Danaos Corporation Reports Second Quarter and Half Year Results for the Period Ended June 30, 2026

ATHENS, Greece, Aug. 3, 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 and six month periods ended June 30, 2026.

For management purposes, the Company is organized based on operating revenues generated from container vessels and drybulk vessels and has two reporting segments: (1) a container vessels segment and (2) a drybulk 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 Second Quarter and Half Year Ended June 30, 2026 and up to the date of this release:

Financing developments

• In May 2026, we entered into Japanese Operating Lease ("Jolco") transactions for a total of $236 million and an eight year tenor, to finance three newbuilding vessels with expected deliveries between Q2 and Q3 2027, while we also entered into a senior secured credit facility for an amount of $132 million and a ten year tenor to finance six 1,800 TEUs newbuilding container vessels with expected deliveries between Q4 2027 and Q1 2029.
• In June 2026, we fully prepaid the outstanding principal amount of $116.4 million under our syndicated $450 million loan facility, relating to the vessels Greenville and Greenfield.
• In connection with the prepayment, two Jolco transactions were consummated for consideration of $207.0 million, with an eight year tenor.
• As of the date of this release, out of our total fleet of 87 vessels, 78 vessels were debt-free, comprising 66 unencumbered vessels and 12 pledged as collateral under our revolving credit facility, which remains undrawn. As of the date of this release, available committed borrowing capacity was $225 million under the revolving credit facility, $792.25 million under the Syndicated $850 mil. Facility, $236 million under the Jolco Facilities and $132 million under the senior secured facility, in each case subject to customary conditions precedent to drawdown.

Fleet developments

• In July 2026, we took delivery of Hull No. YZJ2023-1556, an 8,258 TEUs containership named "Santorini Express".
• Our containership orderbook currently consists of 28 newbuilding containership vessels with an aggregate capacity of 176,292 TEUs with expected deliveries of two vessels in September 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 drybulk vessel orderbook currently consists of four 211,000 dwt Newcastlemax drybulk 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 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 drybulk 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 $683 million to our contracted revenue backlog through charter extensions 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 $4.6 billion, including newbuildings. The remaining average contracted charter duration for our containership fleet is 4.7 years, weighted by aggregate contracted charter hire.
  
  
  
  Contracted operating days charter coverage for our container vessel fleet is currently 100% for 2026, 93% for 2027, 79% for 2028 and 61% for 2029. This includes newbuildings based on their scheduled delivery dates.

Dividends and Share buy-back program

• On July 6, 2026, Danaos declared a dividend of $0.90 per share of common stock for the second quarter of 2026. The dividend was paid on July 30, 2026, to stockholders of record as of July 21, 2026.
• As of the date of this release, Danaos has approximately $65 million outstanding capacity under its $300 million authorized share repurchase program.

Danaos' CEO Dr. John Coustas commented:

"The conflicts in Ukraine and Iran continue with no clear resolution in sight, although a brief ceasefire allowed us to move our two vessels out of the Gulf, and both our crews and our vessels are safe and fully operational. Uncertainty in global supply chains, the disruption in the Gulf, the restrictions in the Bab el-Mandeb and the tariff measures in the United States have combined to create exceptionally tight conditions, with rates across most shipping sectors at multi-year highs. Shipping remains the only industry capable of absorbing disruption on this scale and keeping the world supplied with goods, energy and raw materials.

Against this backdrop, Danaos continued to execute its long-term strategy of securing extended charter employment at attractive rates and arranging competitive long-term financing for our newbuilding program.

This quarter we saw a significant contribution from our dry bulk investment, as Capesize rates reached multi-year highs and the segment contributed $18.8 million of adjusted EBITDA, against $5.9 million a year ago.

As charterers continue to compete for quality tonnage, we took the opportunity to extend charters across a broad part of the fleet, adding approximately $683 million to our contracted revenue backlog. Backlog now stands at a record $4.6 billion, with 100% of our container operating days contracted for 2026, 93% for 2027 and 79% for 2028, while even for 2029 contract coverage is already above 60%.

