Genco Shipping & Trading Limited, the largest U.S.-headquartered drybulk shipowner focused on the global transportation of commodities, reported financial results for the three and six months ended June 30, 2026. Dry bulk vessels transport unpackaged dry cargo such as iron ore, coal, grain, bauxite, cement, and steel products, linking commodity producers with industrial consumers worldwide.

Second-quarter and year-to-date highlights

The company declared a cash dividend of $0.80 per share for the second quarter of 2026, which is 433% higher than in the second quarter of 2025. The dividend marks Genco’s 28th consecutive quarterly dividend. Cumulative dividends over that period total $8.715 per share, or approximately 34% of the current share price. The second-quarter dividend is payable on or about August 24, 2026 to shareholders of record as of August 17, 2026.

Genco also said it expects a third-quarter 2026 dividend of greater than $1 per share, based on current fixtures and assuming the current FFA curve. Forward Freight Agreements, or FFAs, are cash-settled derivatives that allow shipowners and market participants to hedge or speculate on future freight rate movements, and the FFA curve is widely used as a market indicator of expected rate trends.

For the second quarter, the company reported:

• Net income: $16.6 million, or $0.38 basic and $0.37 diluted earnings per share
• Adjusted net income: $29.2 million, or $0.67 basic and $0.65 diluted earnings per share
• Adjusted EBITDA: $56.7 million, up 297% year over year
• Voyage revenues: $136.4 million
• Net revenue: $92.3 million
• Average daily fleet-wide TCE: $24,273 per day

Time Charter Equivalent, or TCE, is a standard industry metric that expresses average daily revenue per vessel after voyage expenses such as fuel and port costs, enabling comparison across vessels and periods. For the third quarter to date, Genco estimated TCE of $28,587 for 66% of its owned fleet available days.

Chairman and Chief Executive Officer John C. Wobensmith said the company has been transformed into a “low-leverage, high-dividend company” supported by premium-earning assets, low breakeven levels and a commercial operating platform. He said Genco has made more than $550 million of investments in high-specification assets since 2021, strengthening earnings power and dividend capacity. He added that the company’s second-quarter dividend set a value-strategy record and that the third-quarter dividend is projected to exceed $1 per share based on current fixtures.

Wobensmith said Genco’s third-quarter TCE to date is 18% higher than second-quarter levels and the highest since the second quarter of 2022. He also said rising asset values are contributing to Genco’s net asset value and that the drybulk market remains strong.

Chief Financial Officer Peter Allen said the company delivered strong second-quarter results, supported by operating leverage and a larger fleet of high-quality vessels. He said Genco generated adjusted EBITDA of $56.7 million in the second quarter and $92.9 million in the first half of 2026, exceeding total EBITDA for all of 2025. He added that Genco is positioned to benefit from the drybulk market and its low breakeven levels.

Comprehensive value strategy

Genco said its value strategy is centered on three pillars:

• Dividends: paying sizable quarterly cash dividends
• Deleveraging: maintaining low financial leverage and a low cash flow breakeven rate
• Growth: opportunistically renewing and expanding the asset base

This approach is designed to address the inherently cyclical nature of the drybulk market, where freight rates can swing sharply with changes in global commodity demand, vessel supply, and macroeconomic conditions. By maintaining a low breakeven rate and distributing surplus cash flow, Genco aims to return capital to shareholders during strong markets while preserving flexibility to invest through downturns.

Key characteristics of the strategy include:

• Net loan-to-value of 18% at June 30, 2026
• Strong liquidity of $423.6 million, including:
  • $73.6 million in cash on the balance sheet
  • $350.0 million of undrawn revolver availability
• High operating leverage across the major and minor bulk sectors

Fleet renewal and growth

Genco expects to take delivery of the Genco Volunteer, a 2019 Imabari-built 182,000 dwt scrubber-fitted Capesize vessel, in August 2026. In July 2026, the company drew $50.0 million under its $680 million revolving credit facility to partially fund the acquisition. After funding $6.5 million in the second quarter, Genco said it has $58.5 million of remaining capital expenditures for the vessel. Pro forma for the acquisition, the company expects to have $380 million of debt outstanding and $300 million of undrawn revolver availability.

