Genco Shipping & Trading (NYSE: GNK) Q2 profit and dividend move
Genco Shipping & Trading Limited reported a strong turnaround for the quarter ended June 30, 2026. Voyage revenues rose to $136.4 million from $80.9 million a year earlier, lifting operating income to $21.8 million from a loss and net income to $16.7 million, or $0.38 basic EPS, versus a prior-year loss of $6.8 million. For the first half, voyage revenues were $250.8 million with net income of $26.3 million, compared with a loss in 2025.
Fleet performance improved, with fleet-average TCE rates up to $24,273 per day from $13,631, supported by stronger major and minor bulk markets. The company expanded its modern fleet by acquiring three large scrubber-fitted vessels and selling two older Supramax ships, ending the quarter with 43 vessels and expecting a 44th in August 2026. Cash from operations reached $48.9 million in the first half; cash stood at $73.6 million and undrawn availability under the $680 Million Revolver was $350.0 million, for total liquidity of $423.6 million. Debt principal increased to $330.0 million as the revolver was upsized. The board continued its dividend policy, declaring quarterly dividends including a subsequent $0.80 per share announcement after quarter-end, while also incurring $16.9 million of other operating expense tied to a non-routine 2026 annual meeting and proposals to purchase the company’s stock.
Positive
- Returned to profitability with Q2 2026 net income of $16.7 million and first-half net income of $26.3 million, compared with losses in the prior-year periods, supported by higher TCE rates and significantly stronger voyage revenues.
Negative
- None.
Filing Explained
The filing adds potential share issuance from equity awards and a $50.0 million revolver draw financing the August vessel delivery.
A Form 10-Q is the company’s unaudited quarterly report; this filing covers the quarter ended
After quarter-end, the company drew
The filing also reports potential future share issuance: 1,597,913 shares are outstanding in respect of restricted stock units, including 568,495 unvested RSUs, while 404,070 performance-based units and 69,284 stock options remained outstanding at
The debt-funded vessel is expected to be delivered during
Key Figures
Key Terms
Time Charter Equivalent financial
Net-Zero Framework regulatory
Emission Control Area regulatory
performance-based restricted stock units financial
variable interest entity financial
Newcastlemax technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Genco Shipping (GNK) perform financially in Q2 2026?
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How did TCE rates and fleet metrics trend for Genco Shipping (GNK) in Q2 2026?
What is Genco Shipping (GNK)’s liquidity and debt position as of June 30, 2026?
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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number
(Exact name of registrant as specified in its charter)
| | |
Republic of the | | |
(State or other jurisdiction of | | (I.R.S. Employer |
(Address of principal executive offices) (Zip Code)
(
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of exchange on which registered |
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| | | | | | | ||
Large accelerated filer ◻ | | | Non-accelerated filer ◻ | | Smaller reporting company | |||
| | | | | | Emerging growth company | ||
If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act ◻
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ⌧ No ◻
The number of shares outstanding of each of the issuer’s classes of common stock, as of August 5, 2026: Common stock, par value $0.01 per share —
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Genco Shipping & Trading Limited
| | Page | |
| | | |
| PART I — FINANCIAL INFORMATION | | |
| | | |
Item 1. | Financial Statements (unaudited) | 4 | |
| | | |
| a) | Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025 | 4 |
| | | |
| b) | Condensed Consolidated Statements of Operations for the Three and Six Months ended June 30, 2026 and 2025 | 5 |
| | | |
| c) | Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months ended June 30, 2026 and 2025 | 6 |
| | | |
| d) | Condensed Consolidated Statements of Equity for the Three and Six Months ended June 30, 2026 and 2025 | 7 |
| | | |
| e) | Condensed Consolidated Statements of Cash Flows for the Six Months ended June 30, 2026 and 2025 | 9 |
| | | |
| f) | Notes to Condensed Consolidated Financial Statements | 10 |
| | | |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 25 | |
| | | |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 50 | |
| | | |
Item 4. | Controls and Procedures | 51 | |
| | | |
| PART II —OTHER INFORMATION | | |
| | | |
Item 1A. | Risk Factors | 51 | |
| | | |
Item 6. | Exhibits | 52 | |
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Website Information
We intend to use our website, www.GencoShipping.com, as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in our website’s Investor section. Accordingly, investors should monitor the Investor portion of our website, in addition to following our press releases, filings with the U.S. Securities and Exchange Commission (the “SEC”), public conference calls, and webcasts. To subscribe to our e-mail alert service, please submit your e-mail address at the Investor Relations Home page of the Investor section of our website. The information contained in, or that may be accessed through, our website is not incorporated by reference into or a part of this document or any other report or document we file with or furnish to the SEC, and any references to our website are intended to be inactive textual references only.
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Genco Shipping & Trading Limited
Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025
(U.S. Dollars in thousands, except for share and per share data)
(Unaudited)
| | | | | | | |
| | June 30, | | December 31, | | ||
| | 2026 | | 2025 |
| ||
| | | | |
| ||
Assets | | | | | | | |
Current assets: | | | | | | | |
Cash and cash equivalents | | $ | | | $ | | |
Due from charterers, net of a reserve of $ | |
| | |
| | |
Prepaid expenses and other current assets | | | | | | | |
Inventories | | | | | | | |
Total current assets | |
| | |
| | |
| | | | | | | |
Noncurrent assets: | | | | | | | |
Vessels, net of accumulated depreciation of $ | |
| | |
| | |
Deposits on vessels | |
| | |
| | |
Deferred drydock, net of accumulated amortization of $ | |
| | |
| | |
Fixed assets, net of accumulated depreciation and amortization of $ | |
| | |
| | |
Operating lease right-of-use assets | |
| | |
| | |
Total noncurrent assets | |
| | |
| | |
| | | | | | | |
Total assets | | $ | | | $ | | |
| | | | | | | |
Liabilities and Equity | | | | | | | |
Current liabilities: | | | | | | | |
Accounts payable and accrued expenses | | $ | | | $ | | |
Deferred revenue | | | | | | | |
Total current liabilities: | |
| | |
| | |
| | | | | | | |
Noncurrent liabilities: | | | | | | | |
Long-term operating lease liabilities | | | | | | | |
Long-term debt, net of deferred financing costs of $ | | | | | | | |
Total noncurrent liabilities | |
| | |
| | |
| | | | | | | |
Total liabilities | |
| | |
| | |
| | | | | | | |
Commitments and contingencies (Note 14) | | | | | | | |
| | | | | | | |
Equity: | | | | | | | |
Common stock, par value $ | | | | | | | |
Additional paid-in capital | | | | | | | |
Accumulated deficit | |
| ( | |
| ( | |
Total Genco Shipping & Trading Limited shareholders’ equity | |
| | |
| | |
Noncontrolling interest | |
| | |
| | |
Total equity | |
| | |
| | |
Total liabilities and equity | | $ | | | $ | | |
See accompanying notes to Condensed Consolidated Financial Statements.
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Genco Shipping & Trading Limited
Condensed Consolidated Statements of Operations
For the Three and Six Months Ended June 30, 2026 and 2025
(U.S. Dollars in Thousands, Except for Earnings Per Share and Share Data)
(Unaudited)
| | | | | | | | | | | | | |
| | For the Three Months Ended | | For the Six Months Ended | | ||||||||
| | June 30, | | June 30, | | ||||||||
| | 2026 | | 2025 | | 2026 | | 2025 | | ||||
Revenues: | | | | | | | | | | | | | |
Voyage revenues | | $ | | | $ | | | $ | | | $ | | |
| | | | | | | | | | | | | |
Total revenues | | | | |
| | | | | |
| | |
| | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | |
Voyage expenses | | | | |
| | | | | |
| | |
Vessel operating expenses | | | | |
| | | | | |
| | |
Charter hire expenses | | | | | | | | | | | | | |
General and administrative expenses (inclusive of nonvested stock amortization expense of $ | | | | |
| | | | | |
| | |
Technical management expenses | | | | | | | | | | | | | |
Depreciation and amortization | | | | |
| | | | | |
| | |
Impairment of vessel assets | | | | | | | | | | | | | |
Net gain on sale of vessels | | | ( | | | — | | | ( | | | — | |
Other operating expense | | | | | | — | | | | | | — | |
| | | | | | | | | | | | | |
Total operating expenses | | | | |
| | | | | |
| | |
| | | | | | | | | | | | | |
Operating income (loss) | | | | |
| ( | | | | |
| ( | |
| | | | | | | | | | | | | |
Other (expense) income: | | | | | | | | | | | | | |
Other income (expense) | | | | |
| ( | | | | |
| ( | |
Interest income | | | | |
| | | | | |
| | |
Interest expense | | | ( | |
| ( | | | ( | | | ( | |
| | | | | | | | | | | | | |
Other expense, net | | | ( | |
| ( | | | ( | |
| ( | |
| | | | | | | | | | | | | |
Net income (loss) | | | | | | ( | | | | | | ( | |
Less: Net income (loss) attributable to noncontrolling interest | | | | |
| ( | | | | |
| ( | |
Net income (loss) attributable to Genco Shipping & Trading Limited | | $ | | | $ | ( | | $ | | | $ | ( | |
| | | | | | | | | | | | | |
Net earnings (loss) per share-basic | | $ | | | $ | ( | | $ | | | $ | ( | |
Net earnings (loss) per share-diluted | | $ | | | $ | ( | | $ | | | $ | ( | |
Weighted average common shares outstanding-basic | | | | |
| | | | | |
| | |
Weighted average common shares outstanding-diluted | | | | |
| | | | | |
| | |
See accompanying notes to Condensed Consolidated Financial Statements.
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Genco Shipping & Trading Limited
Condensed Consolidated Statements of Comprehensive Income (Loss)
For the Three and Six Months Ended June 30, 2026 and 2025
(U.S. Dollars in Thousands)
(Unaudited)
| | | | | | | | | | | | | |
| | For the Three Months Ended | | For the Six Months Ended | | ||||||||
| | June 30, | | June 30, | | ||||||||
| | 2026 | | 2025 | | 2026 | | 2025 |
| ||||
| | | | | | | | | | | | | |
Net income (loss) | | $ | |
| $ | ( | | $ | |
| $ | ( | |
| | | | | | | | | | | | | |
Other comprehensive loss | | | — | |
| — | | | — | | | — | |
| | | | | | | | | | | | | |
Comprehensive income (loss) | | | | | | ( | | | | | | ( | |
Less: Comprehensive income (loss) attributable to noncontrolling interest | | | | |
| ( | | | | | | ( | |
Comprehensive income (loss) attributable to Genco Shipping & Trading Limited | | $ | |
| $ | ( | | $ | |
| $ | ( | |
See accompanying notes to Condensed Consolidated Financial Statements.
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Genco Shipping & Trading Limited
Condensed Consolidated Statements of Equity
For the Three and Six Months Ended June 30, 2026 and 2025
(U.S. Dollars in Thousands)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Genco | | | | | | | | |||
| | | | | | | | | | | Shipping & | | | | | | | | |
| | | | | | | | | | | Trading | | | | | | | | |
| | | | | Additional | | | | Limited | | | | | | | | |||
| | Common | | Paid-in | | Accumulated | | Shareholders' | | Noncontrolling | | | | ||||||
| | Stock | | Capital | | Deficit | | Equity | | Interest | | Total Equity | | ||||||
Balance — January 1, 2026 | | $ | | | | | | | ( | | $ | | | $ | | | $ | | |
| | | | | | | | | | | | | | | | | | | |
Net income | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Issuance of shares due to vesting of RSUs, PRSUs and exercise of options | | | | | | ( | | | | | | — | | | | | | — | |
| | | | | | | | | | | | | | | | | | | |
Cash dividends declared ($ | | | | | | ( | | | | | | ( | | | | | | ( | |
| | | | | | | | | | | | | | | | | | | |
Nonvested stock amortization | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Balance — March 31, 2026 | | $ | | | $ | | | $ | ( | | $ | | | $ | | | $ | | |
| | | | | | | | | | | | | | | | | | | |
Net income | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Issuance of shares due to vesting of RSUs | | | | | | ( | | | | | | — | | | | | | — | |
| | | | | | | | | | | | | | | | | | | |
Cash dividends declared ($ | | | | | | ( | | | | | | ( | | | | | | ( | |
| | | | | | | | | | | | | | | | | | | |
Nonvested stock amortization | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Balance — June 30, 2026 | | $ | | | $ | | | $ | ( | | $ | | | $ | | | $ | | |
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| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Genco | | | | | | | | |
| | | | | | | | | | | Shipping & | | | | | | | | |
| | | | | | | | | | | Trading | | | | | | | | |
| | | | | Additional | | | | Limited | | | | | | | | |||
| | Common | | Paid-in | | Accumulated | | Shareholders' | | Noncontrolling | | | | | |||||
| | Stock | | Capital | | Deficit | | Equity | | Interest | | Total Equity | | ||||||
Balance — January 1, 2025 | | $ | | | | | | | ( | | $ | | | $ | | | $ | | |
| | | | | | | | | | | | | | | | | | | |
Net loss | | | | | | | | | ( | | | ( | | | ( | | | ( | |
| | | | | | | | | | | | | | | | | | | |
Issuance of shares due to vesting of RSUs and exercise of options, net of forfeitures | | | | | | ( | | | | | | — | | | | | | — | |
| | | | | | | | | | | | | | | | | | | |
Cash dividends declared ($ | | | | | | ( | | | | | | ( | | | | | | ( | |
| | | | | | | | | | | | | | | | | | | |
Nonvested stock amortization | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Balance — March 31, 2025 | | $ | | | $ | | | $ | ( | | $ | | | $ | | | $ | | |
| | | | | | | | | | | | | | | | | | | |
Net loss | | | | | | | | | ( | | | ( | | | ( | | | ( | |
| | | | | | | | | | | | | | | | | | | |
Cash dividends declared ($ | | | | | | ( | | | | | | ( | | | | | | ( | |
| | | | | | | | | | | | | | | | | | | |
Nonvested stock amortization | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Balance — June 30, 2025 | | $ | | | $ | | | $ | ( | | $ | | | $ | | | $ | | |
See accompanying notes to Condensed Consolidated Financial Statements.
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Genco Shipping & Trading Limited
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025
(U.S. Dollars in Thousands)
(Unaudited)
| | | | | | | |
| | For the Six Months Ended | | ||||
| | June 30, | | ||||
| | 2026 | | 2025 |
| ||
Cash flows from operating activities: | | | | | | | |
Net income (loss) |
| $ | | | $ | ( | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | |
Depreciation and amortization | | | | |
| | |
Amortization of deferred financing costs | | | | |
| | |
Right-of-use asset amortization | | | | | | | |
Amortization of nonvested stock compensation expense | | | | |
| | |
Impairment of vessel assets | | | | |
| | |
Net gain on sale of vessels | | | ( | | | — | |
Insurance proceeds for protection and indemnity claims | | | | | | | |
Insurance proceeds for loss of hire claims | | | — | | | | |
Change in assets and liabilities: | | | | | | | |
(Increase) decrease in due from charterers | | | ( | |
| | |
Decrease in prepaid expenses and other current assets | | | | |
| | |
(Increase) decrease in inventories | | | ( | | | | |
Increase in accounts payable and accrued expenses | | | | |
| | |
Decrease in deferred revenue | | | ( | |
| ( | |
Increase (decrease) in operating lease liabilities | | | | | | ( | |
Deferred drydock costs incurred | | | ( | |
| ( | |
Net cash provided by operating activities | | | | |
| | |
| | | | | | | |
Cash flows from investing activities: | | | | | | | |
Purchase of vessels and ballast water treatment systems, including deposits | | | ( | |
| ( | |
Purchase of other fixed assets | | | ( | |
| ( | |
Net proceeds from sale of vessels | | | | | | — | |
Insurance proceeds for hull and machinery claims | | | | | | | |
Net cash used in investing activities | | | ( | |
| ( | |
| | | | | | | |
Cash flows from financing activities: | | | | | | | |
Proceeds from the $680 Million Revolver | | | | | | — | |
Proceeds from the $600 Million Revolver | | | | | | — | |
Repayments on the $600 Million Revolver | | | ( | | | — | |
Proceeds from the $500 Million Revolver | | | — | | | | |
Cash dividends paid | | | ( | | | ( | |
Payment of deferred financing costs | | | ( | |
| ( | |
Net cash provided by (used in) financing activities | | | | |
| ( | |
| | | | | | | |
Net increase (decrease) in cash, cash equivalents and restricted cash | | | | |
| ( | |
| | | | | | | |
Cash and cash equivalents at beginning of period | | | | |
| | |
Cash and cash equivalents at end of period |
| $ | | | $ | | |
See accompanying notes to Condensed Consolidated Financial Statements.
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Genco Shipping & Trading Limited
(U.S. Dollars in Thousands, Except Per Share and Share Data)
Notes to Condensed Consolidated Financial Statements (unaudited)
1 – GENERAL INFORMATION
The accompanying Condensed Consolidated Financial Statements include the accounts of Genco Shipping & Trading Limited (“GS&T”) and its direct and indirect subsidiaries (collectively, the “Company”). The Company is engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels and operates in
As of June 30, 2026, the Company’s fleet consisted of
During September 2021, the Company and Synergy Marine Pte. Ltd. (“Synergy”), a third party, formed a joint venture, GS Shipmanagement Pte. Ltd. (“GSSM”). GSSM is owned
Management has determined that GSSM qualifies as a variable interest entity, and, when aggregating the variable interest held by the Company and Synergy, the Company is the primary beneficiary as the Company has the ability to direct the activities that most significantly impact GSSM’s economic performance. Accordingly, the Company consolidates GSSM.