We also continued to term out our financing, refinancing two further vessels through Japanese operating leases. We also added a further $236 million in Jolco financing commitments for three vessels delivering in 2027 and entered into a $132 million credit facility to finance our six 1,800 TEU newbuildings. With 78 of our 87 operating vessels debt-free, net leverage of 0.3x, and total liquidity of approximately $1.5 billion, we remain well positioned to pursue accretive opportunities, including the development of our investment in the Alaska LNG project.

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

Three months ended June 30, 2026 compared to the three months ended June 30, 2025

During the three months ended June 30, 2026, Danaos had an average of 75.0 container vessels and 11.0 drybulk vessels compared to 74.0 container vessels and 10.0 drybulk vessels during the three months ended June 30, 2025. Our container vessels utilization for the three months ended June 30, 2026 was 97.7% compared to 98.4% in the three months ended June 30, 2025. Our drybulk vessels utilization for the three months ended June 30, 2026 was 99.5% compared to 99.8% in the three months ended June 30, 2025.

Our adjusted net income amounted to $133.1 million, or $7.29 per diluted share, for the three months ended June 30, 2026 compared to $117.0 million, or $6.36 per diluted share, for the three months ended June 30, 2025. We have adjusted our net income in the three months ended June 30, 2026 for: (i) a $20.9 million gain from the change in fair value of investments, (ii) a $1.4 million loss on debt extinguishment, and (iii) $0.8 million of non-cash amortization of finance fees and debt discount.

Adjusted net income of our container vessels segment amounted to $118.3 million for the three months ended June 30, 2026, compared to $116.7 million for the three months ended June 30, 2025. We adjusted net income of container vessels segment in the three months ended June 30, 2026 for: (i) a $1.4 million loss on debt extinguishment and (ii) $0.8 million of non-cash amortization of finance fees and debt discount.

Adjusted net income of our drybulk vessels segment amounted to $12.2 million for the three months ended June 30, 2026, compared to $0.3 million for the three months ended June 30, 2025.

The $16.1 million increase in adjusted net income for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily attributable to: (i) a $12.2 million increase in operating revenues, (ii) a $5.3 million decrease in net finance expenses and (iii) a $2.8 million increase in dividend income, partially offset by: (i) a $4.0 million increase in total operating expenses, and (ii) a $0.2 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 $151.8 million, or $8.32 earnings per diluted share, for the three months ended June 30, 2026 compared to net income of $130.9 million, or $7.12 earnings per diluted share, for the three months ended June 30, 2025. Our net income for the three months ended June 30, 2026 includes $20.9 million gain on marketable securities (gross of dividend income) compared to $14.7 million gain on marketable securities (gross of dividend income) in the three months ended June 30, 2025. On a non-adjusted basis, the net income of our container vessels segment amounted to $116.1 million for the three months ended June 30, 2026 compared to $115.9 million for the three months ended June 30, 2025. On a non-adjusted basis, the net income of our drybulk vessels segment amounted to $12.2 million for the three months ended June 30, 2026, compared to $0.3 million for the three months ended June 30, 2025.

Operating Revenues

Operating revenues increased by $12.2 million, to $274.4 million in the three months ended June 30, 2026 from $262.2 million in the three months ended June 30, 2025.

Operating revenues of our container vessels segment decreased by $0.8 million, to $238.6 million in the three months ended June 30, 2026, compared to $239.4 million in the three months ended June 30, 2025, analyzed as follows:

• $3.4 million lower revenues due to a decrease in non-cash revenue recognition in accordance with US GAAP;
• $1.2 million decrease in revenues as a result of higher revenue off-hire in the current period;
  
  
  
  partially offset by:

• $3.2 million increase in revenues as a result of newbuilding containership vessel additions;
• $0.6 million increase in revenues as a result of higher charter rates between the two periods.

