Danaos shares slip as Q3 earnings, revenue miss estimates
NEW YORK - Danaos Corporation (NYSE:DAC), one of the world’s largest independent owners of container vessels and drybulk vessels, reported third-quarter earnings that fell short of analyst expectations, sending shares down 1.6% in after hours trading.
The Athens-based shipping company posted adjusted earnings of $6.75 per diluted share for the third quarter, missing the analyst consensus of $7.13. Revenue came in at $239.1 million, below the expected $257.63 million. Despite the miss, total revenue including the drybulk segment increased 1.8% YoY to $260.7 million from $256.2 million in the same period last year.
Container vessel segment revenue, which represents the bulk of the company’s business, increased 1.5% to $239.1 million, driven by newbuilding vessel additions and higher fleet utilization, though partially offset by lower charter rates. The company maintained a strong 98.1% utilization rate for its container vessels during the quarter.
"As we enter the final months of the year, operating conditions remain broadly unchanged," said CEO Dr. John Coustas. "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."
Danaos expanded its newbuilding program, recently adding six 1,800 TEU vessels to its orderbook with scheduled deliveries between 2027 and 2029. The company secured 10-year charters for four of these vessels, adding approximately $236 million to its contracted revenue backlog.
The company declared a quarterly dividend of $0.90 per share, an increase from previous payments, consistent with its policy of yearly dividend growth. As of September 30, Danaos had total contracted cash operating revenues of $4.1 billion, including newbuildings, with an average remaining charter duration of 4.3 years for its containership fleet.
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