Danaos Corporation Reports First Quarter Results for Period Ended March 31, 2026

ATHENS, Greece, May 11, 2026 /PRNewswire/ -- Danaos Corporation ("Danaos") (NYSE: DAC), one of the world's largest independent owners of container vessels, today reported unaudited results for the three-month period ended March 31, 2026.

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.

Highlights for the First Quarter Ended March 31, 2026 and up to the date of this release:

Financing developments

• On March 2, 2026, we repaid in full our 8.5% senior notes due 2028, with an outstanding principal amount of $262.8 million.
• On March 2, 2026, we prepaid the outstanding principal amount of $213.8 million under our syndicated $450.0 million loan facility, relating to the vessels Catherine C, Greenland, Interasia Accelerate, and Interasia Amplify.
• In connection with the prepayment, we entered into Japanese Operating Leases ("Jolco") in respect of these four vessels for an aggregate consideration of $371 million and a tenor of eight years. One of the Jolco transactions was consummated on March 23, 2026 for a consideration of $100 million, two on March 26, 2026 for a consideration of $85.5 million each, and one on April 16, 2026 for a consideration of $100 million. Additionally, two more vessels are expected to be refinanced through Jolco transactions in June 2026.
• As of March 31, 2026, out of our total fleet of 86 vessels, 79 of our 86 vessels were debt-free, including 67 unencumbered vessels and 12 pledged as collateral under our $382.5 million revolving credit facility, which remains undrawn. As of the date of this release, available committed borrowing capacity was $236.25 million under the Revolving Credit Facility, $850 million under the syndicated facility, and $207 million under the Jolco facilities, in each case subject to customary conditions precedent to drawdown.

Fleet developments

• Since our previous earnings announcement, we have added two 5,000 TEU containership vessels to our orderbook with expected deliveries in 2027. We have arranged 3 year charters for both of these vessels and have added approximately $85 million to our contracted revenue backlog. Prior to delivery of these vessels, charterers have the option to extend the firm charter period to up to 7.4 years instead of 3 years. Additionally, we have placed orders for two Newcastlemax dry bulk carriers of approximately 211,000 dwt capacity each with expected deliveries in 2028.
• Our containership orderbook currently consists of 29 newbuilding containership vessels with an aggregate capacity of 184,550 TEU with expected deliveries of three vessels in 2026, fifteen vessels in 2027, seven vessels in 2028 and four vessels in 2029. All vessels in our orderbook 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. The majority of our orderbook vessels will be also equipped with additional eco-features, including methanol-ready capability and scrubber installations, while a portion are further designed with ammonia-ready capability.
• Our dry bulk vessel orderbook currently consists of four 211,000 dwt Newcastlemax dry bulk carriers, all with expected deliveries in 2028. All four Newcastlemax newbuildings will be built in accordance with IMO Tier III emission standards and EEDI Phase III requirements, and will be equipped with scrubbers.
• On March 19, 2026, we took delivery of the previously announced secondhand Capesize vessel which was renamed to John Junior.
• On a pro forma, fully delivered basis, assuming the delivery of all vessels currently under construction and on order, our fleet would consist of 104 containerships with an aggregate capacity of approximately 662,041 TEUs and 15 dry bulk vessels, comprising 11 Capesize bulk carriers and four Newcastlemax bulk carriers, with an aggregate capacity of approximately 2.8 million DWT.

Chartering developments

• Since the date of our previous earnings release, we have added approximately $120 million to our contracted revenue backlog through a combination of charter extensions and forward new charters for certain of our existing container vessels and vessels on order.
• As a result, total contracted operating revenues, based on concluded charter contracts through the date of this release, currently stand at $4.1 billion, including newbuildings. The remaining average contracted charter duration for our containership fleet is 4.2 years, weighted by aggregate contracted charter hire.
• Contracted operating days charter coverage for our container vessel fleet is currently 100% for 2026, 87.9% for 2027 and 65.3% for 2028. This includes newbuildings based on their scheduled delivery dates.

