Danaos Corporation Reports First Quarter Results for Period Ended March 31, 2025

Rhea-AI Summary

Danaos Corporation (NYSE: DAC) reported Q1 2025 results with net income of $115.1 million ($6.13 per diluted share), down from $150.5 million in Q1 2024. Operating revenues remained stable at $253.3 million. The company's container vessel segment showed strength with $236.2 million in revenues, while the dry-bulk segment faced challenges with a $6.5 million loss. Danaos secured a $850 million syndicated loan for newbuilding vessels and has 15 newbuilding containerships on order with deliveries through 2028. The company maintains strong charter coverage with 99% for 2025 and 85% for 2026. Total contracted revenue backlog stands at $3.7 billion. Danaos declared a quarterly dividend of $0.85 per share and has repurchased 2,937,158 shares for $205.7 million under its $300 million buyback program.

Positive

• Secured $850 million syndicated loan facility for newbuilding vessels
• Strong charter coverage: 99% for 2025 and 85% for 2026
• Added $525 million to contracted revenue backlog through new charters
• Total contracted revenue backlog of $3.7 billion
• Healthy liquidity position with $825.1 million in total cash and marketable securities
• Low leverage with Net Debt/LTM Adjusted EBITDA of 0.42x

Negative

• Net income decreased 23.5% YoY from $150.5M to $115.1M
• Dry-bulk segment reported $6.5M loss vs $0.3M profit in Q1 2024
• Lower charter rates compared to COVID-era peaks
• Operating expenses increased by $8.6M to $51.7M

Insights

Financial Analyst

Danaos delivered solid Q1 2025 results with $113.4M adjusted net income despite challenging market conditions and charter rate normalization.

Danaos Corporation reported first quarter 2025 results showing financial resilience amid global shipping disruptions. The company posted $253.3 million in operating revenues, essentially flat compared to Q1 2024's $253.4 million. However, adjusted net income declined to $113.4 million ($6.04 per diluted share) from $140.0 million ($7.15 per diluted share) in Q1 2024 – a 19% year-over-year decrease.

The company's containership segment remains profitable with $119.8 million adjusted net income despite charter rate normalization from pandemic highs. In contrast, the dry bulk segment posted a $6.5 million loss, reflecting significant market weakness in that sector.

Operating expenses increased $8.6 million to $51.7 million, driven by fleet expansion and higher daily operating costs ($7,028 per vessel per day versus $6,493 in Q1 2024). Depreciation expenses grew $6.1 million to $40.0 million due to the larger fleet.

Danaos maintains exceptional financial strength with $825.1 million in total cash liquidity and marketable securities. The company's 0.42x net debt to LTM adjusted EBITDA ratio demonstrates a fortress balance sheet providing significant financial flexibility.

Strategic positioning remains robust with $3.7 billion in contracted revenue backlog, including 15 newbuilding vessels with methanol-ready capability and the latest environmental specifications. These vessels are secured with multi-year charters averaging 5.3 years, insulating Danaos from near-term market volatility. The company has 99% charter coverage for 2025 and 85% for 2026, providing excellent earnings visibility.

Management's disciplined capital allocation strategy continues with $205.7 million in share repurchases under its expanded $300 million program, while maintaining a quarterly dividend of $0.85 per share. This combined approach returns substantial capital to shareholders while maintaining financial flexibility for potential future investments.

Looking ahead, Danaos appears well-positioned despite uncertain global trade conditions. Management's cautious approach to new investments while focusing on optimizing existing fleet performance reflects prudent strategy amid unclear fuel and regulatory standards.

ATHENS, Greece, May 13, 2025 /PRNewswire/ -- Danaos Corporation ("Danaos") (NYSE: DAC), one of the world's largest independent owners of container vessels and drybulk vessels, today reported unaudited results for the three-month period ended March 31, 2025.

Financial Summary Three Months Ended March 31, 2025 and Three Months Ended March 31, 2024  Unaudited (Expressed in thousands of United States dollars, except as otherwise stated)
		Three Months Ended								Three Months Ended
		March 31, 2025								March 31, 2024
Financial & Operating Metrics		Container Vessels		Dry bulk Vessels		Other		Total		Container Vessels		Dry bulk Vessels		Other		Total
Operating Revenues		$236,190		$17,117		-		$253,307		$233,411		$20,038		-		$253,449
Voyage Expenses, excl. commissions		$(307)		$(8,370)		-		$(8,677)		$(488)		$(10,827)		-		$(11,315)
Time Charter Equivalent Revenues (1)		$235,883		$8,747		-		$244,630		$232,923		$9,211		-		$242,134
Net income/(loss)		$119,045		$(6,542)		$2,644		$115,147		$138,359		$337		$11,802		$150,498
Adjusted net income / (loss) (2)		$119,803		$(6,542)		$161		$113,422		$138,856		$337		$823		$140,016
Earnings per share, basic								$6.14								$7.75
Earnings per share, diluted								$6.13								$7.68
Adjusted earnings per share, diluted (2)								$6.04								$7.15
Operating Days		6,451		832		-				6,019		596		-
Time Charter Equivalent $/day (1)		$36,565		$10,513		-				$38,698		$15,455		-
Ownership days		6,637		900		-				6,185		637		-
Average number of vessels		73.7		10.0		-				68.0		7.0		-
Fleet Utilization		97.2 %		92.4 %		-				97.3 %		93.6 %		-
Adjusted EBITDA (2)		$172,888		$(1,349)		$134		$171,673		$174,188		$2,192		$823		$177,203
Consolidated Balance Sheet & Leverage Metrics					As of March 31, 2025							As of December 31, 2024
Cash and cash equivalents								$480,543								$453,384
Availability under Revolving Credit Facility								$281,250								$292,500
Marketable securities (3)								$63,333								$60,850
Total cash liquidity & marketable securities(4)								$825,126								$806,734
Debt, gross of deferred finance costs								$779,741								$744,546
Net Debt (5)								$299,198								$291,162
LTM Adjusted EBITDA (6)								$717,085								$722,615
Net Debt / LTM Adjusted EBITDA								0.42x								0.40x

