The earnings beat on revenue but miss on net income creates a mixed signal. The strong charter backlog and fleet expansion support the bull case, but the massive diluted EPS decline and heavy debt load ($314M) warrant caution. Watch for vessel sale closings in Q2-Q3 2026 and any updates on spot market exposure for the two vessels coming off charter later this year.
Price Chart
Executive Summary
Performance Shipping Inc. reported Q1 2026 net income of $10.2M, down from $29.4M in Q1 2025 (which included a $19.5M vessel sale gain). Revenue rose 58% to $33.8M on fleet expansion, and operating cash flow improved to $23.0M. The company highlighted a ~$500M revenue backlog, 90% charter coverage for 2026, and strong liquidity of $127M, but the headline earnings decline and massive diluted EPS drop ($0.26 vs $0.76) temper the positive operational narrative.
Key Facts
- Q1 2026 net income of $10.2M vs $29.4M in Q1 2025; prior year included $19.5M gain on vessel sale
- Revenue increased 58% to $33.8M from $21.3M, driven by fleet expansion to 11 vessels from 6
- Diluted EPS fell to $0.26 from $0.76; basic EPS fell to $0.79 from $2.33
- Average TCE rate improved to $32,520/day from $30,843/day
- Operating cash flow rose to $23.0M from $15.5M
- Cash and restricted cash of $126.6M, up from $49.3M at year-end 2025
- Completed $50M tap issuance of 9.875% Nordic bonds due 2029
- Secured long-term charters for two new Suezmax newbuildings with Repsol at $35,000-$36,850/day
- Agreed to sell two oldest vessels (P. Sophia and P. Aliki) for combined $78.3M
- Revenue backlog of nearly $500M with ~90% charter coverage for remaining 2026
Financial Impact
Revenue up $12.4M (+58%) but net income down $19.2M (-65%); diluted EPS down $0.50 (-66%)
Risk Factors
- Tanker spot rates are highly volatile and could decline from current elevated levels
- Significant debt of $314M vs $333M equity; interest costs rose to $5.7M from $35K
- Massive warrant overhang: 7.8M+ warrants exercisable at $1.65-$2.25 vs current stock price
- Two oldest vessels being sold reduce fleet size and earnings capacity
- Seaborne oil trade expected to decline 2.6% in 2026 per industry estimates
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001140361-26-022858 |
| Document: ef20074939_6k.htm | 0001140361-26-022858 |
| Document: 0001140361-26-022858-index-headers.html | 0001140361-26-022858 |
| Document: 0001140361-26-022858-index.html | 0001140361-26-022858 |
| Document: 0001140361-26-022858.txt | 0001140361-26-022858 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 6, 2026 20d ago | 6-K | $1.66 | awaiting T+60 | — | $1.62 (−2.41%) |
Jul 31, 2026 12w ago | 6-K | $1.80 | awaiting T+60 | — | $1.62 (−10.00%) |
Jul 29, 2026 12w ago | Press Release | $1.89 $1.62 | ▼ −14.29% | ▼ −19.02% | $1.62 (−14.29%) |
Jul 6, 2026 16w ago | Press Release | $1.67 $1.76 | ▲ +5.09% | ▲ +3.18% | $1.62 (−2.99%) |
Jun 29, 2026 17w ago | 6-K | $1.68 $1.80 | ▲ +7.14% | ▲ +4.33% | $1.62 (−3.57%) |
May 26, 2026 21w ago | 6-K | $1.68 $1.69 | ▲ +0.60% | ▼ −1.28% | $1.62 (−3.57%) |
May 26, 2026 21w ago | Press Release | $1.70 $1.70 | · 0.00% | ▼ −2.72% | $1.62 (−4.71%) |
May 22, 2026 22w ago | EFFECT | $1.65 $1.75 | ▼ −6.06% | ▼ −2.87% | $1.62 (+1.82%) |
Apr 27, 2026 26w ago | Press Release | $1.89 $1.79 | ▼ −5.29% | ▼ −9.28% | $1.62 (−14.29%) |
Apr 16, 2026 27w ago | 6-K | $1.91 $1.67 | ▼ −12.57% | ▼ −18.71% | $1.62 (−15.18%) |
US Market Status
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