Danaos Corporation: revenue grows, but free cash flow is eaten by investments in new vessels

25 августа Danaos Corporation раскрыла результаты за второй квартал 2026 года. Выручка выросла на 4,7% год к году до 274,4 млн долл., EBITDA – на 13,5% до 174,5 млн долл., чистая прибыль – на 16,0% до 151,8 млн долл.. При этом компания активно инвестирует в новые суда: капитальные затраты во втором квартале составили 177,6 млн долл., что почти вдвое превышает операционный денежный поток. Акции торгуются с P/E 5,3 и EV/EBITDA 4,6, что ниже среднего за три года, и выглядят привлекательно для долгосрочных инвесторов, несмотря на давление на свободный денежный поток.

Key takeaways

— Revenue in Q2 grew 4.7% driven by fleet expansion and higher rates

— EBITDA margin reached 73.5% – a record level in recent quarters

— Net profit rose 16% to $151.8 million, supported by higher EBITDA and low interest expenses

— Capex of $177.6 million almost doubled operating cash flow

— Net debt increased to $202.5 million, but the ratio to EBITDA remains low at 0.18

— Dividend yield of 1.7% is modest, as the company prefers to reinvest in growth

— On the portal's model, the stock has 33% upside potential

Attractiveness

Key figures, USD bn

Revenue in Q2 grew 4.7% driven by fleet expansion and higher rates

In Q2 2026, Danaos Corporation's revenue reached $274.4 million, up 4.7% year-over-year. Growth was driven by an increase in the number of vessels in operation and higher charter rates. The company has been consistently expanding its fleet, acquiring new container ships, which allows it to grow revenue even in a moderate market environment.

Over the last twelve months (LTM), revenue reached $1,100.0 million, confirming the resilience of the business model. Growth rates in recent quarters have been modest – ranging from 0.2% to 6.9% year-over-year – but consistently positive, indicating the company's ability to generate income amid normalizing rates after the 2022–2023 peak.

EBITDA margin reached 73.5% – a record level in recent quarters

EBITDA in Q2 2026 grew 13.5% year-over-year to $174.5 million, with EBITDA margin reaching 73.5% versus 67.8% a year earlier. The margin improvement is attributed to revenue growing faster than operating expenses, as well as economies of scale from fleet expansion.

Over the last twelve months, EBITDA reached $646.2 million, providing strong coverage of investments and debt obligations. Such a high margin is typical for shipping companies with modern fleets and long-term contracts, reducing cash flow volatility.

Net profit rose 16% to $151.8 million, supported by higher EBITDA and low interest expenses

Net profit in Q2 2026 reached $151.8 million, up 16.0% year-over-year. The growth was driven by higher EBITDA and relatively low interest expenses due to modest debt. Net margin reached 55.3% versus 49.9% in Q2 2025.

Over the last twelve months, net profit reached $540.8 million, corresponding to a return on equity (ROE) of 15.2%. The company demonstrates high efficiency, converting operational results into net profit.

Capex of $177.6 million almost doubled operating cash flow

In Q2 2026, operating cash flow reached $204.4 million, up 18.3% year-over-year. However, capital expenditures reached $177.6 million – almost double the Q2 2025 level ($25.5 million). The company is actively investing in new vessels, temporarily reducing free cash flow.

Over the last twelve months, operating cash flow reached $644.8 million, and capital expenditures – $549.4 million (sum of quarterly values). Thus, free cash flow for LTM was about $95 million, covering dividend payments but leaving little room for additional shareholder returns.

Net debt increased to $202.5 million, but the ratio to EBITDA remains low at 0.18

As of the end of Q2 2026, net debt stood at $202.5 million, up from the previous quarter ($149.1 million) and from a year earlier ($215.0 million). The increase in debt is related to financing the fleet expansion program.

The ratio of net debt to EBITDA for the last twelve months is 0.18 – a very low level that poses no threat to financial stability. The company retains significant headroom for further investments and shareholder distributions.

Dividend yield of 1.7% is modest, as the company prefers to reinvest in growth

Over the last twelve months, the dividend yield was 1.7%. This is a relatively modest figure, but the company allocates significant funds to acquire new vessels, which should drive revenue and profit growth in the future.

With a current market capitalization of $2,848.9 million and LTM net profit of $540.8 million, the P/E ratio stands at 5.3 – a low valuation suggesting the market does not fully reflect the company's growth potential.

On the portal's model, the stock has 33% upside potential

According to our model, the fair value of Danaos Corporation shares based on current freight rates and target EV/EBITDA multiple exceeds the current market capitalization by 33%. This implies the shares trade at a discount to our fair value estimate.

The current EV/EBITDA multiple is 4.6, which is above the three-year average of 2.5. However, this is explained by the active investment phase: the market has not yet fully priced in the future EBITDA growth from new vessels. The shares are included in the 'Global Commodities' strategy on our portal, reflecting their attractiveness from a commodity cycle perspective.

Valuation on the latest reported figures

Bottom line

Danaos Corporation reported strong growth in revenue, EBITDA, and net profit for Q2 2026, along with record margins. The company is actively investing in fleet expansion, which temporarily reduces free cash flow but should drive future growth. Low debt levels and high profitability make the shares attractive for long-term investors. However, the current dividend yield is modest, and the primary value for shareholders will come from capital appreciation. According to our model, the shares have 33% upside potential, supporting an 'attractive' rating.