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    DSX
    Earnings call· Jun 2026(Q2 FY26)

    DIANA SHIPPING Q2 FY26 earnings call DSX

    Jul 30, 2026 Source

    Executive summary

    Diana Shipping Inc. Q2 FY26 — Strong Operating Performance and Strategic Positioning

    Diana Shipping delivered strong Q2 FY26 results, driven by higher time charter equivalent rates and effective fleet management, despite ongoing geopolitical disruptions and market inefficiencies. The company continues to focus on disciplined chartering and debt reduction, while its valuation remains at a substantial discount to NAV, which management believes does not reflect its intrinsic value or operating performance.

    Highlights

    5

    • Time charter revenues increased to $57.3 million in Q2 FY26 from $54.7 million in Q2 FY25.

    • Adjusted EBITDA increased to $24.3 million from $22 million in the prior year period.

    • Fleet utilization remained strong at 99.6% for Q2 FY26 and 99.8% for the 6 months ended June 30, 2026.

    • Secured 88% of remaining 2026 ownership days at an average charter rate of $18,337 per day, providing $94.7 million in contracted revenues.

    • Net income was $20.8 million compared to $4.5 million in Q2 FY25, benefiting from higher TCE rates and lower interest expense.

    Concerns

    5

    • Dry bulk market exposed to longer-term uncertainty due to considerable supply increases, especially in the Sub-Cape segment.

    • Start of Q3 FY26 witnessing a softening in near-term sentiment, especially on larger sizes.

    • Fleet growth, particularly for Kamsarmax and Ultramax, could exceed demand.

    • Demolition is expected to stay historically low, challenging the 5 million deadweight scrapping prediction for 2026.

    • Geopolitical uncertainty and the Middle East conflict continue to negatively affect global growth and influence the global economy.

    Guidance & targets

    3
    CategoryTargetConfidence
    Newbuilding vessel delivery
    2 methanol dual-fuel Kamsarmax vessels
    medium materiality
    High
    Potential revenues (remainder of 2026)
    $110.3 million
    medium materiality
    Medium
    Potential revenues (FY27)
    $267.9 million
    medium materiality
    Medium

    Operational metrics

    38
    Adjusted EBITDA
    $24.3 millionup from $22 million YoY
    Q2 FY26

    Increased from $22 million in the prior year period.

    Net income
    $20.8 millionup from $4.5 million YoY
    Q2 FY26

    Compared to $4.5 million in the second quarter of 2025.

    Net income attributable to common stockholders
    $19.3 millionup from $3.1 million YoY
    Q2 FY26

    Compared to $3.1 million in the second quarter of 2025.

    Diluted earnings per common share
    $0.16up from $0.03 YoY
    Q2 FY26

    Compared to $0.03 for the second quarter of 2025.

    Cash, cash equivalents and restricted cash
    $117.9 million
    as of June 30, 2026

    As of June 30, 2026.

    Long-term debt and finance liabilities net of deferred financing costs
    $606.1 milliondown from $636.1 million as of Dec 31, 2025
    as of June 30, 2026

    Decreased from $636.1 million as of December 31, 2025.

    Net debt as % of market value
    44%
    as of Q2 FY26

    Financially, our net debt stands at 44% of market value.

    Equity investment in Genco
    $155 million
    as of Q2 FY26

    Approximately $155 million equity investment in Genco.

    Total secured revenues (all periods)
    $157 million
    as of July 22, 2026

    Total secured revenues of approximately USD 157 million as of July 22, 2026.

    Average vessels operated
    36down from 37 vessels YoY
    Q2 FY26

    Compared to 37 vessels during the same quarter of last year.

    Vessel operating expenses per day
    $6,396up from $5,944 YoY
    Q2 FY26

    Increased to $6,396 from $5,944 in the prior year quarter, reflecting higher crew-related costs and stores, repairs and maintenance expense.

    Vessel operating expenses per day
    $6,203up from $5,905 YoY
    6 months ended June 30, 2026

    Increased to $6,203 from $5,905 in the prior year period, reflecting higher crew-related costs and store repairs and maintenance expense.

    Dividend per common share
    $0.01
    Q2 FY26

    Declared a quarterly cash dividend of $0.01 per common share with respect to the second quarter of 2026.

    Total Q2 dividend payout
    $1.3 million
    Q2 FY26

    Totaling approximately USD 1.3 million.

    Cumulative distributions to shareholders
    $2.72
    since 2021

    Cumulative distributions to shareholders since 2021 amount to approximately $2.72 per common share.

    Capesize Q2 earnings
    $39,806
    Q2 FY26

    Capesize vessels once again outperformed with Q2 earnings at $39,806 based on the new 182.5 TC index.

