Danaos reports second-quarter and half-year results

Danaos Corporation has announced its financial results for the second quarter and first half of 2026.

Operating revenue reached US$274.4 million during the three months ended 30 June 2026. This compared with US$262.2 million in the same period last year.

Net income increased to US$151.8 million, or US$8.32 per diluted share, from US$130.9 million, or US$7.12 per diluted share.

Adjusted net income reached US$133.1 million, or US$7.29 per diluted share. This compared with US$117 million, or US$6.36 per diluted share, in the second quarter of 2025.

Adjusted EBITDA increased to US$186.8 million from US$176 million.

Dry bulk business supports quarterly growth

Danaos operated an average of 75 containerships and 11 dry bulk vessels during the second quarter. This compared with 74 containerships and 10 dry bulk vessels a year earlier.

Containership utilisation reached 97.7%, compared with 98.4% in the second quarter of 2025. Dry bulk utilisation stood at 99.5%, slightly below the previous year’s 99.8%.

Containership revenue declined to US$238.6 million from US$239.4 million. Adjusted EBITDA from the segment fell to US$165.5 million from US$170.2 million.

Adjusted net income from containerships reached US$118.3 million, compared with US$116.7 million a year earlier.

Dry bulk revenue increased by 57.3% to US$35.7 million from US$22.7 million.

The segment’s average daily Time Charter Equivalent rate rose to US$30,401 from US$17,934.

Dry bulk adjusted EBITDA increased to US$18.8 million from US$5.9 million. Adjusted net income from the segment reached US$12.2 million, compared with US$0.3 million in the second quarter of 2025.

“This quarter we saw a significant contribution from our dry bulk investment, as Capesize rates reached multi-year highs,” said Dr John Coustas, CEO of Danaos Corporation.

Half-year earnings increase

For the six months ended 30 June 2026, Danaos reported operating revenue of US$528.1 million. This represented an increase from US$515.5 million during the same period last year.

Net income reached US$292.2 million, or US$16.02 per diluted share. This compared with US$246.1 million, or US$13.24 per diluted share, in the first half of 2025.

Adjusted net income increased to US$255.7 million, or US$14.01 per diluted share, from US$230.4 million, or US$12.39 per diluted share.

Adjusted EBITDA rose to US$367.4 million from US$347.7 million.

Containership revenue for the first half declined by 1.6% to US$468.2 million from US$475.6 million. The decrease reflected lower non-cash revenue recognition and charter rates, partly offset by newbuilding additions and lower off-hire.

Dry bulk revenue increased by 50.5% to US$59.9 million from US$39.8 million.

The dry bulk segment recorded an average daily Time Charter Equivalent rate of US$28,007, compared with US$14,386 a year earlier.

Dry bulk adjusted EBITDA reached US$27.2 million, up from US$4.5 million. The segment generated adjusted net income of US$13.8 million, compared with an adjusted net loss of US$6.3 million in the first half of 2025.

Charter backlog reaches record level

Danaos added approximately US$683 million to its contracted revenue backlog through charter extensions for existing containerships and vessels under construction.

Total contracted operating revenue now stands at US$4.6 billion, including newbuildings.

The remaining average contracted charter duration for the containership fleet is 4.7 years, weighted by contracted charter hire.

Danaos has secured employment for 100% of its containership operating days in 2026. Coverage stands at 93% for 2027, 79% for 2028 and 61% for 2029.

“As charterers continue to compete for quality tonnage, we took the opportunity to extend charters across a broad part of the fleet,” said Coustas.

Danaos expands containership orderbook

Danaos took delivery of the 8,258 TEU Santorini Express in July 2026.

Its containership orderbook consists of 28 vessels with a combined capacity of 176,292 TEUs.

Two vessels are scheduled for delivery in September 2026, followed by 15 in 2027, seven in 2028 and four in 2029.

All ordered containerships will comply with IMO Tier III emission standards and Energy Efficiency Design Index Phase III requirements.

Most will feature methanol-ready capability and scrubbers. Some vessels will also include ammonia-ready designs.

The dry bulk orderbook consists of four 211,000 dwt Newcastlemax carriers scheduled for delivery in 2028. All four ships will meet IMO Tier III and EEDI Phase III requirements and will be equipped with scrubbers.

Following the delivery of every vessel under construction and on order, the Danaos fleet would comprise 104 containerships with a combined capacity of approximately 662,041 TEUs.

It would also include 15 dry bulk vessels comprising 11 Capesize carriers and four Newcastlemax ships, with a combined capacity of approximately 2.8 million dwt.

Danaos secures new financing

In May, Danaos entered into Japanese Operating Lease with Call Option transactions worth a combined US$236 million.

The eight-year financing arrangements cover three newbuildings expected for delivery between the second and third quarters of 2027.

Danaos also secured a US$132 million senior secured credit facility with a ten-year term. The facility will finance six 1,800 TEU newbuildings scheduled for delivery between the fourth quarter of 2027 and the first quarter of 2029.

In June, the company prepaid US$116.4 million outstanding under its US$450 million syndicated loan facility. The repayment related to Greenville and Greenfield.

Danaos also completed two eight-year Japanese Operating Lease with Call Option transactions for US$207 million in connection with the prepayment.

Outstanding debt stood at US$1.233 billion on 30 June 2026, compared with US$1.178 billion at the end of 2025.

As of the earnings release, 78 of the company’s 87 vessels were debt-free. This included 66 unencumbered ships and 12 vessels pledged as security under an undrawn revolving credit facility.

Coustas said Danaos had net leverage of 0.3 times and total liquidity of approximately US$1.5 billion.

Danaos pays quarterly dividend

Danaos declared a quarterly dividend of US$0.90 per common share on 6 July.

The company paid the dividend on 30 July to shareholders of record as of 21 July 2026.

Danaos also had approximately US$65 million of remaining capacity under its authorised US$300 million share repurchase programme.