1.	Time charter equivalent revenues and time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided in the appendix.
2.	Adjusted net income/(loss), adjusted earnings per share and adjusted EBITDA are non-GAAP measures. Refer to the reconciliation of net income to adjusted net income and adjusted earnings per share; and net income to adjusted EBITDA provided below.
3.	Marketable securities refer to fair value of 4,070,214 shares of common stock of SBLK on March 31, 2025 and December 31, 2024.
4.	Total cash liquidity & marketable securities includes: (i) cash and cash equivalents, (ii) availability under our Revolving Credit Facility and (iii) marketable securities.
5.	Net Debt is defined as total debt gross of deferred finance costs less cash and cash equivalents.
6.	Last twelve months Adjusted EBITDA. Refer to the reconciliation provided below.

For management purposes, the Company is organized based on operating revenues generated from container vessels and dry-bulk vessels and has two reporting segments: (1) a container vessels segment and (2) a dry-bulk vessels segment. The Company measures segment performance based on net income. Items included in the applicable segment's net income are directly allocated to the extent that the items are directly or indirectly attributable to the segments. With regards to the items that are allocated by indirect calculations, their allocation is commensurate to the utilization of key resources. The Other column includes components that are not allocated to any of the Company's reportable segments and includes investments in an affiliate accounted for using the equity method of accounting and investments in marketable securities.

Highlights for the First Quarter Ended March 31, 2025:

• In February 2025, we entered into a syndicated loan facility agreement for an amount of up to $850 million, to finance all of our remaining newbuilding container vessels with deliveries from 2026 through 2028.
• In January 2025 we took delivery of the 6,014 TEU container vessel 'Phoebe' that is already contracted for a charter tenor of 7 years.
• Our remaining orderbook currently consists of a further 15 newbuilding containership vessels with an aggregate capacity of 128,220 TEU with expected deliveries of one vessel in 2025, three vessels in 2026, nine vessels in 2027 and two vessels in 2028. All the vessels in our orderbook are designed with the latest eco characteristics, will be methanol fuel ready, fitted with open loop scrubbers and Alternative Maritime Power (AMP) units and will be built in accordance with the latest requirements of the International Maritime Organization (IMO) in relation to Tier III emission standards and Energy Efficiency Design Index (EEDI) Phase III.
• We have secured multi-year charter arrangements for the remaining 15 newbuilding vessels orderbook, with an average charter duration of approximately 5.3 years weighted by aggregate contracted charter hire.
• Over the past three months, we added approximately $525 million to our contracted revenue backlog through a combination of new charters and charter extensions for 12 of our container vessels and container vessels newbuildings.
• As a result, total contracted cash operating revenues, on the basis of concluded charter contracts through the date of this release, currently stand at $3.7 billion, including newbuildings. The remaining average contracted charter duration for our containership fleet is 3.9 years, weighted by aggregate contracted charter hire.
• Contracted operating days charter coverage for our container vessel fleet is currently 99% for 2025 and 85% for 2026. This includes newbuildings based on their scheduled delivery dates.
• As of the date of this release, Danaos has repurchased a total of 2,937,158 shares of its common stock in the open market for $205.7 million under its recently upsized $300 million authorized share repurchase program that was originally introduced in June 2022 and was upsized in November 2023 and April 2025.
• Danaos has declared a dividend of $0.85 per share of common stock for the first quarter of 2025. The dividend is payable on June 5, 2025, to stockholders of record as of May 27, 2025.

Danaos' CEO Dr. John Coustas commented:

"As the year progresses, the level of global disruption shows no signs of abating. Armed conflicts continue, mostly recently involving India and Pakistan, and the uncertainty of tariffs has led to a dramatic decline in the U.S. Pacific Market. Thus far, the U.S. economy remains resilient. As long as American consumers continue to spend, we anticipate that trade flows will rebound, with depleted inventories eventually driving a surge in demand.

The dry bulk market has recovered from its first quarter lows, although the rebound has been modest. In our view, a meaningful and sustained recovery will be challenging absent further growth initiatives in China. While the much-publicized Simandu project is expected to benefit the capesize market by increasing ton-miles, overall iron ore consumption is not projected to rise significantly.

Our financial performance continues to be strong, although it has been impacted by a number of charter renewals at lower rates than those seen during the Covid pandemic. On the other hand, we continue to build our charter backlog, effectively insulating ourselves from near-term market weakness. Our charter coverage for 2025 and 2026 is largely secured.

A noteworthy recent development is the proposed IMO regulation on greenhouse gas emissions.  Unfortunately, the regulation falls short of the industry's more ambitious proposals and is unlikely to drive meaningful progress on decarbonisation of our industry. There is limited incentive to use expensive green fuels, and LNG has not been meaningfully prioritized. As a result, there is little clarity on the fuel of the future and at present conventional scrubber-fitted vessels remain the default option under what is, in essence, a "pay to pollute" framework.

