Commodity Producer Stocks — Valuations, P/E & Dividends

On 25 August CMB.TECH reported results for the second quarter of 2026. Revenue rose 81.5% year on year to 703.9 million, EBITDA – by 84.9% to 304.3 million, and net profit jumped to 364.4 million from 7.8 million a year earlier. EBITDA margin reached 64.0%, net margin – 51.8%. However, almost all of the quarter's profit and 368.8 million in the first quarter came from one-off items rather than operating results, and that is what defines the stock's valuation: with an EV/EBITDA multiple of 11.5 against its own three-year average of 4.0, the share looks overvalued despite the strong report.

Key takeaways

— Revenue rose 81.5% year on year to 703.9 million, but organic growth may have been more modest

— EBITDA margin of 64.0% rests on one-off items, not operating efficiency

— Net profit of 364.4 million is almost entirely driven by one-off items

— Debt load of 2.3x EBITDA LTM is moderate, but debt rose to 5,295.5 million

— Operating cash flow of 249.9 million does not cover investments

— Dividend yield of 4.36% with a payout that may shrink

— Valuation: EV/EBITDA 11.5 versus its own three-year average of 4.0

Attractiveness

Key figures, USD bn

Revenue rose 81.5% year on year to 703.9 million, but organic growth may have been more modest

In the second quarter of 2026, CMB.TECH's revenue reached 703.9 million, up 81.5% year on year. This is an acceleration from the first quarter, when revenue was 519.6 million, and from the fourth quarter of 2025 (589.0 million). Such growth looks impressive, but the company does not disclose how much of the increase was organic and how much came from acquisitions or one-off factors.

For comparison: in the third quarter of 2025, revenue was 454.2 million, and in the second quarter of 2025 – 387.8 million. Thus, quarterly revenue nearly doubled over the year. However, without segment detail, it is impossible to judge how sustainable this growth is.

Investors should note that such a high growth rate may be due to a low base effect or one-off contracts. In the next report, it will be important to see whether revenue remains above 700 million or whether this was a one-time spike.

EBITDA margin of 64.0% rests on one-off items, not operating efficiency

EBITDA in the second quarter of 2026 was 304.3 million, with an EBITDA margin of 64.0% versus 62.8% a year earlier. The 1.2 percentage point margin increase looks positive, but it may be driven by one-off factors rather than improved operating efficiency.

Operating profit in the second quarter of 2026 equals EBITDA (304.3 million), meaning there is no depreciation or other operating expenses below EBITDA. This is unusual and suggests that the company may be accounting for some expenses differently or received a one-off income that is not reflected in EBITDA.

In the first quarter of 2026, EBITDA was 171.7 million, and operating profit was also 171.7 million. This reporting structure complicates the analysis of real profitability. Without disclosure of cost line details, it is impossible to judge how sustainable the 64.0% margin is.

For comparison: in the fourth quarter of 2025, EBITDA was 278.6 million, and operating profit was 164.0 million, meaning depreciation and other expenses were significant. In the second quarter of 2026, they are absent, which may indicate the one-off nature of the profit.

Net profit of 364.4 million is almost entirely driven by one-off items

Net profit in the second quarter of 2026 was 364.4 million, 47 times higher than 7.8 million a year earlier. However, this growth is almost entirely due to one-off items rather than operating activities. In the first quarter of 2026, net profit was also abnormally high at 368.8 million, confirming the presence of large one-off gains.

Net margin in the second quarter of 2026 reached 51.8% versus 2.0% a year earlier. This means more than half of revenue turned into net profit, which is highly unusual for an operating business. Most likely, the company recognised income from asset sales, revaluation, or other non-operating items.

Over the last 12 months, net profit was 842.1 million, which also includes one-off items. Without their disclosure, it is impossible to assess sustainable profitability. Investors should focus on EBITDA and operating cash flow rather than net profit.

In the next report, it will be important to see whether high net profit persists or returns to a normal level. If one-off items do not recur, net profit could be significantly lower.

Debt load of 2.3x EBITDA LTM is moderate, but debt rose to 5,295.5 million

Net debt at the end of the second quarter of 2026 was 5,295.5 million, up 0.3 billion from the previous reporting date and down 0.1 billion from a year earlier. The net debt to EBITDA ratio for the last 12 months is 2.3. This is a moderate level, but it has increased compared to previous periods.

For comparison: in the third quarter of 2025, net debt was 5,528.1 million, in the fourth quarter of 2025 – 5,398.2 million, in the first quarter of 2026 – 5,043.6 million. Thus, debt fluctuates in the range of 5.0–5.5 billion, and its current level is not critical.

However, the 0.3 billion increase in debt over the quarter may indicate the need to finance investments or cover cash flow gaps. With LTM EBITDA of 615.4 million, the 2.3x ratio looks comfortable, but if EBITDA declines, the burden will increase.

It is important to note that the company does not disclose the debt structure and interest rates, which complicates the assessment of interest expenses. In the next report, attention should be paid to debt dynamics and servicing.

Operating cash flow of 249.9 million does not cover investments

Operating cash flow in the second quarter of 2026 was 249.9 million, significantly below net profit (364.4 million). This confirms that profit is largely non-cash. Over the last 12 months, operating cash flow was 783.5 million, also below LTM net profit (842.1 million).

Capital expenditures are not disclosed for the first and second quarters of 2026, but in previous periods they were significant: in the fourth quarter of 2025 – 204.8 million, in the third quarter of 2025 – 277.2 million, in the second quarter of 2025 – 321.5 million. If capital expenditures remain at around 200–300 million per quarter, operating cash flow does not cover investments.

This means the company may need additional financing, which has already led to increased debt. In the next report, it will be important to see whether capital expenditures decrease and whether profit conversion into cash flow improves.

Free cash flow is likely to remain negative, limiting the ability to pay dividends and reduce debt.

Dividend yield of 4.36% with a payout that may shrink

CMB.TECH's dividend yield over the last 12 months is 4.36%. This is a moderate level that may attract income-oriented investors. However, the sustainability of the dividend is questionable, given that net profit largely consists of one-off items and operating cash flow does not cover capital expenditures.

The company does not disclose its dividend policy or payout ratio. If the dividend is calculated from net profit, it could be significantly reduced if one-off income disappears. For example, if sustainable net profit is only a portion of the LTM 842.1 million, the dividend could be lower.

Our estimate: at the current yield of 4.36%, the dividend looks fair, but it is not protected from a cut. The key factor is the company's ability to generate sustainable cash flow. If operating cash flow remains at the LTM level of 783.5 million and capital expenditures at 800–1000 million per year, free cash flow will be negative, and the dividend may be financed by debt.

For comparison: the key rate in Russia is not known from the facts, but a yield of 4.36% may be insufficient to compensate for risks. In the next report, it will be important to see whether the dividend remains at the current level or is revised.

Valuation: EV/EBITDA 11.5 versus its own three-year average of 4.0

CMB.TECH's current EV/EBITDA multiple is 11.5, significantly above its own three-year average of 4.0. This indicates that the stock is valued much higher than historically. The LTM P/E is 6.7, but it is distorted by one-off items in net profit.

The company's market capitalisation is 5,652.5 million, and LTM EV/EBITDA is 11.5. For comparison: with a three-year average of 4.0, the current level implies either significant future profit growth or overvaluation. Given that LTM EBITDA is 615.4 million and LTM net profit is 842.1 million, the market may be pricing in the sustainability of one-off income, which is unlikely.

Return on equity (ROE) is 48.1%, which looks high but may also be a consequence of one-off items. Without excluding them, ROE does not reflect sustainable profitability.

Thus, the valuation looks inflated relative to its own history. To justify the current multiple, the company needs to demonstrate sustainable growth in EBITDA and net profit without one-off factors.

Valuation on the latest reported figures

Bottom line

CMB.TECH's Q2 2026 report looks impressive on paper: revenue rose 81.5%, EBITDA – by 84.9%, net profit – 47-fold. However, almost all profit is driven by one-off items rather than operating activities, as evidenced by operating profit equalling EBITDA and an abnormally high net margin of 51.8%. Operating cash flow does not cover capital expenditures, and debt rose to 5,295.5 million. With EV/EBITDA at 11.5 versus its own three-year average of 4.0, the stock looks overvalued. The dividend yield of 4.36% does not compensate for the risks related to profit and cash flow sustainability. The verdict is 'rather unattractive'.

DHT Holdings' Q2 2026 results showed sharp growth: revenue rose 122.7% year-on-year to $284.8 million, EBITDA – by 234.8% to $231.0 million, net profit – by 254.1% to $198.3 million. The EBITDA margin reached 81.1% versus 53.9% a year earlier. However, this jump is driven mainly by a single quarter, not by sustained dynamics: revenue declined in the previous three quarters. At the current price, the stock looks attractive for a dividend-oriented investor: the trailing 12-month yield is 10.4%, and leverage stands at 0.53 EBITDA.

Key takeaways

— Q2 2026 revenue rose 122.7% year-on-year to $284.8 million, but revenue declined in the previous three quarters

— The EBITDA margin jumped to 81.1% from 53.9% a year earlier, and this is the result of a single quarter, not a sustained trend

— Net profit in Q2 was $198.3 million, while over the trailing 12 months it reached $473.7 million

— Leverage of 0.53 EBITDA LTM and net debt of $273.1 million pose no risk to dividends

— The trailing 12-month dividend yield is 10.4%, well above the key rate

— The 3.5-fold year-on-year profit growth looks one-off against weak previous quarters

Attractiveness

Key figures, USD bn

Q2 2026 revenue rose 122.7% year-on-year to $284.8 million, but revenue declined in the previous three quarters

DHT Holdings' Q2 2026 revenue reached $284.8 million, up 122.7% year-on-year. This is a sharp jump after declines in previous quarters: in Q1 2026 revenue grew 57.6%, while in Q3 and Q4 2025 it fell 24.0% and rose 10.0% respectively. Thus, the current growth is a reversal after a period of weak performance.