Investments

• In April 2026, we acquired an approximately 1.9% equity interest, comprising of 45,454,545 newly issued ordinary shares, in Yoda PLC (CSE: YODA), a Cyprus-listed investment company. Yoda PLC's portfolio is focused on shipping investments in the LNG and container sectors, real estate and other participations including healthcare. The shares were subscribed at €1.10 per share for total cash consideration of €50.0 million (approximately $58.6 million).

Share buy-back and dividends

• As of the date of this release, Danaos has repurchased a total of 3,247,444 shares of its common stock in the open market for $235.1 million under its $300.0 million authorized share repurchase program, that was originally introduced in June 2022 and was upsized twice in $100.0 million increments, in November 2023 and in April 2025.
• Danaos has declared a dividend of $0.90 per share of common stock for the first quarter of 2026. The dividend is payable on June 4, 2026, to stockholders of record as of May 26, 2026.

Danaos' CEO Dr. John Coustas commented:

"This quarter was shaped by the unprecedented events in the Gulf and the closure of the Strait of Hormuz, a situation that is still unfolding but which we hope will be resolved in the coming weeks. The disruption has primarily benefited the tanker sector, where rates spiked sharply before quickly normalizing. In the container sector, the disruption helped stabilize and lift certain box rates, however it did not have a significant effect. Two of our vessels currently remain in the Gulf, but this does not affect our earnings as both vessels continue to be on charter.

The dry bulk market has improved considerably and continues to strengthen. Our optimistic outlook for this market prompted us to expand our order-book to four Newcastlemaxes for 2028 delivery. We also ordered two 5,000 TEU container ships for 2027 delivery, both of which are backed by three-year charters.

Together with charter arrangements for our existing fleet, these additions position us with a pro-forma fleet of 104 container ships and 15 Capesize & Newcastlemax vessels with a $4.1 billion contracted revenue backlog. Combined with $1.3 billion of liquidity, this positions us to continue pursuing accretive opportunities as they arise.

Resolution of the conflicts in the Gulf and Ukraine should bring meaningful stability for years to come, absent new initiatives by the major global powers. Last year's developments demonstrated that globalization remains resilient and that protectionism is likely to be the exception rather than the rule going forward. Trade is becoming increasingly multilateral, which benefits the midsize container ship segment in which we are actively investing.

Together with a disciplined expansion strategy, we believe these dynamics will continue to drive improving profitability and create value for our shareholders."

Three months ended March 31, 2026 compared to the three months ended March 31, 2025

During the three months ended March 31, 2026, Danaos had an average of 75.0 container vessels and 10.1 drybulk vessels compared to 73.7 container vessels and 10.0 drybulk vessels during the three months ended March 31, 2025. Our container vessels utilization for the three months ended March 31, 2026 was 97.7% compared to 97.2% in the three months ended March 31, 2025. Our drybulk vessels utilization for the three months ended March 31, 2026 was 82.0% compared to 92.4% in the three months ended March 31, 2025.

Our adjusted net income amounted to $122.5 million, or $6.72 per diluted share, for the three months ended March 31, 2026 compared to $113.4 million, or $6.04 per diluted share, for the three months ended March 31, 2025. We have adjusted our net income in the three months ended March 31, 2026 for (i) a $23.5 million gain from the change in fair value of investments, (ii) a $4.6 million loss on debt extinguishment, and (iii) $1.0 million of non-cash amortization of finance fees and debt discount.

Adjusted net income of our container vessels segment amounted to $118.8 million for the three months ended March 31, 2026, compared to $119.8 million for the three months ended March 31, 2025. We adjusted net income of container vessels segment in the three months ended March 31, 2026 for (i) a $4.6 million loss on debt extinguishment and (ii) $1.0 million of non-cash amortization of finance fees and debt discount.

Adjusted net income of our drybulk vessels segment amounted to $1.6 million for the three months ended March 31, 2026, compared to an adjusted net loss of $6.5 million for the three months ended March 31, 2025.

