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• Adjusted EPS: $6.04 per share for Q1 2025, down from $7.15 per share in Q1 2024.

• Adjusted Net Income: $113.4 million for Q1 2025, compared to $140 million in Q1 2024.

• Total Operating Costs: Increased by $19.8 million due to a larger fleet.

• Incremental Operating Revenues: $30.1 million increase, offset by decreases in other segments.

• Vessel Operating Expenses: Increased to $51.7 million from $43.1 million in Q1 2024.

• Daily Operating Costs: Increased to just above $7,000 per vessel per day from $6,500 in Q1 2024.

• G&A Expenses: Increased by $2 million to $12.2 million.

• Interest Expense: Increased by $6.6 million to $9.2 million.

• Adjusted EBITDA: Decreased by 3.1% to $171.7 million from $177.2 million in Q1 2024.

• Contracted Revenue Backlog: Increased to $3.7 billion with a 3.9-year average charter duration.

• Net Debt: Stood at $299 million as of March 31, 2025.

• Net Debt to Adjusted EBITDA Ratio: 0.4 times at the end of Q1 2025.

• Dividend: Declared at $0.85 per share for the quarter.

• Stock Repurchase: Additional $36.9 million repurchased, total program upsized to $300 million.

• Cash and Total Liquidity: Cash at $480 million, total liquidity at $825 million.

• Warning! GuruFocus has detected 4 Warning Signs with SPRY.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Danaos Corp (NYSE:DAC) has secured a strong charter coverage for 2025 and 2026, effectively insulating itself from near-term market weakness.

• The company has a significant growth backlog with 15 container vessels scheduled for delivery over the next three years, all backed by solid and profitable charter arrangements.

• Danaos Corp (NYSE:DAC) has added more than $50 billion to its contracted revenue backlog, which now stands at $3.7 billion with a 3.9-year average charter duration.

• The company maintains a strong liquidity position with $480 million in cash and total liquidity of $825 million, providing flexibility for capital deployment opportunities.

• Danaos Corp (NYSE:DAC) continues to repurchase its stock, with a recent upsizing of its buyback program to $300 million, demonstrating a commitment to delivering superior returns to shareholders.

Negative Points

• Danaos Corp (NYSE:DAC) experienced a $26.6 million decrease in adjusted net income compared to the first quarter of 2024, primarily due to increased operating costs and lower charter rates.

• The company faced a $19.8 million increase in total operating costs, mainly due to the increase in the average number of vessels in its fleet.

• Revenues from the container segment decreased by $9.4 million due to lower contracted charter rates.

• Vessel operating expenses increased by $8.6 million, and daily operating costs rose to just above $7,000 per vessel per day.

• The proposed IMO regulation on greenhouse gas emissions falls short of industry expectations, providing limited incentive for the use of expensive green fuels, which creates uncertainty about future fuel choices.