

months

ended









June 30,

June 30,







2025



2024









Net income

$459,474



$574,727









Depreciation

159,827



135,091









Amortization of deferred drydocking & special survey costs

39,222



22,750









Amortization of assumed time charters

-



(13,366)









Amortization of deferred finance costs and commitment fees

5,291



4,673









Amortization of deferred realized losses on interest rate swaps

3,622



3,632









Interest income

(14,297)



(11,673)









Interest expense excluding amortization of finance costs

34,769



14,179









Change in fair value of investments

21,165



(24,632)









Stock based compensation

8,503



6,340









Net gain on disposal of vessel

(1,238)



(7,094)









Adjusted EBITDA(1)

$716,338



$704,627













1)

Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs and commitment fees, amortization of deferred realized losses on interest rate swaps, adjusted for the change in fair value of investments, stock based compensation, loss on debt extinguishment and net gain on disposal/sale of vessels. However, Adjusted EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or "GAAP." We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that EBITDA and Adjusted EBITDA assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.

 



Note: Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to net income. Charges negatively impacting net income are reflected as increases to net income.

 



The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and six months ended June 30, 2025 and June 30, 2024. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.

 

DANAOS CORPORATION

Reconciliation of Net Income to Adjusted EBITDA per segment

Three Months Ended June 30, 2025 and Three Months Ended June 30, 2024

Unaudited

(Expressed in thousands of United States dollars)





Three Months Ended



Three Months Ended



June 30, 2025



June 30, 2024



Container

Vessels



Drybulk

Vessels



Other



Total



Container

Vessels



Drybulk

Vessels



Other



Total

Net income/(loss)

$115,893



$266



$14,745



$130,904



$133,683



$2,290



$5,179



$141,152

Depreciation

37,390



3,308



-



40,698



33,247



2,133



-



35,380

Amortization of

deferred drydocking

& special survey

costs

9,201



2,314



-



11,515



6,683



289



-



6,972

Amortization of

assumed time

charters

-



-



-



-



(1,036)



-



-



(1,036)

Amortization of

deferred finance

costs and

commitment fees

1,349



-



-



1,349



1,026



-



-



1,026

Amortization of

deferred realized

losses on interest

rate swaps

903



-



-



903



903



-



-



903

Interest income

(3,630)



-



(31)



(3,661)



(2,923)



-



-



(2,923)

Interest expense

excluding

amortization of

finance costs

8,924



-



-



8,924



4,632



-



-



4,632

Change in fair value

of investments

-



-



(14,734)



(14,734)



-



-



(2,224)



(2,224)

Stock based

compensation

133



10



-



143



-



-



-



-

Net gain on disposal

of vessel

-



-



-



-



(7,094)



-



-



(7,094)

Adjusted EBITDA(1)

$170,163



$5,898



$(20)



$176,041



$169,121



$4,712



$2,955



$176,788





1)

Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs and commitment fees, amortization of deferred realized losses on interest rate swaps and adjusted for the change in fair value of investments and stock based compensation. However, Adjusted EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or "GAAP." We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that EBITDA and Adjusted EBITDA assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.

 



Note: Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to net income. Charges negatively impacting net income are reflected as increases to net income.

 



The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and six months ended June 30, 2025 and 2024. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.

 

DANAOS CORPORATION

Reconciliation of Net Income to Adjusted EBITDA per segment

Six Months Ended June 30, 2025 and Six Months Ended June 30, 2024

Unaudited

(Expressed in thousands of United States dollars)





Six Months Ended



Six Months Ended



June 30, 2025



June 30, 2024



Container

Vessels



Drybulk

Vessels



Other



Total



Container

Vessels



Drybulk

Vessels



Other



Total

Net income/(loss)

$234,938



$(6,276)



$17,389



$246,051



$272,042



$2,627



$16,981



$291,650

Depreciation

74,154



6,572



-



80,726



65,255



3,988



-



69,243

Amortization of

deferred drydocking

& special survey

costs

18,252



4,233



-



22,485



12,135



289



-



12,424

Amortization of

assumed time

charters

-



-



-



-



(4,534)



-



-



(4,534)

Amortization of

deferred finance

costs and

commitment fees

2,685



-



-



2,685



2,299



-



-



2,299

Amortization of

deferred realized

losses on interest

rate swaps

1796



-



-



1796



1,806



-



-



1,806

Interest income

(7,208)



-



(58)



(7,266)



(5,859)



-



-



(5,859)

Interest expense

excluding

amortization of

finance costs

18,169



-



-



18,169



7,259



-



-



7,259

Change in fair value

of investments

-



-



(17,217)



(17,217)



-



-



(13,203)



(13,203)

Stock based

compensation

265



20



-



285



-



-



-



-

Net gain on

disposal of vessel

-



-



-



-



(7,094)



-



-



(7,094)

Adjusted

EBITDA(
2)

$343,051



$4,549



$114



$347,714



$343,309



$6,904



$3,778



$353,991





2)

Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs and commitment fees, amortization of deferred realized losses on interest rate swaps and adjusted for the change in fair value of investments and stock based compensation. However, Adjusted EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or "GAAP." We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that EBITDA and Adjusted EBITDA assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.

 



Note: Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to net income. Charges negatively impacting net income are reflected as increases to net income.

 



The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and six months ended June 30, 2025 and 2024. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.

 

DANAOS CORPORATION

Reconciliation of Net Income to Adjusted Net Income per segment

Three Months Ended June 30, 2025 and Three Months Ended June 30, 2024

Unaudited

(Expressed in thousands of United States dollars)







Three Months Ended



Three Months Ended





June 30, 2025



June 30, 2024





Container

Vessels



Drybulk

Vessels



Other



Total



Container

Vessels



Drybulk

Vessels



Other



Total

Net income/(loss)



$115,893



$266



$14,745



$130,904



$133,683



$2,290



$5,179



$141,152

Change in fair value of investments



-



-



(14,734)



(14,734)



-



-



(2,224)



(2,224)

Amortization of financing fees



787



-



-



787



474



-



-



474

Net gain on disposal of vessel



-



-



-



-



(7,094)



-



-



(7,094)

Adjusted Net income/(loss)(1)



$116,680



$266



$11



$116,957



$127,063



$2,290



$2,955



$132,308

Adjusted Earnings per Share,

diluted















$6.36







-



-



$6.78

Diluted weighted average number of shares (in thousands of shares)



18,396







19,520

 

DANAOS CORPORATION

Reconciliation of Net Income to Adjusted Net Income per segment

Six Months Ended June 30, 2025 and Six Months Ended June 30, 2024

Unaudited

(Expressed in thousands of United States dollars)







Six Months Ended



Six Months Ended





June 30, 2025



June 30, 2024





Container

Vessels



Drybulk

Vessels



Other



Total



Container

Vessels



Drybulk

Vessels



Other



Total

Net income/(loss)



$234,938



$(6,276)



$17,389



$246,051



$272,042



$2,627



$16,981



$291,650

Change in fair value of investments



-



-



(17,217)



(17,217)



-



-



(13,203)



(13,203)

Amortization of financing fees



1,545



-



-



1,545



971



-



-



971

Net gain on disposal of vessel



-



-



-



-



(7,094)



-



-



(7,094)

Adjusted Net income/(loss)(1)



$236,483



$(6,276)



$172



$230,379



$265,919



$2,627



$3,778



$272,324

Adjusted Earnings per Share,

diluted















$12.39







-



-



$13.93

Diluted weighted average number of shares (in thousands of shares)



18,588







19,552





1)

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Table above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and six months ended June 30, 2025 and 2024. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.

 

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SOURCE Danaos Corporation

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