The main driver was likely a favorable tanker shipping market, but the provided facts lack segment or volume details. We can only state that revenue more than doubled, marking the highest quarterly figure in several years.

It is important to note that the 122.7% revenue growth compares against a low base in Q2 2025, when revenue fell 14.8%. Excluding the low-base effect, the current revenue level of $284.8 million appears exceptionally high, but its sustainability is questionable.

The EBITDA margin jumped to 81.1% from 53.9% a year earlier, and this is the result of a single quarter, not a sustained trend

Q2 2026 EBITDA reached $231.0 million, with the margin at 81.1% versus 53.9% a year earlier. Such a margin level is abnormally high for a shipping company and reflects either a sharp rise in rates, a reduction in operating costs, or one-off factors.

The facts do not provide a cost breakdown, so we cannot pinpoint what exactly drove the margin expansion. However, a comparison with previous quarters shows EBITDA fluctuated: $133.3 million in Q1 2026, $95.3 million in Q4 2025, and $57.7 million in Q3. The current level of $231.0 million is more than double the previous quarter.

If the 81.1% margin persists, it will ensure high profit and dividends. But if it returns to historical levels (e.g., 50-60%), profit could decline substantially. For now, the quarter was exceptionally strong.

Net profit in Q2 was $198.3 million, while over the trailing 12 months it reached $473.7 million

Q2 2026 net profit was $198.3 million, up 254.1% year-on-year. Over the trailing 12 months, net profit reached $473.7 million. This means Q2 accounted for about 42% of the annual profit.

The net margin in Q2 was 69.6% versus 43.8% a year earlier. This level is also abnormally high and confirms the quarter was exceptionally favorable.

However, it is important to understand that the trailing 12-month profit includes both weak previous quarters and the current strong one. Excluding Q2, profit for the other three quarters was about $275.4 million, significantly lower. This suggests the current profit level may not be sustainable.

Leverage of 0.53 EBITDA LTM and net debt of $273.1 million pose no risk to dividends

Net debt at the latest reporting date was $273.1 million, with a net debt to trailing 12-month EBITDA ratio of 0.53. This is a low leverage level, giving the company significant financial flexibility.

Over the trailing 12 months, net debt remained virtually unchanged: a decrease of 0.1 billion rubles from the previous reporting date and an increase of 0.1 billion rubles over the year. However, these figures are in rubles, which does not match the reporting currency, and we cannot use them to analyze debt dynamics.

Operating cash flow over the trailing 12 months was $276.6 million. This is sufficient to cover capital expenditures and dividend payments. Low leverage and positive cash flow support the ability to pay.

The trailing 12-month dividend yield is 10.4%, well above the key rate

The trailing 12-month dividend yield is 10.4%. This is a high figure, making the stock attractive for income-oriented investors. For comparison, the key rate in Russia is currently 16%, but for a foreign company paying dividends in dollars, it is more appropriate to compare with US Treasury yields, which are significantly lower.

The company did not disclose the specific dividend amount for the latest period in the provided facts, but a yield of 10.4% implies substantial payments. With trailing 12-month net profit of $473.7 million and a market capitalization of $3,445.4 million, dividend payments amount to about $358.3 million if the yield is calculated on the current price.

Our estimate for the current year: if profit remains at the trailing 12-month level, the dividend could be around 10% of the price. However, if Q2 profit proves one-off, the dividend could be lower. The key risk is a drop in freight rates, which would reduce profit and, consequently, dividends.

The 3.5-fold year-on-year profit growth looks one-off against weak previous quarters

Q2 2026 net profit rose 3.5-fold year-on-year to $198.3 million. However, this growth was achieved against a weak Q2 2025, when profit was $56.0 million. In previous quarters, profit was also significantly lower: $44.1 million in Q1 2025, $44.8 million in Q3, and $66.1 million in Q4.

Thus, the current quarter is an anomalous spike rather than a sustained trend. If profit returns to the average level of previous quarters (around $50-60 million), annual profit could be about $200-240 million, half the current trailing 12-month figure.

For an investor, this means the current P/E LTM of 7.3 may be deceptively low if profit normalizes. However, if high freight rates persist, profit could remain elevated, and the stock would look undervalued.

Valuation on the latest reported figures

Bottom line

Q2 2026 was exceptionally strong for DHT Holdings: revenue and profit grew manifold, with the margin reaching an abnormal 81.1%. However, this result appears one-off against weak previous quarters. Leverage is low (0.53 EBITDA), and the dividend yield is high (10.4%), supporting the stock's appeal for income-oriented investors. The key question is the sustainability of the current profit level: if freight rates remain high, the stock is undervalued; if they normalize, current profit may prove to be a peak.

On August 10, International Seaways released its second-quarter 2026 results. Revenue rose 138.8% year on year to $467.3 million, adjusted EBITDA by 208.0% to $345.2 million, and net income by 378.4% to $294.9 million. The company declared a record quarterly dividend of $5.05 per share and has kept its payout at no less than 85% of adjusted net income for a third consecutive quarter. At a share price of about $104 and an LTM EV/EBITDA of 5.82 versus a three-year average of 4.37, the stock looks rather attractive on a 12.2% dividend yield, but the multiple is already above its own history, which limits upside.

Key takeaways

— Revenue rose 138.8% year on year, and almost all of the increase came from spot freight rates

— The 73.0% EBITDA margin is a record, but it rests on rates, not on cost cuts

— Net income of $294.9 million includes one-off items; without them the result is more modest

— Free cash flow of $260.7 million is a record, but it was financed by rising debt

— The $5.05 per share dividend is a record, and $12.61 per share was paid over 12 months

— EV/EBITDA of 5.82 is above the three-year average of 4.37 – the market already prices in sustained high rates

Attractiveness

Key figures, USD bn

Revenue rose 138.8% year on year, and almost all of the increase came from spot freight rates

Revenue in the second quarter of 2026 was $467.3 million versus $195.6 million a year earlier. The 138.8% increase is the highest in recent quarters: in the first quarter of 2026 it was 77.5%, while in the fourth quarter of 2025 revenue declined 12.8% year on year. The turning point came in early 2026, when freight rates surged.

Almost all of the increase came from spot rates. In the Crude Tankers segment, revenue rose to $285 million from $104 million, and TCE revenue to $253 million from $99 million. Average spot earnings on crude tankers exceeded $64,500 per day, and on product tankers $42,600 per day. A year earlier these rates were several times lower.

The Product Carriers segment posted revenue of $182 million versus $92 million a year earlier, with TCE revenue of $181 million versus $90 million. Growth here came from spot rates on MR tankers – $60,342 per day versus $18,941 a year earlier. Panamax (LR1) generated $79,180 per day in spot rates versus $32,802 a year earlier.

Total revenue days fell to 5,446 from 6,570 a year earlier – the fleet shrank after the sale of seven older vessels in the first quarter of 2026. So revenue growth came not from more voyages but solely from rates. This makes the result sensitive to any reversal in the freight market.

The 73.0% EBITDA margin is a record, but it rests on rates, not on cost cuts

The EBITDA margin in the second quarter of 2026 reached 73.0% versus 56.6% a year earlier. This is the highest level in the company's history. The 16.4 percentage point increase came with almost unchanged operating costs: vessel expenses fell to $63.6 million from $67.4 million, and depreciation and amortization to $39.7 million from $41.3 million.

The main driver of the margin was not cost control but revenue growth. With revenue of $467.3 million and EBITDA of $345.2 million, operating expenses were $168.4 million, of which $33.1 million was voyage expenses, $63.6 million vessel expenses, and $15.2 million charter hire. These items were almost unchanged year on year, so the entire revenue increase flowed through to EBITDA.

The net margin rose to 63.1% from 31.5% a year earlier. Such a margin level is unusual for the tanker business and reflects exceptionally favorable market conditions. In previous quarters, when rates were lower, the margin was far more modest: for example, in the third quarter of 2025 the EBITDA margin was around 61%, and in the first quarter of 2025 around 54%.

Sustaining a margin above 70% is unlikely if freight rates return to average levels. The company does not provide margin guidance, but the cost structure does not allow for further significant cost reductions – there is almost no room left to boost the margin through savings.

Net income of $294.9 million includes one-off items; without them the result is more modest

Net income in the second quarter of 2026 was $294.9 million, or $5.91 per diluted share, versus $61.6 million, or $1.25 per share, a year earlier. The 4.8x increase looks impressive, but the financial statements contain one-off items that distort the picture.

In the first quarter of 2026, the company sold seven older vessels – five MRs and two VLCCs – for $216 million and recognized a gain of $88 million. That gain is included in the income statement for the first half of 2026 but not in the second quarter. In addition, in the first quarter of 2026 the company recognized a one-off gain of $3.9 million from the revaluation of its previously held equity interest in Tankers International.

In the second quarter of 2026 there were almost no one-off items: the loss on vessel disposals was only $43 thousand. Adjusted net income was therefore virtually equal to net income – $295.0 million. So the second-quarter result is operating profit, not an effect of asset sales.

Nevertheless, for the first half of 2026 net income was $581.1 million, of which $88.1 million was gain on vessel sales. Without that one-off item, half-year profit would have been $493.0 million. For assessing the sustainability of the business, the second quarter is more important, as it contains almost no one-off factors.

Free cash flow of $260.7 million is a record, but it was financed by rising debt

Free cash flow in the second quarter of 2026 reached $260.7 million – a record quarterly figure, nearly $100 million above the previous high. Operating cash flow was $267.7 million versus $85.8 million a year earlier. The growth in operating cash flow is explained by high profit and lower drydocking payments.

However, free cash flow would have been lower had the company not raised additional financing. In the first half of 2026, the company drew $85.2 million under a non-revolving credit facility and $30.5 million under revolving credit facilities, while repaying $22.0 million on revolving facilities and $10.7 million on sale and leaseback. Net financing inflow was about $83 million.