Dividend policy

Genco’s board declared the second-quarter dividend of $0.80 per share under a policy that distributes 100% of quarterly operating cash flow less a voluntary reserve.

The company defined operating cash flow for this purpose as net revenue, consisting of voyage revenue less voyage expenses, charter hire expenses and realized gains or losses on fuel hedges, less operating expenses, including vessel operating expenses, general and administrative expenses other than non-cash restricted stock expenses, technical management expenses and interest expense other than non-cash deferred financing costs.

For the third quarter of 2026, the company said the voluntary quarterly reserve is targeted at $19.5 million, subject to the board’s discretion. Genco said the reserve provides flexibility to support dividends across the drybulk cycle while the company continues to invest in its fleet. Depending on freight rates, liquidity and the forward outlook, the company said it may reduce the reserve to pay higher dividends or increase the amount otherwise payable under the formula.

The board said anticipated uses for the reserve may include vessel acquisitions, debt repayments and general corporate purposes. Dividend declarations remain subject to legally available funds, applicable law, contractual obligations, including the credit facility, and the board’s determination that each payment is in the company’s and shareholders’ best interests.

Commercial operating platform and fleet deployment

Genco said it generates revenue through a portfolio approach that combines short-term spot market employment with longer-term fixed-rate coverage, depending on market timing and management’s outlook. The company said its fleet deployment remains weighted toward short-term fixtures, which provide flexibility across its sizeable fleet. This spot-oriented strategy means that Genco’s revenue is more sensitive to prevailing freight rate movements than that of peers with larger long-term charter coverage, amplifying both upside during rate strength and downside during rate declines.

The company noted that its third-quarter TCE estimates are based on time charter contracts and current spot fixtures under the load-to-discharge method, under which revenue is recognized ratably from loading to discharge. Actual TCE results will depend on the number of contracted days and ballast days at the end of the quarter. Genco said it does not recognize revenue for ballast days or uncontracted days at the end of the quarter, while related expenses are recognized as incurred.

Second-quarter 2026 financial review

Genco reported second-quarter 2026 net income of $16.6 million, compared with a net loss of $6.8 million in the same period of 2025. On an adjusted basis, net income was $29.2 million, compared with an adjusted net loss of $6.2 million a year earlier. The adjusted figure excludes a net gain on sale of vessels of $1.9 million, impairment of vessel assets of $1.2 million, other operating expense of $13.1 million and an unrealized loss on fuel hedges of $0.2 million.

Revenue rose to $136.4 million from $80.9 million in the prior-year quarter. Genco said the increase was driven primarily by higher rates earned by its major and minor bulk vessels, a larger fleet and fewer drydocking days. Average daily TCE increased to $24,273 per day from $13,631 per day.

Voyage expenses increased to $44.1 million from $32.0 million a year earlier, mainly because of the larger fleet, higher bunker consumption, and higher port and agency fees, partly offset by fewer third-party chartered-in vessels.

Vessel operating expenses rose to $26.5 million from $23.7 million. Daily vessel operating expenses, or DVOE, were $6,757 per vessel per day, compared with $6,213 in the second quarter of 2025. Genco attributed the increase to higher crew and insurance costs and the timing of store and spare purchases. The company said its DVOE budget for the third quarter of 2026 is $6,750 per vessel per day fleet-wide.

General and administrative expenses increased to $7.9 million from $7.4 million. Depreciation and amortization expense rose to $22.4 million from $18.1 million, due mainly to vessel depreciation for vessels delivered in the fourth quarter of 2025 and the first quarter of 2026, as well as higher drydocking amortization.

