Danaos delivered a solid quarter with strong cash generation and a massive contracted revenue backlog, but the core container segment showed revenue contraction (-2.8%) and the drybulk segment's TCE rate improvement was partially offset by lower utilization (82.0% vs 92.4%). The $1.85B newbuilding program creates significant future capex needs. Monitor upcoming vessel deliveries (3 in 2026, 15 in 2027) and the impact of US tariffs and Middle East conflict on charter rates. The $58.6M Yoda PLC investment introduces EUR/USD FX exposure with no hedging in place.
Price Chart
Executive Summary
Danaos Corporation reported Q1 2026 results with net income of $140.4M ($7.71 EPS), up 22% YoY from $115.1M ($6.14 EPS), driven by a $23.5M fair value gain on its SBLK stake and a $4.9M gain from early charter terminations. Operating revenues were essentially flat at $253.7M (+0.2% YoY) as a 2.8% decline in container segment revenues ($229.6M vs $236.2M) was offset by a 40.9% surge in drybulk revenues ($24.1M vs $17.1M). The company maintained a strong balance sheet with $876.2M cash and $4.06B in contracted charter revenue backlog, while continuing its aggressive fleet expansion with $1.85B in remaining newbuilding commitments.
Key Facts
- Q1 2026 net income of $140.4M vs $115.1M in Q1 2025, up 22%
- Basic EPS of $7.71 vs $6.14 in prior year period
- Operating revenues essentially flat at $253.7M (+$0.4M YoY)
- Container segment revenues declined 2.8% to $229.6M from $236.2M
- Drybulk segment revenues surged 40.9% to $24.1M from $17.1M
- Adjusted EBITDA of $180.6M, up 5.2% from $171.7M
- Cash and cash equivalents of $876.2M as of March 31, 2026
- Contracted charter revenue backlog of $4.06B
- Remaining newbuilding commitments of $1.85B for 27 container and 4 drybulk vessels
- Declared quarterly dividend of $0.90 per share, payable June 4, 2026
- Repurchased 60,819 shares for $5.9M in Q1 2026 under $300M buyback program
- Repaid $262.8M of 8.5% Senior Notes due 2028 on March 2, 2026
- Invested $58.6M in Yoda PLC shares in April 2026
- Invested $12.5M in Alaska LNG project with $37.5M remaining commitment
Financial Impact
Net income increased $25.3M YoY to $140.4M, driven primarily by a $21.0M increase in fair value gains on SBLK shares. Operating cash flow improved to $163.1M from $133.9M. The company has $4.06B in contracted revenue backlog and $876.2M cash against $1.05B total debt.
Risk Factors
- Container segment revenue decline of 2.8% YoY due to lower charter rates and non-cash revenue recognition
- Drybulk vessel utilization dropped to 82.0% from 92.4% due to scheduled drydocking
- Massive $1.85B newbuilding capex program creates execution and financing risk
- Exposure to US/China tariffs and port fees on Chinese-built vessels (most of fleet)
- Middle East conflict could disrupt shipping routes and global trade
- Floating rate debt exposure with no interest rate hedges in place
- EUR/USD FX exposure on $58.6M Yoda PLC investment with no hedging
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001104659-26-059060 |
| Document: tm2614224d1_6k.htm | 0001104659-26-059060 |
| Document: 0001104659-26-059060-index-headers.html | 0001104659-26-059060 |
| Document: 0001104659-26-059060-index.html | 0001104659-26-059060 |
| Document: 0001104659-26-059060.txt | 0001104659-26-059060 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 9, 2026 17d ago | 6-K | $168.39 $156.48 | ▼ −7.07% | ▼ −5.58% | $157.99 (−6.18%) |
Oct 1, 2026 25d ago | Press Release | $161.74 $170.22 | ▲ +5.24% | ▲ +3.94% | $157.99 (−2.32%) |
Aug 4, 2026 11w ago | 6-K | $138.72 $135.02 | ▼ −2.67% | ▼ −2.57% | $157.99 (+13.89%) |
Aug 3, 2026 12w ago | Press Release | $138.72 $135.02 | ▼ −2.67% | ▼ −2.57% | $157.99 (+13.89%) |
Jul 22, 2026 13w ago | Press Release | $137.44 | awaiting T+5 | — | $157.99 (+14.95%) |
May 12, 2026 23w ago | 6-K | $132.83 $132.08 | ▼ −0.56% | ▼ −0.64% | $157.99 (+18.94%) |
Mar 30, 2026 30w ago | Court Ruling | $109.79 $115.26 | ▲ +4.98% | ▲ +0.68% | $157.99 (+43.90%) |
US Market Status
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