SB — Safe Bulkers, Inc.

Summary of Safe Bulkers Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Adjusted EBITDA: $36.1 million, down from $41.3 million in Q3 2024.
• Adjusted Earnings Per Share: $0.12, compared to $0.16 in the same quarter last year.
• Average Time Charter Equivalent (TCE): $15,507 for Q3 2025, down from $17,108 in Q3 2024.
• Daily Vessel Operating Expenses: Decreased by 4% to $5,104, while daily running expenses (excluding dry docking) increased by 1% to $5,060.
• Liquidity Position: $187 million in cash and $210 million in undrawn revolving credit facilities, totaling nearly $400 million in liquidity.
• Dividend Declared: $0.05 per share, marking the 16th consecutive quarterly dividend.

2. Strategic Updates and Business Highlights

• The dry bulk market showed recovery compared to the previous quarter, with the company selling two older vessels as part of a fleet renewal strategy.
• 80% of the fleet consists of Japanese-built vessels, with an average fleet age of 10.1 years, which is younger than the global average.
• The company has two dual fuel new builds scheduled for delivery in Q1 2027, enhancing its competitive edge in fuel efficiency.
• A strong revenue backlog of $164 million was reported, with all Capesize vessels currently period chartered at an average daily rate of $24,800.

3. Forward Guidance and Outlook

• The global dry bulk demand is expected to grow by 2% in 2026 and 1.5% in 2027, with grains and minor bulks anticipated to perform well.
• Despite a recent rebound in the freight market, supply growth is expected to outpace demand, potentially leading to market volatility.
• The company remains optimistic about the impact of a U.S.-China trade truce on freight rates and overall demand.

4. Bad News, Challenges, or Points of Concern

• The charter market is weaker compared to Q3 2024, leading to decreased revenues and earnings.
• Concerns regarding geopolitical tensions, high debt levels, and inflation could pose risks to global economic growth and demand for dry bulk shipping.
• The anticipated decline in coal cargoes and limited growth in iron ore shipments may negatively affect demand in the coming years.

5. Notable Q&A Insights

• Management emphasized their commitment to maintaining a strong balance sheet and liquidity to navigate market volatility.
• Questions from analysts focused on the impact of geopolitical tensions on operations and the company's strategy to mitigate risks associated with fluctuating demand.
• The management reiterated their focus on fleet efficiency and sustainability, highlighting their proactive approach to adapting to changing market conditions.

Overall, Safe Bulkers reported a mixed quarter with solid liquidity and strategic initiatives, yet faced challenges from a weaker charter market and broader economic uncertainties.