What Safe Bulkers (SB) Said on Its Q3 Earnings Call

Key Points

• Safe Bulkers’ third-quarter results improved as its average daily charter rate rose to $21,235 from $15,507 a year earlier. Adjusted EPS increased to $0.31 from $0.12, and the company raised its quarterly dividend to $0.09 per share.
• The company is balancing shareholder returns with fleet investment: it has eight newbuilds on order through 2029 and $319 million in cash and restricted cash, while reserving liquidity for vessel installments. It has paid $109 million in dividends and spent $78 million on share repurchases since 2022.
• Management described the freight market as healthy and expects conditions to remain favorable over the next two or three quarters, while noting longer-term uncertainty. It is not rushing to order replacement Capesize vessels at current shipyard prices.

Safe Bulkers NYSE: SB reported higher third-quarter earnings as stronger charter rates and increased earnings from scrubber-fitted vessels lifted results. The dry bulk shipping company also raised its quarterly common dividend to $0.09 per share.

Adjusted earnings per share rose to $0.31 from $0.12 a year earlier, while adjusted earnings before interest, taxes, depreciation and amortization increased to $63.8 million from $36.1 million, Chief Financial Officer Konstantinos Adamopoulos said on the company’s earnings call.

President Loukas Barmparis said the dividend declaration was the company’s 25th consecutive quarterly payout. He said Safe Bulkers would continue to devote a substantial portion of its cash flow to its newbuilding program while returning money to shareholders.

Higher charter rates lift results

Safe Bulkers operated an average of 45.3 vessels during the third quarter, down from 46.51 a year earlier. Its average daily time charter equivalent rate rose to $21,235 from $15,507, Adamopoulos said. Time charter equivalent is a measure of a vessel’s average daily revenue.

Daily vessel running expenses rose to $6,061 from $5,104. Excluding dry-docking and fleet delivery expenses, daily operating expenses increased 4% to $5,256.

For the first nine months of 2026, revenue was $264 million. Adjusted EBITDA rose to $144.8 million from $91 million in the comparable period of 2025, while adjusted earnings per share increased to $0.77 from $0.18. The average daily time charter equivalent rate for the nine months climbed to $19,658 from $15,011.

Fleet investment and capital allocation

Barmparis said the company had 46 vessels, with an average age of 9.8 years, after taking delivery of 16 Phase III newbuilds over the past five years. It had eight additional vessels on order through 2029. Co-CFO Thanasis Antonakis said one of two dual-fuel newbuilds had been delivered days before the call, with the other due in the first quarter of 2027.

Safe Bulkers reported $319 million in cash, cash equivalents, bank time deposits and restricted cash, along with $196 million available under revolving credit facilities. Debt totaled $567 million, including a 100 million euro unsecured bond, Barmparis said. The company also had about $183 million in contracted revenue, according to Adamopoulos.

Chairman and CEO Polys Hajioannou said a significant portion of liquidity was being reserved for remaining newbuild installments because the company did not want to add debt in a rising interest rate environment. Safe Bulkers would also consider secondhand vessel purchases when prices were meaningful and freight rates supported an acquisition, he said.

Hajioannou said the company would consider renewing its Greek bond or using ordinary fleet financing when the bond matures next year. Management had not yet decided which option to pursue.

The company raised about 80.4 million euros through a September private placement to institutional investors on Euronext Athens, Barmparis said. It also has an active 10 million-share repurchase program. Since 2022, Safe Bulkers has paid $109 million in common dividends and spent $78 million on common share repurchases, he said.

Charter market outlook

Antonakis said the freight market remained healthy after a strong first nine months of 2026, with Capesize spot rates around $34,000 per day and Kamsarmax spot rates around $17,000. All seven of the company’s Capesize vessels were on period time charters, with an average remaining duration of 1.4 years and an average daily hire of $24,000, he said.

Hajioannou said Safe Bulkers was combining spot trading with shorter period charters. He cited a Capesize vessel fixed in September for 12 to 15 months at $37,500 per day, plus a scrubber premium, starting in February 2027. For modern Kamsarmax vessels, he said spot opportunities were more attractive than period rates at the time of the call.

The CEO said he was optimistic about a healthy market over the next two or three quarters, but the outlook beyond that would depend on factors including geopolitical developments and whether new routes opened. He added that Safe Bulkers could look to renew its aging Capesize fleet but was not in a hurry to order at current shipyard prices.

About Safe Bulkers (NYSE:SB)

Safe Bulkers, Inc. is an international dry-bulk shipping company that owns and operates vessels used to transport commodities by sea. Its fleet serves customers involved in the production and trade of bulk goods. The company's vessels carry cargoes such as iron ore, coal and grain on routes around the world. Safe Bulkers was established in 2005 and has focused on providing seaborne transportation for these essential commodities. Safe Bulkers is headquartered in Athens, Greece, and its shares trade on the New York Stock Exchange under the symbol SB.

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