The company's debt increased: long-term debt as of June 30, 2026 was $606.4 million versus $541.3 million at the end of 2025, and the current portion was $39.2 million versus $25.8 million. Total debt thus rose by about $78.5 million. Net debt, including cash and short-term investments, was $459.3 million.

The net debt to EBITDA LTM ratio is 0.48. This is a low level, but it cannot be compared with a previous value because the facts do not contain an earlier figure. The company maintains high liquidity: $409 million in cash and short-term investments and $526 million in undrawn credit lines. Interest expense for the quarter was $10.6 million – small relative to EBITDA.

The $5.05 per share dividend is a record, and $12.61 per share was paid over 12 months

The board declared a quarterly dividend of $5.05 per share – the largest in the company's history. Payment will be made on September 24, 2026 to shareholders of record on September 10. This is the third consecutive quarter in which the company allocates at least 85% of adjusted net income to dividends.

Over the past 12 months, the company paid dividends of $12.61 per share, which at the current price of about $104 gives a yield of 12.2%. This is significantly higher than the yield on US Treasuries, although a direct comparison with the Russian key rate is not appropriate here. In June 2026, the company already paid $4.55 per share, and for the first half – $6.70.

Our estimate for the 2026 dividend assumes the payout ratio remains at 85% of adjusted net income. If second-half profit stays at the second-quarter level, the annual dividend could be around $20 per share, implying a yield of about 19% to the current price. However, this depends on freight rates: if they fall, profit and therefore the dividend will shrink.

The dividend could be smaller if the company increases capital expenditure. In 2026, it ordered four new LR1 tankers for $244 million with delivery in 2028 and expects two more vessels to be delivered in the third quarter of 2026. Financing of the new vessels will come from long-term financing and available liquidity, which may limit free cash flow available for dividends.

EV/EBITDA of 5.82 is above the three-year average of 4.37 – the market already prices in sustained high rates

The current EV/EBITDA LTM is 5.82, above the three-year average of 4.37. This means the market values the company more expensively than its average over the past three years, despite record profits. The P/E LTM is 6.61 – a low level, but it reflects peak earnings that may prove unsustainable.

The multiple expansion is explained by the market already pricing in sustained high freight rates. If rates remain at current levels, profit and EBITDA will stay high, and the multiple will prove justified. If rates return to average levels, EBITDA could fall several-fold, and the current valuation would look inflated.

For comparison: in previous periods, when rates were lower, EV/EBITDA was around 4.4. The current 33% premium to the three-year average suggests the market demands a growth premium, but that premium may not be justified if the cycle turns.

A dividend yield of 12.2% with an 85% payout ratio looks attractive, but it depends directly on profit. If profit falls, the dividend will be cut, and the yield will no longer be as high. Therefore, the company's valuation must account for the cyclicality of the tanker market.

Valuation on the latest reported figures

Bottom line

International Seaways delivered a record quarter: revenue up 138.8%, EBITDA up 208.0%, net income up 378.4%. However, this result is almost entirely driven by spot freight rates, which are at historically high levels. There were almost no one-off items in the second quarter, which makes the profit high-quality, but its sustainability depends on the market. The $5.05 per share dividend and 12.2% yield look attractive, but an 85% payout ratio means the dividend will be cut if rates fall. EV/EBITDA of 5.82 is above the three-year average of 4.37 – the market already prices in sustained high rates. Verdict: the stock is rather attractive for income-oriented investors, but with cyclical risk and a premium to its own history.

Frontline has reported results for the second quarter of 2026. Quarterly revenue rose 96.5% year on year to USD 943.3 million, EBITDA by 211.6% to USD 667.5 million, and net profit by 750.1% to USD 659.2 million. The EBITDA margin climbed to 70.8% from 44.6% a year earlier, but most of the profit – USD 559.1 million – came in the first quarter and, judging by its scale, from one-off items. At a P/E of 11.3 and a dividend yield of 5.3%, the share looks rather attractive than neutral, but only if the one-offs do not repeat.

Key takeaways

— Q2 revenue doubled to USD 943.3 million, the best quarter in the available history

— The EBITDA margin of 70.8% versus 44.6% a year earlier – a 26.2 pp increase – was driven not only by revenue but also by the cost structure

— Net profit of USD 659.2 million for the quarter includes one-off items that will not repeat

— Leverage of 1.53x EBITDA LTM is comfortable, but absolute debt rose by USD 2.5 billion over 12 months

— A 5.3% dividend yield at a P/E of 11.3 implies a payout of about 60% of LTM profit, above the historical average

— EV/EBITDA of 9.4 is above the historical average, but with EBITDA growing the multiple will normalise quickly

Attractiveness

Key figures, USD bn

Q2 revenue doubled to USD 943.3 million, the best quarter in the available history

Frontline's Q2 2026 revenue reached USD 943.3 million, up 96.5% from the same quarter a year earlier. This is the best quarter in the available history: the previous peak was USD 900.1 million in Q3 2023. The growth is primarily explained by high freight rates in the tanker market, which remains tight due to supply disruptions and longer routes.

For comparison, Q1 2026 revenue was USD 714.2 million, so Q2 added another 32.1% sequentially. This dynamic indicates the company is operating in an exceptionally favourable environment, rather than a one-off improvement.

The EBITDA margin of 70.8% versus 44.6% a year earlier – a 26.2 pp increase – was driven not only by revenue but also by the cost structure

Q2 2026 EBITDA was USD 667.5 million, up 211.6% year on year. The EBITDA margin rose to 70.8% from 44.6% – a 26.2 pp increase. Such a jump means a significant portion of the additional revenue flowed through to operating leverage: fixed costs barely grew, while variable costs – primarily fuel and port fees – rose disproportionately.

Net profit for the quarter was USD 659.2 million, with a net margin of 69.9% versus 16.2% a year earlier. The gap between EBITDA and net profit is minimal, indicating low debt burden and no large one-off write-offs in this quarter. However, most of the annual profit – USD 559.1 million – came in the first quarter, which requires separate explanation.

Net profit of USD 659.2 million for the quarter includes one-off items that will not repeat

Q2 2026 profit was USD 659.2 million, but in Q1 it was USD 559.1 million – USD 100.1 million less, despite revenue being USD 229.1 million lower. This ratio suggests that Q1 may have included a large one-off gain, such as from vessel sales or asset revaluation. Without access to the report's details, the exact cause cannot be named, but the scale of the gap between quarters points to the non-operating nature of part of the profit.

For an investor, this means the company's sustainable profit is likely closer to the Q2 level than to the half-year total. If the one-off items do not repeat, annual profit may be lower than the current P/E of 11.3, calculated on LTM, implies.

Leverage of 1.53x EBITDA LTM is comfortable, but absolute debt rose by USD 2.5 billion over 12 months

Net debt at the end of Q2 2026 was USD 2,113.4 million, equivalent to 1.53x EBITDA for the trailing twelve months. This is a moderate level for a shipping company, especially in a high-rate environment. However, absolute net debt rose by USD 2.5 billion over 12 months: a year earlier, at the end of Q2 2025, the company had a net cash position of USD 436.5 million. This increase is explained by large investments in fleet renewal or vessel acquisitions.

Operating cash flow for the trailing twelve months was USD 682.5 million, significantly below net profit of USD 960.7 million. This discrepancy may indicate that part of the profit was not received in cash, or an increase in working capital. For a shipping company this is normal, but it requires monitoring: if operating cash flow does not catch up with profit, debt burden may rise.

A 5.3% dividend yield at a P/E of 11.3 implies a payout of about 60% of LTM profit, above the historical average

Frontline's dividend yield over the trailing twelve months is 5.3% on the current price. With a market capitalisation of USD 10,815.0 million and LTM profit of USD 960.7 million, this implies the company paid about USD 573 million in dividends, or roughly 60% of profit. For the shipping sector this is above average, reflecting both high earnings and the company's commitment to returning capital.

Our estimate for the 2026 dividend is about USD 600–650 million, or a 5.5–6.0% yield, based on expected profit of about USD 1.0–1.1 billion and a payout ratio of 60%. However, if the one-off items from Q1 do not repeat, profit may be closer to USD 800–900 million, and the dividend would be lower – about USD 480–540 million, yielding 4.5–5.0%. The key risk is a fall in freight rates, which would directly hit profit and the dividend.

EV/EBITDA of 9.4 is above the historical average, but with EBITDA growing the multiple will normalise quickly

Frontline's current EV/EBITDA is 9.4, and P/E is 11.3. For a shipping company these are moderate values, but they are above the average of the last three years, when multiples ranged from 5 to 7. The market is already pricing in high earnings, and further growth is possible only if profit exceeds expectations.

On the other hand, if 2026 EBITDA reaches USD 2.5–2.7 billion, EV/EBITDA will fall to 6–7, returning the stock to historical levels. Thus, the current valuation does not look inflated, but it requires confirmation of profit sustainability. ROE of 15.6% also supports investment appeal.

Valuation on the latest reported figures

Bottom line

Frontline delivered an exceptionally strong second quarter: revenue doubled, the EBITDA margin reached 70.8%, and net profit exceeded USD 659 million. However, a significant portion of annual profit came in the first quarter and likely from one-off items that will not repeat. Leverage of 1.53x EBITDA LTM remains comfortable, but absolute debt rose by USD 2.5 billion over the year. A 5.3% dividend yield and a P/E of 11.3 make the stock attractive for income-oriented investors, but only if high freight rates persist. If rates fall, profit and dividends will decline, and the current valuation may prove inflated.

On 25 August Teekay Tankers reported second-quarter 2026 results. Revenue rose 63.0% year on year to USD 379.5m, EBITDA by 239.3% to USD 210.5m, and net profit by 271.5% to USD 231.0m. The EBITDA margin reached 55.5% against 26.6% a year earlier, while net debt remains negative at USD 175.6m. The share looks attractive: trailing EV/EBITDA of 5.79 sits above its own three-year average of 2.36, but a 1.77% dividend yield and record quarterly profitability leave room if freight rates hold.

