Danaos (DAC) Q4 2024 earnings summary

Executive summary

• Reported strong 2024 results with $1,014.1 million in revenue, robust free cash flow, and consistent profitability, supported by a diverse, high-quality fleet and expansion into dry bulk vessels.

• Maintained a conservative financial strategy, strong balance sheet, and high operational efficiency, with significant investments in modern, eco-friendly, methanol-ready vessels.

• Charter backlog stands at $3.4 billion through 2033, with 97% contract coverage for 2025 and 79% for 2026, providing income certainty.

• Pioneered digitalization and ESG, meeting IMO 2030 carbon intensity targets 11 years ahead of schedule.

• Fleet expanded to 74 container vessels and 10 capesize dry bulk vessels, with 15 newbuildings on order.

Financial highlights

• 2024 operating revenues were $1,014.1 million; Q4 2024 revenues were $258.2 million, up from $249.3 million in Q4 2023.

• 2024 adjusted EBITDA was $722.6 million; Q4 2024 adjusted EBITDA was $189.7 million, up 9.9% year-over-year.

• 2024 adjusted net income was $532.4 million ($27.47 per diluted share); Q4 2024 adjusted net income was $133.3 million ($6.93 per share).

• Free cash flow for 2024 was $593.8 million; cash and cash equivalents at year-end were $453.4 million, with total liquidity of $807 million.

• Net debt as of December 31, 2024, was $291 million; net debt/adjusted EBITDA ratio stood at 0.40x.

Outlook and guidance

• High charter coverage for 2025 and 2026, with 13 of 15 newbuildings chartered for an average of 5.1 years; all new vessels are eco-designed and methanol-ready.

• Charter market remains strong, with rates above historical averages, but management remains cautious due to global economic and geopolitical uncertainties.

• Company expects to remain in a net cash position through 2025, even with ongoing newbuilding investments.