Costamare Stock

Thank you for standing by, ladies and gentlemen, and welcome to the Costamare Inc. Conference Call on the First Quarter 2026 Financial Results. We have with us Mr. Gregory Zikos, Chief Financial Officer of the company.[Operator's Instructions] I must advise you that this conference call is being recorded today, Wednesday, April 29, 2026. We would like to remind you that this conference call contains forward-looking statements. Please take a moment to read Slide #2 on the presentation, which contains the forward-looking statements. I will now pass the floor over to your speaker today, Mr. Zikos. Please go ahead, sir.

Thank you, and good morning, ladies and gentlemen. During the first quarter of the year, the company generated net income of about $75 million. Total liquidity amounted to about $645 million.

Executing on our strategy of renewing the fleet and securing long-term cash flows from high-quality counterparties, we have ordered a total of 16 new buildings from first-class Chinese shipyards. 12 of the ships are 9,200 TEUs and four are 3,100 TEUs capacity. The vessels are expected to be delivered between the fourth quarter of 2027 and the second quarter of 2030. Upon delivery, all ships will commence long-term charters with COSCO shipping of 15 and 8 years for the 12 9,000 TEU ships and the four 3,100 TEU vessels, respectively.

We are pleased to expand our value and long-lasting relationship with COSCO Through the completion of our latest 16 newbuilding transaction. Incremental contracted revenues for the new charters amount to about $2.8 billion. The acquisitions will be funded with equity and debt. Pre and post-delivery financing for a tenure of up to 15 years has been arranged for all 16 ships with two leading Chinese financial institutions. In addition to the above, we have agreed to acquire secondhand 5,600 TEU vessels built in 2001. The acquisitions are expected to be completed in Q4 '26, upon which each vessels shall commence a 42-month time charter with a leading liner operator. As a consequence, total contracted revenues have reached $6.2 billion with a remaining time charter duration of 6.1 years.

In light of the above, management is pleased to recommend to the Board of Directors to increase the quarterly dividend per share from $0.115 to $0.125 while rewarding our shareholders as a result of increased cash flows, profitability and visibility, the payment of that dividend is not expected to affect our capacity to continue growing on a healthy basis in a volatile market environment. Moving now to the slide presentation. On the first slide, you can see our first quarter results.

Adjusted net income for the quarter was $76 million or $0.63 per share. Net income for the quarter was $75 million or $0.62 per share. Our liquidity stands at about $640 million. Management has announced the intention to recommend a dividend increase to the Board. Subject to approval, the quarterly dividend would increase from $0.115 to $0.125 per share, starting with the second quarter of 2026. Slide 4. We have concluded newbuilding contracts for 16 containers with expected deliveries between Q4 '27 and Q2 2030, bringing the total number of our vessels under construction to 22. Upon delivery, each vessel will commence a long-term charter with a leading liner company. We have already arranged pre- and post-delivery financing for all the newbuilding. Slide 5. Here, we show our newbuilding program.

In total, we now have 22 vessels under construction, increasing the weighted average duration of our charter book by about two years. All our newbuildings have long-term employment and signed pre- and post-delivery financing already in place. Slide 6. This slide highlights the effect of the newbuilding program on our fleet age. By 2030, the program reduces average fleet age by about 3.7 years compared to the average age of our fleet had been not entered in the newbuilding contracts. Slide 7.

Regarding SAP activity, we have agreed to acquire secondhand 5,600 TEU capacity containerships with expected delivery in Q4 '26. Upon delivery, these vessels have commenced a 42-month time charter with a leading liner. Both acquisitions are expected to be financed with debt and cash on hand. On the employment side, our revenue days are fixed 97% for '26 and 94% for '27, while our contracted revenues are $6.2 billion with a TEU weighted remaining time charter duration of 6.1 years. And moving to the last slide, charter rates in the containership market remain at robust levels. Yet the fleet remains at very low levels at 1%, indicating a fully employed market. With that, we can conclude our presentation, and we can now take questions. Thank you. Operator, we can take questions now.

[Operator's Instructions] As there are no further questions, I would like to pass the call over to Mr. Zikos for any closing remarks.

Thank you for dialing in and for your interest in the Costamare Q1 results call. We're looking forward to speaking with you again during the next quarterly results call. Thank you. Operator, we can conclude the call now.