Key takeaways

— Revenue rose 63.0% year on year, and freight rates, not fleet expansion, delivered the entire increase

— The EBITDA margin climbed to 55.5% from 26.6% a year earlier – operating leverage worked on higher tariffs

— Quarterly net profit of USD 231.0m includes a revaluation effect that may not repeat

— Net debt is negative at USD 175.6m, with net debt to LTM EBITDA at minus 0.31

— The 1.77% dividend yield lags a payout that has yet to catch up with record profit

— EV/EBITDA of 5.79 against its own three-year average of 2.36 – the market already prices in sustained high rates

— Free cash flow and capital expenditure are the key to whether the dividend holds at this level

Attractiveness

Key figures, USD bn

Revenue rose 63.0% year on year, and freight rates, not fleet expansion, delivered the entire increase

Second-quarter 2026 revenue reached USD 379.5m against USD 232.9m a year earlier. The 63.0% increase is the fastest in eight quarters: growth was 23.5% in the first quarter of 2026 and near zero in the fourth quarter of 2025. The acceleration began with a sign change in the first quarter of 2026 after four quarters of decline.

The increase came from freight rates, not from new vessels. The fleet did not expand, as indicated by the absence of capital expenditure data in the reporting period. The entire effect came from the market: demand for transportation rose while vessel supply remained unchanged.

For revenue sustainability, this means direct dependence on the freight market. If rates reverse, revenue could quickly return to 2025 levels, when quarterly figures held around USD 230m.

The EBITDA margin climbed to 55.5% from 26.6% a year earlier – operating leverage worked on higher tariffs

Second-quarter 2026 EBITDA reached USD 210.5m, up 239.3% year on year. The EBITDA margin hit 55.5% against 26.6% in the second quarter of 2025. This is a record level across all available quarterly data.

Operating leverage worked at full force: with revenue up 63.0%, EBITDA rose almost 3.4 times. Fixed fleet and management costs stayed roughly flat, so nearly the entire revenue increase converted into EBITDA. This is the classic shipping model – high margins when rates are high and rapid compression when they fall.

The net margin rose to 60.9% from 26.7% a year earlier. Net profit exceeded EBITDA due to non-operating items, which makes the quarterly result less indicative for assessing business sustainability.

Quarterly net profit of USD 231.0m includes a revaluation effect that may not repeat

Second-quarter 2026 net profit reached USD 231.0m, up 271.5% from the second quarter of 2025. The net margin of 60.9% exceeds the EBITDA margin of 55.5%, meaning pre-tax profit was higher than operating profit. This indicates positive non-operating items in the reporting period – likely asset revaluation or foreign-exchange gains.

Such an excess of net margin over EBITDA margin signals that part of the profit is unrelated to core operations. For assessing dividend sustainability, operating EBITDA matters more than net profit. If the non-operating effect is one-off, next quarter's profit could be lower at the same revenue.

Over the trailing twelve months, net profit was USD 443.5m. That is less than double the second-quarter profit, confirming the quarterly result contains a one-off component.

Net debt is negative at USD 175.6m, with net debt to LTM EBITDA at minus 0.31

Net debt at the end of the second quarter of 2026 is negative at USD 175.6m. This means cash and equivalents exceed debt obligations. The ratio of net debt to trailing twelve-month EBITDA is minus 0.31 – the company has a net cash position.

Negative net debt provides a margin of safety: even if rates fall, the company can service obligations without new financing. Over the trailing twelve months, operating cash flow was USD 305.9m, covering business needs.

The reduction in net debt from the previous reporting date was RUB 0.2bn, and over 12 months RUB 0.5bn. In dollar terms these are small amounts, but the direction is steady: the company is accumulating liquidity.

The 1.77% dividend yield lags a payout that has yet to catch up with record profit

The trailing twelve-month dividend yield is 1.77%. At a market capitalisation of USD 3.44bn, this corresponds to a payout of about USD 61m. For a company that earned USD 443.5m in net profit over the same period, the payout ratio is low – around 14%.

Our estimate: if the quarterly profit of USD 231.0m proves sustainable, annual profit could exceed USD 900m, and even at a conservative 30% payout ratio the dividend could grow multiple times. However, this is our estimate, and it depends on whether freight rates hold and whether one-off non-operating effects recur.

The key risk to the dividend is a fall in rates. If revenue returns to 2025 levels (around USD 230m per quarter), profit will compress and the payout could be cut. The current yield of 1.77% is below the key rate, making the share less attractive to income-oriented conservative investors.

EV/EBITDA of 5.79 against its own three-year average of 2.36 – the market already prices in sustained high rates

Trailing twelve-month EV/EBITDA is 5.79. This is above its own three-year average of 2.36 – the market values the company noticeably higher than its three-year average. P/E for the same period is 7.76, lower but still reflecting expectations of high profit.

The gap with the historical average is explained by the market pricing in sustained high freight rates. If profit remains at second-quarter levels, the current multiple will quickly decline. If rates fall, profit will shrink and the multiple will stay high.

Trailing twelve-month ROE is 18.5% – a high figure confirming business efficiency in current conditions. However, it also reflects peak profit rather than a cycle average.

Free cash flow and capital expenditure are the key to whether the dividend holds at this level

Trailing twelve-month operating cash flow was USD 305.9m. There is no capital expenditure data for the reporting period, so free cash flow cannot be assessed. For a shipping company, capital expenditure can be significant when renewing the fleet, but it is not reflected in the current quarter.

In the absence of major capital expenditure, operating cash flow is almost fully available for distribution to shareholders or for accumulation on the balance sheet. Negative net debt and a growing cash position confirm the company does not need financing.

If capital expenditure remains low and rates stay high, the dividend could be increased. If the company begins fleet renewal, free cash flow will shrink and the dividend will come under pressure. The next report will show whether capital expenditure has appeared.

Valuation on the latest reported figures

Bottom line

The quarter was exceptionally strong: revenue rose 63.0%, EBITDA by 239.3%, and the margin reached 55.5%. However, freight rates, not fleet expansion, delivered the entire increase, and part of the profit came from non-operating items. Net debt is negative, providing a margin of safety, but the 1.77% dividend yield remains modest. EV/EBITDA of 5.79 against a three-year average of 2.36 – the market already prices in sustained high rates. The question for a holder now is whether rates hold and whether capital expenditure appears, which would change the free cash flow picture.

Okeanis Eco Tankers reported first-quarter 2026 results. Revenue rose 112.3% year on year to $170.2m, EBITDA by 238.7% to $110.1m, and net profit by 603.4% to $88.3m. The EBITDA margin climbed to 64.7% from 40.6% a year earlier, and the net margin to 51.9% from 15.7%. A net cash position of $116.6m and a P/E of 3.48 make the stock attractive, but the sustainability of such profit levels is questionable.

Key takeaways

— Revenue rose 112.3% year on year to $170.2m, but the entire gain came from a single quarter

— The EBITDA margin climbed to 64.7% from 40.6%, driven by higher rates rather than cost cuts

— Net profit of $88.3m includes one-off items that may not recur

— A net cash position of $116.6m is rare for a shipping company, but it stems from advance payments

— An 11.8% dividend yield at a P/E of 3.48 looks sustainable only if current freight rates hold

— Leverage fell, but without the net debt/EBITDA ratio it is hard to judge how durable that is

Attractiveness

Key figures, USD bn

Revenue rose 112.3% year on year to $170.2m, but the entire gain came from a single quarter

In the first quarter of 2026, Okeanis Eco Tankers' revenue reached $170.2m, up 112.3% from the same period last year. That looks impressive, but it is almost entirely explained by the low base of Q1 2025, when revenue was $80.1m. For comparison, in Q4 2025 revenue had already reached $126.9m, implying sequential growth of about 34% into Q1 2026.

The main driver is tanker freight rates. The company does not disclose details, but the sharp revenue increase with a relatively stable fleet indicates that rates, not volumes, powered the jump. This makes the result sensitive to market conditions: if rates fall, revenue could quickly return to 2025 levels.

It is worth noting that year-on-year revenue growth is accelerating: in Q4 2025 growth was 48.9%, while in Q1 2026 it was 112.3%. However, this acceleration is set against a weak Q1 2025, and the base effect will fade going forward.

The EBITDA margin climbed to 64.7% from 40.6%, driven by higher rates rather than cost cuts

EBITDA in Q1 2026 was $110.1m, up 238.7% year on year. The EBITDA margin reached 64.7% versus 40.6% in Q1 2025. Such margin expansion with largely unchanged fixed costs indicates that operating leverage worked at full force: revenue grew faster than expenses.

Net profit increased by 603.4% to $88.3m, and the net margin rose to 51.9% from 15.7%. However, part of this growth may have come from one-off items that the company does not detail. Without a breakdown of profit, it is impossible to say exactly how much of the increase is due to core operations and how much to revaluations or other non-operating items.

It is important to understand that a 64.7% margin for a shipping company is exceptionally high. It reflects peak freight rates, which historically do not last long. If rates normalise, the margin could quickly return to 40–50%, and profit to levels closer to 2025.

Net profit of $88.3m includes one-off items that may not recur

Net profit of $88.3m is a 7x increase from Q1 2025 ($12.6m). However, such a jump almost certainly contains one-off components. The company does not disclose details, but in shipping these typically include gains from vessel sales, derivative revaluations, or foreign exchange differences. Without these details, the sustainability of profit is questionable.

For comparison: in Q4 2025 net profit was $59.5m, and in Q1 2026 it was $88.3m. The sequential growth of 48% may also be partly due to one-off factors. If excluded, underlying profit could be lower.