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), and the rules and regulations of the SEC that apply to interim financial statements, including the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the disclosures and footnotes normally included in complete consolidated financial statements prepared in conformity with U.S. GAAP. They should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 18, 2026 (the “2025 10-K”). The accompanying Condensed Consolidated Financial Statements include the accounts of GS&T and its direct and indirect wholly-owned subsidiaries and GSSM. All intercompany accounts and transactions have been eliminated in consolidation.
In the opinion of management of the Company, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and operating results have been included in the statements. The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the operating results to be expected for the year ending December 31, 2026.
Use of estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include vessel valuations, impairment of vessels, the valuation of amounts due from charterers, performance claims, residual value of vessels, useful life of vessels, the fair value of time charters acquired, performance-based restricted stock units and the fair value of derivative instruments, if any. Actual results could differ from those estimates.
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Bunker swap and forward fuel purchase agreements
From time to time, the Company may enter into fuel hedge agreements with the objective of reducing the risk of the effect of changing fuel prices. The Company has entered into bunker swap agreements and forward fuel purchase agreements. The Company’s bunker swap agreements and forward fuel purchase agreements do not qualify for hedge accounting treatment; therefore, any unrealized or realized gains and losses are recorded in the Condensed Consolidated Statements of Operations. Derivatives are Level 2 instruments in the fair value hierarchy.
During the three months ended June 30, 2026 and 2025, the Company recorded $
During the six months ended June 30, 2026 and 2025, the Company recorded $
There were
Voyage expense recognition
In time charters and spot market-related time charters, operating costs including crews, maintenance and insurance, which are recorded as part of vessel operating expenses, are typically paid by the owner of the vessel and specified voyage costs such as fuel and port charges are paid by the charterer. These expenses are borne by the Company during spot market voyage charters. As such, there are significantly higher voyage expenses for spot market voyage charters as compared to time charters and spot market-related time charters. There are certain other non-specified voyage expenses, such as commissions, which are typically borne by the Company. At the inception of a time charter, the Company records the difference between the cost of bunker fuel delivered by the terminating charterer and the bunker fuel sold to the new charterer as a gain or loss within voyage expenses. Additionally, the Company records lower of cost and net realizable value adjustments to re-value the bunker fuel on a quarterly basis for certain time charter agreements where the inventory is subject to gains and losses. These differences in bunkers, including any lower of cost and net realizable value adjustments, resulted in a net gain (loss) of $
Impairment of vessel assets
During the three and six months ended June 30, 2026, the Company recorded $
Net gain on sale of vessels
During the three and six months ended June 30, 2026, the Company recorded a net gain of $
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respectively. During the three and six months ended June 30, 2025, the Company did not complete the sale of any vessels. Refer to Note 5 — Vessel Acquisitions and Dispositions for further detail regarding the sale of these vessels.
Other operating expense
Other operating expense of $
Recent accounting pronouncements
In May 2026, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2026-02 (“ASU 2026-02”), Environmental Credits and Environmental Credit Obligations (Topic 818), which provides recognition, measurement, presentation and disclosure requirements for entities that generate, purchase or receive environmental credits or have regulatory compliance obligations that may be settled with environmental credits. ASU 2026-02 is effective for fiscal years beginning after December 15, 2027, and interim periods within those annual reporting periods. Early adoption is permitted. This guidance is to be applied retrospectively by making a cumulative-effect adjustment to the opening balance of retained earnings. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements.
3 – SEGMENT REPORTING
The Company transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes through the ownership and operation of drybulk vessels. The Company’s vessels regularly move between countries in international waters, over hundreds of trade routes and, as a result, the disclosure of geographic information is impracticable. The Company owns a fleet of vessels that focuses on Newcastlemax, Capesize, Ultramax and Supramax vessels. Newcastlemax and Capesize vessels represent the Company’s major bulk vessels category while Ultramax and Supramax vessels represent the Company’s minor bulk vessel category.
The Company has determined that each of its vessels are individual operating segments. The Company determined its operating segments based on how its chief operating decision maker (CODM), John C. Wobensmith, Chief Executive Officer and President, manages the business, makes operating decisions and evaluates operating performance. The CODM reviews the operating results for the Company’s fleet and also considers certain aggregate financial data for the Company’s major bulk and minor bulk vessels. The Company’s major and minor bulk vessels have similar economic characteristics as they serve the same type of customers, have similar operations and maintenance requirements, and operate in the same regulatory environment. Based on the principles of ASC 280 — “Segment Reporting,” the Company believes it is meaningful and informative to aggregate its operating segments into
With the exception of the financial statement information below that comprises the segment profit, the CODM does not evaluate any other financial statement line items on a vessel category basis, but rather on a consolidated basis.
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Information about the Company’s reportable segments for the three and six months ended June 30, 2026 and 2025 is as follows:
| | | | | | | | | | |
| | For the Three Months Ended June 30, 2026 | | |||||||
| | Major | | Minor | | | | |||
| | Bulk | | Bulk | | Total | | |||
Revenues from external customers: | | | | | | | | | | |
Voyage revenues | | $ | | | | | | $ | | |
| | | | | | | | | | |
Less: | | | | | | | | | | |
Voyage expenses | | | | | | | | | | |
Charter hire expenses | | | — | | | | | | | |
Other income | | | ( | | | ( | | | ( | |
Net voyage revenue (1) | | | | | | | | | | |
| | | | | | | | | | |
Less: | | | | | | | | | | |
Vessel operating expenses | | | | | | | | | | |
| | | | | | | | | | |
Segment profit | | $ | | | $ | | | $ | | |
| | | | | | | | | | |
Reconciliation to net income: | | | | | | | | | | |
General and administrative expenses | | | | | | | | | | |
Technical management expenses | | | | | | | | | | |
Depreciation and amortization | | | | | | | | | | |
Impairment of vessel assets | | | | | | | | | | |
Net gain on sale of vessels | | | | | | | | | ( | |
Other operating expense | | | | | | | | | | |
Other (income) expense | | | | | | | | | | |
Interest income | | | | | | | | | ( | |
Interest expense | | | | | | | | | | |
| | | | | | | | | | |
Net income | | | | | | | | $ | | |
| | | | | | | | | | |
| | For the Three Months Ended June 30, 2025 | | |||||||
| | Major | | Minor | | | | |||
| | Bulk | | Bulk | | Total | | |||
Revenues from external customers: | | | | | | | | | | |
Voyage revenues | | $ | | | | | | $ | | |
| | | | | | | | | | |
Less: | | | | | | | | | | |
Voyage expenses | | | | | | | | | | |
Charter hire expenses | | | — | | | | | | | |
Other income | | | — | | | ( | | | ( | |
Net voyage revenue (1) | | | | | | | | | | |
| | | | | | | | | | |
Less: | | | | | | | | | | |
Vessel operating expenses | | | | | | | | | | |
| | | | | | | | | | |
Segment profit | | $ | | | $ | | | $ | | |
| | | | | | | | | | |
Reconciliation to net loss: | | | | | | | | | | |
General and administrative expenses | | | | | | | | | | |
Technical management expenses | | | | | | | | | | |
Depreciation and amortization | | | | | | | | | | |
Impairment of vessel assets | | | | | | | | | | |
Other (income) expense | | | | | | | | | | |
Interest income | | | | | | | | | ( | |
Interest expense | | | | | | | | | | |
| | | | | | | | | | |
Net loss | | | | | | | | $ | ( | |
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| | | | | | | | | | |
| | For the Six Months Ended June 30, 2026 | | |||||||
| | Major | | Minor | | | | |||
| | Bulk | | Bulk | | Total | | |||
Revenues from external customers: | | | | | | | | | | |
Voyage revenues | | $ | | | | | | $ | | |
| | | | | | | | | | |
Less: | | | | | | | | | | |
Voyage expenses | | | | | | | | | | |
Charter hire expenses | | | — | | | | | | | |
Other income | | | ( | | | ( | | | ( | |
Net voyage revenue (1) | | | | | | | | | | |
| | | | | | | | | | |
Less: | | | | | | | | | | |
Vessel operating expenses | | | | | | | | | | |
| | | | | | | | | | |
Segment profit | | $ | | | $ | | | $ | | |
| | | | | | | | | | |
Reconciliation to net income: | | | | | | | | | | |
General and administrative expenses | | | | | | | | | | |
Technical management expenses | | | | | | | | | | |
Depreciation and amortization | | | | | | | | | | |
Impairment of vessel assets | | | | | | | | | | |
Net gain on sale of vessels | | | | | | | | | ( | |
Other operating expense | | | | | | | | | | |
Other (income) expense | | | | | | | | | | |
Interest income | | | | | | | | | ( | |
Interest expense | | | | | | | | | | |
| | | | | | | | | | |
Net income | | | | | | | | $ | | |
| | | | | | | | | | |
| | For the Six Months Ended June 30, 2025 | | |||||||
| | Major | | Minor | | | | |||
| | Bulk | | Bulk | | Total | | |||
Revenues from external customers: | | | | | | | | | | |
Voyage revenues | | $ | | | | | | $ | | |
| | | | | | | | | | |
Less: | | | | | | | | | | |
Voyage expenses | | | | | | | | | | |
Charter hire expenses | | | — | | | | | | | |
Other income | | | — | | | ( | | | ( | |
Net voyage revenue (1) | | | | | | | | | | |
| | | | | | | | | | |
Less: | | | | | | | | | | |
Vessel operating expenses | | | | | | | | | | |
| | | | | | | | | | |
Segment profit | | $ | | | $ | | | $ | | |
| | | | | | | | | | |
Reconciliation to net loss: | | | | | | | | | | |
General and administrative expenses | | | | | | | | | | |
Technical management expenses | | | | | | | | | | |
Depreciation and amortization | | | | | | | | | | |
Impairment of vessel assets | | | | | | | | | | |
Other (income) expense | | | | | | | | | | |
Interest income | | | | | | | | | ( | |
Interest expense | | | | | | | | | | |
| | | | | | | | | | |
Net loss | | | | | | | | $ | ( | |
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(1) Net voyage revenue is used to calculate the Time Charter Equivalent ("TCE"), which is reviewed by the CODM and is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charterhire rates for vessels on voyage charters are generally not expressed in per-day amounts while charterhire rates for vessels on time charters generally are expressed in such amounts. This amount includes realized gains (losses) on fuel hedges that were recorded as part of Other income (expense) on the Condensed Consolidated Statements of Operations.
4 – CASH FLOW INFORMATION
For the six months ended June 30, 2026, the Company had non-cash investing activities not included in the Condensed Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $
For the six months ended June 30, 2025, the Company had non-cash investing activities not included in the Condensed Consolidated Statement of Cash Flows for items included in Accounts payable and accrued expenses consisting of $
During the six months ended June 30, 2026 and 2025, cash paid for interest was $
During the six months ended June 30, 2026 and 2025, any cash paid for income taxes was insignificant.
During the six months ended June 30, 2026, $
All stock options exercised during the six months ended June 30, 2026 and 2025 were cashless. Refer to Note 13 — Stock-Based Compensation for further information.
On June 18, 2026, the Company granted
On February 16, 2026, the Company granted
On May 20, 2025, the Company granted
On February 18, 2025, the Company granted
Refer to Note 13 — Stock-Based Compensation for further information regarding the aforementioned grants.
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Supplemental Condensed Consolidated Cash Flow information related to leases is as follows:
| | | | | | | |
| | For the Six Months Ended | |||||
| | June 30, | |||||
| | 2026 | | 2025 | | ||
Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | |
Operating cash flows from operating leases | | $ | — | | $ | | |
5 – VESSEL ACQUISITIONS AND DISPOSITIONS
Vessel Acquisitions
On April 16, 2026, the Company entered into an agreement to acquire a 2019-built,
On November 15, 2025, the Company entered into agreements to acquire
On July 10, 2025, the Company entered into an agreement to acquire a 2020-built,
Vessel Dispositions
On February 24, 2026, the Company entered into agreements to sell the Genco Picardy and the Genco Predator, both 2005-built Supramax vessels, to a third party for $
6 – NET EARNINGS (LOSS) PER SHARE
The computation of basic net earnings (loss) per share is based on the weighted-average number of common shares outstanding during the reporting period. The computation of diluted net earnings (loss) per share assumes the vesting of nonvested stock awards and the exercise of stock options (refer to Note 13 — Stock-Based Compensation), for which the assumed proceeds upon vesting are deemed to be the amount of compensation cost attributable to future services and are not yet recognized using the treasury stock method, to the extent dilutive.
There were
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The components of the denominator for the calculation of basic and diluted net earnings (loss) per share are as follows:
| | | | | | | | | |
| | For the Three Months Ended | | For the Six Months Ended | | ||||
| | June 30, | | June 30, | | ||||
| | 2026 | | 2025 | | 2026 | | 2025 |
|
| | | | | | | | | |
Common shares outstanding, basic: | | | | | | | | | |
Weighted-average common shares outstanding, basic | | |
| | | |
| | |
| | | | | | | | | |
Common shares outstanding, diluted: | | | | | | | | | |
Weighted-average common shares outstanding, basic | | |
| | | |
| | |
| | | | | | | | | |
Dilutive effect of stock options | | | | — | | | | — | |
| | | | | | | | | |
Dilutive effect of performance-based restricted stock units | | | | — | | | | — | |
| | | | | | | | | |
Dilutive effect of restricted stock units | | |
| — | | |
| — | |
| | | | | | | | | |
Weighted-average common shares outstanding, diluted | | |
| | | |
| | |
7 – RELATED PARTY TRANSACTIONS
During the three and six months ended June 30, 2026 and 2025, the Company did
8 – DEBT
Long-term debt, net consists of the following:
| | | | | | | |
| | June 30, | | December 31, | | ||
| | 2026 | | 2025 |
| ||
Principal amount |
| $ | |
| $ | | |
Less: Unamortized deferred financing costs | |
| ( | |
| ( | |
| | | | | | | |
Long-term debt, net |
| $ | |
| $ | | |
| | | | | | | | | | | | | |
| | June 30, 2026 | | December 31, 2025 | | ||||||||
| | | | | Unamortized | | | | | Unamortized | | ||
| | | | | Debt Issuance | | | | | Debt Issuance | | ||
| | Principal | | Cost | | Principal | | Cost |
| ||||
$680 Million Revolver | | $ | | | $ | | | $ | — | | $ | — | |
$600 Million Revolver | | | — | | | — | | | | | | | |
| | | | | | | | | | | | | |
Total debt | | $ | |
| $ | | | $ | |
| $ | | |
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$
On February 27, 2026, the Company entered into a sixth amendment to upsize its existing $600 Million Revolver to utilize $
The maturity date of the $680 Million Revolver is July 10, 2030, and total quarterly commitment reductions are $
In accordance with ASC 470-50 — “Debt – Modifications and Extinguishments,” the $680 Million Revolver represents a debt modification of the $600 Million Revolver, therefore the unamortized deferred financing costs for the prior $600 Million Revolver are being amortized over the remaining life of the $680 Million Revolver.
As of June 30, 2026, there was $
As of June 30, 2026, the Company was in compliance with all of the financial covenants under the $680 Million Revolver.
$
On July 10, 2025, the Company entered into a fifth amendment to amend, extend and upsize its existing $500 Million Revolver. The amended structure consisted of a $
There were $
On February 27, 2026, the Company entered into a sixth amendment to the $600 Million Revolver; refer to the “$680 Million Revolver” section above. As part of the debt modification, $
$
On November 29, 2023, the Company entered into a fourth amendment to amend, extend and upsize its existing credit facility at the time. The amended structure consisted of a $
There were
On July 10, 2025, the Company entered into a fifth amendment to the $500 Million Revolver; refer to the “$600 Million Revolver” section above.
Interest rates
The following table sets forth the effective interest rate associated with the interest expense for the Company’s debt facilities noted above, including the cost associated with unused commitment fees, if applicable. The following
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table also includes the range of interest rates on the debt, excluding the impact of unused commitment fees and any interest rate cap agreements, if applicable:
| | | | | | | | | | |
| | For the Three Months Ended | | For the Six Months Ended | ||||||
| | June 30, | | June 30, | ||||||
| | 2026 | | 2025 | | | 2026 | | 2025 | |
Effective Interest Rate | | | % | | % | | | % | | % |
Range of Interest Rates (excluding unused commitment fees) | | % | % | | % | % | ||||
9 – FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair values and carrying values of the Company’s financial instruments as of June 30, 2026 and December 31, 2025 that are required to be disclosed at fair value, but not recorded at fair value, are noted below.
| | | | | | | | | | | | | |
| | June 30, 2026 | | December 31, 2025 | | ||||||||
| | Carrying | | | | | Carrying | | | |
| ||
| | Value | | Fair Value | | Value | | Fair Value |
| ||||
Cash and cash equivalents | | $ | | | $ | | | $ | | | $ | | |
Principal amount of floating rate debt | |
| | |
| | |
| | |
| | |
The carrying value of the borrowings under the $680 Million Revolver and the $600 Million Revolver as of June 30, 2026 and as of December 31, 2025, respectively, which exclude the impact of deferred financing costs, approximate their fair value due to the variable interest nature thereof as these credit facilities represent floating rate loans. The carrying amounts of the Company’s other financial instruments as of June 30, 2026 and December 31, 2025 (principally Due from charterers and Accounts payable and accrued expenses) approximate fair values because of the relatively short maturity of these instruments.
