Danaos Corporation Reports Strong Q4 Earnings Amid Strategic Expansion
Danaos Corporation (NYSE: DAC), a prominent player in the maritime industry, has announced robust fourth-quarter earnings for 2025, showcasing a significant revenue backlog and high fleet utilization. The Athens-based shipping company reported an adjusted net income of $131.2 million, translating to $7.14 per diluted share for the quarter ending December 31, 2025. This performance aligns closely with the previous year’s results, despite facing softer charter rates. Management emphasized the importance of long-term charter coverage, a strong balance sheet, and expanding operational options as key highlights from the quarter.
CEO Dr. John Coustas noted that global trade is rapidly adapting to geopolitical disruptions, with container volumes reaching record highs even as major shipping lines continue to bypass the Suez Canal. He stated, “With the Suez Canal still largely avoided and trade patterns increasingly multipolar, demand for midsize vessels has remained very strong,” highlighting ongoing export momentum from China and the resilience of global container flows.
Fleet Expansion and Diversification
Danaos Corporation is strategically expanding its fleet to meet the growing demand for midsize vessels. Since its last earnings update, the company has added four 5,300-TEU containerships to its orderbook, with deliveries scheduled for 2028 and 2029. The total containership orderbook now stands at 27 vessels, boasting an aggregate capacity of 174,550 TEU, with deliveries planned between 2026 and 2029. All newbuildings are designed to comply with IMO Tier III emissions standards and EEDI Phase III requirements.
In addition to its containership expansion, Danaos is selectively increasing its presence in the dry bulk sector. The company has ordered two Newcastlemax bulk carriers, each with a capacity of approximately 211,000 dwt, set for delivery in 2028. Furthermore, a secondhand Capesize bulker is expected to join the fleet in early 2026. Once fully delivered, Danaos’ fleet will comprise 102 containerships totaling around 652,000 TEU and 13 dry bulk vessels with a combined capacity of approximately 2.37 million dwt.
Strong Financial Backing and LNG Ventures
Danaos Corporation has prioritized long-term employment, adding approximately $428 million to its contracted revenue backlog through charter extensions and new fixtures covering 17 containerships. The total contracted operating revenue now stands at $4.3 billion, which includes newbuildings, with an average remaining charter duration of 4.3 years across the containership fleet. Charter coverage remains exceptionally high, with Danaos reporting 100% coverage for 2026, 87% for 2027, and 64% for 2028 based on scheduled deliveries.
In a notable strategic move, Danaos announced a partnership with Glenfarne Group in January, related to the Alaska LNG project. This partnership includes a $50 million equity investment in Glenfarne Alaska Partners and positions Danaos as the preferred tonnage provider for at least six LNG carriers associated with the project, which aims for an annual output of 20 million tonnes. Management views this investment as a measured expansion into the energy sector, aimed at broadening revenue sources.
Furthermore, Danaos has strengthened its balance sheet by completing a $500 million senior unsecured bond offering in October, with proceeds allocated to refinancing higher-cost debt. As of year-end, 77 of Danaos’ 85 vessels were debt-free, and total liquidity reached $1.4 billion. The company also returned capital to shareholders, repurchasing $235.1 million worth of stock and declaring a $0.90 per share dividend for the fourth quarter.