The $9.1 million increase in adjusted net income for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was primarily attributable to (i) a $4.4 million decrease in total operating expenses, (ii) a $2.4 million decrease in net finance expenses, (iii) a $2.0 million increase in dividends received, and (iv) a $0.4 million increase in operating revenues, partially offset by a $0.1 million increase in loss on equity investments.

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 $140.4 million, or $7.70 earnings per diluted share, for the three months ended March 31, 2026 compared to net income of $115.1 million, or $6.13 earnings per diluted share, for the three months ended March 31, 2025. Our net income for the three months ended March 31, 2026 includes $23.5 million gain on marketable securities (gross of dividend income) compared to $2.5 million gain on marketable securities (gross of dividend income) in the three months ended March 31, 2025. On a non-adjusted basis, the net income of our container vessels segment amounted to $113.3 million for the three months ended March 31, 2026 compared to $119.0 million for the three months ended March 31, 2025. On a non-adjusted basis, the net income of our drybulk vessels segment amounted to $1.6 million for the three months ended March 31, 2026, compared to a net loss of $6.5 million for the three months ended March 31, 2025.

Operating Revenues

Operating revenues increased by $0.4 million, to $253.7 million in the three months ended March 31, 2026 from $253.3 million in the three months ended March 31, 2025.

Operating revenues of our container vessels segment decreased by 2.8%, or $6.6 million, to $229.6 million in the three months ended March 31, 2026, compared to $236.2 million in the three months ended March 31, 2025, analyzed as follows:

• $7.2 million decrease in revenues due to non-cash revenue recognition in accordance with US GAAP;
• $6.9 million decrease in revenues as a result of lower charter rates between the two periods;
  
  partially off-set by:
• $3.9 million increase in revenues as a result of newbuilding containership vessel additions;
• $3.6 million increase in revenues as a result of improved fleet utilization between the two periods.

Operating revenues of our drybulk vessels segment increased by 40.9%, or $7.0 million, to $24.1 million in the three months ended March 31, 2026, compared to $17.1 million of revenues in the three months ended March 31, 2025. The increase was primarily driven by a significant improvement in Time Charter Equivalent rate per day, which increased to $24,825 per day in the three months ended March 31, 2026, from $10,513 per day in the three months ended March 31, 2025. This improvement was partially offset by a lower fleet utilization rate of 82.0% in the three months ended March 31, 2026 compared to 92.4% in the three months ended March 31, 2025.

Vessel Operating Expenses

Vessel operating expenses decreased by $1.7 million to $50.0 million for the three months ended March 31, 2026, from $51.7 million for the three months ended March 31, 2025. This decrease occurred despite an increase in the average number of vessels in our fleet due to container vessel newbuilding deliveries and reflects a reduction in average daily operating costs to $6,680 per day from $7,028 per day in the prior-year period, mainly due to lower repairs and maintenance expenses. 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 $0.9 million, to $40.9 million in the three months ended March 31, 2026 from $40.0 million in the three months ended March 31, 2025, 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 $1.3 million to $12.3 million in the three months ended March 31, 2026 from $11.0 million in the three months ended March 31, 2025, reflecting a larger number of vessels drydocked for which vessels drydocking amortization cost was recognized during the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

General and Administrative Expenses

General and administrative expenses increased by $2.4 million to $14.6 million for the three months ended March 31, 2026, from $12.2 million for the three months ended March 31, 2025. The increase was mainly attributable to $1.3 million in higher management fees mainly driven by the increase in the average number of vessels in our fleet, as well as a $1.1 million increase in corporate general and administrative expenses.

Other Operating Expenses

Other Operating Expenses include Voyage Expenses.