ASC Subtopic 820-10, “Fair Value Measurements & Disclosures” (“ASC 820-10”), applies to all assets and liabilities that are being measured and reported on a fair value basis. This guidance enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumption (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 requires significant management judgment. The three levels are defined as follows:
| ● | Level 1—Valuations based on quoted prices in active markets for identical instruments that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these instruments does not entail a significant degree of judgment. |
| ● | Level 2—Valuations based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. |
| ● | Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
Cash and cash equivalents are considered Level 1 items, as they represent liquid assets with short-term maturities. Floating rate debt is considered to be a Level 2 item, as the Company considers the estimate of rates it could obtain for similar debt or based upon transactions amongst third parties. Bunker swap agreements and forward fuel purchase agreements are considered to be Level 2 items. Refer to Note 2 — Summary of Significant Accounting Policies for further information. Nonrecurring fair value measurements include vessel impairment assessments completed during the interim period and at year-end as determined based on third-party quotes, which are based on various data points, including comparable sales of similar vessels, which are Level 2 inputs. There was
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The fair value determination for the operating lease right-of-use assets is based on third-party quotes, which is considered a Level 2 input. Nonrecurring fair value measurements may include impairment tests of the Company’s operating lease right-of-use assets if there are indicators of impairments. During the three and six months ended June 30, 2026 and 2025, there were
The Company did
10 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable and accrued expenses consist of the following:
| | | | | | | |
| | June 30, | | December 31, | | ||
| | 2026 | | 2025 |
| ||
Accounts payable | | $ | | | $ | | |
Accrued general and administrative expenses | |
| | |
| | |
Accrued vessel operating expenses | |
| | |
| | |
Total accounts payable and accrued expenses | | $ | | | $ | | |
11 – VOYAGE REVENUES
Total voyage revenues include revenue earned on fixed rate time charters, spot market voyage charters and spot market-related time charters, as well as the sale of bunkers consumed during short-term time charters. For the three months ended June 30, 2026 and 2025, the Company earned $
Total voyage revenues recognized in the Condensed Consolidated Statements of Operations include the following:
| | | | | | | | | | | | | |
| | For the Three Months Ended | | For the Six Months Ended | | ||||||||
| | June 30, | | June 30, | | ||||||||
| | 2026 | | 2025 | | 2026 | | 2025 | | ||||
Lease revenue | | $ | | | $ | | | $ | | | $ | | |
Spot market voyage revenue | | | | | | | | | | | | | |
Total voyage revenues | | $ | | | $ | | | $ | | | $ | | |
12 – LEASES
On October 14, 2024, the Company entered into a lease agreement to extend its current lease agreement for its main office space in New York, New York which commenced on October 1, 2025 until July 31, 2036. The lease agreement is for only the space currently occupied by the Company and the portion of the lease that was being sublet expired on September 30, 2025. There is a free base rental period until August 2027. Following the expiration of the free base rental period, the monthly base rental payments will be $
On June 14, 2019, the Company entered into a sublease agreement for a portion of the leased space for its main office in New York, New York, which commenced on July 26, 2019 and ended on September 29, 2025. There was $
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income is recorded net with the total operating lease costs in General and administrative expenses in the Condensed Consolidated Statements of Operations.
The Company charters in third-party vessels and the Company is the lessee in these agreements under ASC 842, “Leases (Topic 842)” (“ASC 842”). The Company has elected the practical expedient under ASC 842 to not recognize right-of-use assets and lease liabilities for short-term leases. During the three and six months ended June 30, 2026 and 2025, all charter-in agreements for third-party vessels were less than twelve months and considered short-term leases.
13 – STOCK-BASED COMPENSATION
2015 Equity Incentive Plan
Stock Options
The following table summarizes the stock option activity for the six months ended June 30, 2026:
| | | | | | | | | | | |
| | | | Weighted | | Weighted | | | | ||
| | Number | | Average | | Average | | | | ||
| | of | | Exercise | | Fair | | | | ||
| | Options | | Price | | Value | | | | ||
Outstanding as of January 1, 2026 |
| | | | | | | | | | |
Granted |
| — | | | — | | | — | | | |
Exercised |
| ( | | | | | | | | | |
Forfeited |
| — | | | — | | | — | | | |
| | | | | | | | | | | |
Outstanding as of June 30, 2026 |
| |
| $ | | | $ | | | | |
| | | | | | | | | | | |
Exercisable as of June 30, 2026 |
| | | $ | | | $ | | | | |
The following table summarizes certain information about the options outstanding as of June 30, 2026:
| | | | | | | | | | | | | | | | |
| | | Options Outstanding and Unvested, | | Options Outstanding and Exercisable, | | ||||||||||
| | | June 30, 2026 | | June 30, 2026 | | ||||||||||
Weighted | | | | | | | Weighted | | | |
| | | Weighted | | |
Average |
| | | Weighted | | Average | | | | Weighted | | Average | | |||
Exercise Price of |
| | | Average | | Remaining | | | | Average | | Remaining | | |||
Outstanding | | Number of | | Exercise | | Contractual | | Number of | | Exercise | | Contractual | | |||
Options | | Options | | Price | | Life | | Options | | Price | | Life |
| |||
$ | | | — | | $ | — | | — | | | | $ | | | | |
As of June 30, 2026 and December 31, 2025, a total of
There was
For the three and six months ended June 30, 2026 and 2025, the Company did
Restricted Stock Units
The Company has granted restricted stock units (“RSUs”) under the Company’s 2015 Equity Incentive Plan, as amended (the “2015 Plan”), to certain members of the Board of Directors and certain executives and employees of the
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Company, which represent the right to receive a share of common stock, or in the sole discretion of the Company’s Compensation Committee, the value of a share of common stock on the date that the RSU vests. As of June 30, 2026 and December 31, 2025,
The RSUs that have been issued to certain members of the Board of Directors generally vest on the date of the annual shareholders meeting of the Company following the date of the grant. In lieu of cash dividends issued for vested and nonvested shares held by certain members of the Board of Directors, the Company will grant additional vested and nonvested RSUs, respectively, which are calculated by dividing the amount of the dividend by the
The table below summarizes the Company’s unvested RSUs for the six months ended June 30, 2026:
| | | | | | |
| | | | Weighted | | |
| | Number of | | Average Grant | | |
| | RSUs | | Date Price | | |
Outstanding as of January 1, 2026 | | | | $ | | |
Granted | | | | | | |
Vested | | ( | | | | |
Forfeited | | — | | | — | |
| | | | | | |
Outstanding as of June 30, 2026 | | | | $ | | |
The total fair value of the RSUs that vested during the six months ended June 30, 2026 and 2025 was $
The following table summarizes certain information of the RSUs unvested and vested outstanding as of June 30, 2026:
| | | | | | | | | | | |
Unvested RSUs | | Vested RSUs | | ||||||||
June 30, 2026 | | June 30, 2026 | | ||||||||
| | | | Weighted | | | | | | ||
| | Weighted | | Average | | | | Weighted | | ||
| | Average | | Remaining | | | | Average | | ||
Number of | | Grant Date | | Contractual | | Number of | | Grant Date | | ||
RSUs | | Price | | Life | | RSUs | | Price |
| ||
| | $ | | | | | | $ | | | |
The Company is amortizing these grants over the applicable vesting periods, net of anticipated forfeitures. As of June 30, 2026, unrecognized compensation cost of $
For the three and six months ended June 30, 2026 and 2025, the Company recognized nonvested stock amortization expense for the RSUs, which is included in General and administrative expenses as follows:
| | | | | | | | | | | | | |
| | For the Three Months Ended | | For the Six Months Ended | | ||||||||
| | June 30, | | June 30, | | ||||||||
| | 2026 | | 2025 | | 2026 | | 2025 |
| ||||
General and administrative expenses | | $ | | | $ | | | $ | | | $ | | |
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Performance-Based Restricted Stock Units
The Company has granted performance-based restricted stock units (“PRSUs”) under the 2015 Plan to certain employees of the Company, some of which are contingent upon the Company’s relative total shareholder return (“TSR”) and some of which are contingent upon the Company’s return on invested capital (“ROIC”) for a
The TSR is calculated based on the Company’s total shareholder return compared to that of certain peer companies specified in the award agreements over the performance period and is calculated based on the change in the average daily closing stock price over a
The grant date fair value of the ROIC awards was estimated using the closing share price of the Company’s stock on the date of grant. The total quantity of PRSUs eligible to vest under these awards range from
The table below summarizes the Company’s unvested PRSUs for the six months ended June 30, 2026:
| | | | | |
| | Number of | | Average Grant | |
| | PRSUs | | Date Price | |
Outstanding as of January 1, 2026 |
| | | $ | |
Granted |
| | | | |
Estimated change in performance award payout (a) | | | | | |
Vested |
| — | | | — |
Forfeited |
| — | | | — |
| | | | | |
Outstanding as of June 30, 2026 |
| | | $ | |
| (a) | Represents the adjustment to previously granted PRSUs for the estimated change in performance award payout. |
There were
The PRSUs, if earned, will ordinarily be settled in shares of common stock issued during the first quarter after the
As of June 30, 2026, unrecognized compensation cost of $
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The weighted-average assumptions used in the estimation of the fair value of these awards granted during the six months ended June 30, 2026 and 2025 are as follows:
| | | | | |
| | For the Six Months Ended | | ||
| | June 30, | | ||
Significant Input | | 2026 | | 2025 | |
Closing share price of our common stock | | $ | | $ | |
Risk-free rate of return | | | | ||
Expected volatility of our common stock | | | | ||
Holding period discount | | | | ||
Simulation term (in years) | | | | ||
Range of target | | | | ||
For the three and six months ended June 30, 2026 and 2025, the Company recognized nonvested stock amortization expense for the PRSUs, which is included in General and administrative expenses as follows:
| | | | | | | | | | | | | |
| | For the Three Months Ended | | For the Six Months Ended | | ||||||||
| | June 30, | | June 30, | | ||||||||
| | 2026 | | 2025 | | 2026 | | 2025 | | ||||
General and administrative expenses | | $ | | | $ | | | $ | | | $ | | |
14 – LEGAL PROCEEDINGS
From time to time, the Company may be subject to other legal proceedings and claims in the ordinary course of its business, principally personal injury and property casualty claims. Such claims, even if lacking merit, could result in the expenditure of significant financial and managerial resources. The Company is not aware of any such legal proceedings or claims that it believes will have, individually or in the aggregate, a material effect on the Company, its financial condition, results of operations or cash flows.
15 – SUBSEQUENT EVENTS
The Genco Volunteer, a 2019-built,
On
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995
This report contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements use words such as “anticipate,” “budget”, “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other words and terms of similar meaning in connection with a discussion of potential future events, circumstances or future operating or financial performance. These forward-looking statements are based on our management’s current expectations and observations. Included among the factors that, in our view, could cause actual results to differ materially from the forward looking statements contained in this report are the following: (i) declines or sustained weakness in demand in the drybulk shipping industry; (ii) weakness or declines in drybulk shipping rates; (iii) changes in the supply of or demand for drybulk products, generally or in particular regions; (iv) changes in the supply of drybulk carriers including newbuilding of vessels or lower than anticipated scrapping of older vessels; (v) changes in rules and regulations applicable to the cargo industry, including, without limitation, legislation adopted by international organizations or by individual countries and actions taken by regulatory authorities; (vi) increases in costs and expenses including but not limited to: crew wages, insurance, provisions, lube oil, bunkers, repairs, maintenance, general and administrative expenses, and management expenses; (vii) whether our insurance arrangements are adequate; (viii) changes in general domestic and international political conditions; (ix) military actions, terrorism, or piracy, including without limitation the ongoing conflicts in Ukraine and Iran, related attacks on commercial vessels, and other conflicts in the Middle East; (x) changes in the condition of the Company’s vessels or applicable maintenance or regulatory standards (which may affect, among other things, our anticipated drydocking or maintenance and repair costs) and unanticipated drydock expenditures; (xi) the Company’s acquisition or disposition of vessels; (xii) the amount of offhire time needed to complete maintenance, repairs, and installation of equipment to comply with applicable regulations on vessels and the timing and amount of any reimbursement by our insurance carriers for insurance claims, including offhire days; (xiii) the completion of definitive documentation with respect to charters; (xiv) charterers’ compliance with the terms of their charters in the current market environment; (xv) the extent to which our operating results are affected by weakness in market conditions and freight and charter rates; (xvi) our ability to maintain contracts that are critical to our operation, to obtain and maintain acceptable terms with our vendors, customers and service providers and to retain key executives, managers and employees; (xvii) completion of documentation for vessel transactions and the performance of the terms thereof by buyers or sellers of vessels and us; (xviii) the relative cost and availability of low sulfur and high sulfur fuel, worldwide compliance with sulfur emissions regulations that took effect on January 1, 2020 and our ability to realize the economic benefits or recover the cost of the scrubbers we have installed; (xix) our financial results for the year ending December 31, 2026 and other factors relating to determination of the tax treatment of dividends we have declared; (xx) the financial results we achieve for each quarter that apply to the formula under our dividend policy, including without limitation the actual amounts earned by our vessels and the amounts of various expenses we incur, as a significant decrease in such earnings or a significant increase in such expenses may affect our ability to carry out our new value strategy; (xxi) the exercise of the discretion of our Board regarding the declaration of dividends, including without limitation the amount that our Board determines to set aside for reserves under our dividend policy; (xxii) outbreaks of disease such as the COVID-19 pandemic; (xxiii) trade conflicts, the imposition or modification of port fees, tariffs and other import restrictions, and the effectiveness and cost of any measures the Company may adopt to avoid or mitigate the impact of the foregoing; and (xxiv) other factors listed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent reports on Form 8-K and Form 10-Q. Our ability to pay dividends in any period will depend upon various factors, including the limitations under any credit agreements to which we may be a party, applicable provisions of Marshall Islands law and the final determination by the Board of Directors each quarter after its review of our financial performance, market developments, and the best interests of the Company and its shareholders. The timing and amount of dividends, if any, could also be affected by factors affecting cash flows, results of operations, required capital expenditures, or reserves. As a result, the amount of dividends actually paid may vary. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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The following management’s discussion and analysis should be read in conjunction with our historical consolidated financial statements and the related notes included in this Form 10-Q.
General
We are a New York City-based pure-play drybulk ship owning company focused on the seaborne transportation of commodities globally. We transport key cargoes such as iron ore, coal, grain, bauxite, steel products and other drybulk cargoes along worldwide shipping routes. After the expected delivery of the Genco Volunteer during August 2026, our fleet will consist of 44 drybulk vessels, including two Newcastlemax, 18 Capesize, 15 Ultramax and 9 Supramax vessels, with an aggregate carrying capacity of approximately 5,117,000 deadweight tons (“dwt”) and an average age of approximately 12.7 years.
See pages 37-38 for a table of our current fleet.
Our approach towards fleet composition is to own a high-quality fleet of vessels focused on Newcastlemax, Capesize, Ultramax and Supramax vessels. Newcastlemax and Capesize vessels represent our major bulk vessel category, while Ultramax and Supramax vessels represent our minor bulk vessel category. Our major bulk vessels are primarily used to transport iron ore, coal and bauxite, while our minor bulk vessels are primarily used to transport grains, steel products and other drybulk cargoes such as cement, scrap, fertilizer, nickel ore, salt and sugar. This approach of owning ships that transport both major and minor bulk commodities provide us with exposure to a wide range of drybulk trade flows.
We employ an active commercial strategy which consists of a global team located in the U.S., Denmark and Singapore. Overall, we utilize a portfolio approach to revenue generation through a combination of short-term, spot market employment, index-linked time charters as well as opportunistically booking longer term fixed-rate coverage or contracts of affreightment depending on market conditions and management’s outlook. Our fleet deployment strategy currently is weighted towards short-term fixtures, which provides us with optionality on our sizeable fleet.
Our approach to capital allocation focuses on three key factors:
| ● | Compelling quarterly dividends, |
| ● | Low financial leverage, and |
| ● | Accretive growth and renewal of our fleet |
Since 2021, we have executed this strategy by reducing our debt by $119.2 million cumulatively through June 30, 2026 while expanding our core major bulk and minor bulk segments. These actions have enabled us to further reduce our cash flow breakeven rate positioning us to pay sizeable quarterly dividends across various market environments.
In addition to the $73.6 million of cash on our balance sheet as of June 30, 2026, we had undrawn revolver availability of $350.0 million, bringing our total liquidity to $423.6 million.
Including the $0.80 dividend for the second quarter of 2026, we have declared 28 consecutive quarterly dividends, which total $8.715 per share.