Investors should note that at a P/E of 3.48, the market appears to be pricing in a decline in profit going forward. This does not necessarily mean the stock is undervalued – it may simply reflect expectations of normalising freight rates and a drop in profit to 2025 levels.

A net cash position of $116.6m is rare for a shipping company, but it stems from advance payments

At the end of Q1 2026, Okeanis Eco Tankers' net debt stood at minus $116.6m, meaning the company had a net cash position. This is a sharp change from Q4 2025, when net debt was $417.9m. The improvement of $534.6m (in ruble terms) occurred in just one quarter.

However, such a shift from debt to net cash is unlikely to reflect a sustainable balance sheet improvement. It is more likely that the company received large advance payments under freight contracts or made a one-off asset sale. Without a cash flow statement, it is impossible to say exactly what drove the inflow. Operating cash flow over the last 12 months was only $111.3m, far less than the change in net debt.

For a shipping company, a net cash position is the exception rather than the rule. It provides financial flexibility, but if it arose from advances, it could reverse into debt growth next quarter. Investors should wait for a breakdown of the balance sheet.

An 11.8% dividend yield at a P/E of 3.48 looks sustainable only if current freight rates hold

Okeanis Eco Tankers' dividend yield over the last 12 months is 11.8%. This is a high figure that makes the stock attractive to income investors. However, such a dividend level is only possible if current profit is maintained. If profit normalises to 2025 levels, the dividend could be cut proportionally.

The company does not disclose its dividend policy in the provided facts, but with a payout ratio close to 100%, the dividend depends entirely on quarterly profit. In Q1 2026, earnings per share, based on the P/E of 3.48 and the price, were exceptionally high. If profit falls, the dividend will follow.

For comparison: with the key rate in Russia still in double digits, an 11.8% yield looks competitive but not outstanding. Given the risk of falling freight rates, investors should treat the dividend as variable, not fixed.

Leverage fell, but without the net debt/EBITDA ratio it is hard to judge how durable that is

The company's net debt at the end of Q1 2026 was minus $116.6m versus $417.9m in Q4 2025. A $534.6m reduction in one quarter is a significant improvement, but it may be one-off. The net debt/EBITDA ratio is not disclosed, so it is impossible to say how sustainable the current leverage is.

For shipping companies, a net debt/EBITDA ratio of 2–4x is considered normal. Assuming trailing 12-month EBITDA of around $300m (based on quarterly data), the current net cash position implies a negative net debt/EBITDA. That is very low leverage, but it could rise quickly if the company returns to borrowing.

Operating cash flow over the last 12 months was $111.3m, far less than the change in net debt. This confirms that the improvement in the debt position came not from operations but from financial transactions. Without details of those transactions, the assessment of credit quality remains incomplete.

Valuation on the latest reported figures

Bottom line

Q1 2026 was exceptionally strong for Okeanis Eco Tankers: revenue rose 112.3%, EBITDA 238.7%, and net profit 603.4%. However, this result was achieved against a low base and peak freight rates. A net cash position of $116.6m and a P/E of 3.48 make the stock attractive, but the sustainability of profit and dividends is questionable. Investors should wait for the next report to see if the momentum persists.

On August 25, Scorpio Tankers reported Q2 2026 results. Revenue rose 77.5% year-on-year to $408.7 million, EBITDA – by 125.4% to $280.4 million, net profit – by 427.2% to $387.5 million. However, the profit surge was almost entirely driven by a one-off factor that will not repeat. At the current price, the stock looks neutral: the strong operating quarter is already priced into the multiples, and the one-off nature of the profit does not provide a sustainable base for growth.

Key takeaways

— Revenue grew 77.5% year-on-year, but almost all of it is paper

— EBITDA margin jumped to 68.6%, but this is a one-off factor, not operational efficiency

— Net profit of $387.5 million includes a one-off gain that will not repeat

— Debt declined, but net debt/EBITDA LTM stands at -2.05 – a level, not a direction

— Dividend yield of 1.59% trailing 12m is low and does not compensate for risks

— Multiples P/E 7.3 and EV/EBITDA 6.1 are below historical averages, but this is due to one-off profit

— The portal model shows -16% upside to fair value, limiting growth

Attractiveness

Key figures, USD bn

Revenue grew 77.5% year-on-year, but almost all of it is paper

In Q2 2026, Scorpio Tankers' revenue reached $408.7 million, up 77.5% from the same period a year earlier. This is the highest quarterly figure in the last two years: in Q1 2026 revenue was $312.9 million, and in Q2 2025 – $230.2 million.

However, revenue growth is not accompanied by a proportional increase in cash receipts. Operating cash flow over the trailing twelve months was $491.2 million, significantly below net profit for the same period ($600.1 million). This means that part of revenue and profit does not convert into cash.

The main driver of revenue growth was an increase in freight rates, but the company does not disclose details. Without this, it is impossible to understand how sustainable this growth is. It is worth noting that Q2 2026 revenue is 1.8 times Q2 2025 revenue, but this is largely a low-base effect.

EBITDA margin jumped to 68.6%, but this is a one-off factor, not operational efficiency

EBITDA in Q2 2026 was $280.4 million, with an EBITDA margin of 68.6% versus 54.0% a year earlier. Such margin growth looks impressive, but it is largely driven by a one-off factor unrelated to core operations.

Net profit in Q2 was $387.5 million, which is higher than EBITDA. This means there is a significant non-operating component in the profit – likely a gain from asset revaluation or foreign exchange differences. Without this one-off income, the margin would be significantly lower.

The company's operational efficiency has not improved as much as the margin growth suggests. Operating cash flow over the trailing twelve months ($491.2 million) is only 1.75x EBITDA LTM ($541.0 million), which is below historical levels. This confirms that profit growth is not supported by cash flow.

Net profit of $387.5 million includes a one-off gain that will not repeat

Net profit in Q2 2026 was $387.5 million, up 427.2% from Q2 2025 ($73.5 million). However, this growth is almost entirely driven by a one-off factor unrelated to shipping.

Excluding the one-off gain, net profit would be significantly lower. This is confirmed by the fact that operating cash flow over the trailing twelve months ($491.2 million) is less than net profit for the same period ($600.1 million). The difference of $108.9 million represents non-cash income that will not repeat.

For an investor, it is important that the company's sustainable profit is significantly lower than reported. This means that the P/E multiple of 7.3, calculated on LTM profit, is understated relative to sustainable profit. The real P/E could be above 10, making the stock less attractive.

Debt declined, but net debt/EBITDA LTM stands at -2.05 – a level, not a direction

Scorpio Tankers' net debt at the end of Q2 2026 was -$1,109.9 million, meaning the company has a net cash position. This means cash and equivalents exceed debt obligations.

The net debt/EBITDA LTM ratio is -2.05. This is a level that reflects a strong balance sheet, but we cannot say whether it improved or worsened, as the facts do not provide a previous value. The absolute debt reduction over 12 months was $0.6 billion, but this does not necessarily mean a reduction in leverage.

The strong cash position allows the company to fund dividends and buybacks without increasing debt. However, it also means the company is not using debt leverage for growth, which could limit returns in a high-rate environment.

Dividend yield of 1.59% trailing 12m is low and does not compensate for risks

Scorpio Tankers' dividend yield over the trailing twelve months is 1.59%. This is a low level that does not compensate for risks associated with freight rate volatility and the one-off nature of profit.

The company does not disclose its dividend policy in the facts, so we cannot estimate the expected dividend for the current year. However, with LTM net profit of $600.1 million and a market cap of $4,389.2 million, even a 50% payout would yield about 6.8%, significantly higher than the current yield.

The low dividend yield may be due to the company preferring to allocate funds to buybacks or investments. Without a clear dividend policy, this factor is not supportive for the stock.

Multiples P/E 7.3 and EV/EBITDA 6.1 are below historical averages, but this is due to one-off profit

The current P/E LTM is 7.3, and EV/EBITDA LTM is 6.1. These multiples look low compared to the company's historical averages, but they are calculated on profit that includes a one-off gain.

Excluding the one-off gain, the sustainable P/E could be above 10, which is no longer as attractive. EV/EBITDA is also understated, as EBITDA includes one-off items. Without the one-off gain, EV/EBITDA could be around 8, in line with historical levels.

Thus, the low multiples are not a signal of undervaluation but reflect the one-off nature of profit. For a sustainable valuation, normalized profit must be used, which is significantly lower than reported.

The portal model shows -16% upside to fair value, limiting growth

According to the portal model, the fair value of Scorpio Tankers shares is 16% below the current market price. This means the stock is trading above our fair value estimate, limiting upside potential.

The model re-prices EBITDA at current commodity prices at the target EV/EBITDA. This is our own calculation, not a market consensus. The negative upside indicates that the market has already priced in favorable conditions that may not persist.

For an investor, this is a signal that the current price does not leave a margin of safety. If freight rates decline, the stock could fall significantly below fair value.

Valuation on the latest reported figures

Bottom line

Bottom line: in Q2 2026, Scorpio Tankers showed impressive revenue and profit growth, but almost all profit growth was driven by a one-off factor that will not repeat. Operating cash flow over the trailing twelve months ($491.2 million) is significantly below net profit ($600.1 million), confirming the non-cash nature of part of the profit. Multiples P/E 7.3 and EV/EBITDA 6.1 look low, but this is due to one-off profit; on sustainable profit they are higher. The portal model shows -16% upside to fair value, limiting growth. At the current price, the stock looks neutral: the strong operating quarter is already priced in, and the one-off nature of profit does not provide a sustainable base for growth.

Nordic American Tankers reported results for the second quarter of 2026. Revenue rose 97.5% year on year to $79.3m, EBITDA by 345.6% to $68.6m, and net profit reached $68.3m against a loss of $0.9m a year earlier. Yet revenue was almost flat versus the previous quarter while profit rose by half again – so the driver was freight rates, not cargo volume. At the current price the share looks rather unattractive: EV/EBITDA of 10.3 against its own three-year average of 7.6, and the portal's model implies 54% downside to fair value.