Voyage Expenses

Voyage expenses decreased by $7.4 million to $10.7 million in the three months ended March 31, 2026 from $18.1 million in the three months ended March 31, 2025, mainly driven by (i) a $4.9 million gain arising from early termination agreements for certain container vessels operating under time charter arrangements, with retention of bunkers on redelivery at no consideration in the three months ended March 31, 2026, and (ii) a $2.2 million decrease 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 decreased by $5.2 million to $3.6 million in the three months ended March 31, 2026 from $8.8 million in the three months ended March 31, 2025, mainly driven by a $4.9 million gain arising from early termination agreements for certain vessels operating under time charter arrangements, with retention of bunkers on redelivery at no consideration in the three months ended March 31, 2026.

Voyage expenses of our dry bulk vessels segment decreased by $2.2 million to $7.1 million in the three months ended March 31, 2026, compared to $9.3 million in the three months ended March 31, 2025. For the three months ended March 31, 2026, voyage expenses of our dry bulk vessels comprised $1.5 million in commissions and $5.6 million in other voyage expenses, mainly comprised of bunkers costs and port expenses, compared to $1.0 million in commissions and $8.3 million in other voyage expenses for the three months ended March 31, 2025, reflecting an increase in time charter employment of our dry bulk vessels during the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

Interest Expense and Interest Income

Interest expense increased by $1.9 million, to $11.9 million in the three months ended March 31, 2026 from $10.0 million in the three months ended March 31, 2025. The increase in interest expense is a result of:

• $4.5 million increase in interest expense due to an increase in our average indebtedness by $329.7 million between the two periods, partially offset by a decrease in our average debt service cost. Average indebtedness was $1,107.3 million in the three months ended March 31, 2026, compared to average indebtedness of $777.6 million in the three months ended March 31, 2025, while our average debt service cost decreased by approximately 0.5%, mainly as a result of lower SOFR rates between the two periods;
• $0.2 million increase in the amortization of deferred finance costs and debt discount between the two periods;
  
  
  
  partially off-set by:
  
  
  
  
• $2.8 million decrease in interest expense due to an increase in the amount of interest expense capitalized on our vessels under construction that was $7.2 million in the three months ended March 31, 2026, when compared to capitalized interest of $4.4 million in the three months ended March 31, 2025.

As of March 31, 2026, our outstanding debt, gross of deferred finance costs, was $1,046.3 million, which includes $500.0 million principal amount of the 6.875% Senior Notes. This compares to $1,177.8 million of outstanding debt as of December 31, 2025, which included $262.8 million principal amount of the 8.5% Senior Notes and $500.0 million principal amount of the 6.875% Senior Notes. The decrease in our outstanding debt was mainly due to (i) the early prepayment of four secured facilities under the $450 million syndicated credit facility and (ii) the repayment of the $262.8 million principal amount of the 8.5% Senior Notes, partially offset by drawdowns under the Jolco facilities.

Interest income increased by $4.0 million, to $7.6 million in the three months ended March 31, 2026 compared to $3.6 million in the three months ended March 31, 2025, mainly driven by higher average cash balances between the two periods, partially offset by lower interest rates on cash deposits between the corresponding periods.

Gain on investments

The $25.8 million gain on investments for the three months ended March 31, 2026 consisted of the change in fair value of our shareholding interest in Star Bulk Carriers Corp. ("SBLK") of $23.5 million and dividend income on these shares of $2.3 million. This compares to a $2.8 million gain on investments for the three months ended March 31, 2025, which consisted of a $2.5 million gain from the change in fair value of our shareholding interest in SBLK and $0.3 million of dividend income on these shares.

Loss on equity investments

Loss on equity investments amounting to $0.3 million and $0.2 million in the three months March 31, 2026 and March 31, 2025, 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 decreased by $0.1 million to $0.9 million in the three months ended March 31, 2026 compared to $1.0 million in the three months ended March 31, 2025.

Loss on derivatives

Amortization of deferred realized losses on interest rate swaps remained stable at $0.9 million in the three months ended March 31, 2026 and March 31, 2025.

