Pangaea Logistics Solutions NASDAQ: PANL reported a stronger start to 2026, with management pointing to higher shipping activity, firmer dry bulk market conditions and continued benefits from its integrated logistics model during the company’s first-quarter earnings call.
Chief Executive Officer Mads Petersen said the company delivered year-over-year growth in revenue and profitability, supported by a 14% increase in total shipping days and greater use of chartered-in vessels. He said Pangaea’s time charter equivalent, or TCE, rates averaged 20% above prevailing market rates for Panamax, Supramax and Handysize vessels during the quarter.
“This premium reflects the value of our operating platform, long-standing customer relationships, and ability to manage a volatile market effectively across trade routes,” Petersen said.
Adjusted EBITDA rises on higher TCE earnings
Chief Financial Officer Gianni Del Signore said first-quarter TCE rates were $15,252 per day, representing a 20% premium to average published market rates for comparable vessel categories. Adjusted EBITDA rose to $25.2 million, an increase of about $10 million from the prior-year period, driven by a 34% year-over-year increase in TCE earnings.
Pangaea reported GAAP net income of $13.3 million, or $0.21 per diluted share. Del Signore said GAAP results included a significant gain tied to the company’s bunker fuel hedging strategy, as fuel prices increased in recent months. Excluding unrealized gains from derivative instruments and other non-GAAP adjustments, adjusted net income was $7 million, or $0.11 per diluted share.
The company’s total charter hire expenses increased 122% from a year earlier, reflecting both a higher number of chartered-in vessels and higher market rates to charter in vessels. Pangaea’s charter-in cost was $14,488 per day in the first quarter. Del Signore said the company had booked 1,550 charter-in days at $16,880 per day for the second quarter as of the call.
Vessel operating expenses decreased 7% year over year, which Del Signore attributed to fewer owned vessel days following the sale of two vessels in 2025. On a per-day basis, vessel operating expenses net of technical management fees rose 2% to $5,644.
Chartered-in fleet supports flexible operating model
Petersen said Pangaea increased its chartered-in fleet by 54% during the first quarter, allowing the company to capture opportunities in the market while preserving long-term flexibility. In response to a question from B. Riley Securities analyst Liam Burke, Petersen said the company does not view chartering in vessels as a substitute for owning vessels, but rather as part of its operating strategy.
“The chartered-in fleet is the primary function of that is an arbitrage against the owned vessels,” Petersen said. “In markets such as these, we will always look to take advantage of those opportunities.”
Petersen also said Pangaea continues to evaluate potential additions to its owned fleet as part of its fleet renewal strategy. The company previously announced an agreement to sell the Bulk YAMACA for $9.6 million, with the sale expected to close in May. Del Signore said Pangaea paid off the remaining $1.3 million balance on the vessel’s finance lease during the quarter ahead of the sale.
During the question-and-answer session, Petersen said Pangaea expects to be more active in the secondhand vessel market over the next year or so, adding that management still sees value despite historically high prices.
Port and terminal operations expand
Petersen said Pangaea’s terminal, stevedoring and port services operations delivered a second consecutive quarter of record EBITDA contribution. The company began activities in Aransas, Texas, and Lake Charles, Louisiana, during the quarter and expects operations in Tampa, Florida, to begin in June.
Management said the expansion is intended to deepen Pangaea’s role in customer supply chains while adding recurring revenue outside of ocean freight. In response to a question from AGP Alliance Global Partners analyst Poe Fratt, Del Signore said the first quarter was one of the company’s highest quarters for terminal and stevedoring activity, helped by the addition of two port operations and a busy dry bulk quarter in Port Everglades.
Del Signore said second-quarter results for the segment may decline by about $200,000 from the first quarter, but he expects the third and fourth quarters to be “somewhat like Q1.” He also said dry bulk activity carries a higher margin, and management expects that margin profile to be sustainable in the third and fourth quarters.
Management cites supportive dry bulk fundamentals
Petersen said near-term dry bulk fundamentals remain supportive for Pangaea’s mix of minor bulk cargoes. He cited stronger Chinese iron ore imports and improved Indonesian coal exports as contributors to a firmer seasonal backdrop. He also said limited effective supply growth and strong ton-mile demand support a positive medium-term outlook.
The company has booked 4,051 shipping days for the second quarter at a TCE rate of $18,808 per day, Petersen said. Asked whether Pangaea is currently booking business near that level, he said the average for the rest of the quarter is likely to be “right around there, maybe a tick higher.”
Petersen also addressed geopolitical developments in the Arabian Gulf, saying they have not directly affected Pangaea because the company does not currently have vessels in the region and the area has not historically represented a significant part of its trade patterns. However, he said the broader industry continues to experience indirect effects through shifting trade flows and fuel price volatility.
He added that Pangaea’s Arctic business, mainly between Canada and Europe, is expected to begin around its usual timing toward the end of the second quarter or in early third quarter, with no expected disruption from geopolitical issues.
Capital allocation remains focused on flexibility
Del Signore said Pangaea ended the quarter with approximately $90 million in unrestricted cash and total debt, including finance lease obligations, of about $359 million. The company also paid $3.9 million in dividends during the quarter, according to Petersen.
General and administrative expenses increased 38% to about $10 million, primarily due to higher non-cash stock compensation and increased compensation costs tied to added headcount as the company grows. Del Signore said that excluding $1.7 million of first-quarter non-cash stock compensation, G&A would be more reflective of the run rate for the balance of the year, though incentive compensation will remain a variable component.
Management said its capital allocation priorities remain balanced among preserving financial flexibility, growing the integrated logistics platform, renewing the fleet and returning capital to shareholders.
About Pangaea Logistics Solutions NASDAQ: PANL
Pangaea Logistics Solutions Ltd. is a global transportation and logistics company that provides ocean transportation and integrated logistics services. The company operates a fleet of drybulk vessels, including Handysize, Supramax and Ultramax carriers, to transport commodities such as coal, grain, minerals, ores and steel products. In parallel, Pangaea offers asset-light logistics solutions spanning freight forwarding, supply chain management and project cargo services, enabling end-to-end transport for bulk and breakbulk shipments.
Founded in 2012 as a spin-off from an established maritime shipping group, Pangaea Logistics Solutions went public on the Nasdaq in 2013 under the ticker PANL.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider Pangaea Logistics Solutions, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Pangaea Logistics Solutions wasn't on the list.
While Pangaea Logistics Solutions currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Wondering where to start (or end) with AI stocks? These 10 simple stocks can help investors build long-term wealth as artificial intelligence continues to grow into the future.
Get This Free Report