We are currently holding off on new vessel investments and are focusing on optimizing the performance of our existing fleet. Our significant growth backlog vessel orderbook includes 15 container vessels scheduled for delivery over the next three years, all backed by solid and profitable charter arrangements that will enhance both our fleet profile and our earnings potential.

Despite the broader uncertainties, we remain committed to delivering superior returns to our shareholders through disciplined execution and long-term strategic focus."

Three months ended March 31, 2025 compared to the three months ended March 31, 2024

During the three months ended March 31, 2025, Danaos had an average of 73.7 container vessels and 10.0 drybulk vessels compared to 68.0 container vessels and 7.0 drybulk vessels during the three months ended March 31, 2024. Our container vessels utilization for the three months ended March 31, 2025 was 97.2% compared to 97.3% in the three months ended March 31, 2024. Our drybulk vessels utilization for the three months ended March 31, 2025 was 92.4% compared to 93.6% in the three months ended March 31, 2024.

Our adjusted net income amounted to $113.4 million, or $6.04 per diluted share, for the three months ended March 31, 2025 compared to $140.0 million, or $7.15 per diluted share, for the three months ended March 31, 2024. We have adjusted our net income in the three months ended March 31, 2025 for a $2.5 million change in fair value of investments and a $0.8 million of non-cash finance fees amortization.

Adjusted net income of our container vessels segment amounted to $119.8 million for the three months ended March 31, 2025 compared to $138.9 million for the three months ended March 31, 2024. We adjusted net income of container vessels segment in the three months ended March 31, 2025 for a $0.8 million of non-cash finance fees amortization.

Adjusted net income/loss of our drybulk vessels segment amounted to $6.5 million loss for the three months ended March 31, 2025 compared to $0.3 million income for the three months ended March 31, 2024.

The $26.6 million decrease in adjusted net income for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 is primarily attributable to a $19.8 million increase in total operating expenses, a $6.0 million increase in net finance expenses, a $0.6 million decrease in dividends received, a $0.1 million increase in equity loss on investments, and a $0.1 million decrease in operating revenues.

Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release.

On a non-adjusted basis, our net income amounted to $115.1 million, or $6.13 earnings per diluted share, for the three months ended March 31, 2025 compared to net income of $150.5 million, or $7.68 earnings per diluted share, for the three months ended March 31, 2024. Our net income for the three months ended March 31, 2025 includes $2.5 million gain on marketable securities compared to $11.0 million gain on marketable securities in the three months ended March 31, 2024. On a non-adjusted basis, the net income of our container vessels segment amounted to $119.0 million for the three months ended March 31, 2025 compared to $138.4 million for the three months ended March 31, 2024. On a non-adjusted basis, the net income/loss of our drybulk vessels segment amounted to $6.5 million net loss for the three months ended March 31, 2025 compared to $0.3 million income for the three months ended March 31, 2024.

Operating Revenues
Operating revenues decreased by $0.1 million, to $253.3 million in the three months ended March 31, 2025 from $253.4 million in the three months ended March 31, 2024.

Operating revenues of our container vessels segment increased by 1.2%, or $2.8 million, to $236.2 million in the three months ended March 31, 2025, compared to $233.4 million in the three months ended March 31, 2024, analyzed as follows:

• $24.0 million increase in revenues as a result of newbuilding containership vessel additions;

partially off-set by:

• $9.4 million decrease in revenues as a result of lower charter rates between the two periods;
• $6.2 million decrease in revenues as a result of lower fleet utilization between the two periods;
• $0.2 million decrease in revenues due to the disposal of one containership vessel; and
• $5.4 million decrease in revenues due to lower non-cash revenue recognition in accordance with US GAAP.

Operating revenues of our drybulk vessels segment decreased by 14.5%, or $2.9 million, to $17.1 million in the three months ended March 31, 2025, compared to $20.0 million of revenues in the three months ended March 31, 2024, analyzed as follows:

• $9.0 million decrease in revenues as a result of lower charter rates and lower vessel utilization between the two periods;

partially off-set by:

• $6.1 million increase in revenues as a result of dry bulk vessel acquisitions.

Vessel Operating Expenses
Vessel operating expenses increased by $8.6 million to $51.7 million in the three months ended March 31, 2025 from $43.1 million in the three months ended March 31, 2024, primarily as a result of the increase in the average number of vessels in our fleet due to container vessel newbuilding deliveries and drybulk vessels acquisitions, combined with an increase in the average daily operating cost of our vessels to $7,028 per vessel per day for the three months ended March 31, 2025 compared to $6,493 per vessel per day for the three months ended March 31, 2024, mainly due to increased repairs & maintenance expenses between the two periods. Management believes that our daily operating costs remain among the most competitive in the industry.

Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.

Depreciation
Depreciation expense increased by $6.1 million, to $40.0 million in the three months ended March 31, 2025 from $33.9 million in the three months ended March 31, 2024 due to the increase in the average number of vessels in our fleet.

Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs increased by $5.5 million to $11.0 million in the three months ended March 31, 2025 from $5.5 million in the three months ended March 31, 2024, reflecting a larger number of vessels drydocked for which vessels drydocking amortization cost was recognized during the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

General and Administrative Expenses
General and administrative expenses increased by $2.0 million, to $12.2 million in the three months ended March 31, 2025 from $10.2 million in the three months ended March 31, 2024. The increase was mainly attributable to $0.9 million higher management fees due to the increase in the average number of vessels in our fleet and an $1 million increase in corporate general and administrative expenses.

