SB-PC — Safe Bulkers, Inc.

Summary of Safe Bulker's Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Adjusted earnings per share (EPS) for Q4 2025: $0.14, down from $0.15 in Q4 2024.
• Adjusted EBITDA: $37.4 million, compared to $40.7 million in the same quarter last year.
• Daily vessel operating expenses increased by 13% to $5,686.
• The company declared a $0.05 per share dividend.
• Average time charter equivalent (TCE) earnings: $6,521 per day, with an average of 45 vessels operated.

2. Strategic Updates and Business Highlights:

• The company maintains a balanced exposure between spot and time charters to optimize cash flow and capital allocation.
• Focus on fleet renewal with an emphasis on quality, as 80% of the fleet is Japanese-built.
• The order book includes 8 new builds, primarily Japanese, with deliveries expected by Q1 2029.
• Strong revenue backlog from Capesize vessels, with $130 million in contracted revenue.

3. Forward Guidance and Outlook:

• The dry bulk market is expected to see 2% to 3% demand growth in 2026, with global GDP growth forecasted at around 3%.
• Supply growth is projected to match demand, indicating a balanced market in 2026.
• The company anticipates continued strength in the freight market into early 2026.

4. Bad News, Challenges, or Points of Concern:

• Increased operating expenses and a slight decline in adjusted EBITDA and EPS compared to the previous year.
• The dry bulk market remains volatile due to geopolitical factors and economic uncertainties, particularly concerning China’s demand.
• Challenges in the secondhand market for quality vessels, with limited availability and rising prices.
• Potential headwinds from the aging fleet and increasing operational costs associated with older vessels.

5. Notable Q&A Insights:

• Management expressed limited appetite for new secondhand purchases due to high prices and scarcity of quality vessels.
• There is currently no significant interest in longer-term charters (2-3 years), with most charters being for 6-12 months as the market begins to recover.
• Preference for fixed-rate contracts over index-linked exposure in the current market environment, reflecting a cautious approach to securing returns.

Overall, Safe Bulker reported stable financial performance amidst a recovering market, while also highlighting challenges related to operational costs and market volatility. The company remains focused on fleet quality and strategic growth, with a positive outlook for the upcoming year.