IMO 2023 Compliance Requirements
The International Maritime Organization (“IMO”) implemented two key measures to enhance energy efficiency in international shipping with effect from January 2023 which are as follows:
| ● | Energy Efficiency Existing Ship Index (“EEXI”): Requires vessels of 400 gross tonnage and above which were already in operation at the time the regulation entered force to meet specific minimum energy efficiency standards. |
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| ● | Carbon Intensity Indicator (“CII”): Mandates ships of 5,000 gross tonnage and above to annually report their carbon intensity against a gradually more stringent target trajectory. Vessels receive ratings from A (best) to E (worst) and must implement corrective action plans if poorly rated. |
| ● | The IMO is currently undertaking the second phase of its review of the EEXI, CII, and Ship Energy Efficiency Management Plan (“SEEMP”) framework. The review includes consideration of potential revisions to CII reduction factors, calculation methodologies, correction factors, and implementation requirements. The timing, scope, and outcome of this review remain uncertain and could affect future vessel efficiency ratings and associated compliance requirements. |
Revised IMO GHG Strategy
In July 2023, the IMO adopted an updated greenhouse gas (“GHG”) strategy, setting forth the following targets:
| ● | Reduce total annual GHG emissions from shipping by at least 20%, striving for 30%, by 2030 compared to 2008 levels, |
| ● | Achieve at least a 70% reduction, striving for 80%, by 2040, |
| ● | Reach net-zero GHG emissions by around 2050. |
IMO Net-Zero Framework
At its 83rd session in April 2025, the IMO’s Marine Environment Protection Committee (“MEPC”) approved draft regulations forming the IMO Net-Zero Framework. Key components include:
| ● | A new global fuel standard for ships, establishing a phased reduction in the carbon intensity of marine fuels calculated on a “well-to-wake” basis. |
| ● | A global pricing mechanism for GHG emissions that aims to reduce the cost gap between conventional and zero or near-zero GHG emission fuels through a two-tier compliance system where vessels exceeding the gradually more stringent emission limits will pay fees into a Net-Zero Fund established by the IMO. |
At the second extraordinary session of the MEPC, held in October 2025 specifically to consider formal adoption of the IMO Net-Zero Framework as approved at MEPC’s 83rd session, a lack of consensus among member states led to an unexpected adjournment of the session for one year.
At MEPC’s 84th session in April 2026, member states did not reach agreement on adoption or substantive revision of the IMO Net-Zero Framework. The Framework remains the central basis for ongoing negotiations, with two intersessional working group meetings agreed for September 2026 and November 2026 to address remaining concerns and issues with the current draft amendments.
MEPC’s 85th session is scheduled for November 30 to December 3, 2026. Subject to decisions made at MEPC 85, the adjourned second extraordinary session is expected to be resumed directly thereafter, on December 4, 2026, to continue consideration of adoption of the IMO Net-Zero Framework.
Based on the outcomes of MEPC’s 84th session, the IMO Net-Zero Framework is not expected to enter into force before 2028, although continued lack of consensus or further revisions could further delay implementation.
In the IMO Net-Zero Framework’s current form, any vessel consuming conventional fossil fuels would be required to transfer surplus credits from over-compliant vessels, purchase remedial credits through contributions to the Net-Zero Fund, or both to clear its compliance deficit. The timing and final design of these measures remain uncertain but could result in increased compliance costs for drybulk vessels operating on conventional fuels.
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Expansion of Emission Control Areas
In May 2026, the IMO adopted amendments designating the North-East Atlantic as an Emission Control Area for sulfur oxides, particulate matter and nitrogen oxides. The amendments are expected to enter into force on September 1, 2027. Vessels operating within the area will be subject to more stringent air-emission requirements, including a 0.10% sulfur limit or the use of an approved equivalent compliance method, which may increase fuel, operational and compliance costs.
United Kingdom Emissions Trading Scheme
The United Kingdom (“UK”) government has confirmed the expansion of the UK Emissions Trading Scheme (“UK ETS”) to the maritime sector. The UK ETS Authority has published its final response, which provides for the following:
| ● | The UK ETS maritime regime started on July 1, 2026 with the first reporting period running through December 31, 2026 and subsequent reporting periods on a full calendar year basis. |
| ● | Verified emissions reports for the initial reporting period ending December 31, 2026 must be submitted by March 31, 2027. |
| ● | The deadline for surrendering of allowances against verified emissions will be April 30 of the year following the reporting period, however allowances for 2026 will not need to be surrendered until April 30, 2028, together with the 2027 allowances. |
| ● | The UK ETS will include all domestic voyages. All emissions within a voyage will be included, including while at anchor and while moored. In addition, all in-port emissions from ships which are travelling domestically, internationally, or both will be included. |
| ● | The UK ETS Authority intends to expand the UK ETS to include 50% of emissions from international maritime voyages starting or ending in a UK port by 2028. |
| ● | The regime applies to vessels of 5,000 gross tonnage and above and covers carbon dioxide, methane, and nitrous oxide emissions. |
The UK government continues to consider the future inclusion of international maritime voyage emissions within the UK ETS.
Regional Carbon Taxing Schemes
In addition to the EU’s established regional schemes, several national carbon taxing schemes have been implemented recently, most notably by Djibouti and Gabon. Liberia announced a carbon levy in early 2026 only to formally reverse its position several days later. While these recent schemes apply a relatively small price to emissions from ships that call these countries, they contribute to increasing regulatory fragmentation and complexity. This fragmentation may be exacerbated by the delay and uncertainty surrounding the IMO’s Net-Zero Framework. Continued lack of consensus at IMO may also encourage broader adoption of regional or national carbon pricing measures by other jurisdictions. It is also possible that regional and national carbon taxing schemes will become more difficult to repeal once the IMO Net-Zero Framework enters into force, potentially resulting in overlapping taxation.
Biofouling Regulation
Brazil implemented biofouling regulations designed to minimize the risk of ships introducing invasive aquatic species, requiring vessels to arrive with a “clean hull” to comply with the regulations. In June 2026, the Brazilian Maritime Authority postponed the application of penalties and sanctions for non-compliance until January 10, 2028, while confirming that the underlying biofouling requirements remain in force. Brazil’s biofouling regulations are aligned with the IMO’s 2023 Biofouling Guidelines and similar to existing requirements in Australia and New Zealand. Biosecurity concerns coupled with growing safety and environmental restrictions on underwater hull and propeller cleaning point toward an emerging area of regulatory and operational complexity and underscore the importance of proactive antifouling strategies.
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At MEPC 83 in April 2025, the Committee formally agreed to develop a legally binding instrument for the control and management of ships’ biofouling. This decision reflects a shift to elevate biofouling management, currently governed by the voluntary 2023 Biofouling Guidelines to an enforceable regime comparable to the Ballast Water Management Convention. The development process is structured around a multi-year work plan. Technical drafting began at the Pollution Prevention and Response (“PPR”) 13 sub-committee meeting in February 2026. At MEPC 84 in April 2026, the Committee agreed that the instrument should be developed as a standalone legally binding instrument. The detailed requirements, implementation timeline, and entry into force remain under development, although the IMO currently expects the final instrument to be adopted by 2029, with a likely entry into force around 2031 or 2032.
Vessel Acquisitions and Sales
Acquisitions
On April 16, 2026, we entered into an agreement to acquire a vessel that is to be renamed the Genco Volunteer, a 2019-built, 182,000 dwt scrubber-fitted Capesize vessel, for a purchase price of $65.0 million. The vessel is expected to be delivered during August 2026. As a result of the delay in the delivery of the vessel, the purchase price will be reduced by approximately $1.0 million representing $20,000 per day beginning June 15, 2026 through the date the vessel is ready for sale under the agreement. We paid the $6.5 million deposit on May 1, 2026 utilizing cash on hand, which was held in an escrow account until we took delivery of the vessel. We drew down $50.0 million on our $680 Million Revolver on July 15, 2026 to finance the remainder of the purchase.
On November 15, 2025, we entered into agreements to acquire two 2020-built 208,000 dwt scrubber-fitted Newcastlemax vessels for a total purchase price of $145.5 million. The vessels, that were renamed Genco Stars and Stripes and Genco Valkyrie, were delivered on March 5, 2026 and March 24, 2026, respectively. We drew down $30 million on the $600 Million Revolver on November 20, 2025 in part to fund the $14.6 million deposit made on November 24, 2025, which was held in an escrow account until we took delivery of the vessels. We drew down $65 million on our $600 Million Revolver on February 23, 2026 and $65 million on our $680 Million Revolver on March 16, 2026 to finance the remainder of the purchases.
On July 10, 2025, we entered into an agreement to acquire a vessel that was renamed the Genco Courageous, a 2020-built, 182,000 dwt scrubber-fitted Capesize vessel, for a purchase price of $63.6 million. The vessel was delivered on October 15, 2025. We drew down $10 million on our $500 Million Revolver on June 26, 2025 in part to fund the $6.4 million deposit made on July 23, 2025. We drew down $60 million on our $600 Million Revolver on September 16, 2025 to finance the remainder of the purchase.
Sales
On February 24, 2026, we entered into agreements to sell the Genco Picardy and the Genco Predator, both 2005-built Supramax vessels, to a third party for $10.6 million each less a commission payable to a third party. The Genco Picardy and Genco Predator were delivered to their third-party buyers on March 30, 2026 and April 15, 2026, respectively.
We will continue to seek opportunities to renew our fleet going forward.
Our Operations
Our major and minor bulk vessels have similar economic characteristics, as they serve the same type of customers, have similar operations and maintenance requirements, operate in the same regulatory environment, and are subject to similar economic characteristics. Therefore, we have determined that each of our vessels are individual operating segments. We believe it is meaningful and informative to aggregate our operating segments into two reportable segments for the major bulk and minor bulk fleet.
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Our management team and key employees are responsible for the commercial and strategic management of our fleet. Commercial management includes the negotiation of charters for vessels, managing the mix of various types of charters, such as time charters, spot market voyage charters and spot market-related time charters, and monitoring the performance of our vessels under their charters. Strategic management includes locating, purchasing, financing and selling vessels. Technical management involves the day-to-day management of vessels, including performing routine maintenance, attending to vessel operations and arranging for crews and supplies. Our technical management joint venture, GS Shipmanagement Pte. Ltd. (“GSSM”), currently provides the technical management to the vessels in our fleet and members of our New York City-based management team oversee their activities.
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Factors Affecting Our Results of Operations
We believe that the following table reflects important measures for analyzing trends in our results of operations. The table reflects our ownership days, chartered-in days, available days, operating days, fleet utilization, TCE rates and daily vessel operating expenses for the three and six months ended June 30, 2026 and 2025 on a consolidated basis.
| | | | | | | | | | | | |
| | For the Three Months Ended | | | | | |
| ||||
| | June 30, | | Increase | | |
| |||||
| | 2026 | | 2025 | | (Decrease) | | % Change |
| |||
Fleet Data: | | | | | | | | | | | |
|
Ownership days (1) | | | | | | | | | | | | |
Newcastlemax | | | 182.0 | | | — | | | 182.0 |
| 100.0 | % |
Capesize |
| | 1,547.0 | | | 1,456.0 | | | 91.0 |
| 6.3 | % |
Ultramax |
| | 1,365.0 | | | 1,365.0 | | | — |
| — | % |
Supramax |
| | 833.2 | | | 1,001.0 | | | (167.8) |
| (16.8) | % |
| | | | | | | | | | | | |
Total |
| | 3,927.2 | | | 3,822.0 | | | 105.2 |
| 2.8 | % |
| | | | | | | | | | | | |
Chartered-in days (2) | | | | | | | | | | | | |
Newcastlemax | | | — | | | — | | | — |
| — | % |
Capesize | | | — | | | — | | | — | | — | % |
Ultramax | | | 19.8 | | | 170.4 | | | (150.6) | | (88.4) | % |
Supramax | | | — | | | 18.9 | | | (18.9) |
| (100.0) | % |
| | | | | | | | | | | | |
Total | | | 19.8 | | | 189.3 | | | (169.5) | | (89.5) | % |
| | | | | | | | | | | | |
Available days (owned & chartered-in fleet) (3) | | | | | | | | | | | | |
Newcastlemax | | | 182.0 | | | — | | | 182.0 |
| 100.0 | % |
Capesize |
| | 1,461.8 | | | 1,238.0 | | | 223.8 |
| 18.1 | % |
Ultramax |
| | 1,376.9 | | | 1,472.6 | | | (95.7) |
| (6.5) | % |
Supramax |
| | 801.4 | | | 919.7 | | | (118.3) |
| (12.9) | % |
| | | | | | | | | | | | |
Total |
| | 3,822.1 | | | 3,630.3 | | | 191.8 |
| 5.3 | % |
| | | | | | | | | | | | |
Available days (owned fleet) (4) | | | | | | | | | | | | |
Newcastlemax | | | 182.0 | | | — | | | 182.0 |
| 100.0 | % |
Capesize | | | 1,461.8 | | | 1,238.0 | | | 223.8 |
| 18.1 | % |
Ultramax | | | 1,357.1 | | | 1,302.2 | | | 54.9 |
| 4.2 | % |
Supramax | | | 801.4 | | | 900.8 | | | (99.4) |
| (11.0) | % |
| | | | | | | | | | | | |
Total | | | 3,802.3 | | | 3,441.0 | | | 361.3 |
| 10.5 | % |
| | | | | | | | | | | | |
Operating days (5) | | | | | | | | | | | | |
Newcastlemax | | | 181.6 | | | — | | | 181.6 |
| 100.0 | % |
Capesize |
| | 1,452.0 | | | 1,217.8 | | | 234.2 |
| 19.2 | % |
Ultramax |
| | 1,365.2 | | | 1,457.0 | | | (91.8) |
| (6.3) | % |
Supramax |
| | 797.4 | | | 913.4 | | | (116.0) |
| (12.7) | % |
| | | | | | | | | | | | |
Total |
| | 3,796.2 | | | 3,588.2 | | | 208.0 |
| 5.8 | % |
| | | | | | | | | | | | |
Fleet utilization (6) | | | | | | | | | | | | |
Newcastlemax | | | 99.8 | % | | — | % | | 99.8 |
| 100.0 | % |
Capesize |
| | 98.9 | % | | 97.8 | % | | 1.1 | % | 1.1 | % |
Ultramax |
| | 98.6 | % | | 98.5 | % | | 0.1 | % | 0.1 | % |
Supramax |
| | 97.9 | % | | 98.6 | % | | (0.7) | % | (0.7) | % |
| | | | | | | | | | | | |
Fleet average |
| | 98.6 | % | | 98.3 | % | | 0.3 | % | 0.3 | % |
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| | | | | | | | | | | | |
| | For the Three Months Ended | | | | | | | ||||
| | June 30, | | Increase | | | | |||||
| | 2026 | | 2025 | | (Decrease) | | % Change |
| |||
Average Daily Results: | | | | | | | | | | | | |
Time Charter Equivalent (7) | | | | | | | | | | | | |
Newcastlemax | | $ | 36,200 | | $ | — | | $ | 36,200 |
| 100.0 | % |
Capesize | | | 33,483 | | | 17,019 | | | 16,464 |
| 96.7 | % |
Ultramax | |
| 16,495 | |
| 12,361 | |
| 4,134 |
| 33.4 | % |
Supramax | |
| 17,939 | |
| 10,810 | |
| 7,129 |
| 65.9 | % |
| | | | | | | | | | | | |
Fleet average | |
| 24,273 | |
| 13,631 | |
| 10,642 |
| 78.1 | % |
Major bulk vessels | | | 33,784 | | | 17,019 | | | 16,765 | | 98.5 | % |
Minor bulk vessels | | | 17,031 | | | 11,727 | | | 5,304 | | 45.2 | % |
| | | | | | | | | | | | |
Daily vessel operating expenses (8) | | | | | | | | | | | | |
Newcastlemax | | $ | 5,207 | | $ | — | | $ | 5,207 |
| 100.0 | % |
Capesize | | | 7,010 | | | 6,736 | | | 274 |
| 4.1 | % |
Ultramax | |
| 6,343 | |
| 5,659 | |
| 684 |
| 12.1 | % |
Supramax | |
| 7,302 | |
| 6,214 | |
| 1,088 |
| 17.5 | % |
| | | | | | | | | | | | |
Fleet average | |
| 6,757 | |
| 6,213 | |
| 544 |
| 8.8 | % |
| | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | For the Six Months Ended | | | | | |
| ||||
| | June 30, | | Increase | | |
| |||||
| | 2026 | | 2025 | | (Decrease) | | % Change |
| |||
Fleet Data: | | | | | | | | | | | | |
Ownership days (1) | | | | | | | | | | | | |
Newcastlemax | | | 216.9 | | | — | | | 216.9 |
| 100.0 | % |
Capesize |
| | 3,077.0 | | | 2,896.0 | | | 181.0 |
| 6.3 | % |
Ultramax |
| | 2,715.0 | | | 2,715.0 | | | — |
| — | % |
Supramax |
| | 1,821.3 | | | 1,991.0 | | | (169.7) |
| (8.5) | % |
| | | | | | | | | | | | |
Total |
| | 7,830.2 | | | 7,602.0 | | | 228.2 |
| 3.0 | % |
| | | | | | | | | | | | |
Chartered-in days (2) | | | | | | | | | | | | |
Newcastlemax | | | — | | | — | | | — | | — | % |
Capesize | | | — | | | — | | | — | | — | % |
Ultramax | | | 313.3 | | | 301.1 | | | 12.2 | | 4.1 | % |
Supramax | | | 110.8 | | | 161.6 | | | (50.8) |
| (31.4) | % |
| | | | | | | | | | | | |
Total | | | 424.1 | | | 462.7 | | | (38.6) | | (8.3) | % |
| | | | | | | | | | | | |
Available days (owned & chartered-in fleet) (3) | | | | | | | | | | | | |
Newcastlemax | | | 210.8 | | | — | | | 210.8 |
| 100.0 | % |
Capesize |
| | 2,922.0 | | | 2,576.5 | | | 345.5 |
| 13.4 | % |
Ultramax |
| | 2,951.8 | | | 2,915.4 | | | 36.4 |
| 1.2 | % |
Supramax |
| | 1,864.3 | | | 1,915.2 | | | (50.9) |
| (2.7) | % |
| | | | | | | | | | | | |
Total |
| | 7,948.9 | | | 7,407.1 | | | 541.8 |
| 7.3 | % |
| | | | | | | | | | | | |
Available days (owned fleet) (4) | | | | | | | | | | | | |
Newcastlemax | | | 210.8 | | | — | | | 210.8 |
| 100.0 | % |
Capesize | | | 2,922.0 | | | 2,576.5 | | | 345.5 |
| 13.4 | % |
Ultramax | | | 2,638.5 | | | 2,614.3 | | | 24.2 |
| 0.9 | % |
Supramax | | | 1,753.5 | | | 1,753.6 | | | (0.1) |
| (0.0) | % |
| | | | | | | | | | | | |
Total | | | 7,524.8 | | | 6,944.4 | | | 580.4 |
| 8.4 | % |
| | | | | | | | | | | | |
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| | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | For the Six Months Ended | | | | | |
| ||||
| | June 30, | | Increase | | |
| |||||
| | 2026 | | 2025 | | (Decrease) | | % Change |
| |||
Operating days (5) | | | | | | | | | | | | |
Newcastlemax | | | 210.4 | | | — | | | 210.4 |
| 100.0 | % |
Capesize |
| | 2,902.7 | | | 2,524.9 | | | 377.8 |
| 15.0 | % |
Ultramax |
| | 2,938.6 | | | 2,888.0 | | | 50.6 |
| 1.8 | % |
Supramax |
| | 1,847.8 | | | 1,905.5 | | | (57.7) |
| (3.0) | % |
| | | | | | | | | | | | |
Total |
| | 7,899.5 | | | 7,318.4 | | | 581.1 |
| 7.9 | % |
| | | | | | | | | | | | |
Fleet utilization (6) | | | | | | | | | | | | |
Newcastlemax | | | 99.8 | % | | — | % | | 99.8 | % | 100.0 | % |
Capesize |
| | 99.0 | % | | 97.0 | % | | 2.0 | % | 2.1 | % |
Ultramax |
| | 99.2 | % | | 98.7 | % | | 0.5 | % | 0.5 | % |
Supramax |
| | 98.1 | % | | 98.7 | % | | (0.6) | % | (0.6) | % |
| | | | | | | | | | | | |
Fleet average |
| | 98.9 | % | | 98.1 | % | | 0.8 | % | 0.8 | % |
| | | | | | | | | | | | |
| | For the Six Months Ended | | | | | | | ||||
| | June 30, | | Increase | | | | |||||
| | 2026 | | 2025 | | (Decrease) | | % Change |
| |||
Average Daily Results: | | | | | | | | | | | | |
Time Charter Equivalent (7) | | | | | | | | | | | | |
Newcastlemax | | $ | 32,824 | | $ | — | | $ | 32,824 |
| 100.0 | % |
Capesize | | | 30,070 | | | 14,962 | | | 15,108 |
| 101.0 | % |
Ultramax | |
| 16,227 | |
| 12,199 | |
| 4,028 |
| 33.0 | % |
Supramax | |
| 15,234 | |
| 10,322 | |
| 4,912 |
| 47.6 | % |
| | | | | | | | | | | | |
Fleet average | |
| 21,836 | |
| 12,750 | |
| 9,086 |
| 71.3 | % |
Major bulk vessels | | | 30,255 | | | 14,962 | | | 15,293 | | 102.2 | % |
Minor bulk vessels | | | 15,831 | | | 11,446 | | | 4,385 | | 38.3 | % |
| | | | | | | | | | | | |
Daily vessel operating expenses (8) | | | | | | | | | | | | |
Newcastlemax | | $ | 6,430 | | $ | — | | $ | 6,430 |
| 100.0 | % |
Capesize | |
| 7,082 | |
| 6,933 | |
| 149 |
| 2.1 | % |
Ultramax | |
| 6,189 | |
| 5,851 | |
| 338 |
| 5.8 | % |
Supramax | |
| 7,196 | |
| 6,381 | |
| 815 |
| 12.8 | % |
| | | | | | | | | | | | |
Fleet average | |
| 6,781 | |
| 6,401 | |
| 380 |
| 5.9 | % |
Definitions
In order to understand our discussion of our results of operations, it is important to understand the meaning of the following terms used in our analysis and the factors that influence our results of operations.