Other Operating Expenses
Other Operating Expenses include Voyage Expenses.

Voyage Expenses
Voyage expenses decreased by $2.2 million to $18.1 million in the three months ended March 31, 2025 from $20.3 million in the three months ended March 31, 2024, mainly driven by a $2.7 million decrease in voyage expenses of our dry bulk vessels, attributed to the different mix of time charter and voyage charter contracts under which our dry bulk vessels were deployed between the two periods.

Voyage expenses of container vessels segment increased by $0.5 million to $8.8 million in the three months ended March 31, 2025 from $8.3 million in the three months ended March 31, 2024 mainly due to increased commissions.

Voyage expenses of drybulk vessels segment decreased by $2.7 million to $9.3 million in the three months ended March 31, 2025 compared to $12.0 million voyage expenses in the three months ended March 31, 2024. For the three months ended March 31, 2025, voyage expenses of drybulk vessels comprised of $1.0 million in commissions and $8.3 million in other voyage expenses, compared to $1.2 million in commissions and $10.8 million in other voyage expenses for the three months ended March 31, 2024.

Interest Expense and Interest Income
Interest expense increased by $6.9 million, to $10.0 million in the three months ended March 31, 2025 from $3.1 million in the three months ended March 31, 2024. The increase in interest expense is a result of:

• $5.2 million increase in interest expense due to an increase in our average indebtedness by $363.9 million between the two periods. Average indebtedness was $777.6 million in the three months ended March 31, 2025, compared to average indebtedness of $413.7 million in the three months ended March 31, 2024. This increase was partially offset by a decrease in our debt service cost by approximately 1% as a result of lower SOFR rates between the two periods;
• $1.4 million increase in interest expense due to a decrease in the amount of interest expense capitalized on our vessels under construction in the three months ended March 31, 2025 when compared to capitalized interest in the three months ended March 31, 2024; and
• $0.3 million increase in the amortization of deferred finance costs between the two periods.

As of March 31, 2025, our outstanding debt, gross of deferred finance costs, was $779.7 million, which included $262.8 million principal amount of our Senior Notes. These balances compare to debt of $458.6 million, which included $262.8 million principal amount of our Senior Notes, gross of deferred finance costs, as of March 31, 2024. The increase in our outstanding debt is due to loans drawn down to partially finance our container vessel newbuilding deliveries.       

Interest income increased by $0.7 million, to $3.6 million in the three months ended March 31, 2025 compared to $2.9 million in the three months ended March 31, 2024, driven by higher average cash balances between the two periods.

Gain on investments
The $2.8 million gain on investments in the three months ended March 31, 2025 consisted of the change in fair value of our shareholding interest in Star Bulk Carriers Corp. ("SBLK") of $2.5 million and dividend income on these shares of $0.3 million. This compares to an $11.9 million gain on investments in the three months ended March 31, 2024, representing an $11.0 million change in fair value on our Eagle Bulk Shipping ("EGLE") shareholding interest and dividend income on these shares of $0.9 million.

Equity loss on investments
Equity loss on investments amounting to $0.2 million and $0.1 million in the three months March 31, 2025 and March 31, 2024, respectively, relates to our share of expenses of Carbon Termination Technologies Corporation ("CTTC"), currently engaged in the research and development of decarbonization technologies for the shipping industry.

Other finance expenses
Other finance expenses increased by $0.1 million to $1.0 million in the three months ended March 31, 2025 compared to $0.9 million in the three months ended March 31, 2024.

Loss on derivatives
Amortization of deferred realized losses on interest rate swaps remained stable at $0.9 million in each of the three months ended March 31, 2025 and March 31, 2024.

Other income/(expenses), net
Other income, net amounted to $0.6 million in the three months ended March 31, 2025 compared to $0.2 million in the three months ended March 31, 2024.

Adjusted EBITDA
Adjusted EBITDA decreased by 3.1%, or $5.5 million, to $171.7 million in the three months ended March 31, 2025 from $177.2 million in the three months ended March 31, 2024. The decrease was attributed to (i) $7.9 million increase in total operating expenses, ii) $0.3 million increase in net financing expenses, iii) $0.6 million decrease in dividends received and iv) $0.1 million increase in equity loss on investments offset by v) $3.4 million increase in operating revenues. Adjusted EBITDA for the three months ended March 31, 2025 is adjusted for a $2.5 million change in fair value of investments and stock based compensation of $0.1 million. Tables reconciling Adjusted EBITDA to Net Income can be found at the end of this earnings release.

Adjusted EBITDA of container vessels segment decreased by 0.7%, or $1.3 million, to $172.9 million in the three months ended March 31, 2025 from $174.2 million in the three months ended March 31, 2024.

Adjusted EBITDA of drybulk vessels segment decreased by $3.5 million to ($1.3) million in the three months ended March 31, 2025 from $2.2 million in the three months ended March 31, 2024.

Dividend Payment
Danaos has declared a dividend of $0.85 per share of common stock for the first quarter of 2025, which is payable on June 5, 2025, to stockholders of record as of May 27, 2025.

Recent Developments
Subsequent to March 31, 2025, we repurchased 264,605 shares of our common stock in the open market for $19.4 million.

Subsequent to March 31, 2025, we purchased in the open market an additional 2,060,399 shares of common stock of Star Bulk Carriers Corp. ("SBLK'') for $27.8 million and the Company today owns 6,130,613 shares.