Thank you. That does conclude our conference for today. Thank you all for your participation. You may now disconnect.

Thank you for standing by, ladies and gentlemen, and welcome to the Costamare Inc. Conference Call on the Fourth Quarter 2025 Financial Results. We have with us Mr. Gregory Zikos, Chief Financial Officer of the company. [Operator Instructions] I must advise you that this conference is being recorded today, Wednesday, February 18, 2026. I would like to remind you that this conference contains forward-looking statements. Please take a moment to read Slide #2 of the presentation, which contains the forward-looking statements. And I will now pass the floor to your speaker, Mr. Zikos. Please go ahead, sir.

Thank you, and good morning, ladies and gentlemen. During the fourth quarter of the year, the company generated net income of about $73 million. Net income for the whole year was about $370 million with liquidity of $590 million.

Executing on our strategy of securing long-term cash flows from high-quality counterparties in a healthy market environment, we have forward chartered 12 vessels from 4,000 to 14,000 TEUs, all commencing over the next 3 years with a TEU weighted average duration of 6 years.

Incremental contracted revenues from the new charters amount to approximately $940 million. As a consequence, the fleet deployment now stands at 96% and 92% for 2026 and '27, respectively. Total contracted revenues have reached $3.4 billion with a remaining time charter duration of 4.5 years. With an idle fleet of less than 1%, the charter market remains strong with continued high demand for tonnage, a limited supply of vessels available for charter due to the ongoing shortage of ships.

With respect to Neptune Maritime Leasing in which we hold a controlling interest, 54 shipping assets have been funded or are on a commitment charter basis with total investments and commitments exceeding $665 million.

Moving now to the slide presentation. On Slide 3, you can see our annual results. Adjusted net income for '25 was about $376 million or $3.12 per share. Adjusted net income for the quarter was about $72 million or $0.60 per share. Our liquidity stands at $590 million.

Slide 4. We have fixed on a forward basis 12 ships, securing incremental cash flows of $940 million. The average duration of the new charters on a TEU basis is 6 years. Following the above fixtures, our revenue days are fixed 96% for 2026 and 92% for '27, while our contracted revenues are $3.4 billion with a TEU-weighted remaining duration of 4.5 years.

Slide 5. Regarding our financing arrangements, we have agreed the pre- and post-delivery financing of all 6 newbuild vessels. In addition, we have agreed to refinance 2 container ships at a substantially lower funding cost. We have no significant maturities till '27.

Slide 6. On our leasing platform, we increased our investment commitment to about $250 million, out of which close to $180 million have been invested to date. NML has funded or committed to fund 54 assets for a total amount of more than $665 million. Finally, we continue to have a long, uninterrupted dividend track record.

Moving to the last slide. Charter rates in the containership market remain at robust levels. The idle fleet remains at very low levels of 0.5%, indicating a fully employed market.

With that, we can conclude our presentation, and we can now take questions. Thank you. Operator, we can take questions now.

[Operator Instructions] First question comes from Climent Molins from Value Investor's.

I wanted to start by asking about your debt. You're currently generating very solid free cash flow. And I was wondering to what extent do you expect to conduct debt repayments on top of regular scheduled debt amortization. And obviously, this ties back to your investment expectations over the coming year.

Yes. Thank you for that. Our -- on a net debt basis, our debt is at -- the company has a relatively low leverage, also considering the contracted cash flows, and we have always been repaying our debt quite prudently without having any backloaded debt payments. So I think the way it stands now, we have no reason to prepay debt earlier than the original maturity. We may be doing some refinancing here and there, but I don't think that it makes sense now based on the company's low leverage to prepay today any additional debt.

That's helpful. And I also wanted to ask about how should we expect the amortization of deferred revenues to move going forward? Because there was kind of like a substantial increase quarter over quarter. Could you talk a bit about what drove that and whether we should expect this to continue?

No, the deferred revenues, it's mainly an accounting treatment that sort of has to do with -- in case where there is an increase of -- or like a decrease of the charter hire for a long-term time charter. So it's mainly an accounting treatment. And I don't think -- I think that we should be focusing on the cash revenue basis. And we do provide an adjustment in order to arrive on a cash basis figure for the revenue. So I don't think that this is something that we have to worry about. And this is something that is dictated under U.S. GAAP.

