Danaos Corporation Reports First Quarter Results for Period Ended March 31, 2026

ATHENS, Greece, May 11, 2026 /PRNewswire/ -- Danaos Corporation ("Danaos") (NYSE: DAC), one of the world's largest independent owners of container vessels, today reported unaudited results for the three-month period ended March 31, 2026.

Financial Summary

Three Months Ended March 31, 2026 and Three Months Ended March 31, 2025

Unaudited

(Expressed in thousands of United States dollars, except as otherwise stated)

Three Months Ended

March 31, 2026

March 31, 2025

Financial & Operating

Metrics

Container

Vessels

Dry bulk

Vessels

Other

Total

Container

Vessels

Dry bulk

Vessels

Other

Total

Operating Revenues

$229,550

$24,148

$253,698

$236,190

$17,117

$253,307

Voyage

Income/(Expenses), excl.

commissions

$4,601

$(5,554)

$(953)

$(307)

$(8,370)

$(8,677)

Time Charter Equivalent

Revenues (1)

$234,151

$18,594

$252,745

$235,883

$8,747

$244,630

Net income/(loss)

$113,253

$1,631

$25,537

$140,421

$119,045

$(6,542)

$2,644

$115,147

Adjusted net income /

(loss) (2)

$118,840

$1,631

$2,077

$122,548

$119,803

$(6,542)

$161

$113,422

Earnings per share, basic

$7.71

$6.14

Earnings per share, diluted

$7.70

$6.13

Adjusted earnings per

share, diluted (2)

$6.72

$6.04

Operating Days

6,595

749

6,451

832

Time Charter Equivalent

US$/day (1)

$35,504

$24,825

$36,565

$10,513

Ownership days

6,750

913

6,637

900

Average number of vessels

75.0

10.1

73.7

10.0

Fleet Utilization

97.7 %

82.0 %

97.2 %

92.4 %

Adjusted EBITDA (2)

$170,104

$8,424

$2,038

$180,566

$172,888

$(1,349)

$134

$171,673

Consolidated Balance Sheet & Leverage Metrics

As of March 31, 2026

As of December 31, 2025

Cash and cash equivalents

$876,207

$1,037,292

Availability under Revolving Credit Facility

$236,250

$247,500

Marketable securities (3)

$143,704

$120,244

Total cash liquidity & marketable securities (4)

$1,256,161

$1,405,036

Debt, gross of deferred finance costs

$1,046,263

$1,177,782

Net Debt (5)

$170,056

$140,490

LTM Adjusted EBITDA (6)

$728,269

$719,376

Net Debt / LTM Adjusted EBITDA

0.23x

0.20x

Time charter equivalent revenues and time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided in the appendix which appears later in this earnings release.

Adjusted net income/(loss), adjusted earnings per share, diluted and adjusted EBITDA are non-GAAP measures. Refer to the reconciliation of net income/(loss) to adjusted net income/(loss) and adjusted earnings per share, diluted; and net income/(loss) to adjusted EBITDA provided in the appendix which appears later in this earnings release.

Marketable securities refer to fair value of 6,256,181 shares of common stock of SBLK as of March 31, 2026 and December 31, 2025.

Total cash liquidity & marketable securities includes: (i) cash and cash equivalents, (ii) availability under our Revolving Credit Facility and (iii) marketable securities.

Net Debt is a non-GAAP measure and is defined as total debt gross of deferred finance costs less cash and cash equivalents.

Last twelve months Adjusted EBITDA. Refer to the reconciliation which appears later in this earnings release.

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

Highlights for the First Quarter Ended March 31, 2026 and up to the date of this release:

Financing developments

Fleet developments

Chartering developments

Investments

Share buy-back and dividends

Danaos' CEO Dr. John Coustas commented:

"This quarter was shaped by the unprecedented events in the Gulf and the closure of the Strait of Hormuz, a situation that is still unfolding but which we hope will be resolved in the coming weeks. The disruption has primarily benefited the tanker sector, where rates spiked sharply before quickly normalizing. In the container sector, the disruption helped stabilize and lift certain box rates, however it did not have a significant effect. Two of our vessels currently remain in the Gulf, but this does not affect our earnings as both vessels continue to be on charter.

The dry bulk market has improved considerably and continues to strengthen. Our optimistic outlook for this market prompted us to expand our order-book to four Newcastlemaxes for 2028 delivery. We also ordered two 5,000 TEU container ships for 2027 delivery, both of which are backed by three-year charters.