Operating revenues of our drybulk vessels segment increased by 57.3%, or $13.0 million, to $35.7 million in the three months ended June 30, 2026, compared to $22.7 million of revenues in the three months ended June 30, 2025. The increase was primarily driven by a significant improvement in Time Charter Equivalent rate per day, which increased to $30,401 per day in the three months ended June 30, 2026, from $17,934 per day in the three months ended June 30, 2025, reflecting improved market conditions, as well as the operation of an additional vessel in our drybulk fleet.

Vessel Operating Expenses

Vessel operating expenses increased by $0.3 million to $56.7 million for the three months ended June 30, 2026, from $56.4 million for the three months ended June 30, 2025, primarily due to an increase in the average number of vessels in our fleet, partially offset by a reduction in average daily operating costs to $7,416 per day from $7,556 per day in the prior-year period. 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 $1.1 million, to $41.8 million in the three months ended June 30, 2026 from $40.7 million in the three months ended June 30, 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 decreased by $1.0 million to $10.5 million in the three months ended June 30, 2026 from $11.5 million in the three months ended June 30, 2025, primarily reflecting lower deferred dry-docking and special survey costs being amortized during the three months ended June 30, 2026 compared to the corresponding period in 2025.

General and Administrative Expenses

General and administrative expenses increased by $3.7 million to $14.9 million for the three months ended June 30, 2026, from $11.2 million for the three months ended June 30, 2025. The increase was mainly attributable to $1.5 million in higher management fees, which was partially driven by the increase in the average number of vessels in our fleet, as well as a $2.2 million increase in corporate general and administrative expenses.

Other Operating Expenses

Other Operating Expenses include Voyage Expenses.

Voyage Expenses

Voyage expenses increased by $1.0 million to $17.8 million in the three months ended June 30, 2026 from $16.8 million in the three months ended June 30, 2025.

Voyage expenses of our container vessels segment increased by $1.2 million to $10.1 million in the three months ended June 30, 2026 from $8.9 million in the three months ended June 30, 2025.

Voyage expenses of our drybulk vessels segment decreased by $0.2 million to $7.7 million in the three months ended June 30, 2026, compared to $7.9 million in the three months ended June 30, 2025. For the three months ended June 30, 2026, voyage expenses of our drybulk vessels comprised $2.3 million in commissions and $5.4 million in other voyage expenses, mainly comprised of bunkers costs and port expenses, compared to $1.5 million in commissions and $6.4 million in other voyage expenses for the three months ended June 30, 2025, reflecting an increase in time charter employment of our drybulk vessels, as opposed to spot voyage employment, during the three months ended June 30, 2026 compared to the three months ended June 30, 2025.

Interest Expense and Interest Income

Interest expense decreased by $1.6 million, to $8.1 million in the three months ended June 30, 2026 from $9.7 million in the three months ended June 30, 2025. The decrease in interest expense is a result of:

• $4.2 million decrease in interest expense due to an increase in the amount of interest expense capitalized on our vessels under construction that was $9.0 million in the three months ended June 30, 2026, when compared to capitalized interest of $4.8 million in the three months ended June 30, 2025.
  
  
  
  partially offset by:

• $2.6 million increase in interest expense due to an increase in our average indebtedness by $326.1 million between the two periods, partially offset by a decrease in our average debt service cost. Average indebtedness was $1,102.9 million in the three months ended June 30, 2026, compared to average indebtedness of $776.8 million in the three months ended June 30, 2025, while our average debt service cost decreased by approximately 1.1%, mainly as a result of lower SOFR rates and a lower weighted average coupon following the refinancing of our bond.

As of June 30, 2026, our outstanding debt, gross of deferred finance costs, was $1,232.7 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 increase in our outstanding debt was mainly due to the drawdowns of $658.0 million under the Jolco facilities offset by: (i) the repayment in full of the $335.2 million outstanding under the $450 million syndicated credit facility and (ii) the repayment of the $262.8 million principal amount of the 8.5% Senior Notes.