Yes, makes sense. It was simply to help us model a little bit better, but we obviously focus on the cash. And that's everything for me.

Yes, it is mainly to streamline in case you have a decreasing or increasing charter hire during the tenure of the charter party in order to have a smooth payment. But this comes from accounting. We make an adjustment for revenues on a cash basis. So I think it's clear.

Yes, it is.

[Operator Instructions] Seeing that there are no further questions in the queue, I would like to turn it back to Mr. Zikos for closing remarks.

Thank you for dialing in today, and thank you for your interest in Costamare. We're looking forward to speaking with you again during the next quarterly results call. Thank you. Operator, we can conclude the call now. Thank you.

Thank you. That does conclude our conference for today. Thank you all for participating. You may now disconnect.

Good day, and welcome to the Costamare Third Quarter 2025 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Gregory Zikos, CFO. Please go ahead.

Thank you, and good morning, ladies and gentlemen. During the third quarter of the year, the company generated net income of about $99 million. After the spin-off of Costamare Partners Holdings Limited, Costamare Inc. remains the sole shareholder of 69 containerships as well as the controlling shareholder of Neptune Maritime Leasing.

In September, following up from our previously announced order of 3,100 TEU capacity containerships, we exercised our option for 2 more sister ships to be delivered in Q1 2028. Upon delivery, they will also commence an 8-year time charter with the first-class liner company.

Since last quarter, we have also fixed 8 vessels with a forward start for periods ranging from 12 to 38 months. These transactions resulted in increased contracted revenues of about $310 million. Our fleet deployment stands at 100% and 80% for 2025 and '26, respectively. Total contracted revenues amount to $2.6 billion, with a remaining time charter duration of about 3.2 years.

Regarding the market, the positive outcome from the latest trade discussion between U.S. and China and the delay in the implementation of port fees should positively contribute to global increased trade flows. Without the fleet of less than 1%, the charter market remains strong with rates fixed at healthy and stable levels on the back of vessel shortage and steady demand.

Finally, with regards to Neptune Maritime Leasing, the growing leasing platform, 50 shipping assets have been funded or are committed and total investments and commitments are exceeding $650 million.

Moving now to the slide presentation. On Slide 3, you can see our third quarter results. Adjusted net income was $98 million or $0.81 per share. Net income for the quarter was around $93 million or $0.77 per share. Our liquidity stands at about $560 million.

Slide 4. We have concluded newbuild contracts for another 3,100 TEU containerships with expected delivery in Q1 '28, bringing the total number of newbuilding orders to 6. Upon delivery, each vessel will commence an 8-year charter with a leading liner company.

On the employment side, we have increased our contracted revenues through new chartering agreements by more than $310 million. In addition, our revenue days are 100% fixed for '25 and 80% for '26, while our contracted revenues are $2.6 billion with a TEU-weighted remaining duration of 3.2 years.

Moving to Slide 5. Regarding our financing arrangements, we have agreed to the pre- and post-delivery financing of our 4 newbuilding's. We have no major maturities till 2027. On the S&P side, we have concluded the acquisition of 6,500 TEU container vessel.

Slide 6. On our leasing platform, we have invested around $180 million. NML has funded or committed to fund 50 shipping assets for a total amount of more than $650 million. Finally, we continue to have a long uninterrupted dividend track record.

Moving to Slide 7, the last slide. Charter rates in the containership market remain at firm levels. The idle fleet remains at low levels at about 0.9%, indicating a fully employed market.

With that, we can conclude our presentation, and we can now take questions. Thank you. Operator, we can take questions now.

[Operator Instructions] The first question comes from Omar Nokta with Jefferies.

Just a couple from me. Obviously, just looking at your chartering activity, you've been able to add a good amount of visibility forward fixing several ships. It looks like maybe an average of at least 2 years or so from what's on the -- from where they were before.

But I just wanted to get your sense in terms of how has chartering activity in general sort of developed here over the past maybe couple of months because you've had obviously a very volatile year for, say, the underlying freight market where there's been huge swings upwards and downwards for freight rates. They bottomed about a month ago. Now they've jumped.

Just want to get a sense from you, given just how active you are in the chartering market, have you noticed any shift in liner appetite? Have things changed here over the past several weeks? Any kind of color you can give on developments on charter it would be great.