(1) Ownership days. We define ownership days as the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during a period.
(2) Chartered-in days. We define chartered-in days as the aggregate number of days in a period during which we chartered-in third-party vessels.
(3) Available days (owned and chartered-in fleet). We define available days as the number of our ownership days and chartered-in days less the aggregate number of days that our vessels are off-hire due to familiarization upon acquisition, repairs or repairs under guarantee, vessel upgrades or special surveys. Companies in the shipping industry generally use available days to measure the number of days in a period during which vessels should be capable of generating revenues.
(4) Available days (owned fleet). We define available days for the owned fleet as available days less chartered-in days.
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(5) Operating days. We define operating days as the number of our total available days in a period less the aggregate number of days that our vessels are off-hire due to unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.
(6) Fleet utilization. We calculate fleet utilization as the number of our operating days during a period divided by the number of ownership days plus chartered-in days less drydocking days.
(7) Time charter equivalent. We define time charter equivalent (“TCE”) rates as our voyage revenues less voyage expenses, charter-hire expenses and realized gains or losses on fuel hedges, divided by the number of the available days of our owned fleet during the period. TCE rate is not an item recognized by U.S. GAAP (i.e., it is a non-GAAP measure). However, it is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charterhire rates for vessels on voyage charters are generally not expressed in per-day amounts while charterhire rates for vessels on time charters generally are expressed in such amounts.
| | | | | | | | | | | | | | | | | | | | |
| | Entire Fleet | | Major Bulk | | Minor Bulk | |
| ||||||||||||
| | For the Three Months Ended | | For the Three Months Ended | | For the Three Months Ended | | | ||||||||||||
| | June 30, | | June 30, | | June 30, | | | ||||||||||||
|
| 2026 | | 2025 | | 2026 | | 2025 | | 2026 | | 2025 | |
| ||||||
Voyage revenues (in thousands) | | $ | 136,414 | | $ | 80,939 | | $ | 81,756 | | $ | 37,698 | | $ | 54,658 | | $ | 43,241 | | |
Voyage expenses (in thousands) | |
| 44,085 | |
| 32,005 | |
| 26,269 | |
| 16,629 | |
| 17,816 | |
| 15,376 | | |
Charter hire expenses (in thousands) | | | 385 | | | 2,035 | | | — | | | — | | | 385 | | | 2,035 | | |
Realized gain on fuel hedges (in thousands) | | | 351 | | | 4 | | | 47 | | | — | | | 304 | | | 4 | | |
| |
| 92,295 | |
| 46,903 | |
| 55,534 | |
| 21,069 | |
| 36,761 | |
| 25,834 | | |
Total available days for owned fleet | |
| 3,802 | |
| 3,441 | |
| 1,644 | | | 1,238 | |
| 2,159 | |
| 2,203 | | |
Total TCE rate | | $ | 24,273 | | $ | 13,631 | | $ | 33,784 | | $ | 17,019 | | $ | 17,031 | | $ | 11,727 | | |
| | | | | | | | | | | | | | | | | | | | |
| | Entire Fleet | | Major Bulk | | Minor Bulk | | | ||||||||||||
| | For the Six Months Ended | | For the Six Months Ended | | For the Six Months Ended | | | ||||||||||||
| | June 30, | | June 30, | | June 30, | | | ||||||||||||
| | 2026 | | 2025 | | 2026 | | 2025 | | 2026 | | 2025 | |
| ||||||
Voyage revenues (in thousands) | | $ | 250,843 | | $ | 152,208 | | $ | 138,315 | | $ | 68,748 | | $ | 112,528 | | $ | 83,460 | | |
Voyage expenses (in thousands) | |
| 80,361 | |
| 59,359 | |
| 43,538 | |
| 30,201 | |
| 36,823 | |
| 29,158 | | |
Charter hire expenses (in thousands) | | | 6,481 | | | 4,320 | | | — | | | — | | | 6,481 | | | 4,320 | | |
Realized gain on fuel hedges (in thousands) | | | 311 | | | 12 | | | 7 | | | — | | | 304 | | | 12 | | |
| |
| 164,312 | |
| 88,541 | |
| 94,784 | |
| 38,547 | |
| 69,528 | |
| 49,994 | | |
Total available days for owned fleet | |
| 7,525 | |
| 6,944 | |
| 3,133 | |
| 2,576 | |
| 4,392 | |
| 4,368 | | |
Total TCE rate | | $ | 21,836 | | $ | 12,750 | | $ | 30,255 | | $ | 14,962 | | $ | 15,831 | | $ | 11,446 | | |
(8) Daily vessel operating expenses. We define daily vessel operating expenses to include crew wages and related costs, the cost of insurance expenses relating to repairs and maintenance (excluding drydocking), the costs of spares and consumable stores, tonnage taxes and other miscellaneous expenses. Daily vessel operating expenses are calculated by dividing vessel operating expenses by ownership days for the relevant period.
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Table of Contents
Operating Data
The following tables represent the operating data for the three and six months ended June 30, 2026 and 2025 on a consolidated basis.
| | | | | | | | | | | | |
| | For the Three Months Ended | | | | | |
| ||||
| | June 30, | | | | | |
| ||||
| | 2026 | | 2025 | | Change | | % Change |
| |||
| | (U.S. dollars in thousands, except for per share amounts) |
| |||||||||
Revenue: | | | | | | | | | | | | |
Voyage revenues |
| $ | 136,414 |
| $ | 80,939 |
| $ | 55,475 |
| 68.5 | % |
| | | | | | | | | | | | |
Total revenues | |
| 136,414 | |
| 80,939 | |
| 55,475 |
| 68.5 | % |
| | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | |
Voyage expenses | |
| 44,085 | |
| 32,005 | |
| 12,080 |
| 37.7 | % |
Vessel operating expenses | |
| 26,535 | |
| 23,747 | |
| 2,788 |
| 11.7 | % |
Charter hire expenses | | | 385 | | | 2,035 | | | (1,650) | | (81.1) | % |
General and administrative expenses (inclusive of nonvested stock amortization expense of $2,245 and $1,780, respectively) | |
| 7,903 | |
| 7,399 | |
| 504 |
| 6.8 | % |
Technical management expenses | | | 1,079 | | | 1,231 | | | (152) | | (12.3) | % |
Depreciation and amortization | |
| 22,367 | |
| 18,133 | |
| 4,234 |
| 23.3 | % |
Impairment of vessel assets | | | 1,198 | | | 651 | | | 547 | | 84.0 | % |
Net gain on sale of vessels | | | (1,942) | | | — | | | (1,942) | | (100.0) | % |
Other operating expense | | | 13,052 | | | — | | | 13,052 | | 100.0 | % |
| | | | | | | | | | | | |
Total operating expenses | |
| 114,662 | |
| 85,201 | |
| 29,461 |
| 34.6 | % |
| | | | | | | | | | | | |
Operating income (loss) | |
| 21,752 | |
| (4,262) | |
| 26,014 |
| (610.4) | % |
Other expense, net | |
| (5,015) | |
| (2,547) | |
| (2,468) |
| 96.9 | % |
| | | | | | | | | | | | |
Net income (loss) | | | 16,737 | | | (6,809) | | | 23,546 |
| (345.8) | % |
Less: Net income (loss) attributable to noncontrolling interest | |
| 88 | |
| (8) | |
| 96 |
| (1,200.0) | % |
Net income (loss) attributable to Genco Shipping & Trading Limited |
| $ | 16,649 |
| $ | (6,801) |
| $ | 23,450 |
| (344.8) | % |
| | | | | | | | | | | | |
Net earnings (loss) per share - basic |
| $ | 0.38 |
| $ | (0.16) | | $ | 0.54 |
| (337.5) | % |
Net earnings (loss) per share - diluted |
| $ | 0.37 |
| $ | (0.16) | | $ | 0.53 |
| (331.3) | % |
Weighted average common shares outstanding - basic | |
| 43,872,514 | |
| 43,350,232 | |
| 522,282 |
| 1.2 | % |
Weighted average common shares outstanding - diluted | |
| 44,572,591 | |
| 43,350,232 | |
| 1,222,359 |
| 2.8 | % |
| | | | | | | | | | | | |
EBITDA (1) |
| $ | 44,161 |
| $ | 13,647 |
| $ | 30,514 |
| 223.6 | % |
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| | | | | | | | | | | | |
| | For the Six Months Ended | | | | | |
| ||||
| | June 30, | | | | | |
| ||||
| | 2026 | | 2025 | | Change | | % Change |
| |||
| | (U.S. dollars in thousands, except for per share amounts) |
| |||||||||
Revenue: | | | | | | | | | | | | |
Voyage revenues |
| $ | 250,843 |
| $ | 152,208 |
| $ | 98,635 |
| 64.8 | % |
| | | | | | | | | | | | |
Total revenues | |
| 250,843 | |
| 152,208 | |
| 98,635 |
| 64.8 | % |
| | | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | | |
Voyage expenses | |
| 80,361 | |
| 59,359 | |
| 21,002 |
| 35.4 | % |
Vessel operating expenses | |
| 53,096 | |
| 48,663 | |
| 4,433 |
| 9.1 | % |
Charter hire expenses | | | 6,481 | | | 4,320 | | | 2,161 | | 50.0 | % |
General and administrative expenses (inclusive of nonvested stock amortization expense of $4,075 and $3,276 respectively) | |
| 16,012 | |
| 14,893 | |
| 1,119 |
| 7.5 | % |
Technical management expenses | | | 1,839 | | | 2,556 | | | (717) |
| (28.1) | % |
Depreciation and amortization | |
| 43,405 | |
| 35,797 | |
| 7,608 |
| 21.3 | % |
Impairment of vessel assets | | | 1,726 | | | 651 | | | 1,075 | | 165.1 | % |
Net gain on sale of vessels | |
| (4,017) | |
| — | |
| (4,017) |
| (100.0) | % |
Other operating expense | |
| 16,877 | |
| — | |
| 16,877 |
| 100.0 | % |
| | | | | | | | | | | | |
Total operating expenses | |
| 215,780 | |
| 166,239 | |
| 49,541 |
| 29.8 | % |
| | | | | | | | | | | | |
Operating income (loss) | |
| 35,063 | |
| (14,031) | |
| 49,094 |
| (349.9) | % |
Other expense, net | |
| (8,751) | |
| (4,740) | |
| (4,011) |
| 84.6 | % |
| | | | | | | | | | | | |
Net income (loss) | | | 26,312 | | | (18,771) | | | 45,083 |
| (240.2) | % |
Less: Net income (loss) attributable to noncontrolling interest | |
| 354 | |
| (47) | |
| 401 |
| (853.2) | % |
Net income (loss) attributable to Genco Shipping & Trading Limited |
| $ | 25,958 |
| $ | (18,724) |
| $ | 44,682 |
| (238.6) | % |
| | | | | | | | | | | | |
Net earnings (loss) per share - basic |
| $ | 0.59 |
| $ | (0.43) | |
| 1.02 |
| (237.2) | % |
Net earnings (loss) per share - diluted |
| $ | 0.58 |
| $ | (0.43) | |
| 1.01 |
| (234.9) | % |
Weighted average common shares outstanding - basic | |
| 43,789,751 | |
| 43,276,496 | |
| 513,255 |
| 1.2 | % |
Weighted average common shares outstanding - diluted | |
| 44,492,571 | |
| 43,276,496 | |
| 1,216,075 |
| 2.8 | % |
| | | | | | | | | | | | |
EBITDA (1) |
| $ | 78,341 |
| $ | 21,568 |
| $ | 56,773 |
| 263.2 | % |
| (1) | EBITDA represents net income (loss) attributable to Genco Shipping & Trading Limited plus net interest expense, taxes and depreciation and amortization. EBITDA is included because it is used by management and certain investors as a measure of operating performance. EBITDA is used by analysts in the shipping industry as a common performance measure to compare results across peers. Our management uses EBITDA as a performance measure in our consolidated internal financial statements, and it is presented for review at our board meetings. We believe that EBITDA is useful to investors as the shipping industry is capital intensive which often results in significant depreciation and cost of financing. EBITDA presents investors with a measure in addition to net income to evaluate our performance prior to these costs. EBITDA is a non-GAAP measure and should not be considered as an alternative to net income, operating income or any other indicator of a company’s operating performance required |
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Table of Contents
| by U.S. GAAP. EBITDA is not a measure of liquidity or cash flows as shown in our Condensed Consolidated Statements of Cash Flows. The definition of EBITDA used here may not be comparable to that used by other companies. The following table demonstrates our calculation of EBITDA and provides a reconciliation of EBITDA to net income attributable to Genco Shipping & Trading Limited for each of the periods presented above: |
| | | | | | | | | | | | | |
| | For the Three Months Ended |
| For the Six Months Ended |
| ||||||||
| | June 30, |
| June 30, |
| ||||||||
| | 2026 | | 2025 | | 2026 | | 2025 |
| ||||
Net income (loss) attributable to Genco Shipping & Trading Limited |
| $ | 16,649 |
| $ | (6,801) | | $ | 25,958 |
| $ | (18,724) | |
Net interest expense | |
| 5,145 | |
| 2,315 | |
| 8,978 | |
| 4,495 | |
Income tax expense | |
| — | |
| — | |
| — | |
| — | |
Depreciation and amortization | |
| 22,367 | |
| 18,133 | |
| 43,405 | |
| 35,797 | |
| | | | | | | | | | | | | |
EBITDA (1) |
| $ | 44,161 |
| $ | 13,647 | | $ | 78,341 |
| $ | 21,568 | |
Results of Operations
The following table sets forth information about the most recent employment of the vessels in our fleet as of August 4, 2026:
| | | | | | | |
|---|---|---|---|---|---|---|---|
| | Year | | Charter | | | |
Vessel | | Built | | Expiration(1) | | Cash Daily Rate(2) |
|
| | | | | | | |
Newcastlemax Vessels | | | | | | | |
Genco Stars and Stripes | | 2020 | | August 2026 | | Voyage | |
Genco Valkyrie | | 2020 | | July 2026 | | Voyage | |
| | | | | | | |
Capesize Vessels | | | | | | | |
Genco Augustus |
| 2007 |
| October 2026 |
| Voyage | |
Genco Tiberius |
| 2007 |
| September 2026 |
| Voyage | |
Genco London |
| 2007 |
| October 2026 | | Voyage | |
Genco Titus |
| 2007 |
| August 2026 | | Voyage | |
Genco Constantine |
| 2008 |
| October 2026 | | Voyage | |
Genco Tiger |
| 2011 |
| July 2026 | | Voyage | |
Genco Lion |
| 2012 |
| March 2027 | | 99.5% of BCI (3) | |
Genco Bear |
| 2010 |
| May 2027 | | 100.0% of BCI (3) | |
Genco Wolf |
| 2010 |
| September 2026 | | 100.5% of BCI (3) | |
Genco Resolute | | 2015 | | September 2026 | | Voyage | |
Genco Endeavour | | 2015 | | October 2026 | | Voyage | |
Genco Defender | | 2016 | | August 2026 | | Voyage | |
Genco Liberty | | 2016 | | August 2026 | | Voyage | |
Genco Ranger | | 2016 | | September 2026 | | Voyage | |
Genco Reliance | | 2016 | | July 2026 | | Voyage | |
Genco Intrepid | | 2016 | | August 2026 | | $46,000 | |
Genco Courageous | | 2020 | | August 2026 | | Voyage | |
| | | | | | | |
Ultramax Vessels | | | | | | | |
Genco Hornet |
| 2014 |
| September 2026 | | $23,000 | |
Genco Wasp |
| 2015 |
| September 2026 | | $16,500 | |
Genco Scorpion |
| 2015 |
| August 2026 | | $27,000 | |
Baltic Mantis |
| 2015 |
| August 2026 | | $32,250 | |
Genco Weatherly | | 2014 | | October 2026 | | Voyage | |
Genco Columbia | | 2016 | | September 2026 | | $17,500 | |
Genco Magic | | 2014 | | August 2026 | | $18,500 | |
Genco Vigilant | | 2015 | | August 2026 | | $31,250 | |
Genco Freedom | | 2015 | | October 2026 | | $22,500 | |
Genco Enterprise | | 2016 | | July 2026 | | Voyage | |
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| | | | | | | |
|---|---|---|---|---|---|---|---|
| | Year | | Charter | | | |
Vessel | | Built | | Expiration(1) | | Cash Daily Rate(2) |
|
| | | | | | | |
Genco Constellation | | 2017 | | August 2026 | | $20,500 | |
Genco Madeleine | | 2014 | | August 2026 | | $16,250 | |
Genco Mayflower | | 2017 | | August 2026 | | $21,300 | |
Genco Mary | | 2022 | | September 2026 | | Voyage | |
Genco Laddey | | 2022 | | September 2026 | | Voyage | |
| | | | | | | |
Supramax Vessels | | | | | | | |
Genco Hunter |
| 2007 |
| August 2026 | | $19,000 | |
Genco Aquitaine |
| 2009 |
| August 2026 | | Voyage | |
Genco Ardennes |
| 2009 |
| August 2026 | | Voyage | |
Genco Auvergne |
| 2009 |
| August 2026 | | $19,500 | |
Genco Bourgogne |
| 2010 |
| August 2026 | | Voyage | |
Genco Brittany |
| 2010 |
| August 2026 | | $20,000 | |
Genco Languedoc |
| 2010 |
| August 2026 | | $19,000 | |
Genco Pyrenees |
| 2010 |
| September 2026 | | Voyage | |
Genco Rhone |
| 2011 |
| August 2026 | | $18,000 | |
| (1) | The charter expiration dates presented represent the earliest dates that our charters may be terminated in the ordinary course. Under the terms of certain contracts, the charterer is entitled to extend the time charter from two to four months in order to complete the vessel's final voyage plus any time the vessel has been off-hire. |