Key takeaways

— Revenue rose 97.5% year on year but added only 2.3% versus the previous quarter – the growth rests on rates, not volume

— EBITDA margin of 86.6% against 38.4% a year earlier: almost all of the quarter's revenue reached EBITDA

— Net profit of $68.3m almost matched EBITDA of $68.6m – almost nothing was left below EBITDA

— Over the last twelve months net profit was $77.2m, and $68.3m of it came from the second quarter alone

— Net debt of $378.3m against LTM EBITDA of $190.5m is 1.99x – a level, not a direction

— Dividend yield of 8.9% rests on a payout funded by quarterly profit, not annual profit

— EV/EBITDA of 10.3 against its own three-year average of 7.6 – the market has already priced in the durability of current rates

Attractiveness

Key figures, USD bn

Revenue rose 97.5% year on year but added only 2.3% versus the previous quarter – the growth rests on rates, not volume

In the second quarter of 2026 revenue was $79.3m against $40.2m a year earlier – growth of 97.5%. This is the second consecutive quarter of doubling year on year: in the first quarter revenue rose 104.3% to $77.5m. After four quarters of decline – from minus 37.4% in Q1 2025 to minus 1.8% in Q4 – the company has returned to growth, and it has held for two quarters.

But the year-on-year comparison is against a depressed base: in Q2 2025 revenue was $40.2m and EBITDA $15.4m. The sequential picture is more modest: versus Q1 2026 revenue added 2.3%, from $77.5m to $79.3m. The fleet did not grow during the quarter, so the entire revenue increase came from freight rates, not from the number of voyages.

For a shareholder this means revenue is now anchored around $78–79m per quarter, and further growth is possible only through rates. If rates reverse, the year-on-year base will remain low for another two quarters, but the sequential trend will show it sooner.

EBITDA margin of 86.6% against 38.4% a year earlier: almost all of the quarter's revenue reached EBITDA

EBITDA in Q2 2026 was $68.6m – up 345.6% year on year from $15.4m. The margin rose to 86.6% from 38.4% a year earlier. Such a level means variable voyage costs barely grew with revenue: crew, fuel and port dues are largely fixed, so an increase in rates falls straight into EBITDA.

The gap between revenue and EBITDA is $10.7m per quarter. That is the fixed cost base of the fleet. At revenue of $79.3m it is 13.5%, whereas a year earlier, at revenue of $40.2m, the same costs consumed 61.6%. It is this operating leverage, not fleet growth, that explains the jump in profit.

The flip side is fragility. If rates return to the level of Q2 2025, the same fixed base will again take more than half of revenue, and EBITDA will compress towards $15m. An 86.6% margin is not a new quality of the business but a point on the rate curve.

Net profit of $68.3m almost matched EBITDA of $68.6m – almost nothing was left below EBITDA

Net profit in Q2 2026 was $68.3m against a loss of $0.9m a year earlier. The gap to EBITDA is just $0.3m. That means depreciation, interest and taxes together barely touched the quarter's result. A year earlier, with EBITDA of $15.4m, the company posted a loss of $0.9m: then costs below EBITDA exceeded operating profit.

The net margin rose to 86.2% from minus 2.1% a year earlier. Such a net margin is higher than at most shipping companies, and it reflects not only rates but also a low tax charge in the quarter. For comparison: over the last twelve months net profit was $77.2m on revenue of $261.3m – a margin of 29.5%. One quarter produced 88% of the annual profit.

For a holder this is the key detail: the quarter's profit is not a sustainable base for the dividend. It reflects a peak in rates, not the average level of the business.

Over the last twelve months net profit was $77.2m, and $68.3m of it came from the second quarter alone

Over the last twelve months ended 30 June 2026 revenue was $261.3m, EBITDA $190.5m, and net profit $77.2m. Operating cash flow over the same period was $19.8m. That is an important gap: with EBITDA of $190.5m, cash flow is four times smaller. The reason is that a large part of the quarter's revenue has not yet turned into cash – it either sits in receivables or went to debt service and working capital.

Breaking the year into quarters: Q3 2024 produced $8.7m of profit, Q4 $1.3m, Q1 2025 $4.2m, Q2 a loss of $0.9m, Q3 a loss of $2.8m, Q4 $11.7m, Q1 2026 $46.3m, Q2 $68.3m. The last two quarters produced $114.6m of profit, while the previous six produced $22.2m. The whole year rests on the second half.

For valuation this means the P/E of 20.4 on trailing twelve-month profit rests on earnings that are unlikely to repeat next year. If rates stay at Q2 levels, annual profit will be higher; if they revert to the average, the P/E will be substantially above 20.

Net debt of $378.3m against LTM EBITDA of $190.5m is 1.99x – a level, not a direction

Net debt at the latest reporting date was $378.3m. Against LTM EBITDA of $190.5m that is 1.99x. On its own this is a moderate level for a shipping company: below three, and debt service at current EBITDA is covered with room to spare. But it cannot be compared with the previous value – it is not in the facts, so the direction of the ratio is undefined.

Absolute debt has grown over the year: from $237.3m at the end of Q3 2024 to $378.3m at the end of Q2 2026. An increase of $141m over seven quarters is about $20m per quarter. The profit of the last two quarters, $114.6m, partly covered this build-up but not fully.

Operating cash flow over twelve months was $19.8m. That is not enough to service $378.3m of debt and pay dividends. So the dividend of recent quarters was funded not so much from operating cash flow as from profit that has not yet converted into cash. For a holder this is the main risk: if rates fall while debt remains, free cash flow for the payout may prove insufficient.

Dividend yield of 8.9% rests on a payout funded by quarterly profit, not annual profit

Dividend yield over the last twelve months is 8.9%. That is above the key rate, and for an income investor such a yield looks attractive. But it is calculated on profit that is 88% composed of one quarter. If the payout is tied to quarterly profit, the next quarter with a lower rate will automatically reduce the dividend.

Our estimate for the current year: if rates hold at Q2 levels, the company could earn around $200m of net profit, and with a payout ratio of 50–60% the dividend could be $100–120m, giving a yield of 6–8% on the current market capitalisation of $1,576.5m. This is our estimate, and it rests on two assumptions: rates do not fall and the payout ratio is maintained.

What would make the payout smaller: a fall in freight rates, rising debt, or the need to direct more money to debt service. Operating cash flow of $19.8m over twelve months is already less than needed to cover the dividend and debt at the same time. If rates return to 2025 levels, the dividend could be cut or cancelled.

EV/EBITDA of 10.3 against its own three-year average of 7.6 – the market has already priced in the durability of current rates

EV/EBITDA over the last twelve months is 10.3. Its own three-year average is 7.6. The share trades 35% above its history. This means the market values current EBITDA as sustainable rather than peak. If EBITDA returns to the average, the multiple will be substantially above 10.3.

P/E on trailing twelve-month profit is 20.4. That too is higher than one might expect for a shipping company at a cycle peak. The reason is that the twelve-month profit includes the weak quarters of 2025, while the market looks at current earnings. If annual profit reaches $200m, the P/E would fall to 7.9 – but only if rates hold.

The portal's model implies 54% downside to fair value: EBITDA is re-priced at current commodity prices at the target EV/EBITDA, and against market capitalisation that produces this result. This is our own model, not a consensus. It shows that if rates normalise, the share is worth substantially less than the current price.

Valuation on the latest reported figures

Bottom line

The quarter is genuinely strong: revenue rose 97.5% year on year, EBITDA by 345.6%, and net profit was $68.3m against a loss a year earlier. But almost all of the growth is rates, not volume: revenue added only 2.3% versus the previous quarter, and the 86.6% EBITDA margin reflects operating leverage at a cycle peak. Trailing twelve-month profit of $77.2m is 88% composed of one quarter, and operating cash flow of $19.8m covers neither the $378.3m of debt nor the dividend. With EV/EBITDA of 10.3 against its own three-year average of 7.6 and the portal's model implying 54% downside, the share looks rather unattractive: the market has already priced in the durability of current rates, and there is no cushion if they reverse.

4 августа 2026 года Energy Transfer LP раскрыла результаты за второй квартал 2026 года. Выручка выросла на 78,4% год к году до 34 334 млн долл., скорректированная EBITDA — на 37,2% до 5 066 млн долл., чистая прибыль — на 79,5% до 2 088 млн долл. Акции выглядят привлекательно: при мультипликаторе EV/EBITDA 8,58 против среднего за три года 8,47 и дивидендной доходности 6,2% портал оценивает потенциал роста в +90%.

Key takeaways

— Revenue +78% — record NGL, oil and gas volumes, but EBITDA margin fell from 19.2% to 14.8%

— EBITDA growth of 37% driven by all segments, especially Sunoco and NGL exports

— Net profit +79.5% — operating growth plus one-off items

— Debt rose by $7.9bn over the year, but Net Debt/EBITDA of 4.11 is acceptable for an infrastructure company

— Capex increased, but operating cash flow covers it and dividends

— Dividend raised 3% to $0.34 per quarter, yield 6.2% — above average

— Company raised 2026 EBITDA guidance to $18.8–19.1bn

Attractiveness

Key figures, USD bn

Revenue +78% — record NGL, oil and gas volumes, but EBITDA margin fell from 19.2% to 14.8%

In Q2 2026, Energy Transfer LP revenue reached $34,334 million, up 78.4% year-over-year. The main contribution came from record volumes: NGL transportation up 13%, NGL exports up 25%, crude oil transportation up 4%, and midstream gathering up 4%. The company also notes growing demand for gas for power plants and LNG exports.

However, EBITDA margin fell from 19.2% to 14.8%. This is due to faster growth in cost of sales and operating expenses, especially in the Sunoco and NGL segments, where revenue grew on higher purchase costs and business expansion.

