SB-PC — Safe Bulkers, Inc.

Earnings Call Summary for Safe Bulkers (Q1 2026)

1. Key Financial Results and Metrics:

• Earnings Per Share (EPS): Increased to $0.18 from $0.05 year-over-year.
• Dividend: Declared at $0.06 per share, marking the 18th consecutive quarterly dividend.
• Adjusted EBITDA: Rose to $40.7 million from $29.4 million in Q1 2025.
• Net Revenues: Reported at $74.4 million.
• Average Time Charter Equivalent (TCE): Increased to $17,095 from $14,655.
• Daily Operating Expenses: Decreased by 9% to $5,223.
• Liquidity: Approximately $374 million in capital resources, with a leverage ratio of 34%.

2. Strategic Updates and Business Highlights:

• The company is benefiting from an improved charter market environment with higher charter hires.
• Fleet renewal continues with four new builds ordered and the sale of older vessels.
• The company has become the first shipping company to have common stock traded on both NYSE and Euronext Athens, aiming to diversify its shareholder base.
• Focus on environmental sustainability with 21 vessels undergoing upgrades and a commitment to ESG practices.

3. Forward Guidance and Outlook:

• The dry bulk fleet is expected to grow by 4% in 2026, with demand projected to grow by 3% under the Open Hormuz scenario.
• The company plans to lock in longer-term charters towards the end of 2026, taking advantage of current market conditions.
• Anticipated benefits from reconstruction activities in Iran, particularly for Handysize and Supramax vessels.

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

• Geopolitical tensions and market volatility remain a concern, particularly regarding the impact of the Iranian situation on trade.
• Potential declines in coal shipments (projected to fall by 1%-2%) could affect overall demand.
• Increased Chinese port inventories may soften import demand in the latter half of 2026.
• The company faces competition pressures, particularly from fluctuations in the coal and grain markets.

5. Notable Q&A Insights:

• The management indicated a strong current charter market but acknowledged the need for flexibility in chartering strategies based on market conditions.
• There is optimism about increased coal demand due to disruptions in Qatar's LNG exports, which could support steam coal trade.
• Discussions around Iran's reconstruction activities suggest potential positive impacts on smaller vessel markets, although specifics on sanctions and trade agreements remain uncertain.

Overall, Safe Bulkers reported a strong quarter with improved financial metrics and strategic initiatives aimed at fleet renewal and market expansion, while also navigating geopolitical risks and market volatility.