Interest income increased by $3.7 million, to $7.4 million in the three months ended June 30, 2026 compared to $3.7 million in the three months ended June 30, 2025, mainly driven by higher average cash balances between the two periods.

Loss on Debt Extinguishment

The loss on debt extinguishment of $1.4 million in the three months ended June 30, 2026 related to our early extinguishment of debt compared to nil in the three months ended June 30, 2025.

Gain on Investments

The $24.0 million gain on investments for the three months ended June 30, 2026 consisted of (i) the change in fair value of our shareholding interest in Star Bulk Carriers Corp. ("SBLK") of $12.5 million, (ii) dividend income on SBLK shares of $3.1 million, and (iii) the change in fair value of our shareholding interest in Yoda PLC of $8.4 million. This compares to a $15.0 million gain on investments for the three months ended June 30, 2025, which consisted of a $14.7 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 amounted to $0.5 million and $0.3 million in the three months ended June 30, 2026 and June 30, 2025, respectively. For the three months ended June 30, 2026, loss on equity investments comprised (i) $0.4 million relating 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, and (ii) $0.1 million relating to our share of expenses of Glenfarne Alaska Partners LLC, in connection with the development of the Alaska LNG project. For the three months ended June 30, 2025, loss on equity investments of $0.3 million related solely to our share of expenses of CTTC.

Other Finance Expenses

Other finance expenses decreased by $0.1 million to $0.9 million in the three months ended June 30, 2026 compared to $1.0 million in the three months ended June 30, 2025.

Loss on Derivatives

Amortization of deferred realized losses on interest rate swaps remained stable at $0.9 million in the three months ended June 30, 2026 and June 30, 2025.

Other (Expenses)/Income, net

Other (expenses)/income, net, amounted to a net expense of $0.4 million in the three months ended June 30, 2026 compared to a net expense of $1.4 million in the three months ended June 30, 2025.

Adjusted EBITDA

Adjusted EBITDA increased by 6.1%, or $10.8 million, to $186.8 million for the three months ended June 30, 2026, from $176.0 million for the three months ended June 30, 2025. The increase was primarily attributable to: (i) a $12.2 million increase in operating revenues, (ii) a $2.8 million increase in dividends received, partially offset by: (i) a $4.0 million increase in total operating expenses, and (ii) a $0.2 million increase in loss on equity investments. Adjusted EBITDA for the three months ended June 30, 2026 is adjusted for: (i) a $20.9 million gain from the change in fair value of investments, (ii) a $1.4 million of loss on debt extinguishment, and (iii) stock based compensation of $0.1 million. Tables reconciling Net Income to Adjusted EBITDA can be found at the end of this earnings release.

Adjusted EBITDA of container vessels segment decreased by 2.8%, or $4.7 million, to $165.5 million in the three months ended June 30, 2026 from $170.2 million in the three months ended June 30, 2025.

Adjusted EBITDA of drybulk vessels segment increased by $12.9 million to $18.8 million in the three months ended June 30, 2026 from $5.9 million in the three months ended June 30, 2025.

Six months ended June 30, 2026 compared to the six months ended June 30, 2025

During the six months ended June 30, 2026, Danaos had an average of 75 container vessels and 10.6 drybulk vessels compared to 73.9 container vessels and 10.0 drybulk vessels during the six months ended June 30, 2025. Our container vessels utilization for the six months ended June 30, 2026 was 97.7% compared to 97.8% in the six months ended June 30, 2025. Our drybulk vessels utilization for the six months ended June 30, 2026 was 91.2% compared to 96.1% in the six months ended June 30, 2025.

Our adjusted net income amounted to $255.7 million, or $14.01 per diluted share, for the six months ended June 30, 2026 compared to $230.4 million, or $12.39 per diluted share, for the six months ended June 30, 2025. We have adjusted our net income in the six months ended June 30, 2026 for: (i) a $44.4 million gain from the change in fair value of investments, (ii) a $6.0 million loss on debt extinguishment, and (iii) $1.8 million of non-cash amortization of finance fees and debt discount.