Conference Call and Webcast
On Wednesday, May 14, 2025 at 9:00 A.M. ET, the Company's management will host a conference call to discuss the results.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 844 802 2437 (US Toll Free Dial In), 0800 279 948 9 (UK Toll Free Dial In) or +44 (0) 2075 441 375 (Standard International Dial In). Please indicate to the operator that you wish to join the Danaos Corporation earnings call.

A telephonic replay of the conference call will be available until May 21, 2025 by dialing 1 877 344 7529 (US Toll Free Dial In) or 1-412-317-0088 (Standard International Dial In) and using 4079215# as the access code.

Audio Webcast
There will also be a live and then archived webcast of the conference call on the Danaos website (www.danaos.com). Participants of the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Slide Presentation
A slide presentation regarding the Company and the container and drybulk industry will also be available on the Danaos website (www.danaos.com).

About Danaos Corporation
Danaos Corporation is one of the largest independent owners of modern, large-size container vessels. Our current fleet of 74 container vessels aggregating 471,477 TEUs and 15 under construction container vessels aggregating 128,220 TEUs ranks Danaos among the largest container vessels charter owners in the world based on total TEU capacity. Danaos has also recently invested in the drybulk sector with the acquisition of 10 capesize drybulk vessels aggregating 1,760,861 DWT. Our container vessels fleet is chartered to many of the world's largest liner companies on fixed-rate charters. Our long track record of success is predicated on our efficient and rigorous operational standards and environmental controls. Danaos Corporation's shares trade on the New York Stock Exchange under the symbol "DAC".

Forward-Looking Statements
Matters discussed in this release may constitute forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions. Although Danaos Corporation believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Danaos Corporation cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, geopolitical conditions, including any trade disruptions resulting from tariffs imposed by the United States or other countries, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in Danaos Corporation's operating expenses, including bunker prices, drydocking and insurance costs, our ability to operate profitably in the drybulk sector, performance of shipyards constructing  our contracted newbuilding vessels, ability to obtain financing and comply with covenants in our financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, including the conflict in Ukraine and related sanctions, the conflict in Israel and the Gaza Strip, potential disruption of shipping routes such as Houthi attacks in the Red Sea and the Gulf of Aden, due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by Danaos Corporation with the U.S. Securities and Exchange Commission.

Visit our website at www.danaos.com

APPENDIX

Container vessels fleet utilization
Vessel Utilization (No. of Days)		Three months ended		Three months ended
		March 31,		March 31,
		2025		2024
Ownership Days		6,637		6,185
Less Off-hire Days:
Scheduled Off-hire Days		(167)		(67)
Other Off-hire Days		(19)		(99)
Operating Days		6,451		6,019
Vessel Utilization		97.2 %		97.3 %
Operating Revenues (in '000s of US$)		$236,190		$233,411
Less: Voyage Expenses excluding commissions (in '000s of US$)		(307)		(488)
Time Charter Equivalent Revenues (in '000s of US$)		235,883		232,923
Time Charter Equivalent US$/per day		$36,565		$38,698
Drybulk vessels fleet utilization
Vessel Utilization (No. of Days)		Three months ended		Three months ended
		March 31,		March 31,
		2025		2024
Ownership Days		900		637
Less Off-hire Days:
Scheduled Off-hire Days		(56)		(31)
Other Off-hire Days		(12)		(10)
Operating Days		832		596
Vessel Utilization		92.4 %		93.6 %
Operating Revenues (in '000s of US$)		$17,117		$20,038
Less: Voyage Expenses excluding commissions (in '000s of US$)		(8,370)		(10,827)
Time Charter Equivalent Revenues (in '000s of US$)		8,747		9,211
Time Charter Equivalent US$/per day		$10,513		$15,455

1)

We define Operating Days as the total number of Ownership Days net of Scheduled off-hire days (days associated with scheduled repairs, drydockings or special or intermediate surveys or days) and net of off-hire days associated with unscheduled repairs or days waiting to find employment but including days our vessels were sailing for repositioning. The shipping industry uses Operating Days to measure the number of days in a period during which vessels actually generate revenues or are sailing for repositioning purposes. Our definition of Operating Days may not be comparable to that used by other companies in the shipping industry.

2)

Time charter equivalent US$/per day ("TCE rate") represents the average daily TCE rate of our container vessels segment and drybulk vessels segment calculated dividing time charter equivalent revenues of each segment by operating days of each segment. TCE rate is a standard shipping industry performance measure used primarily to compare period to period changes in a shipping company's performance despite changes in the mix of charter types i.e., voyage charters, time charters, bareboat charters under which its vessels may be employed between the periods. Our method of computing TCE rate may not necessarily be comparable to TCE rates of other companies due to differences in methods of calculation. We include TCE rate, a non- GAAP measure, as it provides additional meaningful information in conjunction with operating revenues, the most directly comparable GAAP measure, and it assists our management in making decisions regarding the deployment and use of our operating vessels and assists investors and our management in evaluating our financial performance.