EBITDA for the quarter was $44.2 million, compared with $13.6 million in the prior-year period. Excluding gains and losses from vessel sales, vessel impairments, other operating expenses and unrealized fuel hedge results, adjusted EBITDA was $56.7 million, compared with $14.3 million.

First-half 2026 financial review

For the six months ended June 30, 2026, Genco reported net income of $26.0 million, compared with a net loss of $18.7 million in the same period of 2025. On a per-share basis, the company reported $0.59 basic and $0.58 diluted earnings per share.

Revenue for the first half of 2026 increased to $250.8 million from $152.2 million a year earlier, again reflecting stronger rates, a larger fleet and fewer drydocking days. TCE rose to $21,836 per day from $12,750 per day.

Voyage expenses increased to $80.4 million from $59.4 million, due mainly to the larger fleet, higher bunker consumption and higher port and agency fees.

Vessel operating expenses increased to $53.1 million from $48.7 million, while DVOE rose to $6,781 from $6,401 per vessel per day. Genco attributed the increase to higher crew and insurance costs and the timing of store purchases.

General and administrative expenses increased to $16.0 million from $14.9 million, primarily because of higher nonvested stock amortization expense. Depreciation and amortization expense increased to $43.4 million from $35.8 million, reflecting higher drydocking amortization and additional vessel depreciation from recent deliveries.

EBITDA for the first half of 2026 was $78.3 million, compared with $21.6 million in the same period of 2025. Excluding gains and losses from vessel sales, vessel impairments, other operating expenses and unrealized fuel hedge results, adjusted EBITDA was $92.9 million, compared with $22.2 million.

Liquidity and capital resources

Net cash provided by operating activities was $48.9 million in the first half of 2026, compared with $8.3 million in the first half of 2025. Genco said the increase was mainly due to higher rates, working-capital changes and lower drydocking costs.

Net cash used in investing activities was $122.2 million, compared with $6.7 million a year earlier. The increase was driven by a $137.4 million rise in vessel asset purchases, including the acquisitions of the Genco Stars and Stripes and Genco Valkyrie, delivered on March 5, 2026 and March 24, 2026, respectively, as well as a deposit on May 1, 2026 for the Genco Volunteer. That was partly offset by $21.1 million in net proceeds from the sale of the Genco Picardy and Genco Predator, sold on March 30, 2026 and April 15, 2026, respectively.

Net cash provided by financing activities was $91.3 million, compared with net cash used of $9.9 million in the prior-year period. Genco said its $600 million credit facility was refinanced with the $680 million revolving credit facility on February 27, 2026. As part of the modification, $4.3 million was settled net among lenders. The increase in financing cash flow was driven mainly by $130.0 million of drawdowns under the company’s revolvers during the first half of 2026, compared with $10.0 million of drawdowns on the prior-year revolver in the first half of 2025. This was partly offset by an $18.0 million increase in dividend payments and a $0.8 million increase in deferred financing costs.

Fleet and capital expenditures

Genco’s fleet consists of 43 vessels with an average age of 12.8 years and aggregate capacity of approximately 4,935,000 dwt. The fleet includes:

• Two Newcastlemaxes and 17 Capesizes
• 15 Ultramaxes and 9 Supramaxes

Capesize and Newcastlemax vessels are among the largest dry bulk carriers and typically transport iron ore and coal on long-haul routes, while the smaller Ultramax and Supramax vessels serve more diverse minor bulk trades including grains, cement, fertilizers, and steel products. This segment diversification allows Genco to capture revenue across different commodity cycles and trade lanes.

The company said it will also incur capital expenditures for special surveys and drydockings, and it plans to upgrade part of its fleet with energy-saving devices and high-performance paint systems to reduce fuel consumption and emissions.

Genco said it estimates capital expenditures related to drydocking, vessel and equipment costs, ballast water treatment systems, fuel-efficiency upgrades and scheduled off-hire days for the balance of 2026 and 2027.