| (2) | Time charter rates presented are the gross daily charterhire rates before third-party brokerage commission generally ranging from 1.25% to 5.00%. In a time charter, the charterer is responsible for voyage expenses such as bunkers, port expenses, agents’ fees and canal dues. |
| (3) | BCI is the Baltic Capesize Index. |
Three months ended June 30, 2026 compared to the three months ended June 30, 2025
VOYAGE REVENUES-
For the three months ended June 30, 2026, voyage revenues increased by $55.5 million, or 68.5%, to $136.4 million as compared to $80.9 million for the three months ended June 30, 2025. The increase in voyage revenues was primarily due to higher rates earned by our major and minor bulk vessels, the operation of a larger fleet, as well as fewer drydocking days during the second quarter of 2026 as compared to the second quarter of 2025. During the second quarter of 2026, freight rates were stronger on a year-over-year basis, reaching multi-year highs, led by strong iron ore, bauxite and coal trades together with limited net fleet growth.
Various geopolitical factors continue to impact the macroeconomic environment as well as freight rates. These factors include tariffs and trade protectionism, the war in Iran, the war in Ukraine, and attacks on commercial vessels in the Middle East. Such attacks have reduced drybulk vessel transits through the Suez Canal, increasing vessel sailing distances and effectively reducing available vessel capacity. Government intervention to reduce commodity exports, such as a cap to bauxite shipments originating from Guinea, could reduce cargo volumes and negatively impact freight rates.
The average TCE rate of our overall fleet increased 78.1% to $24,273 a day during the second quarter of 2026 from $13,631 a day during the second quarter of 2025. The TCE for our major bulk vessels increased by 98.5% from $17,019 a day during the second quarter of 2025 to $33,784 a day during the second quarter of 2026. This increase was primarily a result of higher rates achieved by our Capesize vessels, and the purchase of two Newcastlemax vessels. The TCE for our minor bulk vessels increased by 45.2% from $11,727 a day during the second quarter of 2025 to $17,031 a day during the second quarter of 2026 primarily a result of higher rates achieved by our Ultramax and Supramax vessels.
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Fleet utilization increased marginally from 98.3% during the second quarter of 2025 to 98.6% during the second quarter of 2026. From July 1, 2026 until December 31, 2026, we expect approximately 255 days of offhire related to scheduled drydockings and special surveys. Refer to “Capital Expenditures” section below for further details.
VOYAGE EXPENSES-
In time charters and spot market-related time charters, operating costs including crews, maintenance and insurance, which are recorded as part of vessel operating expenses, are typically paid by the owner of the vessel and specified voyage costs such as fuel and port charges are paid by the charterer. These expenses are borne by the Company during spot market voyage charters. There are certain other non-specified voyage expenses such as commissions, which are typically borne by us. Voyage expenses include port and canal charges, fuel (bunker) expenses and brokerage commissions payable to unaffiliated third parties. Port and canal charges and bunker expenses primarily increase in periods during which vessels are employed on spot market voyage charters because these expenses are for the account of the vessel owner. At the inception of a time charter, we record the difference between the cost of bunker fuel delivered by the terminating charterer and the bunker fuel sold to the new charterer as a gain or loss within voyage expenses. Voyage expenses also include the cost of bunkers consumed during short-term time charters pursuant to the terms of the time charter agreement. Additionally, we may record lower of cost and net realizable value adjustments to re-value the bunker fuel on a quarterly basis for certain time charter agreements where the inventory is subject to gains and losses. Refer to Note 2 — Summary of Significant Accounting Policies in our Condensed Consolidated Financial Statements.
Voyage expenses increased from $32.0 million during the three months ended June 30, 2025 to $44.1 million during the three months ended June 30, 2026. The increase was primarily due to the operation of a larger fleet, higher bunker consumption and higher overall port and agency fees, partially offset by the operation of a lower number of third-party chartered-in vessels.
VESSEL OPERATING EXPENSES-
Vessel operating expenses increased by $2.8 million from $23.7 million during the three months ended June 30, 2025 to $26.5 million during the three months ended June 30, 2026. This increase was primarily due to higher crew costs and insurance costs, as well as the timing of the purchase of stores and spares.
Average daily vessel operating expenses (“DVOE”) for our fleet increased to $6,757 per vessel per day for the three months ended June 30, 2026 from $6,213 per vessel per day for the three months ended June 30, 2025. The increase in daily vessel operating expense was primarily due to higher crew costs and insurance costs, as well as the timing of the purchase of stores and spares. We believe daily vessel operating expenses are best measured for comparative purposes over a 12-month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation.
Our vessel operating expenses increase to the extent our fleet expands. Other factors beyond our control, some of which may affect the shipping industry in general, including, for instance, developments relating to market prices for crewing, lubes, and insurance, may also cause these expenses to increase. Crew costs on our vessels could increase in the future due to higher wages as a result of the potential impact of the war in Iran and related attacks on commercial vessels, the war in Ukraine, and other conflicts in the Middle East, among other potential macroeconomic events. The potential impact of these items are unpredictable, and the actual amount of our DVOE could be higher or lower than budgeted as a result.
The DVOE budget for the third quarter of 2026 is expected to be $6,750 per vessel per day on a fleet-wide basis. The potential impacts of various macroeconomic events, including but not limited to the war in Iran and related attacks on commercial vessels, the war in Ukraine, and other conflicts in the Middle East, among other potential macroeconomic events, are unpredictable, and the actual amount of our DVOE could be higher or lower than budgeted as a result.
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CHARTER HIRE EXPENSES-
Charter hire expenses decreased by $1.6 million from $2.0 million during the three months ended June 30, 2025 to $0.4 million during the three months ended June 30, 2026. The decrease was primarily due to a decrease in chartered-in days.
GENERAL AND ADMINISTRATIVE EXPENSES-
We incur general and administrative expenses that relate to our onshore non-vessel-related activities. Our general and administrative expenses include our payroll expenses, including those relating to our executive officers, operating lease expense, legal, auditing and other professional expenses. General and administrative expenses include nonvested stock amortization expense which represent the amortization of stock-based compensation that has been issued to our directors and employees pursuant to the 2015 Plan. Refer to Note 13 — Stock-Based Compensation in our Condensed Consolidated Financial Statements. General and administrative expenses also include legal and professional fees associated with our credit facilities, which are not capitalizable to deferred financing costs. We also incur general and administrative expenses for our overseas offices located in Singapore and Copenhagen.
General and administrative expenses increased from $7.4 million during the three months ended June 30, 2025 to $7.9 million during the three months ended June 30, 2026. This increase was primarily due to higher nonvested stock amortization expense.
TECHNICAL MANAGEMENT EXPENSES-
Technical management expenses include the direct costs incurred by GSSM for the technical management of the vessels under its management. Technical management expenses were $1.1 million and $1.2 million during the three months ended June 30, 2026 and 2025, respectively, with the variance due to timing of expenses during the year.
DEPRECIATION AND AMORTIZATION-
Depreciation and amortization expense increased by $4.3 million to $22.4 million during the three months ended June 30, 2026 as compared to $18.1 million during the three months ended June 30, 2025. This increase was primarily due to an increase in vessel depreciation expense for the Genco Courageous, which was delivered during the fourth quarter of 2025, and the Genco Stars and Stripes and the Genco Valkyrie, which were both delivered during the first quarter of 2026. Additionally, there was an increase in drydocking amortization expense for certain vessels that completed their respective drydockings during 2025.
IMPAIRMENT OF VESSEL ASSETS-
During the three months ended June 30, 2026 and 2025, we recorded $1.2 million and $0.7 million, respectively, of impairment of vessel assets related to the loss on disposal of replaced equipment on certain vessels. Refer to Note 2 — Summary of Significant Accounting Policies in our Condensed Consolidated Financial Statements for further information.
NET GAIN ON SALE OF VESSELS
During the three months ended June 30, 2026, we recorded a net gain on sale of vessels of $1.9 million related to the sale of the Genco Predator on April 15, 2026. Refer to Note 5 — Vessel Acquisitions and Dispositions in our Condensed Consolidated Financial Statements for further information.
OTHER OPERATING EXPENSE-
Other operating expense of $13.1 million recorded during the three months ended June 30, 2026 consists of costs for non-routine aspects of our 2026 Annual Meeting of Shareholders and costs associated with proposals to purchase our common stock.
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OTHER (EXPENSE) INCOME -
INTEREST EXPENSE –
Interest expense increased by $3.2 million from $2.6 million during the three months ended June 30, 2025 to $5.8 million during the three months ended June 30, 2026. Interest expense during the three months ended June 30, 2026 and 2025 consisted primarily of interest expense under our credit facilities and amortization of deferred financing costs for those facilities. The increase was primarily due to higher outstanding debt during the second quarter of 2026 as compared to the second quarter of 2025, partially offset by lower interest rates.
INTEREST INCOME –
Interest income increased by $0.4 million from $0.2 million during the three months ended June 30, 2025 to $0.6 million during the three months ended June 30, 2026 primarily due to higher interest income earned on our cash and cash equivalents.
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST –
During the three months ended June 30, 2026 and 2025, net income (loss) attributable to noncontrolling interest was $0.1 million and ($0.01) million, respectively, which is associated with the net income (loss) attributable to the noncontrolling interest of GSSM.
Six months ended June 30, 2026 compared to the six months ended June 30, 2025
VOYAGE REVENUES-
For the six months ended June 30, 2026, voyage revenues increased by $98.6 million, or 64.8%, to $250.8 million as compared to $152.2 million for the six months ended June 30, 2025. The increase in voyage revenues was primarily due to higher rates earned by our major and minor bulk vessels, the operation of a larger fleet, as well as fewer drydocking days during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Refer to the discussion above included under the section “Three months ended June 30, 2026 compared to the three months ended June 30, 2025 – Voyage Revenues” for further information.
The average TCE rate of our overall fleet increased by 71.3% to $21,836 a day during the six months ended June 30, 2026 from $12,750 a day during the six months ended June 30, 2025. The TCE for our major bulk vessels increased by 102.2% from $14,962 a day during the first half of 2025 to $30,255 a day during the first half of 2026. This increase was primarily a result of higher rates achieved by our Capesize vessels, and the purchase of two Newcastlemax vessels. The TCE for our minor bulk vessels increased by 38.3% from $11,446 a day during the first half of 2025 to $15,831 a day during the first half of 2026 primarily a result of higher rates achieved by our Ultramax and Supramax vessels.
Fleet utilization increased from 98.1% during the first half of 2025 to 98.9% during the first half of 2026.
VOYAGE EXPENSES-
Voyage expenses increased from $59.4 million during the six months ended June 30, 2025 to $80.4 million during the six months ended June 30, 2026. The increase was primarily due to the operation of a larger fleet, higher bunker consumption, as well as higher overall port and agency fees.
VESSEL OPERATING EXPENSES-
Vessel operating expenses increased by $4.4 million from $48.7 million during the six months ended June 30, 2025 to $53.1 million during the six months ended June 30, 2026. This increase was primarily due to the operation of a larger fleet, as well as higher crew costs and insurance costs, as well as the timing of the purchase of stores.
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DVOE for our fleet increased to $6,781 per vessel per day for the six months ended June 30, 2026 from $6,401 per vessel per day for the six months ended June 30, 2025. The increase in daily vessel operating expense was primarily due to higher crew costs and insurance costs, as well as the timing of the purchase of stores. We believe that daily vessel operating expenses are best measured for comparative purposes over a 12-month period in order to take into account all of the expenses that each vessel in our fleet will incur over a full year of operation.
CHARTER HIRE EXPENSES-
Charter hire expenses increased by $2.2 million from $4.3 million during the six months ended June 30, 2025 to $6.5 million during the six months ended June 30, 2026. The increase was primarily due to an increase in hire rates, partially offset by a decrease in chartered-in days.
GENERAL AND ADMINISTRATIVE EXPENSES-
For the six months ended June 30, 2026 and 2025, general and administrative expenses were $16.0 and $14.9 million, respectively. This increase was primarily due to higher nonvested stock amortization expense.
TECHNICAL MANAGEMENT EXPENSES-
Technical management expenses were $1.8 million and $2.6 million during the six months ended June 30, 2026 and 2025, respectively, with the variance due to timing of expenses during the year.
DEPRECIATION AND AMORTIZATION-
Depreciation and amortization expense increased by $7.6 million to $43.4 million during the six months ended June 30, 2026 as compared to $35.8 million during the six months ended June 30, 2025. This increase was primarily due to an increase in drydocking amortization expense for certain vessels that completed their respective drydockings during 2025. Additionally, there was an increase in vessel depreciation expense for the Genco Courageous, which was delivered during the fourth quarter of 2025, and the Genco Stars and Stripes and the Genco Valkyrie, which were both delivered during the first quarter of 2026.