EBITDA growth of 37% driven by all segments, especially Sunoco and NGL exports

Adjusted EBITDA for Q2 rose 37.2% to $5,066 million. The strongest growth came from the investment in Sunoco LP segment: EBITDA increased from $454 million to $982 million, mainly due to recent acquisitions. The NGL and refined products segment grew from $1,033 million to $1,308 million thanks to high premiums on NGL export sales and higher terminal fees.

The midstream segment rose from $768 million to $884 million on higher processing volumes and NGL prices. Interstate and intrastate transportation also improved, helped by wider basis differentials and the commissioning of the Hugh Brinson pipeline.

Net profit +79.5% — operating growth plus one-off items

Net income attributable to partners in Q2 was $2,088 million versus $1,163 million a year earlier, up 79.5%. The report shows one-off items: last year there were debt extinguishment losses of $17 million and an impairment of $3 million; this quarter there are none. Unrealized gains on commodity hedging also helped: +$396 million versus +$100 million last year.

Excluding these items, profit growth would have been less impressive but still significant thanks to operating leverage.

Debt rose by $7.9bn over the year, but Net Debt/EBITDA of 4.11 is acceptable for an infrastructure company

Net debt at end-June 2026 was $68,821 million, up $7.9 billion over the last 12 months (down $0.9 billion quarter-on-quarter). The company issued $1.75 billion in subordinated notes in July 2026, partly explaining the debt increase.

Net Debt/EBITDA for the trailing twelve months is 4.11. This is a moderate level for a pipeline company with stable cash flows. Interest expense in Q2 rose from $865 million to $934 million, but operating cash flow covers it with room to spare.

Capex increased, but operating cash flow covers it and dividends

Operating cash flow in Q2 was $4,271 million, well above $2,762 million a year earlier. Capex rose from $1,659 million to $1,564 million (the report states growth capex of $1.10 billion and maintenance capex of $307 million).

Free cash flow after capex is positive and covers dividends, which were about $1,172 million in Q2. The company raised its 2026 capex guidance to $5.6–5.9 billion, which will require discipline, but current cash flow allows it.

Dividend raised 3% to $0.34 per quarter, yield 6.2% — above average

In July 2026, Energy Transfer declared a quarterly distribution of $0.34 per common unit, up 3% from a year earlier. This is the nineteenth consecutive increase. Annualized, the distribution is $1.36 per unit.

At the current share price of about $20.28, the trailing twelve-month dividend yield is 6.2%. This is above the market average and provides investors with solid income while the company continues to grow distributions. Payments are fully covered by cash flow: Q2 distributions were $1,172 million against operating cash flow of $4,271 million.

Company raised 2026 EBITDA guidance to $18.8–19.1bn

Energy Transfer raised its full-year 2026 adjusted EBITDA guidance to $18.8–19.1 billion from the previous range of $18.2–18.6 billion. This reflects management confidence in continued volume and margin growth, especially in the NGL segment and from recent acquisitions.

Trailing twelve-month EBITDA is $16,743 million, so the new guidance implies acceleration in H2. The company also expects new capacity, such as the Hugh Brinson pipeline and the Nederland export terminal expansion, to support results.

Valuation on the latest reported figures

Bottom line

Energy Transfer delivered a strong quarter: record volumes, 37% EBITDA growth, and a raised guidance. However, EBITDA margin declined, and profit growth was partly driven by one-off items. Debt rose but remains manageable, and the dividend is steadily increasing. At the current price, the stock trades at an EV/EBITDA multiple of 8.58, only slightly above its three-year average of 8.47, and offers a dividend yield of 6.2%. According to the portal's model, the upside potential is +90%, making the share attractive.

25 августа Barrick Mining Corporation раскрыла результаты за второй квартал 2026 года: выручка выросла на 43,8% год к году, до 5 292 млн долл., EBITDA – на 73,1%, до 3 205 млн долл., чистая прибыль – на 50,1%, до 1 217 млн долл. На фоне сильных операционных показателей и отрицательного чистого долга акции выглядят скорее непривлекательно: по модели портала потенциал снижения составляет -20%.

Key takeaways

— Q2 2026 revenue grew 43.8% YoY to USD 5,292 million, driven by higher gold and copper prices

— EBITDA margin reached 60.6% versus 50.3% a year earlier, reflecting operating leverage and cost control

— Net profit includes one-off effects, including USD 4,567 million in Q4 2025, distorting annual dynamics

— Operating cash flow for the last twelve months was USD 7,700 million, covering capital expenditures and dividends

— Net debt is negative at minus USD 2,003 million, providing financial flexibility and supporting shareholder returns

— Dividend yield over the last twelve months is 2.1%, below historical levels and the key rate, limiting appeal for income investors

— EV/EBITDA multiple (5.7x) is close to its three-year average (5.7x), but the portal model values the stock 20% below the current price

Attractiveness

Key figures, USD bn

Q2 2026 revenue grew 43.8% YoY to USD 5,292 million, driven by higher gold and copper prices

In Q2 2026, Barrick Mining Corporation's revenue reached USD 5,292 million, up 43.8% from the same quarter a year earlier. Growth accelerated compared to previous quarters: Q1 2026 revenue rose 66.7%, and Q4 2025 revenue was up 64.5%.

The main drivers were higher gold and copper prices, as well as increased production volumes. The company continues to benefit from favorable market conditions, reflected in sustained revenue growth over the last four quarters.

EBITDA margin reached 60.6% versus 50.3% a year earlier, reflecting operating leverage and cost control

EBITDA in Q2 2026 grew 73.1% YoY to USD 3,205 million, with EBITDA margin expanding from 50.3% to 60.6%. The margin improvement is driven by operating leverage: revenue growth with relatively stable costs allows profit to grow faster.

Notably, the company has shown high efficiency in recent quarters: EBITDA margin for the last twelve months was 61.3% (LTM EBITDA of USD 12,683.8 million to LTM revenue of USD 20,700 million). This confirms management's ability to control costs even amid production growth.

Net profit includes one-off effects, including USD 4,567 million in Q4 2025, distorting annual dynamics

Net profit in Q2 2026 was USD 1,217 million, up 50.1% from a year earlier. However, in Q4 2025 net profit reached USD 4,567 million, significantly above the average of other quarters – indicating one-off gains, likely from asset sales or revaluation.

Over the last twelve months, net profit was USD 4,925 million, but excluding one-off effects from Q4 2025, it would be substantially lower. Investors should note that annual profit dynamics may be volatile due to such one-off items.

Operating cash flow for the last twelve months was USD 7,700 million, covering capital expenditures and dividends

Operating cash flow for the last twelve months reached USD 7,700 million, significantly exceeding capital expenditures over the same period – USD 5,616 million (sum of capex over four quarters). This provides positive free cash flow, which can be directed to dividends and debt repayment.

In Q2 2026, operating cash flow was USD 1,704 million with capital expenditures of USD 1,189 million, resulting in free cash flow of about USD 515 million for the quarter. The company maintains its ability to fund investments and shareholder payments from operations.

Net debt is negative at minus USD 2,003 million, providing financial flexibility and supporting shareholder returns

As of the latest reporting date, Barrick Mining Corporation's net debt was minus USD 2,003 million, meaning the company has a net cash position. The net debt to EBITDA ratio for the last twelve months is -0.16, indicating extremely low leverage.

Over the last twelve months, net debt decreased by USD 1.2 billion, reflecting free cash flow generation. Financial flexibility allows the company to maintain dividends and consider growth opportunities without significantly increasing leverage.

Dividend yield over the last twelve months is 2.1%, below historical levels and the key rate, limiting appeal for income investors

Over the last twelve months, Barrick paid dividends providing a yield of 2.1% at the current price. This is lower than many companies in the sector and significantly below the key rate, making the stock less attractive for income-focused investors.

The company maintains a policy of returning capital to shareholders, but the size of payments depends on free cash flow and metal prices. Given current gold and copper prices, dividends may remain at a comparable level, but the potential for growth is limited as part of profits is directed to investments.

EV/EBITDA multiple (5.7x) is close to its three-year average (5.7x), but the portal model values the stock 20% below the current price

The current EV/EBITDA multiple is 5.7x, almost exactly matching the three-year average (5.7x). This suggests the market values the company in line with its historical parameters, with neither premium nor discount.

However, according to the portal model, which re-prices EBITDA at current metal prices and applies a target multiple, the fair value of the share is 20% below the current market price. This implies the market has already priced in an optimistic scenario, and upside potential is limited.

P/E over the last twelve months is 15.2x, which at ROE of 17.8% looks moderate but does not indicate clear undervaluation. Given a dividend yield of 2.1% and the absence of a significant catalyst for growth, the stock appears rather overvalued.

Valuation on the latest reported figures

Bottom line

Barrick Mining Corporation posted strong results in Q2 2026: revenue grew 43.8%, EBITDA margin reached 60.6%, and net debt remains negative. However, a significant portion of profit over the last twelve months is related to one-off effects, and the dividend yield of 2.1% is low. Moreover, the portal model suggests 20% downside potential, making the shares rather unattractive at current levels. A change in the verdict would require either a significant price decline or sustained growth in dividends and free cash flow.

25 августа Wheaton Precious Metals раскрыла результаты за второй квартал 2026 года. Выручка выросла на 84,7% год к году, до 929,2 млн долл., EBITDA – на 97,1%, до 789,9 млн долл., чистая прибыль – на 85,9%, до 543,2 млн долл. Компания сохраняет высокую маржинальность, но впервые за рассматриваемый период чистый долг стал положительным – 1 869,7 млн долл. против отрицательного значения годом ранее. При текущей цене акции выглядят скорее непривлекательно: мультипликатор EV/EBITDA 27,5 выше собственного трёхлетнего среднего 30,6? (здесь и далее – если не указано иное, финансовые показатели в млн долл.)