Fleet List

The following table describes in detail our container vessels deployment profile as of May 12, 2025:

Vessel Name	Vessel Size		Year Built		Expiration of Charter(2)
	(TEU) (1)
Ambition (ex Hyundai Ambition)	13,100		2012		April 2027
Speed (ex Hyundai Speed)	13,100		2012		March 2027
Kota Plumbago (ex Hyundai Smart)	13,100		2012		July 2027
Kota Primrose (ex Hyundai Respect)	13,100		2012		April 2027
Kota Peony (ex Hyundai Honour)	13,100		2012		March 2027
Express Rome	10,100		2011		May 2027
Express Berlin	10,100		2011		December 2029
Express Athens	10,100		2011		May 2027
Le Havre	9,580		2006		June 2028
Pusan C	9,580		2006		May 2028
Bremen	9,012		2009		January 2028
C Hamburg	9,012		2009		January 2028
Niledutch Lion	8,626		2008		May 2028
Kota Manzanillo	8,533		2005		December 2028
Belita	8,533		2006		June 2028
CMA CGM Melisande	8,530		2012		January 2028
CMA CGM Attila	8,530		2011		May 2027
CMA CGM Tancredi	8,530		2011		July 2027
CMA CGM Bianca	8,530		2011		September 2027
CMA CGM Samson	8,530		2011		November 2027
America	8,468		2004		April 2028
Europe	8,468		2004		May 2028
Kota Santos	8,463		2005		June 2029
Catherine C(3)	8,010		2024		June 2029
Greenland(3)	8,010		2024		August 2029
Greenville(4)	8,010		2024		October 2029
Greenfield(5)	8,010		2024		November 2029
Interasia Accelerate(3)	7,165		2024		April 2027
Interasia Amplify(4)	7,165		2024		September 2027
CMA CGM Moliere	6,500		2009		March 2027
CMA CGM Musset	6,500		2010		July 2027
CMA CGM Nerval	6,500		2010		November 2025
CMA CGM Rabelais	6,500		2010		January 2026
Racine	6,500		2010		June 2029
YM Mandate	6,500		2010		January 2028
YM Maturity	6,500		2010		April 2028
Savannah (ex Zim Savannah)	6,402		2002		June 2027
Dimitra C	6,402		2002		April 2027
Phoebe(6)	6,014		2025		October 2031
Suez Canal	5,610		2002		April 2026
Kota Lima	5,544		2002		September 2025
Wide Alpha	5,466		2014		January 2030
Stephanie C	5,466		2014		September 2028
Euphrates (ex Maersk Euphrates)	5,466		2014		September 2028
Wide Hotel	5,466		2015		March 2030
Wide India	5,466		2015		October 2028
Wide Juliet	5,466		2015		September 2025
Seattle C	4,253		2007		October 2026
Vancouver	4,253		2007		November 2026
Derby D	4,253		2004		January 2027
Tongala	4,253		2004		November 2026
Rio Grande	4,253		2008		November 2026
Merve A	4,253		2008		August 2027
Kingston	4,253		2008		June 2027
Monaco (ex ZIM Monaco)	4,253		2009		December 2026
Dalian	4,253		2009		March 2026
ZIM Luanda	4,253		2009		August 2028
Dimitris C	3,430		2001		September 2027
Express Black Sea	3,400		2011		January 2027
Express Spain	3,400		2011		January 2027
Express Argentina	3,400		2010		December 2026
Express Brazil	3,400		2010		April 2027
Express France	3,400		2010		July 2027
Singapore	3,314		2004		March 2027
Colombo	3,314		2004		January 2027
Zebra	2,602		2001		November 2025
Artotina	2,524		2001		January 2026
Advance	2,200		1997		June 2026
Future	2,200		1997		May 2026
Sprinter	2,200		1997		May 2026
Bridge	2,200		1998		January 2028
Progress C	2,200		1998		April 2026
Phoenix D	2,200		1997		March 2026
Highway	2,200		1998		January 2028

(1)	Twenty-feet equivalent unit, the international standard measure for containers and container vessels capacity.
(2)	Earliest date charters could expire. Some charters include options for the charterer to extend their terms.
(3)	The newbuilding vessels were delivered in the second quarter of 2024.
(4)	The newbuilding vessels were delivered in the third quarter of 2024.
(5)	The newbuilding vessel was delivered in the fourth quarter of 2024.
(6)	The newbuilding vessel was delivered in January 2025.

 

Container vessels under construction as of May 12, 2025:
Hull Number	Vessel Size (TEU)		Expected Delivery Year			Minimum Charter Duration
Hull No. CV5900-08	6,014		2025			6.8 Years
Hull No. YZJ2023-1556	8,258		2026			5 Years
Hull No. YZJ2023-1557	8,258		2026			5 Years
Hull No. YZJ2024-1612	8,258		2026			5 Years
Hull No. YZJ2024-1613	8,258		2027			5 Years
Hull No. YZJ2024-1625	8,258		2027			5 Years
Hull No. YZJ2024-1626	8,258		2027			5 Years
Hull No. YZJ2024-1668	8,258		2027			5 Years
Hull No. C9200-7	9,200		2027			4.8 Years
Hull No. C9200-8	9,200		2027			4.8 Years
Hull No. C9200-9	9,200		2027			4.8 Years
Hull No. C9200-10	9,200		2028			4.8 Years
Hull No. C9200-11	9,200		2028			4.8 Years
Hull No. H2596	9,200		2027			6 Years
Hull No. H2597	9,200		2027			6 Years

 

The following table describes the details of our Capesize drybulk vessels as of May 12, 2025:
Vessel Name	Capacity (DWT) (1)		Year Built
Achievement	175,966		2011
Genius	175,580		2012
Ingenuity	176,022		2011
Integrity	175,966		2010
Peace	175,858		2010
W Trader	175,879		2009
E Trader	175,886		2009
Gouverneur (ex Xin Hang) (2)	178,043		2010
Valentine (ex Star Audrey) (2)	175,125		2011
Danaos (ex Guo May) (3)	176,536		2011

(1)	DWT, dead weight tons, the international standard measure for drybulk vessels capacity.
(2)	The vessels were delivered in the second quarter of 2024.
(3)	The vessel was delivered in July 2024.