Adjusted net income of our container vessels segment amounted to $237.1 million for the six months ended June 30, 2026 compared to $236.5 million for the six months ended June 30, 2025. We adjusted net income of container vessels segment in the six months ended June 30, 2026 for: (i) a $6.0 million loss on debt extinguishment and (ii) $1.8 million of non-cash amortization of finance fees and debt discount.

Adjusted net income/(loss) of our drybulk vessels segment amounted to $13.8 million income for the six months ended June 30, 2026, compared to $6.3 million loss for the six months ended June 30, 2025.

The $25.3 million increase in adjusted net income for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily attributable to: (i) a $12.6 million increase in operating revenues, (ii) a $7.8 million decrease in net finance expenses, (iii) a $4.8 million increase in dividends received, (iv) a $0.4 million decrease in total operating expenses, partially offset by a $0.3 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 $292.2 million, or $16.02 earnings per diluted share, for the six months ended June 30, 2026 compared to net income of $246.1 million, or $13.24 earnings per diluted share, for the six months ended June 30, 2025. Our net income for the six months ended June 30, 2026 includes $44.4 million gain on marketable securities (gross of dividend income) compared to $17.2 million gain on marketable securities (gross of dividend income) in the six months ended June 30, 2025. On a non-adjusted basis, the net income of our container vessels segment amounted to $229.4 million for the six months ended June 30, 2026 compared to $234.9 million for the six months ended June 30, 2025. On a non-adjusted basis, the net income/(loss) of our drybulk vessels segment amounted to $13.8 million net income for the six months ended June 30, 2026 compared to $6.3 million net loss for the six months ended June 30, 2025.

Operating Revenues

Operating revenues increased by $12.6 million, to $528.1 million in the six months ended June 30, 2026 from $515.5 million in the six months ended June 30, 2025.

Operating revenues of our container vessels segment decreased by 1.6%, or $7.4 million, to $468.2 million in the six months ended June 30, 2026, compared to $475.6 million in the six months ended June 30, 2025, analyzed as follows:

• $10.6 million lower revenues due to a decrease in non-cash revenue recognition in accordance with US GAAP;
• $6.3 million decrease in revenues as a result of lower charter rates;
  
  
  
  partially offset by:

• $7.1 million increase in revenues as a result of newbuilding containership vessel additions;
• $2.4 million increase in revenues as a result of lower revenue off-hire in the current period.

Operating revenues of our drybulk vessels segment increased by 50.5%, or $20.1 million, to $59.9 million in the six months ended June 30, 2026, compared to $39.8 million of revenues in the six months ended June 30, 2025. The increase was primarily driven by a significant improvement in Time Charter Equivalent rate per day, which increased to $28,007 per day in the six months ended June 30, 2026, from $14,386 per day in the six months ended June 30, 2025, reflecting improved market conditions, as well as the operation of an additional vessel in our drybulk fleet. This improvement was partially offset by a lower fleet utilization rate of 91.2% in the six months ended June 30, 2026 compared to 96.1% in the six months ended June 30, 2025.

Vessel Operating Expenses

Vessel operating expenses decreased by $1.4 million to $106.7 million for the six months ended June 30, 2026, from $108.1 million for the six months ended June 30, 2025. This decrease occurred despite an increase in the average number of vessels in our fleet and reflects a reduction in average daily operating costs to $7,052 per day from $7,294 per day in the prior-year period. 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 $1.9 million, to $82.6 million in the six months ended June 30, 2026 from $80.7 million in the six months ended June 30, 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 $0.3 million to $22.8 million in the six months ended June 30, 2026 from $22.5 million in the six months ended June 30, 2025.

