SB — Safe Bulkers, Inc.

Summary of Safe Bulkers Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Adjusted EBITDA: $50.3 million, up from $25.5 million in Q2 2025.
• Adjusted Earnings Per Share (EPS): $0.28, compared to $0.01 in Q2 2025.
• Average Time Charter Equivalent (TCE): $20,642, an increase from $14,875 in the same period last year.
• Daily Vessel Operating Expenses: Decreased by 6% to $6,207 from $6,607 in Q2 2025.
• Average Vessels Operated: 45.13 vessels, down from 46.75 in Q2 2025.
• Quarterly Dividend: Increased to $0.075 per share, marking the 19th consecutive quarterly dividend.

2. Strategic Updates and Business Highlights

• Fleet Modernization: The company is focused on renewing its fleet with 24 Phase 3 vessels on order, including two dual-fuel newbuilds expected to deliver in Q1 2027.
• Competitive Position: The average fleet age is 10.3 years, younger than the global average of 12.5 years, enhancing operational performance and fuel efficiency.
• Strong Revenue Backlog: Contracted revenue backlog of $154 million, with $101 million in dividends and $78 million in share repurchases since 2022.
• Operational Excellence: Achieved a 22% reduction in carbon intensity through fleet upgrades, with no vessels rated E in carbon intensity.

3. Forward Guidance and Outlook

• Market Conditions: The dry bulk market is expected to remain strong, with demand growth projected at 3% in 2026, supported by global GDP growth of approximately 3%.
• Supply-Demand Dynamics: In an open Hormuz scenario, supply growth is forecasted at 2%, while demand is expected to grow by 3%, indicating a favorable freight market.
• Charter Rates: Current spot rates for Cape and Kamsarmax vessels are approximately $38,000 and $18,000, respectively, indicating robust market conditions.

4. Challenges and Points of Concern

• Chinese Demand Risks: Increased inventories in China may soften import demand for iron ore in the latter half of 2026, posing a risk to revenue.
• Coal Shipments Decline: Projected decline in thermal coal shipments (1-2%) could impact overall dry bulk demand.
• Geopolitical Tensions: Ongoing trade tensions between the U.S. and China could create uncertainty in the market.
• Aging Fleet: Approximately 30% of the dry bulk fleet is over 15 years old, which may lead to increased maintenance costs and operational challenges.

5. Notable Q&A Insights

• There were no questions from analysts during the Q&A session, indicating either satisfaction with the presentation or a lack of immediate concerns requiring clarification.

Overall, Safe Bulkers reported strong financial results driven by a favorable charter market while maintaining a focus on fleet modernization and shareholder returns. However, potential risks from changing demand dynamics and geopolitical factors remain on the horizon.