Ardmore Shipping’s Earnings Soar on Surging Tanker Rates and Strategic Fleet Moves

Date of Call: Feb 12, 2026

Financials Results

• EPS: Adjusted earnings were $0.95 per share for the full year and $0.28 per share for the fourth quarter.

Guidance:

• Q1 2026 MR tanker earnings at $29,100 per day with 50% booked.
• Q1 2026 chemical tanker earnings at $20,800 per day with 30% booked.
• Significant reduction in fleet CapEx for 2026 to approximately $5 million compared with $30 million in 2025.
• Expect revenue days to increase due to limited dockings (about 10% of fleet across 2026-2027).

Business Commentary:

Strong Financial Performance and TCE Growth:

• Ardmore Shipping reported adjusted earnings of $38.8 million or $0.95 per share for the full year and $11.6 million or $0.28 per share for the fourth quarter.
• The company's TCE (Time Charter Equivalent) performance showed quarter-on-quarter growth throughout 2025 and into the first quarter of 2026, with MR tankers earning $25,300 per day in Q4 and $29,100 per day in Q1 2026 (50% booked), and chemical tankers earning $19,900 per day in Q4 and $20,800 per day in Q1 2026 (30% booked).
• This performance was driven by favorable underlying market conditions, strong ton-mile demand, and a robust earnings environment.

Fleet Expansion and Value Appreciation:

• Ardmore acquired three modern, fuel-efficient MR tankers in 2025, which have appreciated in value by 15% since the time of purchase.
• The company enhanced its fleet with these acquisitions, leveraging a period of market uncertainty and its strong track record as a reliable counterparty.
• The value appreciation and strategic timing of the acquisitions reflect the company's ability to capitalize on market swings and build long-term value.

Focus on Efficiency and Innovation:

• Ardmore implemented a comprehensive dry docking program in 2025, upgrading cargo tank coatings on all chemical tankers, which resulted in early returns exceeding expectations with TCE premiums of up to $6,000 per day.
• The company is focused on reducing fuel consumption, a major expense, by deploying advanced hull coatings, onboard sensors, and AI-driven voyage optimization tools.
• These initiatives are part of Ardmore's ongoing commitment to operational efficiency and innovation across its fleet and business processes.

Geopolitical Impact and Market Disruption:

• Geopolitical events, such as the EU ban on Russian diesel and disruptions in Venezuela, have reshaped trade routes, extending voyage lengths and increasing ton-mile demand.
• Increased sanctions enforcement has tightened supply, benefiting compliant tanker fleets like Ardmore's, as non-compliant vessels face challenges in trading.
• These factors have contributed to higher utilization rates and a more robust earnings environment for Ardmore.

Sentiment Analysis:

Overall Tone: Positive

• Management reported 'another successful year' with 'very favorable' underlying conditions, TCE rates 'edging towards levels three times our break even,' and described the year as 'another great year for Ardmore.' They emphasized strong financial footing, market responsiveness, and confidence in continued performance.

Q&A:

• Question from Omar Nokta (Clarkson Securities): How are you thinking about future capital allocation given recent vessel value increases? Where do you put capital?
  Response: Ardmore takes a non-binary approach, balancing all capital allocation dimensions. They observe current market valuations but maintain flexibility, patience, and a market-agnostic stance to benefit from dynamic opportunities.

• Question from Omar Nokta (Clarkson Securities): How do you feel about the new building market for MRs?
  Response: Ardmore has not been active in new building for a long time, prefers second-hand market value, and remains closely connected to monitor opportunities, reacting quickly when compelling value arises.

• Question from Jim Sorenza (DMB Carnegie): How does the large expected US debt issuance and corporate debt maturing affect your capital structure outlook?
  Response: Ardmore focuses on maintaining a flexible capital structure with diverse funding sources to be opportunistic. They emphasize discipline, having simplified their structure by redeeming preferred shares and refinancing debt at lower rates.

Contradiction Point 1

Capital Allocation Strategy and Reinvestment Appetite

Contradiction on the willingness to reinvest versus maintaining a patient stance.

What are your expectations for Q2 revenue growth? - Omar Nokta (Clarkson Securities)

2025Q4: Capital allocation is considered non-binary... Ardmore maintains a patient, market-agnostic approach. - Gernot Ruppelt(CEO)

Given strong vessel values, how do you plan to allocate capital in the future—will you invest further or stay on the sidelines? - Omar Nokta (Jefferies LLC)

2025Q3: Ardmore has successfully executed value-enhancing transactions, such as recent MR acquisitions that have appreciated in value.... The focus remains on the product and chemical tanker space. - Gernot Ruppelt(CEO)

Contradiction Point 2

Interest and Approach to the Newbuilding Market

Contradiction on the company's stance regarding newbuilding investments.

What is your outlook for the remainder of the year? - Omar Nokta (Clarkson Securities)

2025Q4: Ardmore has not been in the newbuilding market since 2013.... The company finds significant value in the liquid second-hand market. - Gernot Ruppelt(CEO)

Given that MR newbuildings are now the lowest growth segment, is the market still of interest? - Omar Nokta (Jefferies LLC)

2025Q3: Ardmore has successfully executed value-enhancing transactions, such as recent MR acquisitions that have appreciated in value.... The focus remains on the product and chemical tanker space. - Gernot Ruppelt(CEO)

Contradiction Point 3

AI Investment Strategy and Capital Commitment

Contradiction on the nature and risk profile of AI investment considerations.

What did Speaker 8 emphasize regarding earnings? - Speaker 8

2025Q4: The focus is on meeting ambitious return expectations on deployed cash flows, not on speculative capital. - Gernot Ruppelt(CEO)

Did you mean return on investment (profit) or return of investment (capital recovery)? - Omar Nokta (Jefferies LLC)

2025Q3: Ardmore has successfully executed value-enhancing transactions, such as recent MR acquisitions that have appreciated in value.... The focus remains on the product and chemical tanker space. - Gernot Ruppelt(CEO)

Contradiction Point 4

Product Tanker Market Outlook and Geopolitical Impact

Contradiction on market direction and the effect of geopolitical actions on trade flows.

"Richard Schuster (Boston Partners)?" - Richard Schuster (Boston Partners)

2025Q4: The market will change, which is inherently positive... The economics of the cheapest barrel will always influence trade... The new status quo is likely to involve sustained changes that are not necessarily negative for ton-mile demand. - Gernot Ruppelt(CEO)

What impact will the end of the Russia-Ukraine war and Europe's response to Russian product flows have on Ardmore's market? - Omar Nokta (Jefferies)

2025Q2: A catch-up phase in trading activity is playing out in Q3... Geopolitical shifts and regulations create volatility in trade flows, which benefits the product tanker market. - Gernot Ruppelt(CEO)

Contradiction Point 5

Fleet Expansion Strategy and Capital Allocation

Contradiction on readiness to invest in fleet expansion/acquisitions.

What are your key priorities for the upcoming quarter? - Omar Nokta (Clarkson Securities)

2025Q4: Capital allocation is considered non-binary... The company believes in the long-term value of its modern, fuel-efficient fleet and would consider new opportunities when compelling value appears across all sources of tonnage. - Gernot Ruppelt(CEO)

Given strong vessel values, how do you plan to allocate capital—will you invest further or hold back? - Jonathan Chappell (Evercore ISI)

2025Q1: The company is actively tracking and monitoring deal flow... has so far been prudent to hold off on transactions, as every deal requires rigorous evaluation. - Gernot Ruppelt(CEO)