General and Administrative Expenses

General and administrative expenses increased by $6.1 million to $29.5 million for the six months ended June 30, 2026, from $23.4 million for the six months ended June 30, 2025. The increase was mainly attributable to $2.7 million in higher management fees which was partially driven by the increase in the average number of vessels in our fleet, as well as a $3.4 million increase in corporate general and administrative expenses.

Other Operating Expenses

Other Operating Expenses include Voyage Expenses.

Voyage Expenses

Voyage expenses decreased by $6.4 million to $28.5 million in the six months ended June 30, 2026 from $34.9 million in the six months ended June 30, 2025, mainly driven by (i) a $5.1 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 partially offset by an increase in commissions during the six months ended June 30, 2026, and (ii) a $2.4 million decrease in voyage expenses of our drybulk vessels, attributed to the different mix of time charter and voyage charter contracts under which our drybulk vessels were deployed between the two periods.

Voyage expenses of our container vessels segment decreased by $4.0 million to $13.7 million in the six months ended June 30, 2026 from $17.7 million in the six months ended June 30, 2025, driven by a $5.1 million gain arising from early termination agreements for certain vessels operating under time charter arrangements, with retention of bunkers on redelivery at no consideration partially offset by an increase in commissions during the six months ended June 30, 2026.

Voyage expenses of our drybulk vessels segment decreased by $2.4 million to $14.8 million in the six months ended June 30, 2026, compared to $17.2 million in the six months ended June 30, 2025. For the six months ended June 30, 2026, voyage expenses of our drybulk vessels comprised $3.8 million in commissions and $11.0 million in other voyage expenses, mainly comprised of bunkers costs and port expenses, compared to $2.4 million in commissions and $14.8 million in other voyage expenses for the six months ended June 30, 2025, reflecting an increase in time charter employment of our drybulk vessels during the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

Interest Expense and Interest Income

Interest expense increased by $0.3 million, to $20.0 million in the six months ended June 30, 2026 from $19.7 million in the six months ended June 30, 2025. The increase in interest expense is a result of:

• $7.1 million increase in interest expense due to an increase in our average indebtedness by $327.9 million between the two periods, partially offset by a decrease in our average debt service cost. Average indebtedness was $1,105.1 million in the six months ended June 30, 2026, compared to average indebtedness of $777.2 million in the six months ended June 30, 2025, while our average debt service cost decreased by approximately 0.8%, mainly as a result of lower SOFR rates and a lower weighted average coupon following the refinancing of our bond;
• $0.2 million increase in the amortization of deferred finance costs and debt discount between the two periods;
  
  
  
  partially off-set by:

• $7.0 million decrease in interest expense due to an increase in the amount of interest expense capitalized on our vessels under construction that was $16.3 million in the six months ended June 30, 2026, when compared to capitalized interest of $9.3 million in the six months ended June 30, 2025.

As of June 30, 2026, our outstanding debt, gross of deferred finance costs, was $1,232.7 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 increase in our outstanding debt was mainly due to the drawdowns of $658.0 million under the Jolco facilities offset by: (i) the repayment in full of the $335.2 million outstanding under the $450 million syndicated credit facility and (ii) the repayment of the $262.8 million principal amount of the 8.5% Senior Notes.

Interest income increased by $7.7 million, to $15.0 million in the six months ended June 30, 2026 compared to $7.3 million in the six months ended June 30, 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 $49.8 million gain on investments for the six months ended June 30, 2026 consisted of (i) the change in fair value of our shareholding interest in Star Bulk Carriers Corp. ("SBLK") of $36.0 million, (ii) dividend income on SBLK shares of $5.4 million and (iii) the change in fair value of our shareholding interest in Yoda PLC of $8.4 million. This compares to a $17.9 million gain on investments for the six months ended June 30, 2025, which consisted of a $17.2 million gain from the change in fair value of our shareholding interest in SBLK and $0.7 million of dividend income on these shares.

Loss on Debt Extinguishment

The loss on debt extinguishment of $6.0 million in the six months ended June 30, 2026 related to our early extinguishment of debt compared to nil in the six months ended June 30, 2025.

