Global Ship Lease, Inc., a non-operating containership owner that leases vessels to liner companies under time charters rather than operating cargo services itself, reported unaudited results for the three and six months ended June 30, 2026. The company is one of the larger independent charter owners in the containership sector, a business model in which revenue depends primarily on fixed-rate charter contracts with shipping lines rather than directly on freight rates or cargo volumes.

Second-quarter and year-to-date highlights

• Second-quarter 2026 operating revenue was $198.7 million, while first-half 2026 operating revenue was $396.8 million.
• Net income available to common shareholders was $89.3 million, or $2.48 per share, in the second quarter. For the first half, net income available to common shareholders was $180.7 million, or $5.02 per share.
• Normalized net income, a non-U.S. GAAP measure, was $89.3 million, or $2.48 normalized EPS, in the second quarter and $181.4 million, or $5.04 normalized EPS, in the first half.
• Adjusted EBITDA, another non-U.S. GAAP measure, was $131.4 million in the second quarter and $264.6 million in the first half.
• In June 2026, the company said it had agreed individual newbuilding contracts for 15 mid-size, ultra-high-reefer, wide-beam, latest-generation containerships for an aggregate purchase price of approximately $1.3 billion. Deliveries are scheduled between the fourth quarter of 2028 and the first quarter of 2030. The ships are expected to begin multi-year charters on delivery, with an average TEU-weighted firm charter term of 7.1 years and rates expected to generate more than $1.0 billion of Adjusted EBITDA. The order places GSL among a wave of container shipping owners investing in latest-generation, fuel-efficient tonnage, a trend that has driven elevated ordering activity at shipyards since the early 2020s.
• Global Ship Lease added $1.45 billion of contracted revenues during the first half of 2026 from new charters and extensions on its existing fleet, as well as initial firm charters from the 15 newbuildings, bringing total contracted revenues as of June 30, 2026, to $3.2 billion over a TEU-weighted average remaining duration of 3.3 years, assuming median firm charter periods.
• The company declared a dividend of $0.625 per Class A common share for the second quarter of 2026, payable on September 3, 2026 to shareholders of record on August 21, 2026. It also paid a dividend of $0.625 per Class A common share for the first quarter of 2026 on June 3, 2026.
• On June 16, 2026, Moody's Investors Service maintained the company's Ba2 Corporate Family Rating and revised the outlook to positive from stable. Kroll Bond Rating Agency maintained the company's corporate credit rating at BB+ with a stable outlook, while affirming the BBB/stable investment-grade rating and stable outlook for the 5.69% Senior Secured Notes due July 15, 2027. On July 7, 2026, S&P Global maintained GSL's Issuer Credit Rating at BB+ with a stable outlook. The Ba2 and BB+ corporate-level ratings fall within the speculative-grade category used by the major rating agencies, while the secured notes benefit from an investment-grade assessment from Kroll.
• During April and May 2026, the company entered into agreements for the forward sale of four non-core ships, built between 2000 and 2002, for an aggregate price of $65.5 million and an anticipated gain on sale of approximately $33.0 million. The vessels are scheduled to be delivered to buyers when their respective charters expire: Manet, Kumasi and Julie, each 2,200 TEU and built in 2001/2002, in the fourth quarter of 2026, first quarter of 2027 and third quarter of 2027, respectively, and Ian H, a 5,900 TEU vessel built in 2000, in the fourth quarter of 2027. The divestments of older, smaller units alongside the newbuilding program reflect a broader fleet renewal pattern seen across the chartering sector.
• On December 1, 2025, Global Ship Lease announced the purchase of three 8,586 TEU Korean-built containerships with ECO upgrades for $90.0 million in aggregate. Two vessels were delivered in December 2025 and the third in January 2026. In June 2026, the company entered into a $55.5 million loan agreement with Bank of America to finance these acquisitions. The loan bears interest at SOFR plus 1.40% and matures in five years.

Executive Chairman George Youroukos said the company had delivered another quarter of strong results and that its focus on optionality and flexible tonnage continued to serve it well in a volatile environment. He said geopolitical developments remained a major factor in global trade, including conditions around the Strait of Hormuz and the continued decentralization of supply chains outside China and beyond the East-West mainlane trades served by ultra-large containerships.

According to Youroukos, liner customers are placing greater emphasis on flexibility and reliability in supply chains and are expanding access to mid-size containerships such as those in the GSL fleet. Mid-size vessels — broadly those below the ultra-large category — serve regional, intra-regional and secondary trades that have grown as liner networks diversify beyond the primary Asia–Europe and trans-Pacific corridors. He said the company had taken the opportunity to continue locking in multi-year charters at attractive rates, noting 100% charter coverage for 2026, 90% coverage for 2027, and more than $3 billion in contracted revenues over 3.3 years, including the newbuildings.

