Costamare Bulkers Holdings Limited Q1 2026 Earnings Call - Derisking Balance Sheet with Cargill Deal and Fleet Renewal
Summary
Costamare Bulkers Holdings Limited reported a solid Q1 2026 with adjusted net income of $12.4 million, driven by robust dry bulk demand across Capesize, Panamax, and Supramax segments. The company has successfully transferred the majority of its legacy trading portfolio to Cargill, effectively derisking its balance sheet. With total cash exceeding debt by $127 million, the company is well-positioned to grow countercyclically. Fleet renewal continues with the sale of an older Capesize vessel and acquisition of a newer Ultramax, alongside the delivery of a newbuilding Kamsarmax chartered out at profitable rates for a minimum of 11 months. Charter rates strengthened in Q1, and the vessel orderbook remains low at 13.5%, supporting near-term rate stability.
Key Takeaways
- Q1 adjusted net income reached $12.4 million, or $0.51 per share, reflecting strong operational performance.
- Legacy trading portfolio transfer to Cargill is substantially complete, with only one vessel remaining to be novated by year-end.
- Net cash position stands at approximately $127 million as of Q1 end, providing flexibility for countercyclical growth.
- Fleet renewal strategy advanced with the sale of a 2011-built Capesize vessel and acquisition of a 2018-built Ultramax.
- Newbuilding Kamsarmax delivered and chartered out for a minimum 11 months at profitable rates, with a five-year charter agreement in place.
- Capesize earnings benefited from robust iron ore and bauxite volumes, winter peak growth, and expanding West Africa-China trade flows.
- Panamax Index supported by record Brazilian soybean harvest and U.S.-China trade agreement driving long-haul shipments.
- Supramax segment recorded solid start despite 50% reduction in Persian Gulf exports due to Strait of Hormuz closure.
- Charter rates strengthened in Q1 2026 with upward momentum continuing into April, supported by low vessel orderbook of 13.5%.
- Operating platform now focused on Kamsarmax segment with 20 third-party owned dry bulk vessels, most on index-linked time charters.
Full Transcript
Operator: Thank you for standing by, ladies and gentlemen, and welcome to the Costamare Bulkers Holdings Limited conference call on the 1st quarter 2026 financial results. We will have with us Mr. Gregory Zikos, Chief Executive Officer of the company. I must advise you that this conference is being recorded today, Wednesday, May 13th, 2026. We would like to remind you that this conference call contains forward-looking statements. Please take a moment to read slide number 2 of the presentation, which contains the forward-looking statement. I will now pass the floor to your speaker today, Mr. Zikos.
Please go ahead.
Gregory Zikos, Chief Executive Officer, Costamare Bulkers Holdings Limited: Thank you. Good morning, ladies and gentlemen. During the first quarter of the year, Costamare Bulkers generated an adjusted net income of $12.4 million. As of today, we have successfully transferred the majority of the company’s legacy trading portfolio pursuant to our deal with Cargill, effectively derisking our balance sheet. We expect that our trading platform will be free of the remaining legacy trades by year-end. As part of our fleet renewal program, we recently concluded the sale of one 2011-built Capesize vessel and the acquisition of one 2018-built Ultramax. At the same time, we accepted delivery of one newbuilding Kamsarmax chartered in for a minimum period of five years. The vessel has been chartered out at a profitable rate for a minimum period of 11 months.
With total cash of about $270 million and debt of $640 million, the company is net cash positive, positioning us favorably to grow countercyclically in a low asset value environment. Regarding the market, during the first four months of the year, the market exhibited elevated volatility relative to historical averages, driven by increased activity and inefficiencies, while geopolitical instability contributed additional uncertainty. Capesize earnings were supported by robust iron ore and bauxite volumes coupled with winter peak growth. Ton mile demand was further reinforced by the expansion of the West Africa, China trade flows across both commodities. Alongside the firm Capesize market and broadly positive dry bulk sentiment, the Panamax Index was further supported by a record soybean harvest in Brazil, as well as the U.S.-China agreement reached at the end of 2025, which drove long-haul soybean shipments during the first quarter.
The Supramax segment recorded a solid start to the year as increased grain and minor bulk flows offset the negative impact of the Strait of Hormuz closure, which reduced Persian Gulf export volumes by approximately 50%. Moving now to the slides presentation. For slide 3, you can see our Q1 results. Net income for the period was $9.9 million, or $0.41 per share. adjusted net income was $12.4 million, or $0.51 per share. By the end of Q1, total cash exceeded debt by approximately $127 million. As part of our fleet renewal strategy, we concluded the acquisition of one 2018-built Ultramax vessel and took delivery of a newbuilding Kamsarmax. This newbuilding is chartered in for a minimum five-year period with extension and purchase options and has already been chartered out for one year at profitable levels.
Another newbuilding Kamsarmax is expected to be delivered under a long-term chartering agreement with similar options. We have concluded the sale of one Capesize vessel with capital gains of approximately $7 million. Slide 5. The transfer of the credit book to Cargill is substantially complete, with only one vessel remaining to be novated. We have derisked to a large extent our balance sheet and expect that by year-end, we will not have any remaining legacy positions. Our operating platform is currently focused on the Kamsarmax segment and consists of 20 third-party owned dry bulk vessels. Slide 6. Regarding the owned vessels, most of the fleet is employed on index-linked time charter agreements with the option to convert to a fixed rate. Moving to slide 7. Charter rates strengthened during Q1 2026 with further upside momentum since April.
The vessel, the new vessel orderbook stands at 13.5%. With that, we conclude our presentation. We can now take questions. Thank you. Operator, we can take questions now.
Operator: Thank you. As a reminder, if you would like to ask a question, please press star then one on your telephone keypad and wait for your name to be announced. If you wish to cancel your request, please press star then two. That’s star then one to ask a question. There are no questions at this time. I would like to turn the conference back over to Mr. Zikos for any closing remarks.
Gregory Zikos, Chief Executive Officer, Costamare Bulkers Holdings Limited: Thank you for dialing in in today’s quarterly results call. We’re looking forward to speaking with you again, during the second quarter 2026 results. Thank you. Operator, we can conclude the call.
Operator: Thank you. This does conclude our conference today. Thank you for participating. You may now disconnect.