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) for Q4 2025: $0.14, down from $0.15 in Q4 2024.
• Declared a $0.05 per share dividend, marking the 17th consecutive quarterly dividend, with a yield of 3.3%.
• Adjusted EBITDA for Q4 2025: $37.4 million, a decrease from $40.7 million in Q4 2024.
• Average time charter equivalent (TCE) earnings: $17,050 per day, compared to $16,521 in Q4 2024.
• Daily vessel operating expenses increased by 13% to $5,683.
• Liquidity and capital resources totaled $382 million.

2. Strategic Updates and Business Highlights:

• The company maintains a balanced exposure between spot and time-charters, enhancing cash flow visibility and capital allocation flexibility.
• Fleet consists of 45 vessels, with a focus on quality, as 80% are Japanese-built.
• 26 vessels have undergone environmental upgrades, and 11 vessels are classified as Eco, improving fuel efficiency.
• The company has a strong order book with 8 Phase 3 newbuilds scheduled for delivery by Q1 2029.
• Active share repurchase program of 10 million shares in place.

3. Forward Guidance and Outlook:

• Dry-bulk fleet growth projected at 3% for 2026, with demand growth expected between 2% to 3%.
• The freight market remains strong, with a healthy outlook for early 2026.
• Anticipated challenges include potential declines in coal shipments and a softening of iron ore demand due to high inventories in China.

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

• Adjusted EBITDA and EPS have decreased year-over-year, indicating potential profitability pressures.
• Increased operating expenses and the aging fleet (35% over 15 years) could impact operational efficiency and costs.
• The secondhand vessel market is tight, with limited availability of quality tonnage, complicating fleet renewal efforts.
• Geopolitical tensions and economic uncertainties, particularly related to China and trade barriers, pose risks to future demand.

5. Notable Q&A Insights:

• Management indicated that there is currently no appetite for 2- to 3-year charters due to market conditions, with more interest in shorter-term contracts as the market improves.
• The preference remains for fixed-rate charters over index-linked contracts in the current environment.
• Management acknowledged challenges in acquiring new vessels due to high secondhand prices and limited availability, pushing the company toward newbuilds with longer delivery times.

This summary encapsulates the key points from Safe Bulker's Q4 2025 earnings call, highlighting both the company's strengths and the challenges it faces in the current market environment.