    Kamsarmax Q2 earnings
    $19,243
    Q2 FY26

    Mid-size vessels continued their momentum as well with Q2 earnings averaging $19,243 for Kamsarmax.

    Ultramax Q2 earnings
    $19,402
    Q2 FY26

    And $19,402 for Ultramax vessels.

    Capesize 1-year time charter rate
    $31,000
    Q3 FY26

    For 182,000 index type without scrubber, the 1-year rate stands at around $31,000 a day.

    Modern Kamsarmax 1-year time charter rate
    $20,000
    Q3 FY26

    And the rate for a modern Kamsarmax is around $20,000 a day.

    Modern Ultramax 1-year time charter rate
    $18,500
    Q3 FY26

    And for a modern Ultramax is around $18,500 per day.

    Guinean bauxite exports growth
    17%YoY increase
    H1 FY26

    The Guinean bauxite exports also witnessed a strong quarter in the first half of the year, they ended with a 17% increase year-on-year.

    China soybean imports
    13.5 million tonnesrecord
    June FY26

    China importing a record 13.5 million tonnes of soybeans in June.

    Brazil soybean harvest
    180 million metric tonsrecord
    record

    Brazil, which had a record harvest in excess of 180 million metric tons.

    China coal imports (June)
    42.78 million tonnesup 29% YoY
    June FY26

    China imported 42.78 million tonnes of coal in June, up 29% from a year earlier.

    China coal imports (H1)
    1.7%up YoY
    H1 FY26

    For the first half of the year, China's coal imports rose 1.7% from a year earlier.

    Panama Canal daily booking capacity
    34 transitscut from 36
    effective July 25

    The Panama Canal Authority has cut daily booking capacity already from 36 to 34 transits effective July 25.

    China GDP growth
    4.3%down from 5% in Q1
    Q2 FY26

    China GDP growth slowing to 4.3% in the second quarter, down from 5% in the first.

    Bulk carrier fleet growth forecast
    3.2%
    FY26

    According to Clarksons, the bulk carrier fleet is forecast to grow by 3.2% in 2026.

    Bulk carrier fleet growth (H1)
    2%
    H1 FY26

    However, the first half of the year has already seen a 2% increase.

    Capesize tonnage increase forecast
    1.7%
    FY26

    For Capes, the projected tonnage increase is only 1.7% in 2026.

    Capesize vessel deliveries
    11 unitslimited amount
    Q2 FY26

    Q2 saw again, a limited amount of Capesize vessels being delivered, only 11 units.

    Kamsarmax fleet projected increase
    4.3%
    FY26

    Kamsarmax and Ultramax vessels, the fleet projected increase is substantial, 4.3%.

    Ultramax fleet projected increase
    4.5%
    FY26

    And 4.5%, respectively.

    Kamsarmax and Ultramax vessel deliveries
    more than 50 deliveriessubstantial
    Q2 FY26

    Deliveries for both these sizes remained substantial in Q2 with more than 50 deliveries in each of those segments.

    Bulkers recycled
    4
    June FY26

    Only 4 bulkers were recycled in June for less than 250,000 tonne deadweight.

    Scrapping target
    5 million deadweightchallenge to reach
    FY26

    It will be a challenge to reach the 5 million deadweight of scrapping in 2026, which analysts were predicting at the beginning of the year.

    Dry bulk vessels undergoing special surveys
    3,200similar levels to 2025
    FY26

    The dry dock schedule in 2026 is expected to be similar levels to 2025 when about 3,200 dry bulk vessels underwent special surveys.

    Industry KPIs

    7
    MetricValueDetails
    Fleet36vessels
    Tce rate$16,581USD per day
    Balance sheet44%%
    Charter coverage88%%
    Daily vessel OPEX$6,396USD per day
    Market benchmarks13%%
    Cash breakeven rate$16,859USD per day

    Orderbook & backlog

    2
    Contracted revenues for 2026$94.7 millionJuly 22, 2026

    Covers 88% of remaining ownership days for 2026 at an average time charter rate of $18,337 per day.

    Contracted revenues for 2027$61.3 millionJuly 22, 2026

    Covers 25% of ownership days for 2027 at an average contracted charter rate of $18,807 per day.

    Deals & partnerships

    1
    Genco and Trading LimitedTender offer to acquire all outstanding shares not already owned by Diana$27.34 per share (comprised of $24.80 cash + one Diana share valued at $2.54)

    Launched tender offer on May 4, 2026, at $23.50/share, amended to $24.80/share on May 27, 2026. Submitted updated non-binding offer on June 17, 2026, for $27.34/share (cash + stock). Tender offer deadline extended multiple times, terminated on July 27, 2026. June 17 cash and stock offer remains outstanding with Genco Board. Fully committed financing of $1.4 billion.