 

DANAOS CORPORATION Condensed Consolidated Statements of Income - Unaudited (Expressed in thousands of United States dollars, except per share amounts)
		Three months ended		Three months ended
		March 31,		March 31,
		2025		2024
OPERATING REVENUES		$253,307		$253,449
OPERATING EXPENSES
	Vessel operating expenses	(51,702)		(43,114)
	Depreciation & amortization	(50,998)		(39,315)
	General & administrative	(12,222)		(10,244)
	Other operating expenses	(18,135)		(20,342)
Income From Operations		120,250		140,434
OTHER INCOME/(EXPENSES)
	Interest income	3,605		2,936
	Interest expense	(10,003)		(3,124)
	Gain on investments	2,849		11,911
	Other finance expenses	(987)		(882)
	Equity loss on investments	(232)		(109)
	Other income/(expenses), net	558		235
	Realized loss on derivatives	(893)		(903)
Total Other Income/(Expenses), net		(5,103)		10,064
Net Income		115,147		150,498
EARNINGS PER SHARE
Basic earnings per share		$6.14		$7.75
Diluted earnings per share		$6.13		$7.68
Basic weighted average number of common shares (in thousands of shares)		18,750		19,412
Diluted weighted average number of common shares (in thousands of shares)		18,781		19,584

 

 

Non-GAAP Measures1  Reconciliation of Net Income to Adjusted Net Income – Unaudited
	Three months ended		Three months ended
	March 31,		March 31,
	2025		2024
Net Income	$115,147		$150,498
Change in fair value of investments	(2,483)		(10,979)
Amortization of financing fees	758		497
Adjusted Net Income	$113,422		$140,016
Adjusted Earnings Per Share, diluted	$6.04		$7.15
Diluted weighted average number of shares (in thousands of shares)	18,781		19,584

1 The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Table above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended March 31, 2025 and 2024. The non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.

 

DANAOS CORPORATION Condensed Consolidated Balance Sheets - Unaudited (Expressed in thousands of United States dollars)
			As of		As of
			March 31,		December 31,
			2025		2024
ASSETS
CURRENT ASSETS
	Cash, cash equivalents and restricted cash		$480,543		$453,384
	Accounts receivable, net		25,046		25,578
	Other current assets		200,240		192,005
			705,829		670,967
NON-CURRENT ASSETS
	Fixed assets, net		3,319,777		3,290,309
	Advances for vessels acquisition and vessels under construction		285,485		265,838
	Deferred charges, net		63,578		58,759
	Other non-current assets		64,186		57,781
			3,733,026		3,672,687
TOTAL ASSETS			$4,438,855		$4,343,654
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
	Long-term debt, current portion		$37,660		$35,220
	Accounts payable, accrued liabilities & other current liabilities		124,892		133,734
			162,552		168,954
LONG-TERM LIABILITIES
	Long-term debt, net		732,194		699,563
	Other long-term liabilities		50,380		50,337
			782,574		749,900
STOCKHOLDERS' EQUITY
	Common stock		186		190
	Additional paid-in capital		619,361		650,864
	Accumulated other comprehensive loss		(69,247)		(70,430)
	Retained earnings		2,943,429		2,844,176
			3,493,729		3,424,800
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$4,438,855		$4,343,654

 

DANAOS CORPORATION Condensed Consolidated Statements of Cash Flows - Unaudited (Expressed in thousands of United States dollars)
		Three months ended		Three months ended
		March 31,		March 31,
		2025		2024
Operating Activities:
	Net income	$115,147		$150,498
	Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation	40,028		33,863
	Amortization of deferred drydocking & special survey costs and finance costs	11,728		5,949
	Amortization of assumed time charters	-		(3,498)
	Prior service cost and periodic cost	1,085		257
	Gain on investments	(2,483)		(10,979)
	Payments for drydocking/special survey	(15,789)		(4,169)
	Amortization of deferred realized losses on cash flow interest rate swaps	893		903
	Equity loss on investments	232		109
	Stock based compensation	1,705		1,576
	Accounts receivable	172		(3,452)
	Other assets, current and non-current	(6,384)		11,887
	Accounts payable and accrued liabilities	(2,555)		(6,228)
	Other liabilities, current and long-term	(9,919)		(23,424)
Net Cash provided by Operating Activities		133,860		153,292
Investing Activities:
	Vessel additions and advances for vessels under construction	(85,690)		(124,127)
	Net proceeds and insurance proceeds from disposal of vessel	1,681		716
Net Cash used in Investing Activities		(84,009)		(123,411)
Financing Activities:
	Proceeds from long-term debt	44,000		55,000
	Debt repayment	(8,805)		(6,875)
	Dividends paid	(15,890)		(15,535)
	Repurchase of common stock	(33,774)		(4,129)
	Finance costs	(8,223)		(5,825)
Net Cash (used in) / provided by Financing Activities		(22,692)		22,636
Net increase in cash and cash equivalents		27,159		52,517
Cash and cash equivalents, beginning of period		453,384		271,809
Cash and cash equivalents, end of period		$480,543		$324,326

 