IMPAIRMENT OF VESSEL ASSETS-
During the six months ended June 30, 2026 and 2025, we recorded $1.7 million and $0.7 million of impairment of vessel assets, respectively, related to the loss on disposal of replaced equipment on certain vessels. Refer to Note 2 — Summary of Significant Accounting Policies in our Condensed Consolidated Financial Statements for further information.
NET GAIN ON SALE OF VESSELS
During the six months ended June 30, 2026, we recorded a net gain on sale of vessels of $4.0 million related to the sales of the Genco Picardy and the Genco Predator on March 30, 2026 and April 15, 2026, respectively. Refer to Note 5 — Vessel Acquisitions and Dispositions in our Condensed Consolidated Financial Statements for further information.
OTHER OPERATING EXPENSE-
Other operating expense of $16.9 million recorded during the six months ended June 30, 2026 consists of costs for non-routine aspects of our 2026 Annual Meeting of Shareholders and costs associated with proposals to purchase our common stock.
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OTHER (EXPENSE) INCOME -
INTEREST EXPENSE –
Interest expense increased by $5.1 million from $5.1 million during the six months ended June 30, 2025 to $10.2 million during the six months ended June 30, 2026. The increase was primarily due to higher outstanding debt during the first half of 2026 as compared to the first half of 2025, partially offset by lower interest rates.
INTEREST INCOME –
Interest income increased by $0.7 million from $0.6 million during the six months ended June 30, 2025 to $1.3 million during the six months ended June 30, 2026 primarily due to higher interest income earned on our cash and cash equivalents.
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTEREST –
During the six months ended June 30, 2026 and 2025, net income (loss) attributable to noncontrolling interest was $0.4 million and ($0.05) million, respectively, which is associated with the net income (loss) attributable to the noncontrolling interest of GSSM.
LIQUIDITY AND CAPITAL RESOURCES
Our primary sources of liquidity are cash flow from operations, cash on hand, equity offerings and credit facility borrowings. We currently use our funds primarily for the acquisition of vessels, fleet renewal, drydocking for our vessels, payment of dividends, debt repayments and satisfying working capital requirements as may be needed to support our business. Our ability to continue to meet our liquidity needs is subject to and will be affected by cash utilized in operations, the economic or business environment in which we operate, shipping industry conditions, the financial condition of our customers, vendors and service providers, our ability to comply with the financial and other covenants of our indebtedness, and other factors.
We believe, given our current cash holdings and undrawn revolver availability, if drybulk shipping rates do not decline significantly from current levels, our capital resources, including cash anticipated to be generated within the year, are sufficient to fund our operations for at least the next twelve months. Such resources include unrestricted cash and cash equivalents of $73.6 million as of June 30, 2026, in addition to the $350.0 million availability under the $680 Million Revolver as of June 30, 2026, which compares to a minimum liquidity requirement under our credit facility of approximately $21.5 million as of June 30, 2026. Given anticipated capital expenditures related to drydockings and fleet upgrade costs of $16.5 million and $25.9 million during the remainder of 2026 and 2027, respectively, the $58.5 million remaining payment for the purchase of the Genco Volunteer, as well as any quarterly dividend payments, we anticipate to continue to have significant cash expenditures. Refer to “Capital Expenditures” below for further details. However, if market conditions were to worsen significantly due to the U.S.-China trade dispute, the imposition of tariffs, the war in Iran and related attacks on commercial vessels, the war in Ukraine, other conflicts in the Middle East, or other causes, then our cash resources may decline to a level that may put at risk our ability to pay dividends per our capital allocation strategy or at all.
Going forward, given the nature of our revolving credit facility, we plan to actively manage our debt balance to reduce interest expense and may also opportunistically draw down debt to assist in funding accretive growth opportunities. As of June 30, 2026, there are no mandatory debt repayments due through 2028 until we must repay $3.1 million and $326.9 million during 2029 and 2030, respectively. Nonetheless, we intend to continue to pay down debt on a voluntary basis.
As of June 30, 2026, the $680 Million Revolver contained collateral maintenance covenants that require the aggregate appraised value of collateral vessels to be at least 135% of the principal amount of the loan outstanding under such facility. If the values of our vessels were to decline as a result of the various geopolitical factors previously mentioned or otherwise, we may not satisfy this collateral maintenance requirement. If we do not satisfy the collateral
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maintenance requirement, we will need to post additional collateral or prepay outstanding loans to bring us back into compliance, or we will need to seek waivers, which may not be available or may be subject to conditions.
In the future, we may require capital to fund acquisitions or to improve or support our ongoing operations and debt structure, particularly in light of economic conditions resulting from the U.S.-China trade dispute, the imposition of tariffs, the war in Iran and related attacks on commercial vessels, the war in Ukraine, other conflicts in the Middle East, and the trajectory of China’s economic recovery and stimulus measures. We may from time to time seek to raise additional capital through equity or debt offerings, selling vessels or other assets, pursuing strategic opportunities, or otherwise. We may also from time to time seek to incur additional debt financing from private or public sector sources, refinance our indebtedness or obtain waivers or modifications to our credit agreements to obtain more favorable terms, enhance flexibility in conducting our business, or otherwise. We may also seek to manage our interest rate exposure through hedging transactions. We may seek to accomplish any of these independently or in conjunction with one or more of these actions. However, if market conditions are unfavorable, we may be unable to accomplish any of the foregoing on acceptable terms or at all.
On February 27, 2026, we entered into an amendment to upsize our existing $600 Million Revolver. Specifically, we utilized $80 million under the $300 million accordion feature to increase our borrowing capacity from $600 million to $680 million. The increased borrowing capacity was available upon delivery of the two Newcastlemax vessels, the Genco Stars and Stripes and the Genco Valkyrie, which were delivered on March 5, 2026 and March 24, 2026, respectively. Refer to Note 8 — Debt in our Condensed Consolidated Financial Statements for further details regarding the terms of the $680 Million Revolver, which information is incorporated herein by reference.
As of June 30, 2026, we were in compliance with all financial covenants under the $680 Million Revolver.
Dividends
Under our quarterly dividend policy, the amount available for quarterly dividends is to be calculated based on the following formula:
Operating cash flow
Less: Voluntary quarterly reserve
Cash flow distributable as dividends
The amount of dividends payable under the foregoing formula for each quarter of the year will be determined on a quarterly basis.
For purposes of the foregoing calculation, operating cash flow is defined as voyage revenue less voyage expenses, charter hire expenses, realized gains or losses on fuel hedges, vessel operating expenses, general and administrative expenses other than non-cash restricted stock expenses, technical management fees, and interest expense other than non-cash deferred financing costs. Anticipated uses for the voluntary quarterly reserve include, but are not limited to, vessel acquisitions, debt prepayments and repayments, and general corporate purposes. In order to set aside funds for these purposes, the voluntary reserve will be set on a quarterly basis at the discretion of our Board and is anticipated to be based on future quarterly debt repayments and interest expense.
On August 5, 2026, we announced a quarterly dividend of $0.80 per share. Our quarterly dividend policy and declaration and payment of dividends are subject to legally available funds, compliance with applicable law and contractual obligations (including our credit facilities) and our Board’s determination that each declaration and payment is at that time in the best interests of the Company and its shareholders after its review of our financial performance.
Since 2021, in connection with our comprehensive value strategy, we have paid down additional indebtedness under our credit facilities.
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The declaration and payment of any dividend or any stock repurchase is subject to the discretion of our Board of Directors. Our Board of Directors and management continue to closely monitor market developments together with the evaluation of our quarterly dividend policy in the current market environment. The principal business factors that our Board of Directors expects to consider when determining the timing and amount of dividend payments or stock repurchases include our earnings, financial condition, and cash requirements at the time. Marshall Islands law generally prohibits the declaration and payment of dividends or stock repurchases other than from surplus. Marshall Islands law also prohibits the declaration and payment of dividends or stock repurchases while a company is insolvent or would be rendered insolvent by the payment of such a dividend or such a stock repurchase. Heightened economic uncertainty and the potential for renewed drybulk market weakness as a result of the war in Iran and related attacks on commercial vessels, the war in Ukraine, other conflicts in the Middle East, and related economic conditions may result in our suspension, reduction, or termination of future quarterly dividends.
You are encouraged to consult your own tax advisor concerning the overall tax consequences arising in your own particular situation under U.S. federal, state, local, or foreign law from the payment of dividends on our common stock.
Cash Flows
Net cash provided by operating activities for the six months ended June 30, 2026 and 2025 was $48.9 million and $8.3 million, respectively. This increase in cash provided by operating activities was primarily due to higher rates earned by our major and minor bulk vessels, as well as changes in working capital. Additionally, there was a decrease in drydocking costs incurred during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025.
Net cash used in investing activities for the six months ended June 30, 2026 and 2025 was $122.2 million and $6.7 million, respectively. This fluctuation was primarily a result of a $137.4 million increase in the purchase of vessel assets due to the purchase of the Genco Stars and Stripes and the Genco Valkyrie, which were delivered on March 5, 2026 and March 24, 2026, respectively, as well as the deposit made for the Genco Volunteer, which is expected to be delivered during August 2026. This increase in net cash used in investing activities was partially offset by $21.1 million net proceeds from the sale of the Genco Picardy and the Genco Predator on March 30, 2026 and April 15, 2026, respectively.
Net cash provided by (used in) financing activities during the six months ended June 30, 2026 and 2025 was $91.3 million and ($9.9) million, respectively. On February 27, 2026, the $600 Million Revolver was refinanced with the $680 Million Revolver. As part of the debt modification, $4.3 million was settled net among the lenders of the $600 Million Revolver and $680 Million Revolver. The fluctuation is primarily due to drawdowns totaling $130.0 million on the $600 Million Revolver and the $680 Million Revolver made by the Company during the six months ended June 30, 2026 as compared to drawdowns of only $10.0 million on the $500 Million Revolver during the six months ended June 30, 2025. This increase in cash provided by financing activities was partially offset by a $18.0 million increase in the payment of dividends and a $0.8 million increase in the payment of deferred financing costs related to the $680 Million Revolver during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025.
Interest Rate Swap and Cap Agreements, Forward Freight Agreements and Currency Swap Agreements
As part of our business strategy, we may enter into interest rate swap agreements to manage interest costs and the risk associated with changing interest rates. In determining the fair value of interest rate derivatives, we consider the creditworthiness of both the counterparty and ourselves, which has not changed significantly and has no effect on the valuation. Valuations prior to any adjustments for credit risk would be validated by comparison with counterparty valuations. Amounts would not and should not be identical due to the different modeling assumptions. Any material differences would be investigated.
As part of our business strategy, we may enter into arrangements commonly known as forward freight agreements, or FFAs, to hedge and manage our exposure to the charter market risks relating to the deployment of our vessels. Generally, these arrangements would bind us and each counterparty in the arrangement to buy or sell a specified
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tonnage freighting commitment “forward” at an agreed time and price and for a particular route. Upon settlement, if the contracted charter rate is less than the average of the rates (as reported by an identified index) for the specified route and period, the seller of the FFA is required to pay the buyer an amount equal to the difference between the contracted rate and the settlement rate multiplied by the number of days in the specific period. Conversely, if the contracted rate is greater than the settlement rate, the buyer is required to pay the seller the settlement sum. Although FFAs can be entered into for a variety of purposes, including for hedging, as an option, for trading, or for arbitrage, if we decided to enter into FFAs, our objective would be to hedge and manage market risks as part of our commercial management. It is not currently our intention to enter into FFAs to generate a stream of income independent of the revenues we derive from the operation of our fleet of vessels. If we determine to enter into FFAs, we may reduce our exposure to any declines in our results from operations due to weak market conditions or downturns, but may also limit our ability to benefit economically during periods of strong demand in the market. We have not entered into any FFAs as of June 30, 2026 and December 31, 2025.
Capital Expenditures
We make capital expenditures from time to time in connection with our vessel acquisitions. After the delivery of the Genco Volunteer, our fleet will consist of 44 drybulk vessels, including two Newcastlemax, 18 Capesize, 15 Ultramax and 9 Supramax vessels.
As previously announced, we have implemented a fuel efficiency upgrade program for certain of our vessels in an effort to generate fuel savings and increase the future earnings potential for these vessels. The upgrades have been successfully installed during previous drydockings.
The future estimated expenditures are included in the table below.
In addition to acquisitions that we may undertake in future periods, we will incur additional expenditures due to special surveys and drydockings for our fleet.
We estimate our drydocking costs, including capitalized costs incurred during drydocking related to vessel assets and vessel equipment, fleet upgrade costs consisting of ballast water treatment systems and fuel efficiency upgrades, and scheduled off-hire days for our fleet through 2027 to be:
| | | | | | | | | |
Year | | Estimated Drydocking | | Estimated Fleet Upgrade Costs | | Estimated Off-hire |
| ||
| | (U.S. dollars in millions) | |
| |||||
| | | | | | | | | |
July 1 - December 31, 2026 | | $ | 15.0 | | $ | 1.5 | | 255 | |
2027 (1) | | $ | 25.6 | | $ | 0.3 | | 480 | |
| (1) | These amounts exclude a total of $7.3 million of estimated drydocking costs and fleet upgrade costs and 130 estimated offhire days for certain vessels that have drydocking class deadlines during the first quarter of 2028 and may, therefore, not be drydocked until 2028. |
The costs reflected are estimates based on drydocking our vessels in China. Actual costs will vary based on various factors, including where the drydockings are actually performed. We expect to fund these costs with cash on hand. These costs do not include drydock expense items that are reflected in vessel operating expenses.
Actual length of drydocking will vary based on the condition of the vessel, yard schedules and other factors. Higher repairs and maintenance expense during drydocking for vessels which are over 15 years old typically result in a higher number of off-hire days depending on the condition of the vessel.
During the six months ended June 30, 2026 and 2025, we incurred a total of $13.5 million and $30.9 million of drydocking costs, respectively, excluding costs incurred during drydocking that were capitalized to vessel assets or vessel equipment.
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We completed the drydocking of seven of our vessels during the six months ended June 30, 2026. We estimate that an additional six of our vessels will be drydocked during the remainder of 2026 and 11 of our vessels will be drydocked during 2027.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.
Inflation
Inflation has only a moderate effect on our expenses given current economic conditions. In the event that significant global inflationary pressures appear, these pressures would increase our operating, voyage, general and administrative, and financing costs.
CRITICAL ACCOUNTING POLICIES
Except as described below, there have been no changes or updates to our critical accounting policies as disclosed in the 2025 10-K.
Vessels and Depreciation
We record the value of our vessels at their cost (which includes acquisition costs directly attributable to the vessel and expenditures made to prepare the vessel for its initial voyage) less accumulated depreciation. We depreciate our drybulk vessels on a straight-line basis over their estimated useful lives, estimated to be 25 years from the date of initial delivery from the shipyard. Depreciation is based on cost less the estimated residual scrap value of $400/lightweight ton (lwt) based on the 15-year average scrap value of steel. An increase in the residual value of the vessels will decrease the annual depreciation charge over the remaining useful life of the vessels. Similarly, an increase in the useful life of a drybulk vessel would also decrease the annual depreciation charge. Comparatively, a decrease in the useful life of a drybulk vessel or in its residual value would have the effect of increasing the annual depreciation charge. However, when regulations place limitations over the ability of a vessel to trade on a worldwide basis, we will adjust the vessel’s useful life to end at the date such regulations preclude such vessel’s further commercial use.
The carrying value of each of our vessels does not represent the fair market value of such vessel or the amount we could obtain if we were to sell any of our vessels, which could be more or less. Under U.S. GAAP, we would not record a loss if the fair market value of a vessel (excluding its charter) is below our carrying value unless and until we determine to sell that vessel or the vessel is impaired as discussed in the 2025 10-K.
During the three and six months ended June 30, 2026, we recorded an impairment loss of $1.2 million and $1.7 million, respectively, for the loss on disposal of replaced equipment on certain vessels. During the three and six months ended June 30, 2025, we recorded an impairment loss of $0.7 million for the loss on disposal of replaced equipment on certain vessels.
Under our credit facility, we regularly submit to the lenders valuations of our vessels on an individual charter free basis in order to evidence our compliance with the collateral maintenance covenants under our credit facility. Such a valuation is not necessarily the same as the amount any vessel may bring upon sale, which may be more or less, and should not be relied upon as such. We were in compliance with the collateral maintenance covenant under our $680 Million Revolver as of June 30, 2026. We obtained valuations for all of the vessels in our fleet pursuant to the terms of the $680 Million Revolver.
We compare the carrying value of our vessels with the vessel valuations obtained for covenant compliance purposes to determine whether an indicator of impairment is present (excluding any vessels held for sale). As of June 30, 2026, none of our vessels had carrying values that exceeded their vessel valuations, therefore there were no
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indicators of impairment. As of December 31, 2025, two of our Capesize vessels had carrying values that exceeded their vessel valuations, which is an indicator of impairment. However, based on an analysis of the anticipated undiscounted future net cash flows to be derived from each of these vessels as described in the 2025 10-K, there were no impairment losses recorded for these vessels incurred during the year ended December 31, 2025.