He added that the company's 15 newbuilding orders matched its investment criteria and would reduce the average fleet age while supporting reliable cash generation. He said the charters for five of the 15 newbuildings include extension options at rates 25% above initial levels.

Chief Executive Officer Thomas Lister said optionality remained central to the company's approach to a more complex containerized trade landscape. He said the company had continued to find opportunities to create value across finance, operations, chartering, selective divestments and fleet renewal. Lister also said the company's balance sheet strength and disciplined capital allocation had been supported by successive rating and outlook improvements, helping it to maintain a robust dividend and remain active in the newbuilding market.

Operating revenues and utilization

Operating revenues from fixed-rate, mainly long-term time charters were $198.7 million in the second quarter of 2026, up $6.8 million, or 3.5%, from $191.9 million a year earlier. The increase was mainly due to higher charter renewal rates, the addition of the three newly acquired vessels offset by the sale of Dimitris Y in the fourth quarter of 2025, and a non-cash $3.1 million increase in the amortization of intangible liabilities from below-market charters attached to certain vessel additions. That was partly offset by a non-cash $0.4 million negative effect from straight-lining time charter modifications.

There were 210 days of offhire in the second quarter of 2026, including 181 days for scheduled drydockings, compared with 182 days of offhire and idle time in the prior-year quarter, including 145 days for scheduled drydockings. Utilization was 96.7%, compared with 97.1% a year earlier.

For the six months ended June 30, 2026, operating revenues were $396.8 million, up $14.0 million, or 3.7%, from $382.8 million in the comparable period. The increase was mainly due to higher charter renewal rates, the addition of the three newly acquired vessels offset by the sales of four vessels in 2025 — Tasman, Keta, Akiteta and Dimitris Y — and a non-cash $6.1 million increase in amortization of intangible liabilities from below-market charters attached to certain vessel additions. That was partly offset by a non-cash $1.7 million negative effect from straight-lining time charter modifications.

There were 328 days of offhire in the first half of 2026, including 265 days for scheduled drydockings, compared with 588 days of offhire and idle time in the prior-year period, including 475 days for scheduled drydockings. Utilization for the first half of 2026 was 97.4%, compared with 95.4% a year earlier.

During the six-month period ended June 30, 2026, the company completed four drydockings. As of June 30, 2026, one regulatory drydocking was in progress and 11 additional regulatory drydockings were anticipated in 2026.

Vessel operating expenses

Vessel operating expenses, primarily crew, lubricating oil, repairs, maintenance, insurance and technical management fees, increased 12.9% to $57.0 million in the second quarter of 2026, or $8,821 per day on average, from $50.5 million, or $8,045 per day, in the prior-year quarter. The increase of $6.5 million was mainly due to the addition of the three newly acquired vessels offset by the sale of Dimitris Y in the fourth quarter of 2025, higher crew expenses as market strength led to crew shortages and roughly 5.0% higher crew wages, higher stores, spares and maintenance costs tied to planned main engine maintenance and overhaul of diesel generators, higher annual premiums for all P&I Clubs, and inflationary pressure on fees and expenses, including management fees.

For the six months ended June 30, 2026, vessel operating expenses were $109.7 million, or $8,543 per day on average, compared with $100.5 million, or $7,925 per day, in the comparable period, an increase of $618 per ownership day, or 7.8%. The increase of $9.2 million was mainly due to the addition of the three newly acquired vessels offset by the sale of four vessels in 2025, higher crew expenses after the company decided to increase the number of seafarers on board to improve vessel condition, higher stores, spares and maintenance costs, higher annual P&I Club premiums, and inflationary pressure on fees and expenses, including management fees.

Time charter and voyage expenses

Time charter and voyage expenses, which mainly include commissions paid to ship brokers, bunker fuel costs for owner's account when a ship is off-hire or idle, and other voyage-related owner's costs, were $6.5 million in the second quarter of 2026, compared with $5.1 million in the prior-year quarter. The increase was due to higher voyage administration costs and operational requests from charterers, as well as higher brokerage commissions on charter renewals at higher rates.

For the six months ended June 30, 2026, time charter and voyage expenses were $12.1 million, or $941 per day on average, compared with $11.6 million, or $915 per day, in the comparable period. The increase of $26 per ownership day, or 2.8%, was mainly due to higher commissions on charter renewals at higher rates.

Depreciation and amortization

Depreciation and amortization was $34.2 million in the second quarter of 2026, compared with $30.3 million in the prior-year quarter. The increase was mainly due to the nine drydockings completed after June 30, 2025 and the addition of the three newly acquired vessels, offset by the sale of Dimitris Y in the fourth quarter of 2025.

For the six months ended June 30, 2026, depreciation and amortization was $67.7 million, compared with $60.1 million in the comparable period, mainly for the same reasons, offset by the sale of four vessels in 2025.

General and administrative expenses

General and administrative expenses were $7.2 million in the second quarter of 2026, compared with $4.1 million in the prior-year period. The increase was mainly due to a non-cash stock-based compensation charge related to awards of Class A common shares under the company's Equity Incentive Plan.

