Danaos Corporation: profit grows faster than revenue, debt stays minimal

On August 25, Danaos Corporation reported Q2 2026 results: revenue grew 4.7% YoY to $274.4 million, net profit rose 16.0% to $151.8 million. EBITDA margin expanded to 73.5% from 67.8% a year earlier. At the current price, the share looks attractive: multiples are well below its own history and leverage is minimal.

Key takeaways

— Q2 2026 revenue grew 4.7% YoY to $274.4 million, supported by stable demand for container shipping

— EBITDA margin reached 73.5% versus 67.8% a year earlier, reflecting effective cost control

— Net profit rose 16.0% to $151.8 million, outpacing revenue growth thanks to operating leverage

— Operating cash flow in Q2 was $204.4 million, funding capex and dividends

— Net debt at end-June 2026 stood at $117.8 million, or 0.18x trailing twelve-month EBITDA

— Capex in Q2 increased to $177.6 million, reflecting fleet expansion investments

— The share trades at P/E of 5.2 and EV/EBITDA of 4.6 versus a three-year average of 2.5, leaving room for upside

Attractiveness

Key figures, USD bn

Q2 2026 revenue grew 4.7% YoY to $274.4 million, supported by stable demand for container shipping

In Q2 2026, Danaos Corporation's revenue reached $274.4 million, up 4.7% from the same quarter a year earlier. Growth slowed from the previous quarter's 6.9% YoY but remained positive amid steady demand for container shipping.

Over the trailing twelve months, revenue reached $1,100.0 million. The company continues to earn from long-term time charter contracts, providing cash flow predictability.

EBITDA margin reached 73.5% versus 67.8% a year earlier, reflecting effective cost control

EBITDA in Q2 2026 rose 13.5% YoY to $174.5 million, with margin expanding to 73.5% from 67.8% a year earlier. The margin improvement came from EBITDA growing faster than revenue – costs are rising slower than income.

Over the trailing twelve months, EBITDA reached $646.1 million. High margins stem from a business model with low variable costs and long-term contracts.

Net profit rose 16.0% to $151.8 million, outpacing revenue growth thanks to operating leverage

Net profit in Q2 2026 was $151.8 million, up 16.0% from a year earlier. Profit growth outpaced revenue thanks to operating leverage and cost control.

Net margin reached 55.3% versus 49.9% in Q2 2025. Over the trailing twelve months, net profit was $540.8 million.

Operating cash flow in Q2 was $204.4 million, funding capex and dividends

Operating cash flow in Q2 2026 reached $204.4 million, well above capex of $177.6 million. This allowed the company to fund investments and pay dividends without increasing debt.

Over the trailing twelve months, operating cash flow was $644.8 million. Capex in Q2 rose from $25.5 million a year earlier, reflecting an active fleet expansion program.

Net debt at end-June 2026 stood at $117.8 million, or 0.18x trailing twelve-month EBITDA

At end-June 2026, Danaos Corporation's net debt stood at $117.8 million. Net debt to trailing twelve-month EBITDA was 0.18x, indicating minimal leverage.

Over the past twelve months, net debt was virtually unchanged (–$0.0 billion) despite significant capex. The company retains financial flexibility for further investments.

Capex in Q2 increased to $177.6 million, reflecting fleet expansion investments

Capex in Q2 2026 was $177.6 million versus $25.5 million a year earlier. The increase is tied to a newbuild program for container vessels, which should boost future revenues.

Operating cash flow covers capex, and net debt remains low. This allows the company to fund growth without significant borrowing.

The share trades at P/E of 5.2 and EV/EBITDA of 4.6 versus a three-year average of 2.5, leaving room for upside

Danaos Corporation's market capitalization is $2,834.5 million. With a P/E of 5.2 and EV/EBITDA of 4.6, the share looks undervalued relative to its own history: the three-year average EV/EBITDA is 2.5.

On the portal's model, based on current freight rates, the share's upside to fair value is +33%. Trailing twelve-month dividend yield is 1.8%.

Valuation on the latest reported figures

Bottom line

Danaos Corporation reported strong profit and margin growth in Q2 2026: net profit rose 16.0%, EBITDA margin reached 73.5%. Operating cash flow covers rising capex, and net debt remains minimal at 0.18x trailing twelve-month EBITDA. The share trades at a discount to its own history, and the portal's model implies +33% upside. The key question for holders is the sustainability of freight rates and the company's ability to maintain high margins amid rising capex. At the current price, the share looks attractive.