DANAOS CORPORATION Reconciliation of Net Income to Adjusted EBITDA - Unaudited (Expressed in thousands of United States dollars)
	Three months ended		Three months ended		Last twelve months ended		Last twelve months ended
	March 31,		March 31,		March 31,		March 31,
	2025		2024		2025		2024
Net income	$115,147		$150,498		$469,722		$580,596
Depreciation	40,028		33,863		154,509		131,621
Amortization of deferred drydocking & special survey costs	10,970		5,452		34,679		20,280
Amortization of assumed time charters	-		(3,498)		(1,036)		(18,184)
Amortization of deferred finance costs and commitment fees	1,336		1,273		4,968		4,958
Amortization of deferred realized losses on interest rate swaps	893		903		3,622		3,632
Interest income	(3,605)		(2,936)		(13,559)		(12,346)
Interest expense excluding amortization of finance costs	9,245		2,627		30,477		14,860
Change in fair value of investments	(2,483)		(10,979)		33,675		(28,846)
Loss on debt extinguishment	-		-		-		2,254
Stock based compensation	142		-		8,360		6,340
Net gain on disposal/sale of vessels	-		-		(8,332)		-
Adjusted EBITDA(1)	$171,673		$177,203		$717,085		$705,165

 

1)	Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs and commitment fees, amortization of deferred realized losses on interest rate swaps, adjusted for the change in fair value of investments, stock based compensation, loss on debt extinguishment and net gain on disposal/sale of vessels. However, Adjusted EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or "GAAP." We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that EBITDA and Adjusted EBITDA assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.
	Note: Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to net income. Charges negatively impacting net income are reflected as increases to net income.
	The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months and year ended March 31, 2025 and March 31, 2024. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.

 

DANAOS CORPORATION Reconciliation of Net Income to Adjusted EBITDA per segment Three Months Ended March 31, 2025 and Three Months Ended March 31, 2024 Unaudited (Expressed in thousands of United States dollars)
	Three Months Ended								Three Months Ended
	March 31, 2025								March 31, 2024
	Container Vessels		Drybulk Vessels		Other		Total		Container Vessels		Drybulk Vessels		Other		Total
Net income/(loss)	$119,045		$(6,542)		$2,644		$115,147		$138,359		$337		$11,802		$150,498
Depreciation	36,764		3,264		-		40,028		32,008		1,855		-		33,863
Amortization of deferred drydocking & special survey costs	9,051		1,919		-		10,970		5,452		-		-		5,452
Amortization of assumed time charters	-		-		-		-		(3,498)		-		-		(3,498)
Amortization of deferred finance costs and commitment fees	1,336		-		-		1,336		1,273		-		-		1,273
Amortization of deferred realized losses on interest rate swaps	893		-		-		893		903		-		-		903
Interest income	(3,578)		-		(27)		(3,605)		(2,936)		-		-		(2,936)
Interest expense excluding amortization of finance costs	9,245		-		-		9,245		2,627		-		-		2,627
Change in fair value of investments	-		-		(2,483)		(2,483)		-		-		(10,979)		(10,979)
Stock based compensation	132		10		-		142		-		-		-		-
Adjusted EBITDA(1)	$172,888		$(1,349)		$134		$171,673		$174,188		$2,192		$823		$177,203

1)	Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs and commitment fees, amortization of deferred realized losses on interest rate swaps and adjusted for the change in fair value of investments and stock based compensation. However, Adjusted EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or "GAAP." We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that EBITDA and Adjusted EBITDA assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.
	Note: Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to net income. Charges negatively impacting net income are reflected as increases to net income.
	The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended March 31, 2025 and 2024. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.

 

DANAOS CORPORATION Reconciliation of Net Income to Adjusted Net Income per segment Three Months Ended March 31, 2025 and Three Months Ended March 31, 2024 Unaudited (Expressed in thousands of United States dollars)
		Three Months Ended								Three Months Ended
		March 31, 2025								March 31, 2024
		Container Vessels		Drybulk Vessels		Other		Total		Container Vessels		Drybulk Vessels		Other		Total
Net income/(loss)		$119,045		$(6,542)		$2,644		$115,147		$138,359		$337		$11,802		$150,498
Change in fair value of investments		-		-		(2,483)		(2,483)		-		-		(10,979)		(10,979)
Amortization of financing fees		758		-		-		758		497		-		-		497
Adjusted Net income/(loss)(1)		$119,803		$(6,542)		$161		$113,422		$138,856		$337		$823		$140,016
Adjusted Earnings per Share, diluted								$6.04				-		-		$7.15
Diluted weighted average number of shares (in thousands of shares)								18,781								19,584

1)

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Table above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended March 31, 2025 and 2024. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.

 

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SOURCE Danaos Corporation

FAQ

What was Danaos Corporation's (DAC) earnings per share in Q1 2025?

Danaos reported diluted earnings per share of $6.13 in Q1 2025, compared to $7.68 in Q1 2024.

How many newbuilding vessels does Danaos (DAC) have on order as of Q1 2025?

Danaos has 15 newbuilding containerships on order with total capacity of 128,220 TEU, scheduled for delivery between 2025-2028.

What is Danaos Corporation's (DAC) current dividend payment?

Danaos declared a quarterly dividend of $0.85 per share, payable on June 5, 2025, to stockholders of record as of May 27, 2025.

What is Danaos Corporation's (DAC) contracted revenue backlog as of Q1 2025?

Danaos has a total contracted revenue backlog of $3.7 billion, including newbuildings, with average charter duration of 3.9 years for the containership fleet.

How much has Danaos (DAC) spent on share repurchases?

Danaos has repurchased 2,937,158 shares for $205.7 million under its $300 million share repurchase program.