Loss on Equity Investments

Loss on equity investments amounted to $0.8 million and $0.6 million in the six months ended June 30, 2026 and June 30, 2025, respectively. For the six months ended June 30, 2026, loss on equity investments comprised (i) $0.7 million relating to our share of expenses of CTTC, currently engaged in the research and development of decarbonization technologies for the shipping industry, and (ii) $0.1 million relating to our share of expenses of Glenfarne Alaska Partners LLC, in connection with the development of the Alaska LNG project. For the six months ended June 30, 2025, loss on equity investments of $0.6 million related solely to our share of expenses of CTTC.

Other Finance Expenses

Other finance expenses decreased by $0.2 million to $1.8 million in the six months ended June 30, 2026 compared to $2.0 million in the six months ended June 30, 2025.

Loss on Derivatives

Amortization of deferred realized losses on interest rate swaps remained stable at $1.8 million in the six months ended June 30, 2026 and June 30, 2025.

Other (Expenses)/Income, net

Other (expenses)/income, net, amounted to an expense of $0.01 million in the six months ended June 30, 2026 compared to an expense of $0.9 million in the six months ended June 30, 2025.

Adjusted EBITDA

Adjusted EBITDA increased by 5.7%, or $19.7 million, to $367.4 million for the six months ended June 30, 2026, from $347.7 million for the six months ended June 30, 2025. The increase was primarily attributable to: (i) a $12.6 million increase in operating revenues, (ii) a $4.8 million increase in dividends received, (iii) a $2.6 million decrease in total operating expenses, partially offset by a $0.3 million increase in loss on equity investments. Adjusted EBITDA for the six months ended June 30, 2026 is adjusted for: (i) a $44.4 million gain from the change in fair value of investments, (ii) a $6.0 million of loss on debt extinguishment and (iii) stock based compensation of $0.3 million. Tables reconciling Net Income/(Loss) to Adjusted EBITDA can be found at the end of this earnings release.

Adjusted EBITDA of container vessels segment decreased by 2.2%, or $7.5 million, to $335.6 million in the six months ended June 30, 2026 from $343.1 million in the six months ended June 30, 2025.

Adjusted EBITDA of drybulk vessels segment increased by $22.7 million to $27.2 million in the six months ended June 30, 2026 from $4.5 million in the six months ended June 30, 2025.

Dividend Payment

On July 6, 2026, Danaos declared a dividend of $0.90 per share of common stock for the second quarter of 2026, which was paid on July 30, 2026, to stockholders of record as of July 21, 2026.

Recent Developments

In July 2026, we took delivery of the 8,258 TEU under-construction container vessel with Hull No. YZJ2023-1556, named "Santorini Express", which commenced a long-term charter upon delivery.

Conference Call and Webcast

On Tuesday, August 4, 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 (U.S. Toll Free Dial-in), +1 412 317 5130 (International Dial-in) or +44 (0) 2037 694 533 (International Dial-in (London LT)). 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 11, 2026 by dialing 1 855 669 9658 (U.S. Toll Free Dial In) or 1-412-317-0088 (Standard International Dial-in) and using 1304645# 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 76 containerships aggregating 485,749 TEUs and 28 under construction container vessels aggregating 176,292 TEUs ranks Danaos among the largest container vessels charter owners in the world based on total pro-forma capacity of 662,041 TEUs. Danaos has also invested in the drybulk sector through the acquisition of 11 capesize drybulk vessels and the recent order of four Newcastlemax drybulk 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 and in marketable securities, 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 76 container vessels deployment profile as of August 3, 2026:

Under Construction Container Vessels

The following table describes in detail our 28 container vessels under construction as of August 3, 2026:

Operating Drybulk Vessels

The following table describes the details of our 11 Capesize drybulk vessels as of August 3, 2026:

Under Construction Drybulk Vessels

The following table describes the details of our four Newcastlemax drybulk vessels as of August 3, 2026: