Pangaea Logistics Solutions Q2 Earnings Call Highlights

Second-quarter profitability improved substantially: TCE rates rose 50% year over year to $18,153 per day, driving adjusted EBITDA to $35 million and adjusted net income to $16.9 million. Rates averaged 10% above relevant market benchmarks. Pangaea expanded and renewed its operating platform: The company began operations at the Port of Tampa, expects about $3 million in incremental annual EBITDA from recent terminal launches, and sold the older Bulk Xaymaca for $9.6 million. The outlook remained positive: Third-quarter bookings stood at 4,873 shipping days at a TCE rate of $20,258 per day, while cash increased to $105 million. Pangaea also raised its quarterly dividend to $0.10 per share while retaining flexibility for fleet renewal and terminal expansion.

Pangaea Logistics Solutions NASDAQ: PANL reported higher profitability in the second quarter of 2026 as stronger dry bulk shipping markets, fleet positioning and charter-in activity lifted time charter equivalent, or TCE, rates above prevailing market benchmarks. Chief Executive Officer Mads Petersen said the company benefited from stronger overall demand, particularly in Asia, and from the balanced deployment of its owned and chartered-in fleet. The company’s TCE rates rose 50% from the prior-year period and averaged 10% above the published market average for Panamax, Supramax and Handysize vessels, according to management.

“Our financial performance was driven by strong execution across both our owned and chartered in fleet, as well as balanced positioning of our assets to take advantage of stronger overall demand, especially in Asia,” Petersen said.

Second-Quarter Financial Results Chief Financial Officer Gianni Del Signore said second-quarter TCE rates were $18,153 per day, compared with an average published market rate of $16,502 per day for the relevant vessel classes. Adjusted EBITDA totaled $35 million, increasing by nearly $20 million year over year, driven by the increase in TCE rates. GAAP net income was $10.2 million, or $0.16 per diluted share. Adjusted net income was $16.9 million, or $0.26 per diluted share, excluding the impact of an unrealized loss on derivative instruments and other non-GAAP adjustments. Charter-hire expense increased 24% from the second quarter of 2025 as rates to charter vessels rose. Charter-in costs averaged approximately $16,816 per day. Vessel operating expenses, including technical management fees, were $6,247 per day through the second quarter, up 2% from the prior year. General and administrative expenses increased 25% to approximately $9 million, primarily reflecting higher incentive compensation and added headcount. Del Signore said GAAP earnings included an unrealized loss on bunker fuel derivatives after fuel prices declined late in the quarter. He said those losses largely offset unrealized gains recorded during the first quarter, when fuel prices increased amid an escalation in the conflict with Iran. Management said the hedges are tied to the company’s expected bunker fuel requirements and physical consumption.

Terminal Expansion and Fleet Renewal The company continued to expand its onshore logistics platform during the quarter, beginning operations at the Port of Tampa. Tampa joins recently launched operations at Port Aransas and Lake Charles, each operating under multiyear contracts that began within the past 12 months. Terminal and stevedore revenue increased 11% year over year to about $4 million. Petersen said Pangaea continues to expect approximately $3 million in incremental EBITDA from the operations on a full-year basis. The terminal network provides recurring revenue and expands the company’s role in cus...