The amount by which the carrying value at December 31, 2025 of two of our Capesize vessels exceeded the valuation of such vessels for covenant compliance purposes ranged, on an individual vessel basis, from $1.5 million to $2.0 million per vessel, and $3.5 million on an aggregate fleet basis for these two vessels. The average amount by which the carrying value of these vessels exceeded the valuation of such vessels for covenant compliance purposes was $1.8 million as of December 31, 2025. However, neither such valuation nor the carrying value in the table below reflects the value of long-term time charters, if any, related to some of our vessels.
In the chart below, we list each of our vessels, the year it was built, the year we acquired it, and its carrying value as of June 30, 2026 and December 31, 2025. Vessels have been grouped according to their collateralized status as of June 30, 2026 and does not include any vessels held for sale.
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| | | | | | | | | | | |
| | | | | | Carrying Value (U.S. dollars in |
| ||||
| | | | | | thousands) as of |
| ||||
| | | | Year | | June 30, | | December 31, |
| ||
Vessels | | Year Built | | Acquired | | 2026 | | 2025 |
| ||
$680 Million Revolver | | | | | | | | | | | |
Genco Bear |
| 2010 |
| 2010 | | $ | 28,583 | | $ | 29,621 | |
Genco Wolf |
| 2010 |
| 2010 | |
| 29,109 | |
| 30,129 | |
Genco Lion |
| 2012 |
| 2013 | |
| 25,134 | |
| 25,823 | |
Genco Tiger | | 2011 | | 2013 | | | 23,882 | | | 24,525 | |
Genco Scorpion |
| 2015 |
| 2015 | |
| 19,009 | |
| 19,512 | |
Genco Mantis |
| 2015 |
| 2015 | |
| 19,192 | |
| 19,686 | |
Genco Hunter |
| 2007 |
| 2007 |
| | 6,537 |
| | 6,662 | |
Genco Aquitaine |
| 2009 |
| 2010 | |
| 7,344 | |
| 7,526 | |
Genco Ardennes |
| 2009 |
| 2010 | |
| 7,367 | |
| 7,555 | |
Genco Auvergne |
| 2009 |
| 2010 | |
| 7,407 | |
| 7,586 | |
Genco Bourgogne |
| 2010 |
| 2010 | |
| 7,902 | |
| 8,105 | |
Genco Brittany |
| 2010 |
| 2010 | |
| 7,929 | |
| 8,131 | |
Genco Languedoc |
| 2010 |
| 2010 | |
| 7,907 | |
| 8,113 | |
Genco Pyrenees |
| 2010 |
| 2010 | |
| 8,145 | |
| 8,361 | |
Genco Rhone |
| 2011 |
| 2011 | |
| 9,123 | |
| 9,016 | |
Genco Constantine |
| 2008 |
| 2008 | |
| 24,232 | |
| 25,386 | |
Genco Augustus |
| 2007 |
| 2007 | |
| 21,708 | |
| 22,869 | |
Genco London |
| 2007 |
| 2007 | |
| 22,902 | |
| 23,924 | |
Genco Titus |
| 2007 |
| 2007 | |
| 23,297 | |
| 24,355 | |
Genco Tiberius |
| 2007 |
| 2007 | |
| 21,524 | |
| 22,658 | |
Genco Hornet |
| 2014 |
| 2014 | |
| 17,712 | |
| 18,197 | |
Genco Wasp |
| 2015 |
| 2015 | |
| 17,956 | |
| 18,442 | |
Genco Endeavour | | 2015 | | 2018 | |
| 35,551 | |
| 36,459 | |
Genco Resolute | | 2015 | | 2018 | |
| 35,953 | |
| 36,836 | |
Genco Columbia | | 2016 | | 2018 | |
| 19,929 | |
| 20,432 | |
Genco Weatherly | | 2014 | | 2018 | |
| 16,079 | |
| 16,524 | |
Genco Liberty | | 2016 | | 2018 | |
| 38,613 | |
| 38,639 | |
Genco Defender | | 2016 | | 2018 | |
| 38,430 | |
| 38,622 | |
Genco Magic | | 2014 | | 2020 | | | 12,364 | | | 12,659 | |
Genco Vigilant | | 2015 | | 2021 | | | 13,384 | | | 13,696 | |
Genco Freedom | | 2015 | | 2021 | | | 13,421 | | | 13,759 | |
Genco Enterprise | | 2016 | | 2021 | | | 16,978 | | | 17,377 | |
Genco Madeleine | | 2014 | | 2021 | | | 18,599 | | | 19,117 | |
Genco Constellation | | 2017 | | 2021 | | | 21,215 | | | 21,742 | |
Genco Mayflower | | 2017 | | 2021 | | | 21,651 | | | 22,081 | |
Genco Laddey | | 2022 |
| 2022 | |
| 25,758 | |
| 26,271 | |
Genco Mary | | 2022 |
| 2022 | |
| 25,786 | |
| 26,300 | |
Genco Ranger | | 2016 | | 2023 | | | 39,474 | | | 39,785 | |
Genco Reliance |
| 2016 | | 2023 | | | 39,331 | | | 39,746 | |
Genco Intrepid | | 2016 | | 2024 | | | 46,428 | | | 47,605 | |
Genco Courageous | | 2020 | | 2025 | | | 62,348 | | | 63,552 | |
Genco Stars and Stripes | | 2020 | | 2026 | | | 72,199 | | | — | |
Genco Valkyrie | | 2020 | | 2026 | | | 72,258 | | | — | |
Total | | | | | | $ | 1,049,650 | | $ | 927,384 | |
Unencumbered | | | | | | | | | | | |
Genco Picardy |
| 2005 |
| 2010 | |
| — | |
| 6,035 | |
Genco Predator |
| 2005 |
| 2007 | |
| — | |
| 5,908 | |
Total | | | | | | $ | — | | $ | 11,943 | |
| | | | | | | | | | | |
Consolidated Total | | | | | | $ | 1,049,650 | | $ | 939,327 | |
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If we were to sell a vessel or hold a vessel for sale, and the carrying value of the vessel were to exceed its fair market value, net of costs to sell, we would record a loss in the amount of the difference. Refer to Note 2 — Summary of Significant Accounting Policies and Note 5 — Vessel Acquisitions and Dispositions in our Condensed Consolidated Financial Statements for information regarding the sale of vessel assets.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest rate risk
We are exposed to the impact of interest rate changes. Our objective is to manage the impact of interest rate changes on our earnings and cash flow in relation to our borrowings.
Interest rate cap agreements cap the borrowing rate on our variable debt to provide a hedge against the risk of rising rates.
We are subject to market risks relating to changes in SOFR rates because we have significant amounts of floating rate debt outstanding. During the three and six months ended June 30, 2026 and 2025, we were subject to the following interest rates on the outstanding debt under our credit facilities (Refer to Note 8 — Debt in our Condensed Consolidated Financial Statements for the effective dates and termination dates for our credit facilities outlined below):
| ● | $500 Million Revolver |
| ● | One-month SOFR plus 1.85% until August 1, 2024 when the applicable margin was increased from 1.85% to 1.90% pursuant to the sustainability link term of the facility providing a lower margin based on increased vessel efficiency. These rates were applicable until July 10, 2025 when we entered into the $600 Million Revolver. |
| ● | $600 Million Revolver |
| ● | One-month SOFR plus 1.75% from July 10, 2025 until July 31, 2025 when the applicable margin was increased from 1.75% to 1.80% pursuant to the sustainability link term of the facility. These rates were applicable until February 27, 2026 when we entered into the $680 Million Revolver. |
| ● | $680 Million Revolver |
| ● | One-month SOFR plus 1.80% pursuant to the sustainability link term of the facility beginning February 27, 2026. |
A 1% increase in SOFR would have resulted in an increase of $1.4 million in interest expense for the six months ended June 30, 2026.
From time to time, the Company may consider derivative financial instruments such as swaps and caps or other means to protect itself against interest rate fluctuations.
Derivative financial instruments
As part of our business strategy, we may enter into interest rate swaps or interest rate cap agreements to manage interest costs and the risk associated with changing interest rates.
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Our prior interest rate cap agreements were initially designated and qualified as cash flow hedges. The premium paid was recognized in income on a rational basis, and all changes in the value of the caps were deferred in AOCI and were subsequently reclassified into Interest expense in the period when the hedged interest affected earnings.
Refer to “Interest rate risk” section above for further information regarding interest rate swap agreements.
We have entered into bunker swap and forward fuel purchase agreements with the objective of reducing the risk of the effect of changing fuel prices. Our bunker swap and forward fuel purchase agreements do not qualify for hedge accounting treatment; therefore, any unrealized or realized gains or losses are recognized as other income (expense). Refer to the “Bunker swap and forward fuel purchase agreements” section of Note 2 — Summary of Significant Accounting Policies for further information.
Currency and exchange rates risk
The majority of transactions in the international shipping industry are denominated in U.S. Dollars. Virtually all of our revenues and most of our operating costs are in U.S. Dollars. We incur certain operating expenses in currencies other than the U.S. dollar, and the foreign exchange risk associated with these operating expenses is immaterial.
ITEM 4. CONTROLS AND PROCEDURES
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
Under the supervision and with the participation of our management, including our Chief Executive Officer and President and our Chief Financial Officer, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of the end of the period covered by this report. Based upon that evaluation, our Chief Executive Officer and President and our Chief Financial Officer have concluded that our disclosure controls and procedures are effective.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
There have been no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II – OTHER INFORMATION
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in the 2025 10-K, which could materially affect our business, financial condition or future results.
Below is an update to the risk factor entitled, “We are currently subject to a proxy contest seeking to replace all members of our Board of Directors, which could disrupt our business and adversely affect our results of operations.”
While the proxy contest initiated by a stockholder to replace members of our Board of Directors ended at our 2026 Annual Meeting of Shareholders, the same stockholder initiated a tender offer that has since expired and continues to pursue a non-binding indicative offer to acquire the Company. These circumstances have required, and are expected to continue to require, significant time and attention from our management and Board of Directors and have resulted in,
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and may continue to result in, substantial legal, advisory, and other professional fees and may result in increased volatility in the market price of our common stock.
ITEM 6. EXHIBITS
The Exhibit Index attached to this report is incorporated into this Item 6 by reference.
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EXHIBIT INDEX
| | ||
Exhibit | | Document | |
| | | |
3.1 | | Second Amended and Restated Articles of Incorporation of Genco Shipping & Trading Limited.(1) | |
| | | |
3.2 | | Articles of Amendment to Genco Shipping & Trading Limited Second Amended and Restated Articles of Incorporation, dated July 17, 2015.(2) | |
| | | |
3.3 | | Articles of Amendment to Genco Shipping & Trading Limited Second Amended and Restated Articles of Incorporation, dated April 15, 2016.(3) | |
| | | |
3.4 | | Articles of Amendment to Second Amended and Restated Articles of Incorporation of Genco Shipping & Trading Limited, dated July 7, 2016.(4) | |
| | | |
3.5 | | Articles of Amendment to Second Amended and Restated Articles of Incorporation of Genco Shipping & Trading Limited, dated January 4, 2017.(5) | |
| | | |
3.6 | | Articles of Amendment to Second Amended and Restated Articles of Incorporation of Genco Shipping & Trading Limited dated July 15, 2020.(6) | |
| | | |
3.7 | | Articles of Amendment to Second Amended and Restated Articles of Incorporation of Genco Shipping & Trading Limited dated May 13, 2021.(7) | |
| | | |
3.8 | | Certificate of Designations of Rights, Preferences and Privileges of Series A Preferred Stock of Genco Shipping & Trading Limited, dated as of November 14, 2016.(8) | |
| | | |
3.9 | | Amended and Restated By-Laws of Genco Shipping & Trading Limited, dated July 9, 2014.(1) | |
| | | |
3.10 | | Amendment to Amended and Restated By-Laws, dated June 4, 2018.(9) | |
| | | |
3.11 | | Second Amendment to Amended and Restated By-Laws, dated July 15, 2020.(6) | |
| | | |
3.12 | | Third Amendment to Amended and Restated By-laws, dated January 11, 2021.(10) | |
| | | |
3.13 | | Fourth Amendment to Amended and Restated By-laws, dated March 28, 2023.(11) | |
| | | |
3.14 | | Fifth Amendment to Amended and Restated By-Laws, dated August 26, 2025.(12) | |
| | | |
3.15 | | Statement of Designations of Series B Preferred Stock of Genco Shipping & Trading Limited.(13) | |
| | | |
4.1 | | Form of Specimen Stock Certificate of Genco Shipping & Trading Limited.(1) | |
| | | |
4.2 | | Shareholders Rights Agreement dated as of October 1, 2025 between Genco Shipping & Trading Limited. and Computershare Inc., a national banking corporation, as Rights Agent (including the form of Statement of Designations of Series B Preferred Stock attached thereto as Exhibit A, the form of Rights Certificate attached thereto as Exhibit B and the Summary of Rights to Purchase Preferred Shares attached thereto as Exhibit C).(13) | |
| | | |
4.3 | | First Amendment to Shareholders Rights Agreement, dated as of November 10, 2025.(14) | |
| | | |
4.4 | | Second Amendment to Shareholders Rights Agreement, dated as of May 1, 2026.(15) | |
| | | |
4.5 | | Third Amendment to Shareholders Rights Agreement, dated as of June 2, 2026.(16) | |
| | | |
10.1 | | Form of Director Restricted Stock Unit Agreement, dated as of June 18, 2026.(*) | |
| | | |
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31.1 | | Certification of Chief Executive Officer and President pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended.(*) | |
| | | |
31.2 | | Certification of Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended.(*) | |
| | | |
32.1 | | Certification of Chief Executive Officer and President pursuant to 18 U.S.C. Section 1350.(*) | |
| | | |
32.2 | | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350.(*) | |
| | | |
101 | | The following materials from Genco Shipping & Trading Limited’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025 (Unaudited), (ii) Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025 (Unaudited), (iii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2026 and 2025 (Unaudited), (iv) Condensed Consolidated Statements of Equity for the three and six months ended June 30, 2026 and 2025 (Unaudited), (v) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and 2025 (Unaudited), and (vi) Notes to Condensed Consolidated Financial Statements (Unaudited).(*) | |
| | | |
104 | | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |
| |||
| | |
(*) | Filed with this report. | |
| | |
(1) | Incorporated by reference to Genco Shipping & Trading Limited’s Report on Form 8-K, filed with the Securities and Exchange Commission on July 15, 2014. | |
| | |
(2) | Incorporated by reference to Genco Shipping & Trading Limited’s Report on Form 8-K, filed with the Securities and Exchange Commission on July 17, 2015. | |
| | |
(3) | Incorporated by reference to Genco Shipping & Trading Limited’s Report on Form 8-K, filed with the Securities and Exchange Commission on April 15, 2016. | |
| | |
(4) | Incorporated by reference to Genco Shipping & Trading Limited’s Report on Form 8-K, filed with the Securities and Exchange Commission on July 7, 2016. | |
| | |
(5) | Incorporated by reference to Genco Shipping & Trading Limited’s Report on Form 8-K, filed with the Securities and Exchange Commission on January 4, 2017. | |
| | |
(6) | Incorporated by reference to Genco Shipping & Trading Limited’s Report on Form 8-K, filed with the Securities and Exchange Commission on July 15, 2020. | |
| | |
(7) | Incorporated by reference to Genco Shipping & Trading Limited’s Report on Form 8-K, filed with the Securities and Exchange Commission on May 31, 2021. | |
| | |
(8) | Incorporated by reference to Genco Shipping & Trading Limited’s Report on Form 8-K, filed with the Securities and Exchange Commission on November 15, 2016. | |
| | |
(9) | Incorporated by reference to Genco Shipping & Trading Limited’s Report on Form 8-K, filed with the Securities and Exchange Commission on June 5, 2018. | |
| | |
(10) | Incorporated by reference to Genco Shipping & Trading Limited’s Report on Form 8-K, filed with the Securities and Exchange Commission on January 11, 2021. | |
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| | |
(11) | Incorporated by reference to Genco Shipping & Trading Limited’s Report on Form 8-K, filed with the Securities and Exchange Commission on March 31, 2023. | |
| | |
(12) | Incorporated by reference to Genco Shipping & Trading Limited’s Report on Form 8-K, filed with the Securities and Exchange Commission on August 28, 2025. | |
| | |
(13) | Incorporated by reference to Genco Shipping & Trading Limited’s Report on Form 8-K, filed with the Securities and Exchange Commission on October 1, 2025. | |
| | |
(14) | Incorporated by reference to Genco Shipping & Trading Limited’s Report on Form 8-K, filed with the Securities and Exchange Commission on November 10, 2025. | |
| | |
(15) | Incorporated by reference to Genco Shipping & Trading Limited’s Report on Form 8-K, filed with the Securities and Exchange Commission on May 1, 2026. | |
| | |
(16) | Incorporated by reference to Genco Shipping & Trading Limited’s Report on Form 8-K, filed with the Securities and Exchange Commission on June 2, 2026. | |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | GENCO SHIPPING & TRADING LIMITED | ||
| | | ||
| | | ||
| DATE: August 5, 2026 | By: | /s/ John C. Wobensmith | |
| | John C. Wobensmith | ||
| | Chief Executive Officer and President | ||
| | (Principal Executive Officer) | ||
| | | ||
| | | ||
| DATE: August 5, 2026 | By: | /s/ Peter Allen | |
| | Peter Allen | ||
| | Chief Financial Officer | ||
| | (Principal Financial Officer) | ||
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