Together with charter arrangements for our existing fleet, these additions position us with a pro-forma fleet of 104 container ships and 15 Capesize & Newcastlemax vessels with a $4.1 billion contracted revenue backlog. Combined with $1.3 billion of liquidity, this positions us to continue pursuing accretive opportunities as they arise.

Resolution of the conflicts in the Gulf and Ukraine should bring meaningful stability for years to come, absent new initiatives by the major global powers. Last year's developments demonstrated that globalization remains resilient and that protectionism is likely to be the exception rather than the rule going forward. Trade is becoming increasingly multilateral, which benefits the midsize container ship segment in which we are actively investing.

Together with a disciplined expansion strategy, we believe these dynamics will continue to drive improving profitability and create value for our shareholders."

Three months ended March 31, 2026 compared to the three months ended March 31, 2025

During the three months ended March 31, 2026, Danaos had an average of 75.0 container vessels and 10.1 drybulk vessels compared to 73.7 container vessels and 10.0 drybulk vessels during the three months ended March 31, 2025. Our container vessels utilization for the three months ended March 31, 2026 was 97.7% compared to 97.2% in the three months ended March 31, 2025. Our drybulk vessels utilization for the three months ended March 31, 2026 was 82.0% compared to 92.4% in the three months ended March 31, 2025.

Our adjusted net income amounted to $122.5 million, or $6.72 per diluted share, for the three months ended March 31, 2026 compared to $113.4 million, or $6.04 per diluted share, for the three months ended March 31, 2025. We have adjusted our net income in the three months ended March 31, 2026 for (i) a $23.5 million gain from the change in fair value of investments, (ii) a $4.6 million loss on debt extinguishment, and (iii) $1.0 million of non-cash amortization of finance fees and debt discount.

Adjusted net income of our container vessels segment amounted to $118.8 million for the three months ended March 31, 2026, compared to $119.8 million for the three months ended March 31, 2025. We adjusted net income of container vessels segment in the three months ended March 31, 2026 for (i) a $4.6 million loss on debt extinguishment and (ii) $1.0 million of non-cash amortization of finance fees and debt discount.

Adjusted net income of our drybulk vessels segment amounted to $1.6 million for the three months ended March 31, 2026, compared to an adjusted net loss of $6.5 million for the three months ended March 31, 2025.

The $9.1 million increase in adjusted net income for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, was primarily attributable to (i) a $4.4 million decrease in total operating expenses, (ii) a $2.4 million decrease in net finance expenses, (iii) a $2.0 million increase in dividends received, and (iv) a $0.4 million increase in operating revenues, partially offset by a $0.1 million increase in loss on equity investments.

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

On a non-adjusted basis, our net income amounted to $140.4 million, or $7.70 earnings per diluted share, for the three months ended March 31, 2026 compared to net income of $115.1 million, or $6.13 earnings per diluted share, for the three months ended March 31, 2025. Our net income for the three months ended March 31, 2026 includes $23.5 million gain on marketable securities (gross of dividend income) compared to $2.5 million gain on marketable securities (gross of dividend income) in the three months ended March 31, 2025. On a non-adjusted basis, the net income of our container vessels segment amounted to $113.3 million for the three months ended March 31, 2026 compared to $119.0 million for the three months ended March 31, 2025. On a non-adjusted basis, the net income of our drybulk vessels segment amounted to $1.6 million for the three months ended March 31, 2026, compared to a net loss of $6.5 million for the three months ended March 31, 2025.

Operating Revenues

Operating revenues increased by $0.4 million, to $253.7 million in the three months ended March 31, 2026 from $253.3 million in the three months ended March 31, 2025.

Operating revenues of our container vessels segment decreased by 2.8%, or $6.6 million, to $229.6 million in the three months ended March 31, 2026, compared to $236.2 million in the three months ended March 31, 2025, analyzed as follows:

Operating revenues of our drybulk vessels segment increased by 40.9%, or $7.0 million, to $24.1 million in the three months ended March 31, 2026, compared to $17.1 million of revenues in the three months ended March 31, 2025. The increase was primarily driven by a significant improvement in Time Charter Equivalent rate per day, which increased to $24,825 per day in the three months ended March 31, 2026, from $10,513 per day in the three months ended March 31, 2025. This improvement was partially offset by a lower fleet utilization rate of 82.0% in the three months ended March 31, 2026 compared to 92.4% in the three months ended March 31, 2025.

Vessel Operating Expenses

Vessel operating expenses decreased by $1.7 million to $50.0 million for the three months ended March 31, 2026, from $51.7 million for the three months ended March 31, 2025. This decrease occurred despite an increase in the average number of vessels in our fleet due to container vessel newbuilding deliveries and reflects a reduction in average daily operating costs to $6,680 per day from $7,028 per day in the prior-year period, mainly due to lower repairs and maintenance expenses. Management believes that our daily operating costs remain among the most competitive in the industry.

Depreciation & Amortization

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

Depreciation

Depreciation expense increased by $0.9 million, to $40.9 million in the three months ended March 31, 2026 from $40.0 million in the three months ended March 31, 2025, due to the increase in the average number of vessels in our fleet.

Amortization of Deferred Dry-docking and Special Survey Costs

Amortization of deferred dry-docking and special survey costs increased by $1.3 million to $12.3 million in the three months ended March 31, 2026 from $11.0 million in the three months ended March 31, 2025, reflecting a larger number of vessels drydocked for which vessels drydocking amortization cost was recognized during the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

General and Administrative Expenses

General and administrative expenses increased by $2.4 million to $14.6 million for the three months ended March 31, 2026, from $12.2 million for the three months ended March 31, 2025. The increase was mainly attributable to $1.3 million in higher management fees mainly driven by the increase in the average number of vessels in our fleet, as well as a $1.1 million increase in corporate general and administrative expenses.

Other Operating Expenses

Other Operating Expenses include Voyage Expenses.

Voyage Expenses

Voyage expenses decreased by $7.4 million to $10.7 million in the three months ended March 31, 2026 from $18.1 million in the three months ended March 31, 2025, mainly driven by (i) a $4.9 million gain arising from early termination agreements for certain container vessels operating under time charter arrangements, with retention of bunkers on redelivery at no consideration in the three months ended March 31, 2026, and (ii) a $2.2 million decrease in voyage expenses of our dry bulk vessels, attributed to the different mix of time charter and voyage charter contracts under which our dry bulk vessels were deployed between the two periods.

Voyage expenses of our container vessels segment decreased by $5.2 million to $3.6 million in the three months ended March 31, 2026 from $8.8 million in the three months ended March 31, 2025, mainly driven by a $4.9 million gain arising from early termination agreements for certain vessels operating under time charter arrangements, with retention of bunkers on redelivery at no consideration in the three months ended March 31, 2026.

Voyage expenses of our dry bulk vessels segment decreased by $2.2 million to $7.1 million in the three months ended March 31, 2026, compared to $9.3 million in the three months ended March 31, 2025. For the three months ended March 31, 2026, voyage expenses of our dry bulk vessels comprised $1.5 million in commissions and $5.6 million in other voyage expenses, mainly comprised of bunkers costs and port expenses, compared to $1.0 million in commissions and $8.3 million in other voyage expenses for the three months ended March 31, 2025, reflecting an increase in time charter employment of our dry bulk vessels during the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

Interest Expense and Interest Income

Interest expense increased by $1.9 million, to $11.9 million in the three months ended March 31, 2026 from $10.0 million in the three months ended March 31, 2025. The increase in interest expense is a result of:

As of March 31, 2026, our outstanding debt, gross of deferred finance costs, was $1,046.3 million, which includes $500.0 million principal amount of the 6.875% Senior Notes. This compares to $1,177.8 million of outstanding debt as of December 31, 2025, which included $262.8 million principal amount of the 8.5% Senior Notes and $500.0 million principal amount of the 6.875% Senior Notes. The decrease in our outstanding debt was mainly due to (i) the early prepayment of four secured facilities under the $450 million syndicated credit facility and (ii) the repayment of the $262.8 million principal amount of the 8.5% Senior Notes, partially offset by drawdowns under the Jolco facilities.

Interest income increased by $4.0 million, to $7.6 million in the three months ended March 31, 2026 compared to $3.6 million in the three months ended March 31, 2025, mainly driven by higher average cash balances between the two periods, partially offset by lower interest rates on cash deposits between the corresponding periods.

Gain on investments

The $25.8 million gain on investments for the three months ended March 31, 2026 consisted of the change in fair value of our shareholding interest in Star Bulk Carriers Corp. ("SBLK") of $23.5 million and dividend income on these shares of $2.3 million. This compares to a $2.8 million gain on investments for the three months ended March 31, 2025, which consisted of a $2.5 million gain from the change in fair value of our shareholding interest in SBLK and $0.3 million of dividend income on these shares.

Loss on equity investments

Loss on equity investments amounting to $0.3 million and $0.2 million in the three months March 31, 2026 and March 31, 2025, respectively, relates to our share of expenses of Carbon Termination Technologies Corporation ("CTTC"), currently engaged in the research and development of decarbonization technologies for the shipping industry.

Other finance expenses

Other finance expenses decreased by $0.1 million to $0.9 million in the three months ended March 31, 2026 compared to $1.0 million in the three months ended March 31, 2025.

Loss on derivatives

Amortization of deferred realized losses on interest rate swaps remained stable at $0.9 million in the three months ended March 31, 2026 and March 31, 2025.

Other income/(expenses), net

Other income/(expenses), net, amounted to an income of $0.4 million in the three months ended March 31, 2026 compared to an income of $0.6 million in the three months ended March 31, 2025.

Adjusted EBITDA

Adjusted EBITDA increased by 5.2%, or $8.9 million, to $180.6 million for the three months ended March 31, 2026, from $171.7 million for the three months ended March 31, 2025. The increase was primarily attributable to (i) a $6.6 million decrease in total operating expenses, (ii) a $2.0 million increase in dividends received, and (iii) a $0.4 million increase in operating revenues, partially offset by a $0.1 million increase in loss on equity investments. Adjusted EBITDA for the three months ended March 31, 2026 is adjusted for (i) a $23.5 million gain from the change in fair value of investments, (ii) a $4.6 million of loss on debt extinguishment and (iii) stock based compensation of $0.1 million. Tables reconciling Adjusted EBITDA to Net Income/(Loss) can be found at the end of this earnings release.

Adjusted EBITDA of container vessels segment decreased by 1.6%, or $2.8 million, to $170.1 million in the three months ended March 31, 2026 from $172.9 million in the three months ended March 31, 2025.

Adjusted EBITDA of drybulk vessels segment increased by $9.7 million to $8.4 million in the three months ended March 31, 2026 from $(1.3) million in the three months ended March 31, 2025.

Dividend Payment

Danaos has declared a dividend of $0.90 per share of common stock for the first quarter of 2026, which is payable on June 4, 2026, to stockholders of record as of May 26, 2026.

Recent Developments

In April 2026, we received $100.0 million under the Jolco facility for vessel Greenland, with a tenor of eight years.

In April 2026, we acquired an approximately 1.9% equity interest, comprising of 45,454,545 newly issued ordinary shares, in Yoda PLC (CSE: YODA), a Cyprus-listed investment company. Yoda PLC's portfolio is focused on shipping investments in the LNG and container sectors, real estate and other participations including healthcare. The shares were subscribed at €1.10 per share for total cash consideration of €50.0 million (approximately $58.6 million).

In May 2026, we added two 5,000 TEU containership vessels to our orderbook, with expected deliveries in 2027.

Conference Call and Webcast

On Tuesday, May 12, 2026 at 9:00 A.M. ET, the Company's management will host a conference call to discuss the results.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 833 890 6464 (US Toll Free Dial In), 0 800 279 9489 (UK Toll Free Dial In) or +44 (0) 2075 441 375 (Standard International Dial In). Please indicate to the operator that you wish to join the Danaos Corporation earnings call.

A telephonic replay of the conference call will be available until May 20, 2026 by dialing 1 855 669 9658 (US Toll Free Dial In) or 1-412-317-0088 (Standard International Dial In) and using 6800112# as your access code.

Audio Webcast

There will also be a live and then archived webcast of the conference call on the Danaos website ( www.danaos.com). Participants of the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. An archived version of the audio webcast will be available on the website within 48 hours of the completion of the call.

Slide Presentation

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

About Danaos Corporation

Danaos Corporation is one of the largest independent owners of modern, large-size containerships. Our current fleet of 75 containerships aggregating 477,491 TEUs and 29 under construction container vessels aggregating 184,550 TEUs ranks Danaos among the largest container vessels charter owners in the world based on total TEU capacity. Danaos has also invested in the dry bulk sector through the acquisition of 11 capesize drybulk vessels and the recent order of four Newcastlemax dry bulk newbuildings, which, on a fully delivered basis, will aggregate approximately 2,787,286 DWT in capacity. Our container vessels fleet is chartered to many of the world's largest liner companies on fixed-rate charters. Our long track record of success is predicated on our efficient and rigorous operational standards and environmental controls. Danaos Corporation's shares trade on the New York Stock Exchange under the symbol "DAC".

Forward-Looking Statements

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

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

Visit our website at www.danaos.com

APPENDIX

Container vessels fleet utilization

Vessel Utilization (No. of Days)

Three months

ended

Three months

ended

March 31,

2026

2025

Ownership Days

6,750

6,637

Less Off-hire Days:

Scheduled Off-hire Days

(146)

(167)

Other Off-hire Days

(9)

(19)

Operating Days

6,595

6,451

Vessel Utilization

97.7 %

97.2 %

Operating Revenues (in '000s of US$)

$229,550

$236,190

Less: Voyage Income/(Expenses) excluding commissions (in '000s of

US$)

$4,601

$(307)

Time Charter Equivalent Revenues (in '000s of US$)

$234,151

$235,883

Time Charter Equivalent US$/per day

$35,504

$36,565

Drybulk vessels fleet utilization

Vessel Utilization (No. of Days)

Three months

ended

Three months

ended

March 31,

2026

2025

Ownership Days

913

900

Less Off-hire Days:

Scheduled Off-hire Days

(163)

(56)

Other Off-hire Days

(1)

(12)

Operating Days

749

832

Vessel Utilization

82.0 %

92.4 %

Operating Revenues (in '000s of US$)

$24,148

$17,117

Less: Voyage Expenses excluding commissions (in '000s of US$)

$(5,554)

$(8,370)

Time Charter Equivalent Revenues (in '000s of US$)

$18,594

$8,747

Time Charter Equivalent US$/per day

$24,825

$10,513

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

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

Fleet List

Operating Container Vessels

The following table describes in detail our 75 container vessels deployment profile as of May 11, 2026:

Vessel Name

Vessel

Size

Year Built

Expiration of Charter (2)

(TEU) (1)

Ambition

13,100

2012

April 2027

Speed

13,100

2012

March 2027

Kota Plumbago

13,100

2012

July 2027

Kota Primrose

13,100

2012

April 2027

Kota Peony

13,100

2012

March 2027

Express Rome

10,100

2011

August 2030

Express Berlin

10,100

2011

March 2029

Express Athens

10,100

2011

July 2030

Le Havre

9,580

2006

June 2028

Pusan C

9,580

2006

May 2028

Bremen

9,012

2009

January 2028

C Hamburg

9,012

2009

January 2028

Niledutch Lion

8,626

2008

April 2029

Kota Manzanillo

8,533

2005

December 2028

Belita

8,533

2006

June 2028

CMA CGM Melisande

8,530

2012

January 2028

CMA CGM Attila

8,530

2011

May 2027

CMA CGM Tancredi

8,530

2011

July 2027

CMA CGM Bianca

8,530

2011

September 2027

CMA CGM Samson

8,530

2011

November 2027

America

8,468

2004

April 2028

Europe

8,468

2004

May 2028

Kota Santos

8,463

2005

June 2029

Catherine C

8,010

2024

June 2029

Greenland

8,010

2024

August 2029

Greenville

8,010

2024

October 2029

Greenfield

8,010

2024

November 2029

Interasia Accelerate

7,165

2024

April 2032

Interasia Amplify

7,165

2024

September 2032

CMA CGM Moliere

6,500

2009

August 2030

CMA CGM Musset

6,500

2010

September 2030

CMA CGM Nerval

6,500

2010

October 2030

CMA CGM Rabelais

6,500

2010

January 2028

Racine

6,500

2010

March 2029

YM Mandate

6,500

2010

January 2028

YM Maturity

6,500

2010

April 2028

Savannah

6,402

2002

June 2027

Dimitra C

6,402

2002

April 2027

Phoebe ( 3 )

6,014

2025

October 2031

Greenhouse (3)

6,014

2025

August 2032

Suez Canal

5,610

2002

April 2028

Kota Lima

5,544

2002

November 2028

Wide Alpha

5,466

2014

January 2030

Stephanie C

5,466

2014

September 2028

Euphrates

5,466

2014

September 2028

Wide Hotel

5,466

2015

March 2030

Wide India

5,466

2015

October 2028

Wide Juliet

5,466

2015

August 2027

Seattle C

4,253

2007

June 2029

Vancouver

4,253

2007

October 2029

Derby D

4,253

2004

December 2029

Tongala

4,253

2004

October 2029

Rio Grande

4,253

2008

October 2029

Paolo

4,253

2008

November 2027

Kingston

4,253

2008

June 2027

Monaco

4,253

2009

May 2029

Dalian

4,253

2009

April 2028

Jamaica (ex Luanda)

4,253

2009

August 2028

Dimitris C

3,430

2001

September 2027

Express Black Sea

3,400

2011

September 2029

Express Spain

3,400

2011

September 2029

Express Argentina

3,400

2010

September 2029

Express Brazil

3,400

2010

April 2027

Express France

3,400

2010

July 2027

Singapore

3,314

2004

November 2029

Colombo

3,314

2004

September 2029

Zebra

2,602

2001

December 2026

Artotina

2,524

2001

November 2027

Advance

2,200

1997

September 2027

Future

2,200

1997

September 2027

Sprinter

2,200

1997

November 2027

Bridge

2,200

1998

January 2028

Progress C

2,200

1998

January 2028

Phoenix D

2,200

1997

June 2027

Highway

2,200

1998

January 2028

Total TEUs

477,491

(1)

Twenty-feet equivalent unit, the international standard measure for containers and container vessels capacity.

(2)

Earliest date charters could expire. Some charters include options for the charterer to extend their terms.

(3)

The newbuilding vessels were delivered to us during 2025.

Under Construction Container Vessels

The following table describes in detail our 29 container vessels under construction as of May 11, 2026:

Hull Number

Vessel

Size

TEU (1)

Expected

Delivery

Year ( 2 )

Minimum

Charter

Duration

Hull No. YZJ2023-1556

8,258

2026

5.0 years

Hull No. YZJ2023-1557

8,258

2026

5.0 years

Hull No. YZJ2024-1612

8,258

2026

5.0 years

Hull No. C9200-7

9,200

2027

4.8 years

Hull No. C9200-8

9,200

2027

4.8 years

Hull No. CV5900-09

6,014

2027

4.8 years

Hull No. YZJ2024-1613

8,258

2027

5.0 years

Hull No. YZJ2024-1625

8,258

2027

5.0 years

Hull No. YZJ2024-1626

8,258

2027

5.0 years

Hull No. YZJ2024-1668

8,258

2027

5.0 years

Hull No. H2596

9,200

2027

6.0 years

Hull No. C7100-9

7,165

2027

5.0 years

Hull No. C7100-10

7,165

2027

5.0 years

Hull No. C9200-9

9,200

2027

4.8 years

Hull No. H2597

9,200

2027

6.0 years

Hull No. S1162

1,800

2027

9.9 years

Hull No. NGY0041 (4)

5,000

2027

3.0 years

Hull No. NGY0042 (4)

5,000

2027

3.0 years

Hull No. S1163

1,800

2028

9.9 years

Hull No. C9200-10

9,200

2028

4.8 years

Hull No. S1164

1,800

2028

9.9 years

Hull No. C9200-11

9,200

2028

4.8 years

Hull No. S1165

1,800

2028

9.9 years

Hull No. S1166

1,800

2028

Hull No. H2638

5,300

2028

Hull No. S1167

1,800

2029

Hull No. H2639

5,300

2029

Hull No. H2640 (3)

5,300

2029

Hull No. H2641 (3)

5,300

2029

Total TEUs

184,550

(1)

Twenty-feet equivalent unit, the international standard measure for containers and container vessels capacity.

(2)

Under construction container vessels' expected delivery dates were sorted based on the upcoming deliveries.

(3)

The newbuilding containership vessels were added to our orderbook in the first quarter of 2026.

(4)

The newbuilding containership vessels were added to our orderbook in the second quarter of 2026.

Operating Drybulk Vessels

The following table describes the details of our 11 Capesize drybulk vessels as of May 11, 2026:

Vessel Name

Capacity

(DWT) (1)

Year Built

Genius

175,580

2012

Achievement

175,966

2011

Ingenuity

176,022

2011

Danaos

176,536

2011

Valentine

175,125

2011

Integrity

175,966

2010

Peace

175,858

2010

Gouverneur

178,043

2010

W Trader

175,879

2009

E Trader

175,886

2009

John Junior (ex. Hebei No.1) (2)

182,425

2009

Total DWT capacity

1,943,286

(1)

DWT, dead weight tons, the international standard measure for drybulk vessels capacity.

(2)

The vessel was delivered in the first quarter of 2026.

Under Construction Drybulk Vessels

The following table describes the details of our four Newcastlemax drybulk vessels as of May 11, 2026:

Vessel Name (2)

Capacity

(DWT) (1)

Expected

Delivery

Year

DJCFD010

211,000

2028

DJCFD011

211,000

2028

DJCFD016

211,000

2028

DJCFD017

211,000

2028

Total DWT capacity

844,000

(1)

DWT, dead weight tons, the international standard measure for drybulk vessels capacity.

(2)

The newbuilding Newcastlemax drybulk vessels were added to our orderbook in the first quarter of 2026.

DANAOS CORPORATION

Condensed Consolidated Statements of Income - Unaudited

(Expressed in thousands of United States dollars, except per share amounts)

Three months ended

March 31,

2026

2025

OPERATING REVENUES

$253,698

$253,307

OPERATING EXPENSES

Vessel operating expenses

(49,984)

(51,702)

Depreciation & amortization

(53,159)

(50,998)

General & administrative expenses

(14,637)

(12,222)

Other operating expenses

(10,721)

(18,135)

Income From Operations

125,197

120,250

OTHER INCOME/(EXPENSES)

Interest income

7,557

3,605

Interest expense

(11,859)

(10,003)

Gain on investments

25,775

2,849

Loss on debt extinguishment

(4,622)

Other finance expenses

(868)

(987)

Loss on equity investments

(277)

(232)

Other income/(expenses), net

411

558

Realized loss on derivatives

(893)

Total Other Income/(Expenses), net

15,224

(5,103)

NET INCOME

140,421

115,147

EARNINGS PER SHARE

Basic earnings per share

$7.71

$6.14

Diluted earnings per share

$7.70

$6.13

Basic weighted average number of common shares

(in thousands of shares)

18,210

18,750

Diluted weighted average number of common shares

(in thousands of shares)

18,233

18,781

Non-GAAP Measures 1

Reconciliation of Net Income to Adjusted Net Income – Unaudited

Three months ended

March 31,

2026

2025

Net Income

$140,421

$115,147

Change in fair value of investments

(23,460)

(2,483)

Loss on debt extinguishment

4,622

Amortization of financing fees and debt discount

965

758

Adjusted Net Income

$122,548

$113,422

Adjusted Earnings Per Share, diluted

$6.72

$6.04

Diluted weighted average number of shares

(in thousands of shares)

18,233

18,781

1 The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Table above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended March 31, 2026 and 2025. The non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.

DANAOS CORPORATION

Condensed Consolidated Balance Sheets - Unaudited

(Expressed in thousands of United States dollars)

As of

March 31,

December 31,

2026

2025

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$876,207

$1,037,292

Accounts receivable, net

34,104

38,730

Other current assets

279,142

243,397

1,189,453

1,319,419

NON-CURRENT ASSETS

Fixed assets, net

3,255,209

3,269,703

Advances for vessels under construction & vessel acquisition

553,419

428,147

Deferred charges, net

55,941

54,356

Other non-current assets

54,047

42,305

3,918,616

3,794,511

TOTAL ASSETS

$5,108,069

$5,113,930

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Long-term debt, current portion

$21,813

$283,015

Accounts payable, accrued liabilities & other current liabilities

115,522

118,661

137,335

401,676

LONG-TERM LIABILITIES

Long-term debt, net

1,003,513

872,076

Other long-term liabilities

49,716

44,601

1,053,229

916,677

STOCKHOLDERS' EQUITY

Common stock

182

183

Additional paid-in capital

588,035

591,584

Accumulated other comprehensive loss

(69,972)

(71,412)

Retained earnings

3,399,260

3,275,222

3,917,505

3,795,577

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$5,108,069

$5,113,930

DANAOS CORPORATION

Condensed Consolidated Statements of Cash Flows - Unaudited

(Expressed in thousands of United States dollars)

Three months

ended

Three months

ended

March 31,

2026

2025

Operating Activities:

Net income

$140,421

$115,147

Adjustments to reconcile net income to net cash provided by operating

activities:

Depreciation

40,862

40,028

Amortization of deferred drydocking & special survey costs and finance

costs

13,262

11,728

Prior service cost and periodic cost

440

1,085

Gain on investments

(23,460)

(2,483)

Loss on debt extinguishment

4,622

Payments for drydocking/special survey costs deferred

(13,882)

(15,789)

Amortization of deferred realized losses on cash flow interest rate swaps

893

Loss on equity investments

277

232

Stock based compensation

2,390

1,705

Accounts receivable

1,435

172

Other assets, current and non-current

(4,079)

(6,384)

Accounts payable and accrued liabilities

8,401

(2,555)

Other liabilities, current and long-term

(8,446)

(9,919)

Net Cash provided by Operating Activities

163,136

133,860

Investing Activities:

Vessel additions and advances for vessels under construction

(151,640)

(85,690)

Equity investments/Investments in marketable securities

(12,917)

Net proceeds and insurance proceeds from disposal of vessel

1,681

Net Cash used in Investing Activities

(164,557)

(84,009)

Financing Activities:

Proceeds from long-term debt

351,000

44,000

Debt repayments and debt prepayments

(482,519)

(8,805)

Dividends paid

(16,378)

(15,890)

Repurchase of common stock

(6,823)

(33,774)

Finance costs

(4,944)

(8,223)

Net Cash used in Financing Activities

(159,664)

(22,692)

Net (decrease)/increase in cash and cash equivalents

(161,085)

27,159

Cash and cash equivalents, beginning of period

1,037,292

453,384

Cash and cash equivalents, end of period

$876,207

$480,543

Supplemental cash flow information:

Cash paid for interest, net of amounts capitalized

$23,111

$15,250

DANAOS CORPORATION

Reconciliation of Net Income to Adjusted EBITDA - Unaudited

(Expressed in thousands of United States dollars)

Three months

ended

Three months

ended

Last twelve

months

ended

Last twelve

months

ended

March 31,

2026

2025

2026

2025

Net income

$140,421

$115,147

$519,888

$469,722

Depreciation

40,862

40,028

164,200

154,509

Amortization of deferred drydocking & special survey

costs

12,297

10,970

45,401

34,679

Amortization of assumed time charters

(1,036)

Amortization of deferred finance costs, commitment fees

and debt discount

1,453

1,336

5,811

4,968

Amortization of deferred realized losses on interest rate

swaps

893

3,622

Interest income

(7,557)

(3,605)

(23,500)

(13,559)

Interest expense excluding amortization of finance costs

10,894

9,245

41,004

30,477

Change in fair value of investments

(23,460)

(2,483)

(50,518)

33,675

Loss on debt extinguishment

4,622

7,121

Stock based compensation

141

142

15,240

8,360

Net gain on disposal of vessels

(8,332)

Adjusted EBITDA (1)

$180,566

$171,673

$728,269

$717,085

Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs, commitment fees and debt discount, amortization of deferred realized losses on interest rate swaps, adjusted for the change in fair value of investments, stock based compensation, loss on debt extinguishment and net gain on disposal of vessels. However, Adjusted EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or "GAAP." We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that EBITDA and Adjusted EBITDA assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.

Note: Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to net income. Charges negatively impacting net income are reflected as increases to net income.

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months and year ended March 31, 2026 and March 31, 2025, respectively. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.

DANAOS CORPORATION

Reconciliation of Net Income to Adjusted EBITDA per segment

Three Months Ended March 31, 2026 and Three Months Ended March 31, 2025

Unaudited

(Expressed in thousands of United States dollars)

Three Months Ended

March 31, 2026

March 31, 2025

Container

Vessels

Drybulk

Vessels

Other

Total

Container

Vessels

Drybulk

Vessels

Other

Total

Net income/(loss)

$113,253

$1,631

$25,537

$140,421

$119,045

$(6,542)

$2,644

$115,147

Depreciation

37,501

3,361

40,862

36,764

3,264

40,028

Amortization of

deferred drydocking &

special survey costs

8,874

3,423

12,297

9,051

1,919

10,970

Amortization of

deferred finance

costs, commitment

fees and debt

discount

1,453

1,336

Amortization of

deferred realized

losses on interest rate

swaps

893

Interest income

(7,518)

(39)

(7,557)

(3,578)

(27)

(3,605)

Interest expense

excluding

amortization of

finance costs

10,894

9,245

Change in fair value

of investments

(23,460)

(2,483)

Loss on debt

extinguishment

4,622

Stock based

compensation

132

141

132

142

Adjusted EBITDA (1)

$170,104

$8,424

$2,038

$180,566

$172,888

$(1,349)

$134

$171,673

Adjusted EBITDA represents net income/(loss) before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of deferred finance costs, commitment fees and debt discount, amortization of deferred realized losses on interest rate swaps and adjusted for the change in fair value of investments stock based compensation and loss on debt extinguishment. However, Adjusted EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or "GAAP." We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that EBITDA and Adjusted EBITDA assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended March 31, 2026 and 2025, respectively. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.

DANAOS CORPORATION

Reconciliation of Net Income to Adjusted Net Income per segment

Three Months Ended March 31, 2026 and Three Months Ended March 31, 2025

Unaudited

(Expressed in thousands of United States dollars)

Three Months Ended

March 31, 2026

March 31, 2025

Container

Vessels

Drybulk

Vessels

Other

Total

Container

Vessels

Drybulk

Vessels

Other

Total

Net income/(loss)

$113,253

$1,631

$25,537

$140,421

$119,045

$(6,542)

$2,644

$115,147

Change in fair value of

investments

(23,460)

(2,483)

Loss on debt

extinguishment

4,622

Amortization of

financing fees and

debt discount

965

758

Adjusted Net

income/(loss) (1)

$118,840

$1,631

$2,077

$122,548

$119,803

$(6,542)

$161

$113,422

Adjusted Earnings

per Share, diluted

$6.72

$6.04

Diluted weighted average number of shares

(in thousands of shares)

18,233

18,781

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that Adjusted Net income/(loss) and Adjusted Earnings per share, diluted, which are non-GAAP financial measures and used in managing the business, may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Table above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended March 31, 2026 and 2025, respectively. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.

SOURCE Danaos Corporation