SB-PD — Safe Bulkers, Inc.

Summary of Safe Bulker's Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Adjusted Earnings Per Share (EPS): $0.14, down from $0.15 in Q4 2024.
• Adjusted EBITDA: $37.4 million, compared to $40.7 million in Q4 2024.
• Daily Vessel Operating Expenses: Increased by 13% to $5,686, up from $5,047 in Q4 2024.
• Dividend Declared: $0.05 per share, reflecting a commitment to returning value to shareholders.
• Average Time Charter Equivalent (TCE): $6,521, with 45 vessels operated on average.

2. Strategic Updates and Business Highlights

• The company maintains a balanced approach between spot and time charter exposure, allowing it to capitalize on market opportunities while ensuring cash flow stability.
• Fleet renewal efforts continue, focusing on quality vessels, predominantly Japanese-built, with 80% of the fleet meeting high standards.
• The order book consists of 8 new builds, with deliveries expected to enhance operational efficiency and competitiveness.
• A robust liquidity position with $167 million in cash and $218 million in available revolving credit facilities supports future growth and shareholder returns.

3. Forward Guidance and Outlook

• The dry bulk market is expected to experience continued volatility due to geopolitical factors, but demand growth is projected at 2% to 3% for 2026.
• Supply growth is anticipated to match demand, leading to a stable freight market environment.
• The company expects to continue generating free cash flow and maintain a strong balance sheet, positioning itself well for long-term growth.

4. Bad News, Challenges, or Points of Concern

• Declining Adjusted EBITDA: A decrease from the previous year indicates potential challenges in maintaining profitability amidst rising operating costs.
• Increased Operating Expenses: Daily vessel operating expenses have risen significantly, which could pressure margins if not managed effectively.
• Market Volatility: Geopolitical tensions and economic uncertainties, particularly in China, pose risks to demand for dry bulk shipping.
• Limited Availability of Quality Secondhand Vessels: The lack of quality tonnage in the secondhand market may hinder fleet expansion opportunities.

5. Notable Q&A Insights

• Fleet Renewal Strategy: Management indicated a preference for new builds over secondhand vessels due to a lack of quality options available for sale.
• Charter Market Dynamics: There is currently limited interest in 2- to 3-year contracts, with most charters being short-term as the market begins to recover.
• Fixed vs. Index-Linked Contracts: Management expressed a preference for fixed-rate contracts in the current market, as charterers are currently avoiding index-linked agreements.

Overall, Safe Bulker demonstrated resilience in a challenging market, maintaining a strong financial position while navigating increased costs and market volatility. The outlook remains cautiously optimistic, with strategic initiatives aimed at fleet renewal and capitalizing on market opportunities.