Sure. First of all, regarding the box rates, you are right. I mean, last week and last month in general, box rates have been up, especially on the U.S. West Coast trade route.

Now regarding the charter market, there is a shortage of ships, especially larger vessels. So I mean, whichever ships come out, there are definitely candidates to have them chartered in. So still the market remains at very healthy levels. There is demand and ships are easily absorbed.

And I think the main indicator, or someone needs to look at is the idle vessels, where if you back out any dry dockings or sort of technical issues, this is less than 1%. So less than 1% idle fleet means that practically we have a fully employed market. So -- and charter rates, in general, they are holding up very well.

Now whether this will continue or not, and for how long, it's hard to say because we have a series of geopolitical events that might affect it. But for the time being, it is a healthy market. Liners are generally eager to charter in vessels. Now you can argue that probably they may not want to go for longer periods in general compared to the past. But still, you still see like a 2- or 3-year time charter for secondhand vessels on a forward basis.

So in that respect, I think that the fundamentals, as they stand today, considering that the supply of vessels is quite thin, the fundamentals are quite tight and quite positive, I would say.

And then maybe just a follow-up. I wanted to ask about the secondhand acquisition you mentioned. You bought the 06 built 6,000 TEU vessel. That looks like it's on contract to Maersk. Is that -- could you maybe talk about kind of the -- how that came about? Was this a direct acquisition from Maersk with a charter back to them? Are there more opportunities like that, do you think in the sale and purchase?

Yes. I think this vessel has been chartered back to Maersk. This is a structure sale and leaseback deal. There may be more opportunities like that in the future. I mean we haven't come across anything that -- something like that, that probably would make sense.

And as -- but definitely, there may be. And as you've seen, we have been focusing on all the new buildings for the 3,100 TEU ships, we had concluded 4 previously announced in the Q2 results. We have added 2 more options now. Those are going to be delivered in Q1 '28.

On a back-to-back basis, we have pretty much arranged the charter for the first 4 -- sorry, the financing for the first 4, and we are closing the commitment of the financing for the last 2. So which is something that also makes sense. And we are generally active. So either secondhand or even new buildings, assuming that we feel comfortable with the residual value risk of our equity, I think we are -- we will be quite active.

The next question is from Climent Molins with Value Investors.

Following up on Omar's question on the first one. Could you talk a bit about whether you believe the recent increase in freight rates is sustainable? It seems it was mostly a function of front running as tensions between the U.S. and China increased, but those have been lowered since. So how do you think about the trade-off of having more visibility versus the front running?

Yes. For the freight rates, I mean, the box rates, this is something that could also be directly addressed to the liners who sort of may have a better visibility.

I agree with you that last week and last month, freight rates push has been because of front running, may have to do with the pushback of the port fees, et cetera, rearrangement of schedules of the liner companies. Now to what extent they are sort of medium or long-term sustainable, I cannot comment on that.

They are sort of -- because if you look historically at the 3 or 6 months or like 1-year box rates, they have been on a negative trend. But I'm afraid I cannot forecast where box rates are going to be starting from today over the next 3 to 6 months. To some extent, this is something that also liner companies. I think they do have a greater visibility on that.

Yes, makes sense. No one can really forecast that. And also following up on Omar's second question, it seems the Maersk Puelo is fully committed until next October, but Maersk has options to extend employment until 2031. Could you talk about how likely those are to be exercised given the rate?

Okay. I'm afraid these are charter risk option. So as mentioned, it's up to the charter to have them exercised. So again, I cannot forecast what a third party will be doing. So I think market levels will dictate whether the charter will take those options or not. But on a committed basis, you are right, this is a 1-year charter.

And from our side, we have run the numbers to -- so that being conservative, we have been factoring in this 1-year time charter period. After that, it's up to the charter to decide based on its needs, based on market rates, based on the cargo demand to see whether those options one by one are going to be subsequently exercised.

This concludes our Q&A or question-and-answer session. I would like to turn the conference back over to Gregory Zikos for any closing remarks.

Yes. Thank you for dialing in today and for your interest in Costamare Inc. We are looking forward to speaking with you again during the Q4 and year-end results call. Thank you. Operator, I think we have concluded.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Thank you.