    Capital programs

    1
    Methanol dual-fuel newbuilding Kamsarmax vesselsunderway

    Benefit: 2 Kamsarmax dry bulk vessels

    We anticipate the delivery of 2 methanol dual-fuel newbuilding Kamsarmax dry bulk vessels at the end of 2027 and early 2028, respectively.

    Risks & headwinds

    7
    Longer-term uncertainty due to considerable supply increaseslonger-term

    especially in the Sub-Cape segment

    Mitigation: For now, congestion, slower speeds, dry docks and longer tonne-mile trades have been able to absorb the new tonnage.

    Softening in near-term market sentimentstart of Q3 FY26

    especially on the larger sizes

    Fleet growth exceeding demandgoing forward

    especially for Kamsarmax and Ultramax

    Mitigation: partly offset by Middle East conflict, slower speeds, congestion, heavy dry dock schedules

    Low demolition ratesFY26

    only 4 bulkers recycled in June; challenge to reach 5 million deadweight scrapping in 2026

    Geopolitical uncertainty and Middle East conflictongoing

    negatively affect global growth; spike in bunker prices; Red Sea hostilities pushed avoidance to new heights

    Mitigation: avoid sending vessels into conflict areas

    Panama Canal transit reductionseffective July 25

    cut daily booking capacity from 36 to 34 transits effective July 25

    Macro and policy risksgoing forward

    mainly in Guinea, China and Indonesia

    What to watch in Q3 FY26

    5

    Dry bulk market sentiment

    next quarter
    Currentbit of a softening in the near-term sentiment, especially on the larger sizes
    TargetStabilization or improvement in spot/period rates

    Why it matters

    Market sentiment directly impacts charter rates and profitability, especially for unfixed days.

    However, the start of Q3 is witnessing a bit of a softening in the near-term sentiment, especially on the larger sizes.

    2 min read6 chapters

    Detailed Narrative

    01

    Market Dynamics and Geopolitical Impact

    Geopolitical events continue to create market inefficiencies, supporting trade sentiment and forward expectations in the dry bulk market. Resource-rich countries are leveraging their position, leading to supply chain diversification efforts. Congestion, slower speeds, dry docks, and longer tonne-mile trades have absorbed new tonnage, but the market faces longer-term uncertainty from supply increases, particularly in the Sub-Cape segment.

    02

    Fleet Operations and Financial Strength

    Diana Shipping operates a fleet of 36 dry bulk vessels with an average age of 12.5 years and 99.8% fleet utilization for the first half of 2026. The company maintains a strong balance sheet with $117.9 million in cash reserves and net debt at 44% of market value as of June 30, 2026. Long-term debt decreased to $606.1 million from $636.1 million since year-end 2025.

    03

    Chartering Strategy and Revenue Visibility

    The company employs a disciplined chartering strategy focused on staggered medium- to long-term charters to ensure earnings visibility and resilience. For the remainder of 2026, 88% of ownership days are secured at an average rate of $18,337 per day, totaling $94.7 million in contracted revenues. For 2027, 25% of ownership days are secured at an average rate of $18,807 per day, totaling $61.3 million.

    04

    Genco Acquisition Attempt and Valuation

    Diana Shipping launched a tender offer to acquire Genco and Trading Limited, which was later terminated, though the cash and stock offer remains outstanding. Management believes the market's focus on this acquisition has diverted attention from Diana's intrinsic value, leading to a substantial discount to NAV despite strong operating performance and profitability.

    05

    Dry Bulk Market Outlook

    The dry bulk market maintained positive momentum in Q2 FY26 with improving spot and period rates, driven by longer tonne-miles, dry dock schedules, and slower speeds. Capesize vessels outperformed, but Q3 is seeing some softening. Key demand drivers include strong iron ore flows, Guinean bauxite exports, and Atlantic grain and coal shipments. Supply growth, especially in Kamsarmax and Ultramax, remains a concern, with the order book at nearly 13% of the existing fleet.

    06

    Capital Allocation and Shareholder Returns

    Diana Shipping declared a quarterly cash dividend of $0.01 per common share for Q2 FY26, continuing its policy of returning capital to shareholders. Cumulative distributions since 2021 amount to approximately $2.72 per common share. The company also anticipates the delivery of two methanol dual-fuel newbuilding Kamsarmax vessels in late 2027 and early 2028.

    AI-generated summary of the company’s earnings call. Not investment advice.