Other income/(expenses), net

Other income/(expenses), net, amounted to an income of $0.4 million in the three months ended March 31, 2026 compared to an income of $0.6 million in the three months ended March 31, 2025.

Adjusted EBITDA

Adjusted EBITDA increased by 5.2%, or $8.9 million, to $180.6 million for the three months ended March 31, 2026, from $171.7 million for the three months ended March 31, 2025. The increase was primarily attributable to (i) a $6.6 million decrease in total operating expenses, (ii) a $2.0 million increase in dividends received, and (iii) a $0.4 million increase in operating revenues, partially offset by a $0.1 million increase in loss on equity investments. Adjusted EBITDA for the three months ended March 31, 2026 is adjusted for (i) a $23.5 million gain from the change in fair value of investments, (ii) a $4.6 million of loss on debt extinguishment and (iii) stock based compensation of $0.1 million. Tables reconciling Adjusted EBITDA to Net Income/(Loss) can be found at the end of this earnings release.

Adjusted EBITDA of container vessels segment decreased by 1.6%, or $2.8 million, to $170.1 million in the three months ended March 31, 2026 from $172.9 million in the three months ended March 31, 2025.

Adjusted EBITDA of drybulk vessels segment increased by $9.7 million to $8.4 million in the three months ended March 31, 2026 from $(1.3) million in the three months ended March 31, 2025.

Dividend Payment

Danaos has declared a dividend of $0.90 per share of common stock for the first quarter of 2026, which is payable on June 4, 2026, to stockholders of record as of May 26, 2026.

Recent Developments

In April 2026, we received $100.0 million under the Jolco facility for vessel Greenland, with a tenor of eight years.

In April 2026, we acquired an approximately 1.9% equity interest, comprising of 45,454,545 newly issued ordinary shares, in Yoda PLC (CSE: YODA), a Cyprus-listed investment company. Yoda PLC's portfolio is focused on shipping investments in the LNG and container sectors, real estate and other participations including healthcare. The shares were subscribed at €1.10 per share for total cash consideration of €50.0 million (approximately $58.6 million).

In May 2026, we added two 5,000 TEU containership vessels to our orderbook, with expected deliveries in 2027.

Conference Call and Webcast

On Tuesday, May 12, 2026 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: 1 833 890 6464 (US Toll Free Dial In), 0 800 279 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 May 20, 2026 by dialing 1 855 669 9658 (US Toll Free Dial In) or 1-412-317-0088 (Standard International Dial In) and using 6800112# as your 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. An archived version of the audio webcast will be available on the website within 48 hours of the completion of the call.

Slide Presentation

A slide presentation regarding the Company and the container and drybulk 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 containerships. Our current fleet of 75 containerships aggregating 477,491 TEUs and 29 under construction container vessels aggregating 184,550 TEUs ranks Danaos among the largest container vessels charter owners in the world based on total TEU capacity. Danaos has also invested in the dry bulk sector through the acquisition of 11 capesize drybulk vessels and the recent order of four Newcastlemax dry bulk newbuildings, which, on a fully delivered basis, will aggregate approximately 2,787,286 DWT in capacity. 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, including contracted revenue, fleet growth and market conditions, 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, port fees or other protectionist measures imposed by the United States, China 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, our ability to realize returns on our investment in the LNG 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, conflicts in the Middle East, potential disruption of shipping routes such as Houthi attacks in the Red Sea and the Gulf of Aden and the effective closure of the Persian Gulf, including the Strait of Hormuz, due to the conflict between Iran and the U.S. and Israel, 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

Fleet List

Operating Container Vessels

The following table describes in detail our 75 container vessels deployment profile as of May 11, 2026:

Under Construction Container Vessels

The following table describes in detail our 29 container vessels under construction as of May 11, 2026:

Operating Drybulk Vessels

The following table describes the details of our 11 Capesize drybulk vessels as of May 11, 2026:

Under Construction Drybulk Vessels

The following table describes the details of our four Newcastlemax drybulk vessels as of May 11, 2026: