Danaos Corporation Reports Third Quarter and Nine Months Results for the Period Ended September 30, 2025

ATHENS, Greece, Nov. 17, 2025 /PRNewswire/ -- Danaos Corporation ("Danaos") (NYSE: DAC), one of the world's largest independent owners of container vessels and drybulk vessels, today reported unaudited results for the period ended September 30, 2025.

Financial Summary

Three Months Ended September 30, 2025 and Three Months Ended September 30, 2024

Unaudited

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

Three Months Ended

September 30, 2025

September 30, 2024

Financial & Operating Metrics

Container

Vessels

Drybulk

Vessels

Other

Total

Container

Vessels

Drybulk

Vessels

Other

Total

Operating Revenues

$239,102

$21,628

$260,730

$235,570

$20,606

$256,176

Voyage Expenses, excl. commissions

$(909)

$(3,311)

$(4,220)

$757

$(8,019)

$(7,262)

Time Charter Equivalent Revenues (1)

$238,193

$18,317

$256,510

$236,327

$12,587

$248,914

Net income/(loss)

$118,703

$3,404

$8,542

$130,649

$124,102

$62

$(1,168)

$122,996

Adjusted net income (2)

$120,566

$3,404

$159

$124,129

$125,143

$62

$1,640

$126,845

Earnings per share, basic

$7.14

$6.36

Earnings per share, diluted

$7.11

$6.30

Adjusted earnings per share, diluted (2)

$6.75

$6.50

Operating Days

6,679

920

6,387

778

Time Charter Equivalent $/day (1)

$35,663

$19,910

$37,001

$16,179

Ownership days

6,808

920

6,540

913

Average number of vessels

74.0

10.0

71.1

9.9

Fleet Utilization

98.1 %

100.0 %

97.7 %

85.2 %

Adjusted EBITDA (2)

$172,368

$9,128

$124

$181,620

$173,454

$3,826

$1,617

$178,897

Consolidated Balance Sheet & Leverage Metrics

As of September 30,2025

As of December 31, 2024

Cash and cash equivalents

$596,371

$453,384

Availability under Revolving Credit Facility

$258,750

$292,500

Marketable securities (3)

$116,302

$60,850

Total cash liquidity & marketable securities (4)

$971,423

$806,734

Debt, gross of deferred finance costs

$760,911

$744,546

Net Debt (5)

$164,540

$291,162

LTM Adjusted EBITDA (6)

$719,061

$722,615

Net Debt / LTM Adjusted EBITDA

0.23X

0.40x

Time charter equivalent revenues and time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided in the appendix.

Adjusted net income, adjusted earnings per share and adjusted EBITDA are non-GAAP measures. Refer to the reconciliation of net income to adjusted net income and adjusted earnings per share; and net income to adjusted EBITDA provided below.

Marketable securities refer to fair value of 6,256,181 and 4,070,214 shares of common stock of SBLK on September 30, 2025 and December 31, 2024, respectively.

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 defined as debt gross of deferred finance costs less cash and cash equivalents.

Last twelve months Adjusted EBITDA. Refer to the reconciliation provided below.

For management purposes, the Company is organized based on operating revenues generated from container vessels and drybulk vessels and has two reporting segments: (1) a container vessels segment and (2) a drybulk 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.

Financial Summary

Nine Months Ended September 30, 2025 and Nine Months Ended September 30, 2024

Unaudited

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

Nine Months Ended

September 30, 2025

September 30, 2024

Financial & Operating Metrics

Container

Vessels

Drybulk

Vessels

Other

Total

Container

Vessels

Drybulk

Vessels

Other

Total

Operating Revenues

$714,738

$61,453

$776,191

$699,567

$56,364

$755,931

Voyage Expenses, excl. commissions

$(1,658)

$(18,105)

$(19,763)

$(179)

$(22,115)

$(22,294)

Time Charter Equivalent Revenues (1)

$713,080

$43,348

$756,428

$699,388

$34,249

$733,637

Net income/(loss)

$353,641

$(2,872)

$25,931

$376,700

$396,144

$2,689

$15,813

$414,646

Adjusted net income / (loss) (2)

$357,049

$(2,872)

$331

$354,508

$391,062

$2,689

$5,418

$399,169

Earnings per share, basic

$20.40

$21.41

Earnings per share, diluted

$20.34

$21.22

Adjusted earnings per share, diluted (2)

$19.14

$20.43

Operating Days

19,753

2,660

18,494

1,978

Time Charter Equivalent $/day (1)

$36,100

$16,296

$37,817

$17,315

Ownership days

20,179

2,730

18,978

2,244

Average number of vessels

73.9

10.0

69.3

8.2

Fleet Utilization

97.9 %

97.4 %

88.1 %

Adjusted EBITDA (2)

$515,419

$13,677

$238

$529,334

$516,763

$10,730

$5,395

$532,888

Time charter equivalent revenues and time charter equivalent $/day are non-GAAP measures. Refer to the reconciliation provided in the appendix.

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 below.

Highlights for the Third Quarter and Nine Months Ended September 30, 2025 and up to date of this release:

Danaos' CEO Dr. John Coustas commented:

As we enter the final months of the year, operating conditions remain broadly unchanged. The war in Ukraine continues with no end in sight, and while the conflict in the Middle East is in the process of resolution, transit through the Red Sea has not yet resumed and liners are waiting for more permanent signs of stability to restart the transit.

The recent de-escalation in trade and tariff tensions between the United States and China enabled trade to resume unhindered, while the redirection of Chinese exports to the EU and other countries kept trading and container traffic at an all times high during the third quarter of the year. The charter market remains robust, and the idle fleet remains at all-time low. Demand for mid-size and larger vessels continues unabated, and we have secured new charters for vessels opening as far out as the beginning of 2028. Shipyard slots for 2028 deliveries are becoming scarce and newbuilding prices continue to rise. We have selectively extended our newbuilding program at below market prices and we have already secured multi-year employment for these new orders. Following the IMO's one-year postponement of its Net-Zero Framework, we expect conventional fuels to remain prevalent in the medium term, even as the long-term decarbonization trajectory is unchanged.

In relation to our newbuilding program, we recently added six 1,800 TEU vessels to our orderbook with scheduled deliveries between 2027 and 2029 and have secured 10 year charters for four of these vessels with a contribution to our contracted revenue backlog of approximately $236 million.

On the financing front, we recently completed a $500 million unsecured seven year bond offering with a 6.875% coupon. This is one of the most competitively priced deals ever achieved in the shipping industry for an unsecured bond with such tenor and is a testament of our superior credit quality. We intend to use the proceeds to redeem our 2028 $300 million bond as well as prepay in full some smaller secured bank credit facilities. We have already arranged secured debt financing for the majority of our newbuilding program and our fortress balance sheet that has been solidified with the recent bond issuance considerably enhances our capacity to pursue accretive investment opportunities that can propel the growth of Danaos into the next level.

Our solid performance has enabled us to continue to deliver strong, profitable performance, enhance our contract backlog and fund investments to reduce the age of our fleet and further cement Danaos' leadership position in the container charter market. We also continue to opportunistically invest in the dry bulk Capesize market segment, where we expect outsized returns due to supply constraints and ton-mile demand increase.

Finally, I am pleased to announce that we are increasing our quarterly dividend to 90 cents per share, consistent with our policy of yearly increases, while also striving to continue to build long term value for the benefit of our shareholders.

Three months ended September 30, 2025 compared to the three months ended September 30, 2024

During the three months ended September 30, 2025, Danaos had an average of 74 container vessels and 10 Capesize drybulk vessels compared to 71.1 container vessels and 9.9 Capesize drybulk vessels during the three months ended September 30, 2024. Our container vessels utilization for the three months ended September 30, 2025 was 98.1% compared to 97.7% in the three months ended September 30, 2024. Our drybulk vessels utilization for the three months ended September 30, 2025 was 100.0% compared to 85.2% in the three months ended September 30, 2024.

Our adjusted net income amounted to $124.1 million, or $6.75 per diluted share, for the three months ended September 30, 2025 compared to $126.8 million, or $6.50 per diluted share, for the three months ended September 30, 2024. We have adjusted our net income in the three months ended September 30, 2025 for a $8.4 million gain from the change in fair value of investments, a $1.1 million loss on debt extinguishment and a $0.8 million non-cash finance fees amortization.

Adjusted net income of our container vessels segment amounted to $120.6 million for the three months ended September 30, 2025 compared to $125.1 million for the three months ended September 30, 2024. We adjusted net income of container vessels segment in the three months ended September 30, 2025 for a $1.1 million loss on debt extinguishment and a $0.8 million non-cash finance fees amortization.

Adjusted net income of our drybulk vessels segment amounted to $3.4 million for the three months ended September 30, 2025 compared to $0.1 million for the three months ended September 30, 2024.

The $2.7 million decrease in our adjusted net income for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 is primarily attributable to (i) $6.1 million increase in total operating expenses, (ii) $2.5 million decrease in dividends received, offset by (iii) $1.0 million decrease in equity loss on investments, (iv) $0.4 million decrease in net finance expenses and (v) $4.5 million increase in operating revenues.

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

On a non-adjusted basis, our net income amounted to $130.6 million, or $7.11 earnings per diluted share, for the three months ended September 30, 2025 compared to net income of $123.0 million, or $6.30 earnings per diluted share, for the three months ended September 30, 2024. Our net income for the three months ended September 30, 2025 includes $8.4 million gain on marketable securities (gross of dividend income) compared to $2.8 million loss on marketable securities (gross of dividend income) in the three months ended September 30, 2024. On a non-adjusted basis, the net income of our container vessels segment amounted to $118.7 million for the three months ended September 30, 2025 compared to $124.1 million for the three months ended September 30, 2024. On a non-adjusted basis, the net income of our drybulk vessels segment amounted to $3.4 million net income for the three months ended September 30, 2025 compared to $0.1 million income for the three months ended September 30, 2024.

Operating Revenues

Operating revenues increased by 1.8%, or by $4.5 million, to $260.7 million in the three months ended September 30, 2025 from $256.2 million in the three months ended September 30, 2024.

Operating revenues of our container vessels segment increased by 1.5%, or $3.5 million, to $239.1 million in the three months ended September 30, 2025 from $235.6 million in the three months ended September 30, 2024, analyzed as follows:

Operating revenues of our drybulk vessels segment increased by 4.9%, or by $1.0 million, to $21.6 million in the three months ended September 30, 2025, compared to $20.6 million of revenues in the three months ended September 30, 2024, as a result of improved charter rates and higher dry bulk vessel utilization between the two periods.

Vessel Operating Expenses

Vessel operating expenses increased by $2.4 million to $52.3 million in the three months ended September 30, 2025 from $49.9 million in the three months ended September 30, 2024, primarily as a result of the increase in the average number of vessels in our fleet due to container vessel newbuilding deliveries and dry bulk vessels acquisitions and the increase in average daily operating cost of our vessels to $6,927 per vessel per day for the three months ended September 30, 2025 compared to $6,860 per vessel per day for the three months ended September 30, 2024. 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 Drydocking and Special Survey Costs.

Depreciation

Depreciation expense increased by $2.5 million, to $41.2 million in the three months ended September 30, 2025 from $38.7 million in the three months ended September 30, 2024 due to the increase in the average number of vessels in our fleet.

Amortization of Deferred Drydocking and Special Survey Costs

Amortization of deferred drydocking and special survey costs increased by $3.3 million to $10.8 million in the three months ended September 30, 2025 from $7.5 million in the three months ended September 30, 2024, reflecting a larger number of vessels drydocked for which vessels drydocking amortization costs were recognized during the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

General and Administrative Expenses

General and administrative expenses increased by $1.6 million, to $12.6 million in the three months ended September 30, 2025 from $11.0 million in the three months ended September 30, 2024. The increase was mainly attributable to $0.3 million higher management fees due to the increase in the average number of vessels in our fleet and a $1.3 million increase in corporate general and administrative expenses.

Other Operating Expenses

Other Operating Expenses include Voyage Expenses.

Voyage Expenses

Voyage expenses decreased by $3.1 million to $13.9 million in the three months ended September 30, 2025 from $17.0 million in the three months ended September 30, 2024, driven by a $3.0 million decrease in other voyage expenses, mainly attributed to a different mix of time charter and voyage charter contracts under which our dry bulk vessels were deployed between the two periods.

More analytically, voyage expenses of our dry bulk vessels segment decreased by $4.5 million, to $4.7 million in the three months ended September 30, 2025 compared to $9.2 million voyage expenses in the three months ended September 30, 2024. For the three months ended September 30, 2025, voyage expenses of our dry bulk vessels comprised of $1.4 million in commissions and $3.3 million in other voyage expenses, mainly comprised of bunkers cost and port expenses, compared to $1.2 million in commissions and $8.0 million in other voyage expenses for the three months ended September 30, 2024, reflecting an increase in time charter employment of our dry bulk vessels during the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

Voyage expenses of our container vessels segment increased by $1.4 million to $9.2 million in the three months ended September 30, 2025, from $7.8 million in the three months ended September 30, 2024.

Interest Expense and Interest Income

Interest expense increased by $0.5 million, to $8.5 million in the three months ended September 30, 2025 from $8.0 million in the three months ended September 30, 2024. The increase in interest expense is a result of:

As of September 30, 2025, our outstanding debt, gross of deferred finance costs, was $760.9 million, which included $262.8 million principal amount of our existing 8.5% Senior Notes. These balances compare to debt of $689.5 million, which included $262.8 million principal amount of our existing 8.5% Senior Notes as of September 30, 2024. The increase in our outstanding debt is mainly due to loans drawn down to partially finance our container vessel newbuildings.

Interest income increased by $0.7 million to $3.8 million in the three months ended September 30, 2025 compared to $3.1 million in the three months ended September 30, 2024, mainly driven by higher average cash balances between the two periods, partially offset by lower interest rates on cash deposits.

Gain on Investments

The $8.7 million gain on investments in the three months ended September 30, 2025 consisted of the gain from the change in fair value of our shareholding interest in Star Bulk Carriers Corp. ("SBLK") of $8.4 million and dividend income on these shares of $0.3 million. This compares to a $0.04 million gain on investments in the three months ended September 30, 2024, representing a $2.8 million loss from the change in fair value change on our SBLK shareholding interest, which was offset by dividend income on these shares of $2.8 million.

Loss on Debt Extinguishment

The loss on debt extinguishment of $1.1 million in the three months ended September 30, 2025 related to our early extinguishment of debt compared to nil in the three months ended September 30, 2024.

Equity Loss on Investments

Equity loss on investments amounting to $0.2 million and $1.2 million in the three months September 30, 2025 and September 30, 2024, respectively, relates to our share of initial 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 remained stable at $0.9 million in each of the three months ended September 30, 2025 and September 30, 2024, respectively.

Loss on Derivatives

Amortization of deferred realized losses on interest rate swaps remained stable at $0.9 million in each of the three months ended September 30, 2025 and September 30, 2024.

Other Income/(Expenses), Net

Other expenses, net, amounted to an expense of $0.3 million in the three months ended September 30, 2025 compared to an expense of $0.7 million in the three months ended September 30, 2024.

Adjusted EBITDA

Adjusted EBITDA increased by 1.5%, or by $2.7 million, to $181.6 million in the three months ended September 30, 2025 from $178.9 million in the three months ended September 30, 2024. The increase was attributed to (i) $4.5 million increase in operating revenues, (ii) $1.0 million decrease in equity loss on investments, partially offset by (iii) $2.5 million decrease in dividends received, (iv) $0.2 million increase in total operating expenses and (v) $0.1 million increase in net financing expenses. Adjusted EBITDA for the three months ended September 30, 2025 is adjusted for (i) $8.4 million gain from the change in fair value of investments, (ii) $1.1 million of loss on debt extinguishment and (iii) $0.1 million expense of stock based compensation. Tables reconciling Adjusted EBITDA to Net Income can be found at the end of this earnings release.

Adjusted EBITDA of container vessels segment decreased by 0.6%, or by $1.1 million, to $172.4 million in the three months ended September 30, 2025 from $173.5 million in the three months ended September 30, 2024.

Adjusted EBITDA of drybulk vessels segment increased by $5.3 million to $9.1 million in the three months ended September 30, 2025 from $3.8 million in the three months ended September 30, 2024.

Nine months ended September 30, 2025 compared to the nine months ended September 30, 2024

During the nine months ended September 30, 2025, Danaos had an average of 73.9 container vessels and 10 drybulk vessels compared to 69.3 container vessels and 8.2 drybulk vessels during the nine months ended September 30, 2024. Our container vessels utilization for the nine months ended September 30, 2025 was 97.9% compared to 97.4% in the nine months ended September 30, 2024. Our drybulk vessels utilization for the nine months ended September 30, 2025 was 97.4% compared to 88.1% in the nine months ended September 30, 2024.

Our adjusted net income amounted to $354.5 million, or $19.14 per diluted share, for the nine months ended September 30, 2025 compared to $399.2 million, or $20.43 per diluted share, for the nine months ended September 30, 2024. We have adjusted our net income in the nine months ended September 30, 2025 for $25.6 million gain from the change in fair value of investments, a $1.1 million loss on debt extinguishment and a $2.3 million non-cash finance fees amortization.

Adjusted net income of our container vessels segment amounted to $357.0 million for the nine months ended September 30, 2025 compared to $391.1 million for the nine months ended September 30, 2024. We adjusted net income of container vessels segment in the nine months ended September 30, 2025 for a $1.1 million loss on debt extinguishment and a $2.3 million non-cash finance fees amortization.

Adjusted net loss of our drybulk vessels segment amounted to $2.9 million loss for the nine months ended September 30, 2025 compared to $2.7 million income for the nine months ended September 30, 2024.

The $44.7 million decrease in adjusted net income for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, is primarily attributable to (i) a $50.5 million increase in total operating expenses, (ii) a $5.8 million decrease in dividends received, (iii) a $9.3 million increase in net finance expenses, offset by (iv) $20.3 million increase in operating revenues and (v) a $0.6 million decrease in equity loss on 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 $376.7 million, or $20.34 earnings per diluted share, for the nine months ended September 30, 2025 compared to net income of $414.6 million, or $21.22 earnings per diluted share, for the nine months ended September 30, 2024. Our net income for the nine months ended September 30, 2025 includes $25.6 million gain on marketable securities (gross of dividend income) compared to $10.4 million gain on marketable securities (gross of dividend income) in the nine months ended September 30, 2024. On a non-adjusted basis, the net income of our container vessels segment amounted to $353.6 million for the nine months ended September 30, 2025 compared to $396.1 million for the nine months ended September 30, 2024. On a non-adjusted basis, the net loss of our drybulk vessels segment amounted to $2.9 million for the nine months ended September 30, 2025 compared to $2.7 million net income for the nine months ended September 30, 2024.

Operating Revenues

Operating revenues increased by 2.7%, or by $20.3 million, to $776.2 million in the nine months ended September 30, 2025 from $755.9 million in the nine months ended September 30, 2024.

Operating revenues of our container vessels segment increased by 2.2%, or by $15.1 million, to $714.7 million in the nine months ended September 30, 2025 from $699.6 million in the nine months ended September 30, 2024, analyzed as follows:

Operating revenues of our drybulk vessels segment increased by 9.2%, or by $5.2 million, to $61.5 million in the nine months ended September 30, 2025, compared to $56.3 million of revenues in the nine months ended September 30, 2024, analyzed as follows:

Vessel Operating Expenses

Vessel operating expenses increased by $20.2 million to $160.3 million in the nine months ended September 30, 2025 from $140.1 million in the nine months ended September 30, 2024, primarily as a result of the increase in the average number of vessels in our fleet due to container vessel newbuilding deliveries and dry bulk vessels acquisitions and the increase in average daily operating cost of our vessels to $7,170 per vessel per day for the nine months ended September 30, 2025 compared to $6,775 per vessel per day for the nine months ended September 30, 2024. 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 Drydocking and Special Survey Costs.

Depreciation

Depreciation expense increased by $13.9 million, to $121.9 million in the nine months ended September 30, 2025 from $108.0 million in the nine months ended September 30, 2024, due to the increase in the average number of vessels in our fleet.

Amortization of Deferred Drydocking and Special Survey Costs

Amortization of deferred drydocking and special survey costs increased by $13.3 million to $33.2 million in the nine months ended September 30, 2025 from $19.9 million in the nine months ended September 30, 2024, reflecting a larger number of vessels drydocked for which vessels drydocking amortization costs were recognized during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

General and Administrative Expenses

General and administrative expenses increased by $3.5 million, to $36.0 million in the nine months ended September 30, 2025 from $32.5 million in the nine months ended September 30, 2024. The increase was mainly attributable to $1.9 million higher management fees due to the increase in the average number of vessels in our fleet and a $1.6 million increase in corporate general and administrative expenses.

Other Operating Expenses

Other Operating Expenses include Voyage Expenses.

Voyage Expenses

Voyage expenses decreased by $1.2 million to $48.8 million in the nine months ended September 30, 2025 from $50.0 million in the nine months ended September 30, 2024.

Voyage expenses of container vessels segment increased by $2.5 million to $27.0 million in the nine months ended September 30, 2025 from $24.5 million in the nine months ended September 30, 2024. Total voyage expenses of container vessels comprised $25.3 million commissions and $1.7 million other voyage expenses in the nine months ended September 30, 2025 compared to $24.3 million in commissions and $0.2 million in other voyage expenses in the nine months ended September 30, 2024.

Voyage expenses of our drybulk vessels segment decreased by $3.7 million to $21.8 million in the nine months ended September 30, 2025 compared to $25.5 million voyage expenses in the nine months ended September 30, 2024. For the nine months ended September 30, 2025, voyage expenses of our drybulk vessels comprised of $3.7 million in commissions and $18.1 million in other voyage expenses, mainly comprised of bunkers cost and port expenses, compared to $3.4 million in commissions and $22.1 million in other voyage expenses for the nine months ended September 30, 2024.

Interest Expense and Interest Income

Interest expense increased by $12.1 million, to $28.3 million in the nine months ended September 30, 2025 from $16.2 million in the nine months ended September 30, 2024. The increase in interest expense is a result of:

Interest income increased by $2.1 million to $11.1 million in the nine months ended September 30, 2025 compared to $9.0 million in the nine months ended September 30, 2024, 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 $26.6 million gain on investments in the nine months ended September 30, 2025 consisted of the gain from the change in fair value of our shareholding interest in Star Bulk Carriers Corp. ("SBLK") of $25.6 million and dividend income on these shares of $1.0 million. This compares to a $17.2 million gain on investments in the nine months ended September 30, 2024, representing an $10.4 million gain from the change in fair value on our SBLK shareholding interest and dividend income on these shares of $6.8 million.

Loss on Debt Extinguishment

The loss on debt extinguishment of $1.1 million in the nine months ended September 30, 2025 related to our early extinguishment of debt compared to nil in the nine months ended September 30, 2024.

Equity Loss on Investments

Equity loss on investments amounting to $0.8 million and $1.4 million in the nine months September 30, 2025 and September 30, 2024, respectively, relates to our share of initial expenses of CTTC, currently engaged in the research and development of decarbonization technologies for the shipping industry.

Other Finance Expenses

Other finance expenses increased by $0.2 million to $2.9 million in the nine months ended September 30, 2025 compared to $2.7 million in the nine months ended September 30, 2024.

Loss on Derivatives

Amortization of deferred realized losses on interest rate swaps remained stable at $2.7 million in each of the nine months ended September 30, 2025 and September 30, 2024.

Other Income/(Expenses), Net

Other income/expenses, net, amounted to an expense of $1.1 million in the nine months ended September 30, 2025 compared to an expense of $0.6 million in the nine months ended September 30, 2024.

Adjusted EBITDA

Adjusted EBITDA decreased by 0.7%, or by $3.6 million, to $529.3 million in the nine months ended September 30, 2025 from $532.9 million in the nine months ended September 30, 2024. The decrease was attributed to (i) $22.7 million increase in total operating expenses, (ii) $5.8 million decrease in dividends received, (iii) $0.5 million increase in net financing expenses, partially offset by (iv) $24.8 million increase in operating revenues (excluding $4.5 million decrease in amortization of assumed time-charters) and (ii) $0.6 million decrease in equity loss on investments. Adjusted EBITDA for the nine months ended September 30, 2025 is adjusted for (i) $25.6 million gain from the change in fair value of investments, (ii) $1.1 million of loss on debt extinguishment and (iii) $0.4 million expense of stock based compensation.

Adjusted EBITDA of container vessels segment decreased by 0.3%, or by $1.4 million, to $515.4 million in the nine months ended September 30, 2025 from $516.8 million in the nine months ended September 30, 2024.

Adjusted EBITDA of drybulk vessels segment increased by $3.0 million to $13.7 million in the nine months ended September 30, 2025 from $10.7 million in the nine months ended September 30, 2024.

Dividend Payment

Danaos has declared a dividend of $0.90 per share of common stock for the third quarter of 2025, which is payable on December 11, 2025 to stockholders of record as of December 2, 2025.

Recent Developments

On October 1, 2025, we prepaid early the outstanding principal amount of $42.78 million of vessel Phoebe which was under the Syndicated $450.0 mil. Facility.

On October 30, 2025, we received $80 million pursuant to a Japanese operating sale & lease back agreement for vessel Phoebe (the "JOLCO Facility") with a tenor of 8 years.

Conference Call and Webcast

On Tuesday, November 18, 2025 at 9:00 A.M. ET, the Company's management will host a conference call to discuss the results.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 833 890 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 November 25, 2025 by dialing 1 855 669 9658 (US Toll Free Dial In) or 1-412-317-0088 (Standard International Dial In) and using 3186440# as the access code.

Audio Webcast

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

Slide Presentation

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

About Danaos Corporation

Danaos Corporation is one of the largest independent owners of modern, large-size container vessels. Our current fleet of 75 container vessels aggregating 477,491 TEUs and 23 under construction container vessels aggregating 153,350 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 with the acquisition of 11 capesize drybulk vessels, which on a fully delivered basis, aggregating approximately to 1,943,286 DWT. Our container vessels fleet is chartered to many of the world's largest liner companies on fixed-rate charters. Our long track record of success is predicated on our efficient and rigorous operational standards and environmental controls. Danaos Corporation's shares trade on the New York Stock Exchange under the symbol "DAC".

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements reflect our current views with respect to future events and financial performance, 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 or other countries, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in Danaos Corporation's operating expenses, including bunker prices, drydocking and insurance costs, our ability to operate profitably in the drybulk sector, performance of shipyards constructing our contracted newbuilding vessels, ability to obtain financing and comply with covenants in our financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, including the conflict in Ukraine and related sanctions, the conflict in Israel and the Gaza Strip, potential disruption of shipping routes such as Houthi attacks in the Red Sea and the Gulf of Aden, due to accidents and political events or acts by terrorists.

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

Visit our website at www.danaos.com

APPENDIX

Container V essels F leet U tilization

Container Vessels Utilization (No. of Days)

Three months

ended

Three months

ended

Nine months

ended

Nine months

ended

September 30,

2025

2024

2025

2024

Ownership Days

6,808

6,540

20,179

18,978

Less Off-hire Days:

Scheduled Off-hire Days

(122)

(127)

(392)

(289)

Other Off-hire Days

(7)

(26)

(34)

(195)

Operating Days (1)

6,679

6,387

19,753

18,494

Fleet Utilization

98.1 %

97.7 %

97.9 %

97.4 %

Operating Revenues (in '000s of US$)

$239,102

$235,570

$714,738

$699,567

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

(909)

757

(1,658)

(179)

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

238,193

236,327

713,080

699,388

Time Charter Equivalent US$/per day (2)

$35,663

$37,001

$36,100

$37,817

Drybulk V essels F leet U tilization

Drybulk Vessels Utilization (No. of Days)

Three months

ended

Three months

ended

Nine months

ended

Nine months

ended

September 30,

2025

2024

2025

2024

Ownership Days

920

913

2,730

2,244

Less Off-hire Days:

Scheduled Off-hire Days

(119)

(56)

(240)

Other Off-hire Days

(16)

(14)

(26)

Operating Days (1)

920

778

2,660

1,978

Fleet Utilization

100.0 %

85.2 %

97.4 %

88.1 %

Operating Revenues (in '000s of US$)

$21,628

$20,606

$61,453

$56,364

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

(3,311)

(8,019)

(18,105)

(22,115)

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

18,317

12,587

43,348

34,249

Time Charter Equivalent US$/per day (2)

$19,910

$16,179

$16,296

$17,315

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

The following table describes in detail our container vessels deployment profile as of November 14, 2025:

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

November 2030

Express Berlin

10,100

2011

December 2029

Express Athens

10,100

2011

October 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

May 2028

Kota Manzanillo

8,533

2005

December 2028

Belita

8,533

2006

June 2028

CMA CGM Melisande

8,530

2012

January 2028

CMA CGM Attila

8,530

2011

May 2027

CMA CGM Tancredi

8,530

2011

July 2027

CMA CGM Bianca

8,530

2011

September 2027

CMA CGM Samson

8,530

2011

November 2027

America

8,468

2004

April 2028

Europe

8,468

2004

May 2028

Kota Santos

8,463

2005

June 2029

Catherine C (3)

8,010

2024

June 2029

Greenland (3)

8,010

2024

August 2029

Greenville (4)

8,010

2024

October 2029

Greenfield (5)

8,010

2024

November 2029

Interasia Accelerate (3)

7,165

2024

April 2032

Interasia Amplify (4)

7,165

2024

September 2032

CMA CGM Moliere

6,500

2009

March 2027

CMA CGM Musset

6,500

2010

July 2027

CMA CGM Nerval

6,500

2010

November 2027

CMA CGM Rabelais

6,500

2010

January 2028

Racine

6,500

2010

June 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 (6)

6,014

2025

October 2031

Greenhouse ( 7 )

6,014

2025

August 2032

Suez Canal

5,610

2002

April 2028

Kota Lima

5,544

2002

September 2026

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 2026

Seattle C

4,253

2007

June 2029

Vancouver

4,253

2007

November 2026

Derby D

4,253

2004

January 2027

Tongala

4,253

2004

November 2026

Rio Grande

4,253

2008

November 2026

Merve A

4,253

2008

December 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

January 2027

Express Spain

3,400

2011

January 2027

Express Argentina

3,400

2010

December 2026

Express Brazil

3,400

2010

April 2027

Express France

3,400

2010

July 2027

Singapore

3,314

2004

March 2027

Colombo

3,314

2004

January 2027

Zebra

2,602

2001

December 2026

Artotina

2,524

2001

November 2027

Advance

2,200

1997

June 2026

Future

2,200

1997

May 2026

Sprinter

2,200

1997

May 2026

Bridge

2,200

1998

January 2028

Progress C

2,200

1998

April 2026

Phoenix D

2,200

1997

June 2027

Highway

2,200

1998

January 2028

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

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

(3) The newbuilding vessels were delivered in the second quarter of 2024.

(4) The newbuilding vessels were delivered in the third quarter of 2024.

(5) The newbuilding vessel was delivered in the fourth quarter of 2024.

(6) The newbuilding vessel was delivered in the first quarter of 2025.

(7) The newbuilding vessel was delivered on November 10, 2025.

Container vessels under construction as of November 14, 2025:

Hull Number

Vessel

Size

Expected

Delivery

Year ( 2 )

Minimum

Charter

Duration

(TEU) (1)

Hull No. YZJ2023-1556

8,258

2026

5 years

Hull No. YZJ2023-1557

8,258

2026

5 years

Hull No. YZJ2024-1612

8,258

2026

5 years

Hull No. C9200-7

9,200

2027

4.8 years

Hull No. C9200-8

9,200

2027

4.8 years

Hull No. CV5900-09 (3)

6,014

2027

4.8 years

Hull No. YZJ2024-1613

8,258

2027

5 years

Hull No. YZJ2024-1625

8,258

2027

5 years

Hull No. YZJ2024-1626

8,258

2027

5 years

Hull No. YZJ2024-1668

8,258

2027

5 years

Hull No. H2596

9,200

2027

6 years

Hull No. C7100-9 (4)

7,165

2027

5 years

Hull No. C7100-10 (4)

7,165

2027

5 years

Hull No. C9200-9

9,200

2027

4.8 years

Hull No. H2597

9,200

2027

6 years

Feeder containership 1 (5)

1,800

2027

9.9 years

Feeder containership 2 (5)

1,800

2028

9.9 years

Hull No. C9200-10

9,200

2028

4.8 years

Feeder containership 3 (5)

1,800

2028

9.9 years

Feeder containership 4 (5)

1,800

2028

9.9 years

Hull No. C9200-11

9,200

2028

4.8 Years

Feeder containership 5 (5)

1,800

2028

Feeder containership 6 (5)

1,800

2029

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

(2) Under construction container vessels' expected delivery dates were shorted based on the upcoming deliveries.

(3) The newbuilding containership vessel was added to our orderbook in the second quarter of 2025.

(4) The newbuilding containership vessels were added to our orderbook in the third quarter of 2025.

(5) The newbuilding containership vessels were added to our orderbook in the fourth quarter of 2025.

The following table presents details of our Capesize drybulk vessels currently on the water as of November 14, 2025 (excluding the Capesize drybulk vessel that was agreed to be purchased on October 17, 2025, and is expected to be delivered to the Company in the first quarter of 2026):

Vessel Name

Capacity

Year Built ( 2 )

(DWT) (1)

Genius

175,580

2012

Achievement

175,966

2011

Ingenuity

176,022

2011

Danaos (3)

176,536

2011

Valentine (4)

175,125

2011

Integrity

175,966

2010

Peace

175,858

2010

Gouverneur (4)

178,043

2010

W Trader

175,879

2009

E Trader

175,886

2009

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

(2) Capesize drybulk carrier vessels was shorted by their year built, from newest to oldest.

(3) The vessel was delivered in the third quarter of 2024.

(4) The vessels were delivered in the second quarter of 2024.

DANAOS CORPORATION

Condensed Consolidated Statements of Income - Unaudited

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

Three months

ended

Three months

ended

Nine months

ended

Nine months

ended

September 30,

2025

2024

2025

2024

OPERATING REVENUES

$260,730

$256,176

$776,191

$755,931

OPERATING EXPENSES

Vessel operating expenses

(52,256)

(49,866)

(160,343)

(140,070)

Depreciation & amortization

(51,939)

(46,211)

(155,150)

(127,878)

General & administrative

(12,589)

(10,978)

(36,017)

(32,519)

Other operating expenses

(13,895)

(16,999)

(48,840)

(50,019)

Net gain/(loss) on disposal of vessel

(443)

6,651

Income From Operations

130,051

131,679

375,841

412,096

OTHER INCOME/(EXPENSES)

Interest income

3,811

3,124

11,077

8,983

Interest expense

(8,541)

(8,013)

(28,255)

(16,243)

Gain on investments

8,696

26,592

17,228

Loss on debt extinguishment

(1,082)

Other finance expenses

(907)

(944)

(2,867)

(2,694)

Equity loss on investments

(189)

(1,232)

(754)

(1,438)

Other income/(expenses), net

(277)

(746)

(1,143)

(567)

Realized loss on derivatives

(913)

(2,709)

(2,719)

Total Other Income/(Expenses), net

598

(8,683)

859

2,550

Net Income

130,649

122,996

376,700

414,646

EARNINGS PER SHARE

Earnings per share, basic

$7.14

$6.36

$20.40

$21.41

Earnings per share, diluted

$7.11

$6.30

$20.34

$21.22

Basic weighted average number of common shares (in thousands of shares)

18,310

19,345

18,467

19,368

Diluted weighted average number of common shares (in thousands of shares)

18,384

19,517

18,519

19,540

Non-GAAP Measures 1

Reconciliation of Net Income to Adjusted Net Income – Unaudited

Three months

ended

Three months

ended

Nine months

ended

Nine months

ended

September 30,

2025

2024

2025

2024

Net Income

$130,649

$122,996

$376,700

$414,646

Change in fair value of investments

(8,383)

2,808

(25,600)

(10,395)

Loss on debt extinguishment

1,082

Net (gain)/loss on disposal of vessel

443

(6,649)

Amortization of financing fees

781

598

2,326

1,569

Adjusted Net Income

$124,129

$126,845

$354,508

$399,169

Adjusted Earnings Per Share, diluted

$6.75

$6.50

$19.14

$20.43

Diluted weighted average number of shares

(in thousands of shares)

18,384

19,517

18,519

19,540

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 and nine months ended September 30, 2025 and 2024. The non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.

DANAOS CORPORATION

Condensed Consolidated Balance Sheets - Unaudited

(Expressed in thousands of United States dollars)

As of

September 30,

December 31,

2025

2024

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$596,371

$453,384

Accounts receivable, net

30,832

25,578

Other current assets

240,107

192,005

867,310

670,967

NON-CURRENT ASSETS

Fixed assets, net

3,245,135

3,290,309

Advances for vessels under construction

396,798

265,838

Deferred charges, net

60,830

58,759

Other non-current assets

44,662

57,781

3,747,425

3,672,687

TOTAL ASSETS

$4,614,735

$4,343,654

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Long-term debt, current portion

$77,288

$35,220

Accounts payable, accrued liabilities & other current liabilities

110,588

133,734

187,876

168,954

LONG-TERM LIABILITIES

Long-term debt, net

675,242

699,563

Other long-term liabilities

41,028

50,337

716,270

749,900

STOCKHOLDERS' EQUITY

Common stock

183

190

Additional paid-in capital

603,400

650,864

Accumulated other comprehensive loss

(66,850)

(70,430)

Retained earnings

3,173,856

2,844,176

3,710,589

3,424,800

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$4,614,735

$4,343,654

DANAOS CORPORATION

Condensed Consolidated Statements of Cash Flows - Unaudited

(Expressed in thousands of United States dollars)

Three months

ended

Three months

ended

Nine months

ended

Nine months

ended

September 30,

2025

2024

2025

2024

Operating Activities:

Net income

$130,649

$122,996

$376,700

$414,646

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

41,177

38,726

121,903

107,969

Amortization of deferred drydocking & special survey costs and finance costs

11,543

8,083

35,573

21,478

Amortization of assumed time charters

(4,534)

Prior service cost and periodic cost

601

1,133

3,408

1,848

(Gain)/loss on investments

(8,383)

2,808

(25,600)

(10,395)

Loss on debt extinguishment

1,082

Net (gain)/loss on disposal of vessels

443

(6,651)

Payments for drydocking/special survey costs deferred

(7,513)

(14,072)

(35,318)

(28,690)

Amortization of deferred realized losses on cash flow interest rate swaps

913

2,709

2,719

Equity loss on investments

189

1,232

754

1,438

Stock based compensation

1,743

1,594

5,171

4,747

Accounts receivable

218

6,216

(2,368)

(6,579)

Other assets, current and non-current

7,042

2,568

18,567

23,775

Accounts payable and accrued liabilities

(7,379)

(6,728)

(13,082)

(961)

Other liabilities, current and long-term

(3,259)

(8,368)

(24,237)

(55,699)

Net Cash provided by Operating Activities

168,623

157,544

465,262

465,111

Investing Activities:

Vessel additions and advances for vessels under construction

(92,289)

(239,353)

(199,310)

(581,208)

Net proceeds and insurance proceeds from disposal of vessel

(443)

1,681

10,196

Investments in affiliates/marketable securities

(1,225)

(30,270)

(1,225)

Net Cash used in Investing Activities

(92,289)

(241,021)

(227,899)

(572,237)

Financing Activities:

Proceeds from long-term debt

118,000

44,000

299,000

Debt repayment

(9,415)

(6,290)

(27,635)

(20,040)

Dividends paid

(15,559)

(15,476)

(47,008)

(46,487)

Repurchase of common stock

(492)

(53,212)

(5,715)

Finance costs

(1,153)

(375)

(10,521)

(7,105)

Net Cash (used in)/provided by Financing Activities

(26,127)

95,367

(94,376)

219,653

Net increase in cash and cash equivalents

50,207

11,890

142,987

112,527

Cash and cash equivalents, beginning of period

546,164

372,446

453,384

271,809

Cash and cash equivalents, end of period

$596,371

$384,336

$596,371

$384,336

DANAOS CORPORATION

Reconciliation of Net Income to Adjusted EBITDA - Unaudited

(Expressed in thousands of United States dollars)

Three

months ended

Three months

ended

Nine months

ended

Nine months

ended

September 30,

2025

2024

2025

2024

Net income

$130,649

$122,996

$376,700

$414,646

Depreciation

41,177

38,726

121,903

107,969

Amortization of deferred drydocking & special survey costs

10,762

7,485

33,247

19,909

Amortization of assumed time charters

(4,534)

Amortization of finance costs and commitment fees

1,326

1,235

4,011

3,534

Amortization of deferred realized losses on interest rate swaps

913

2,709

2,719

Interest income

(3,811)

(3,124)

(11,077)

(8,983)

Interest expense excluding amortization of finance costs

7,760

7,415

25,929

14,674

Change in fair value of investments

(8,383)

2,808

(25,600)

(10,395)

Loss on debt extinguishment

1,082

Stock based compensation

145

430

Net (gain)/loss on disposal of vessels

443

(6,651)

Adjusted EBITDA (1)

$181,620

$178,897

$529,334

$532,888

Last twelve

months ended

Last twelve

months ended

September 30,

December 3 1 ,

2025

2024

Net income

$467,127

$505,073

Depreciation

162,278

148,344

Amortization of deferred drydocking & special survey costs

42,499

29,161

Amortization of assumed time charters

(4,534)

Amortization of finance costs and commitment fees

5,382

4,905

Amortization of deferred realized losses on interest rate swaps

3,622

3,632

Interest income

(14,984)

(12,890)

Interest expense excluding amortization of finance costs

35,114

23,859

Change in fair value of investments

9,974

25,179

Loss on debt extinguishment

1,082

Stock based compensation

8,648

8,218

Net gain on disposal of vessels

(1,681)

(8,332)

Adjusted EBITDA (1)

$719,061

$722,615

Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs and commitment fees, amortization of deferred realized losses on interest rate swaps, adjusted for the change in fair value of investments, stock based compensation, loss on debt extinguishment and net gain/loss 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 and nine months ended September 30, 2025 and September 30, 2024. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.

DANAOS CORPORATION

Reconciliation of Net Income to Adjusted EBITDA per segment

Three Months Ended September 30, 2025 and Three Months Ended September 30, 2024

Unaudited

(Expressed in thousands of United States dollars)

Three Months Ended

September 30, 202 5

September 30, 202 4

Container

Vessels

Drybulk

Vessels

Other

Total

Container

Vessels

Drybulk

Vessels

Other

Total

Net income/(loss)

$118,703

$3,404

$8,542

$130,649

$124,102

$62

$(1,168)

$122,996

Depreciation

37,819

3,358

41,177

35,520

3,206

38,726

Amortization of deferred drydocking & special survey costs

8,406

2,356

10,762

6,927

558

7,485

Amortization of deferred finance costs and commitment fees

1,326

1,235

Amortization of deferred realized losses on interest rate swaps

913

Interest income

(3,776)

(35)

(3,811)

(3,101)

(23)

(3,124)

Interest expense excluding amortization of finance costs

7,760

7,415

Change in fair value of investments

(8,383)

2,808

Loss on debt extinguishment

1,082

Stock based compensation

135

145

Net loss on disposal of vessel

443

Adjusted EBITDA (1)

$172,368

$9,128

$124

$181,620

$173,454

$3,826

$1,617

$178,897

Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of deferred finance costs and commitment fees, amortization of deferred realized losses on interest rate swaps and adjusted for the change in fair value of investments, stock based compensation, loss on debt extinguishment and net loss on disposal of vessel. 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 and nine months ended September 30, 2025 and 2024. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.

DANAOS CORPORATION

Reconciliation of Net Income to Adjusted EBITDA per segment

Nine Months Ended September 30, 2025 and Nine Months Ended September 30, 2024

Unaudited

(Expressed in thousands of United States dollars)

Nine Months Ended

September 30, 202 5

September 30, 202 4

Container

Vessels

Drybulk

Vessels

Other

Total

Container

Vessels

Drybulk

Vessels

Other

Total

Net income/(loss)

$353,641

$(2,872)

$25,931

$376,700

$396,144

$2,689

$15,813

$414,646

Depreciation

111,973

9,930

121,903

100,775

7,194

107,969

Amortization of deferred drydocking & special survey costs

26,658

6,589

33,247

19,062

847

19,909

Amortization of assumed time charters

(4,534)

Amortization of finance costs and commitment fees

4,011

3,534

Amortization of deferred realized losses on interest rate swaps

2,709

2,719

Interest income

(10,984)

(93)

(11,077)

(8,960)

(23)

(8,983)

Interest expense excluding amortization of finance costs

25,929

14,674

Change in fair value of investments

(25,600)

(10,395)

Loss on debt extinguishment

1,082

Stock based compensation

400

430

Net gain on disposal of vessel

(6,651)

Adjusted EBITDA (1)

$515,419

$13,677

$238

$529,334

$516,763

$10,730

$5,395

$532,888

Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs and commitment fees, amortization of deferred realized losses on interest rate swaps and adjusted for the change in fair value of investments, stock based compensation, loss on debt extinguishment and net gain on disposal of vessel. 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.

he 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 and nine months ended September 30, 2025 and 2024. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.

DANAOS CORPORATION

Reconciliation of Net Income to Adjusted Net Income per segment

Three Months Ended September 30, 2025 and Three Months Ended September 30, 2024

Unaudited

(Expressed in thousands of United States dollars)

Three Months Ended

September 30, 202 5

September 30, 202 4

Container

Vessels

Drybulk

Vessels

Other

Total

Container

Vessels

Drybulk

Vessels

Other

Total

Net income/(loss)

$118,703

$3,404

$8,542

$130,649

$124,102

$62

$(1,168)

$122,996

Change in fair value of investments

(8,383)

2,808

Loss on debt extinguishment

1,082

Amortization of financing fees

781

598

Net loss on disposal of vessel

443

Adjusted Net income/(loss) (1)

$120,566

$3,404

$159

$124,129

$125,143

$62

$1,640

$126,845

Adjusted Earnings per Share, diluted

$6.75

$6.50

Diluted weighted average number of shares

(in thousands of shares)

18,384

19,517

DANAOS CORPORATION

Reconciliation of Net Income to Adjusted Net Income per segment

Nine Months Ended September 30, 2025 and Nine Months Ended September 30, 2024

Unaudited

(Expressed in thousands of United States dollars)

Nine Months Ended

September 30, 202 5

September 30, 202 4

Container

Vessels

Drybulk

Vessels

Other

Total

Container

Vessels

Drybulk

Vessels

Other

Total

Net income/(loss)

$353,641

$(2,872)

$25,931

$376,700

$396,144

$2,689

$15,813

$414,646

Change in fair value of investments

(25,600)

(10,395)

Loss on debt extinguishment

1,082

Amortization of financing fees

2,326

1,569

Net gain on disposal of vessel

(6,651)

Adjusted Net income/(loss) (1)

$357,049

$(2,872)

$331

$354,508

$391,062

$2,689

$5,418

$399,169

Adjusted Earnings per Share, diluted

$19.14

$20.43

Diluted weighted average number of shares

(in thousands of shares)

18,519

19,540

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 and six months ended September 30, 2025 and 2024. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.

SOURCE Danaos Corporation