For the six months ended June 30, 2026, general and administrative expenses were $16.0 million, compared with $8.7 million in the comparable period, mainly for the same reason.

Gain on sale of vessels

Tasman, a 5,900 TEU vessel built in 2000, Akiteta, a 2,200 TEU vessel built in 2002, and Keta, a 2,200 TEU vessel built in 2003, were sold in the first quarter of 2025 for an aggregate gain of $28.3 million. No vessels were sold during the first half of 2026.

Adjusted EBITDA

Adjusted EBITDA was $131.4 million in the second quarter of 2026, down from $134.2 million a year earlier, mainly due to higher operating and voyage expenses.

For the six months ended June 30, 2026, Adjusted EBITDA was $264.6 million, compared with $266.5 million in the comparable period, a decrease of $1.9 million, or 0.7%, mainly for the same reasons.

Interest expense and interest income

Total debt as of June 30, 2026 was $676.4 million, consisting of $328.5 million of secured bank debt collateralized by vessels, $153.1 million of the company's 2027 Secured Notes collateralized by vessels, and $194.8 million under sale-and-leaseback financing transactions. As of that date, 21 vessels were unencumbered.

At June 30, 2025, total debt was $768.5 million, consisting of $349.0 million of secured bank debt collateralized by vessels, $205.6 million of 2027 Secured Notes collateralized by vessels, and $213.9 million under sale-and-leaseback financing transactions. At that time, 16 vessels were unencumbered.

Interest and other finance expenses were $9.4 million in the second quarter of 2026, down from $10.6 million a year earlier, mainly because deferred loan fee amortization was lower.

For the six months ended June 30, 2026, interest and other finance expenses were $18.8 million, down from $20.5 million in the comparable period. Interest expense in 2025 included a $0.2 million prepayment fee following full repayment of the Macquarie Credit Facility and a non-cash write-off of $0.7 million in deferred financing costs tied to the full repayment of the Macquarie Credit Facility, the HCOB-CACIB Credit Facility and the ESUN Credit Facility.

Interest income was $5.6 million in the second quarter of 2026, compared with $4.7 million a year earlier, mainly due to higher invested amounts. For the first half, interest income was $11.3 million, compared with $7.9 million in the prior-year period, also mainly due to higher invested amounts.

Other income and derivatives

Other income, net, was $1.9 million in the second quarter of 2026, up from $0.8 million in the comparable period. For the six months ended June 30, 2026, other income, net, was $2.9 million, down from $4.0 million a year earlier.

In December 2021, the company entered into a USD 1-month LIBOR interest rate cap of 0.75% through the fourth quarter of 2026 on $484.1 million of floating-rate debt, reducing over time in line with anticipated debt amortization and representing approximately half of the outstanding floating-rate debt. In February 2022, it entered into two additional USD 1-month LIBOR interest rate caps of 0.75% through the fourth quarter of 2026 on the remaining balance of $507.9 million of floating-rate debt. Following the discontinuation of LIBOR, the caps automatically transitioned on July 1, 2023, to 1-month compounded SOFR at a net rate of 0.64%. A negative fair value adjustment of $1.1 million was recorded in the statement of income for the six months ended June 30, 2026.

In January 2026, the company entered into a series of FX Reverse Convertible transactions with UBS AG to hedge foreign exchange risk while also seeking improved interest income on deposits. The instruments are USD-denominated structured notes with returns linked to the EUR/USD exchange rate. The company elected the Fair Value Option to measure these instruments.

Preferred shares and earnings to common shareholders

The company's Series B Preferred Shares carry an 8.75% coupon. The cost was $2.4 million in the second quarter of 2026, unchanged from the prior-year quarter, and $4.8 million for the first half, also unchanged from a year earlier.

Net income available to common shareholders was $89.3 million in the second quarter of 2026, compared with $93.1 million in the prior-year period. Earnings per share were $2.48, down 5.0% from $2.61.

For the six months ended June 30, 2026, net income available to common shareholders was $180.7 million, compared with $214.1 million in the prior-year period. The prior-year period included a $28.3 million gain from the sales of Tasman, Akiteta and Keta. Earnings per share for the first half of 2026 were $5.02, down 16.5% from $6.01.

Normalized net income was $89.3 million in the second quarter of 2026, compared with $95.1 million a year earlier. Normalized EPS was $2.48, down 7.1% from $2.67.

For the six months ended June 30, 2026, normalized net income was $181.4 million, compared with $189.4 million in the comparable period. Normalized EPS was $5.04, down 5.3% from $5.32.

Fleet

As of June 30, 2026, Global Ship Lease's fleet consisted of 71 operating containerships and 15 containerships under construction, with scheduled deliveries between the fourth quarter of 2028 and the first quarter of 2030.

Source: Global Ship Lease