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- **Robust Charter Market**: 100% 2025 and 95% 2026 contracted revenue visibility, with new charters secured to 2028.
- **Newbuilding Expansion**: $236M in new contracts for 2027-2029 vessels, leveraging below-market pricing.
- **Financial Strength**: $500M bond issuance at 6.85%, dividend increased 6% to $0.90/share.
- **Dry Bulk Growth**: 11th Capesize vessel acquisition, targeting 5%+ of assets in dry bulk.
- **Liquidity**: $971M total liquidity, fortress balance sheet with 33 vessels unencumbered.

**【CEO Summary Section】**
- **Market Overview**: The container charter market remains robust with idle fleet at all-time lows. The company secured new charters for vessels as far as early 2028, with shipyard slots becoming scarce and newbuilding prices rising.
- **Newbuilding Expansion**: Added six 1,800 TEU vessels (deliveries 2027-2029) with 10-year charters, contributing $236M to contracted revenue. Extended newbuilding program at below-market prices with multiyear employment secured.
- **Financial Strength**: Completed a $500M unsecured 7-year bond issuance at 6.85%, one of the most competitively priced in the industry. Proceeds to redeem a $300M bond and prepay secured facilities.
- **Dividend Increase**: Raised quarterly dividend to $0.90 per share, consistent with annual growth policy.
- **Dry Bulk Strategy**: Acquired an 11th Capesize vessel, expanding exposure to the dry bulk market due to supply constraints and ton-mile demand growth.

**【CFO Financial Commentary】**
- **Q3 2025 Results**: Adjusted EPS of $6.75 (vs. $6.5 in Q3 2024), adjusted net income of $124.1M. Operating revenues increased $4.5M, offset by $6.1M higher operating costs and $2.5M lower dividend income.
- **Cost Efficiency**: Daily operating cost of $6,927 per vessel (up 0.9% YoY). G&A expenses rose $1.6M to $12.6M, driven by fleet expansion.
- **Contracted Revenue**: $745M added to backlog, bringing total to $4.1B with 4.3-year average charter duration. Coverage: 100% 2025, 95% 2026, 71% 2027.
- **Balance Sheet**: Net debt $165M (0.23x net debt/EBITDA), $596M cash, $971M total liquidity. 33/84 vessels unencumbered.

**【Q&A Highlights】**
- **Market Dynamics**: liners' strong demand for midsized vessels driven by shifting trade patterns (China exports to EU) and Red Sea transit uncertainty. CEO cautious on 2026 outlook but optimistic on 2027+ visibility.
- **Capesize Investment**: 5% of assets in dry bulk, plans to expand selectively in secondhand market. No newbuilding for now due to high prices.
- **Share Buybacks**: Resumed purchases under $300M program ($86.4M remaining). Management believes stock undervalued.
- **Star Bulk Update**: Happy with investment, increased position in spring 2025. No plans to expand into Panamaxes or Supramaxes.

Danaos Corporation (DAC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

DAC

DAC fundamentals

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