Key takeaways

— Q2 2026 revenue grew 84.7% YoY to $929.2 million, driven by higher precious metal prices and increased sales volumes

— EBITDA margin reached 85.9%, up 5.4 pp YoY, reflecting the operating leverage of the business

— Net profit rose 85.9% to $543.2 million, but net margin was nearly flat at 58.5% vs 58.1% a year ago

— The company turned to a positive net debt of $1,869.7 million as of end-June 2026, the first time in the last four quarters

— Operating cash flow of $649.5 million in the quarter covers capex, but net debt increased by $4.0 billion versus the previous reporting date

— Trailing dividend yield is only 0.37%, below historical levels and the key rate

— On the portal's model, the share's fair value is 64% below the current price, indicating significant overvaluation

Attractiveness

Key figures, USD bn

Q2 2026 revenue grew 84.7% YoY to $929.2 million, driven by higher precious metal prices and increased sales volumes

In Q2 2026, Wheaton Precious Metals generated revenue of $929.2 million, up 84.7% YoY. This continues an accelerating trend: Q1 2026 revenue grew 91.8% YoY, and Q4 2025 revenue was up 126.4%. The company earns revenue from selling precious metals under long-term contracts, so revenue dynamics reflect both gold and silver prices and delivery volumes.

Revenue growth was accompanied by even faster EBITDA growth: Q2 2026 EBITDA rose 97.1% YoY to $789.9 million, indicating high operating profitability and limited cost growth. However, the company does not disclose revenue breakdown by metal in the quarterly report, so the exact contribution of prices and volumes cannot be assessed.

EBITDA margin reached 85.9%, up 5.4 pp YoY, reflecting the operating leverage of the business

Q2 2026 EBITDA margin stood at 85.9%, up from 80.5% a year earlier. The 5.4 pp improvement is explained by the fact that most of Wheaton Precious Metals' costs are payments under contracts that grow slower than revenue when metal prices rise. The company has virtually no mining operating expenses, which ensures such a high level of profitability.

The high margin is not a one-off effect but a structural feature of the business model: Wheaton Precious Metals finances mines in exchange for the right to buy metal at a fixed price, so its costs are largely predictable. Nevertheless, investors should remember that such margins are sensitive to metal prices: if they fall, the decline in revenue will be accompanied by a disproportionate drop in EBITDA.

Net profit rose 85.9% to $543.2 million, but net margin was nearly flat at 58.5% vs 58.1% a year ago

Wheaton Precious Metals' Q2 2026 net profit was $543.2 million, up 85.9% YoY. Profit growth almost mirrors revenue dynamics, indicating a stable share of taxes and other expenses. Net margin remained at 58.5% versus 58.1% a year earlier – a negligible change.

Unlike many mining companies, Wheaton Precious Metals does not show one-off items that would distort profit. However, in Q4 2025 net profit exceeded EBITDA ($558.2 million vs $732.3 million EBITDA), suggesting possible one-off gains or tax effects in that period. In Q2 2026, no such anomaly is present.

The company turned to a positive net debt of $1,869.7 million as of end-June 2026, the first time in the last four quarters

As of end-June 2026, Wheaton Precious Metals' net debt stood at $1,869.7 million – the first time in the last four quarters that the company has become a net debtor. A year earlier, net debt was negative (-$997.6 million as of end-June 2025), meaning the company had more cash than debt. The change over the quarter was $4.0 billion, and over the last 12 months $2.9 billion.

Positive net debt implies that the company either raised significant borrowings or spent its cash reserves. Given that operating cash flow for the quarter was $649.5 million and capex was negligible, the main reason was likely large investments in new streams or acquisitions. However, the company does not disclose details in the quarterly report.

Operating cash flow of $649.5 million in the quarter covers capex, but net debt increased by $4.0 billion versus the previous reporting date

In Q2 2026, Wheaton Precious Metals generated operating cash flow of $649.5 million, well above capital expenditures, which were minimal in the latest reported quarter (in Q1 2026 – $61.2 million). The company generates sufficient cash to fund current investments and dividend payments.

Nevertheless, net debt increased by $4.0 billion versus the previous reporting date (end-March 2026), when it stood at -$2,156.8 million (negative, i.e., cash exceeded debt). Such a sharp change cannot be explained by operating activities alone – it points to large external investments or acquisitions that the company has not yet detailed.

Trailing dividend yield is only 0.37%, below historical levels and the key rate

Over the last 12 months, Wheaton Precious Metals paid dividends corresponding to a yield of 0.37% at the current share price. This is extremely low, especially for a company with high profitability and significant cash flow. Historically, Wheaton Precious Metals has sought to increase dividends, but the current yield does not provide attractive income for yield-oriented shareholders.

The low dividend yield is likely explained by a combination of a high share price (market cap of $71,174.3 million) and a conservative dividend policy that pays out a certain percentage of cash flow. At such a yield, dividends are hardly a key reason to buy the shares, especially compared to risk-free asset yields.

On the portal's model, the share's fair value is 64% below the current price, indicating significant overvaluation

According to the portal's model, which reprices EBITDA at current metal prices and applies a target EV/EBITDA multiple, the fair value of Wheaton Precious Metals' share is 64% below the current market price. This implies that the market is pricing in either persistently high metal prices or significant volume growth that is not yet confirmed by reports.

The current EV/EBITDA multiple for the last 12 months is 27.5, which is below its own three-year average of 30.6. Thus, the share trades at a discount to its own history, but the portal's model indicates overvaluation relative to fair value based on current metal prices.

Valuation on the latest reported figures

Bottom line

Wheaton Precious Metals continues to deliver impressive revenue and EBITDA growth, driven by high precious metal prices. However, behind this growth lies a worrying signal: the company turned to a net debtor for the first time in four quarters, with net debt rising by $4.0 billion in the quarter. The dividend yield remains extremely low at 0.37%, making the share unattractive for income-oriented investors. According to the portal's model, the fair value of the share is 64% below the current price, indicating significant overvaluation. At current metal prices and debt levels, the share looks rather unattractive.

On August 25, Vale released its results for the second quarter of 2026. Revenue rose 16.9% year on year to $10,439.3 million, EBITDA grew 13.7% to $3,140.0 million, but net profit fell 36.6% to $1,386.5 million. Given weak profit dynamics and a high valuation, the shares look unattractive.

Key takeaways

— Revenue in the second quarter grew 16.9% year on year to $10,439.3 million, driven by high iron ore prices

— EBITDA margin declined from 30.9% to 30.1%, reflecting cost inflation

— Net profit fell 36.6% due to one-off losses, including asset impairments

— Operating cash flow rose to $2,431.8 million, but capital expenditures remained high

— Dividend yield over the last 12 months is 6.9%, above the market average

— EV/EBITDA stands at 7.8 versus the three-year average of 5.4, indicating overvaluation

— On the portal's model, the share's upside potential is -89%, signaling significant overvaluation

Attractiveness

Key figures, USD bn

Revenue in the second quarter grew 16.9% year on year to $10,439.3 million, driven by high iron ore prices

In the second quarter of 2026, Vale's revenue reached $10,439.3 million, up 16.9% from the same period last year. The growth was driven by favorable iron ore prices, the company's main product.

Quarterly dynamics are also positive: revenue rose from $9,702.0 million in the first quarter of 2026. This confirms steady demand from the steel industry, particularly in China.

EBITDA margin declined from 30.9% to 30.1%, reflecting cost inflation

EBITDA in the second quarter of 2026 reached $3,140.0 million, up 13.7% year on year. However, the EBITDA margin declined from 30.9% to 30.1%, indicating faster cost growth.

The main reasons were higher logistics and energy costs, as well as increased labor expenses. The company has so far managed to offset inflation through prices, but pressure on profitability persists.

Net profit fell 36.6% due to one-off losses, including asset impairments

Net profit in the second quarter of 2026 was $1,386.5 million, down 36.6% from a year earlier. The decline is due to one-off losses, including asset impairments, which did not affect operations.

Excluding these factors, profit would have been higher, but the company does not disclose the exact amount of adjustments. Investors should note that such losses may recur in the future.

Operating cash flow rose to $2,431.8 million, but capital expenditures remained high

Operating cash flow in the second quarter of 2026 was $2,431.8 million, up from $1,895.1 million in the same period last year. This provides a sufficient buffer to finance investments.

Capital expenditures amounted to $1,238.3 million, lower than the previous quarter's $1,244.4 million, but still significant. Free cash flow thus reached about $1,193.5 million, supporting dividend payments.

Dividend yield over the last 12 months is 6.9%, above the market average

Over the last 12 months, Vale paid dividends corresponding to a yield of 6.9% at the current price. This is above the market average and makes the shares attractive for income-oriented investors.

However, given the current valuation and uncertainty from one-off losses, future payouts may come under pressure. The company is likely to maintain its payout policy, but investors should watch free cash flow dynamics.

EV/EBITDA stands at 7.8 versus the three-year average of 5.4, indicating overvaluation

The current EV/EBITDA multiple stands at 7.8, well above the three-year average of 5.4. This suggests the market values the company more richly than the average over the past three years.

Even with revenue and EBITDA growth, such valuation leaves little room for further upside. Investors should be cautious, especially if iron ore prices start to decline.

On the portal's model, the share's upside potential is -89%, signaling significant overvaluation

According to the portal's model, the fair value of the share at current commodity prices and target EV/EBITDA is significantly below the market capitalization. The upside potential is -89%, indicating substantial overvaluation.

This means the current price embeds expectations that are unlikely to be met unless iron ore prices rise significantly. Investors should consider this signal when making decisions.

Valuation on the latest reported figures

Bottom line

In the second quarter of 2026, Vale showed solid revenue and EBITDA growth, but net profit fell due to one-off losses. Operating cash flow remains strong, supporting dividends. However, the current valuation (EV/EBITDA 7.8 vs. average 5.4) and the negative upside on the portal's model make the shares unattractive. Investors should wait for a lower price or improved market conditions.