Global Ship Lease (GSL) Q1 2025 earnings summary

Executive summary

• Contracted revenues increased by $352 million in Q1, raising 2025 contract cover to 93% and 2026 to 75%.

• Net income rose to $121.0 million, up 35.2% year-over-year, with revenue at $191.0 million, up 6.3%.

• Opportunistic sale of older ships generated $28.5 million in gains, supporting liquidity and fleet renewal.

• Annualized dividend increased to $2.10 per share, up 40% year-over-year, with ongoing share buybacks and de-leveraging.

• Robust credit ratings: Ba2 (Moody's), BB+ (S&P, KBRA), and BBB for 2027 Notes.

Financial highlights

• Adjusted EBITDA reached $132.3 million, up 5.5% year-over-year.

• Normalized net income was $94.3 million, or $2.65 normalized EPS, up 5.8% year-over-year.

• Gross debt at $777.7 million, with cash position at $428 million, including $95 million restricted.

• Net debt to EBITDA reduced to under 1x as of Q1 2025.

• Blended cost of debt lowered to 3.99%, with 82% of floating rate debt capped at 0.64% SOFR.

Outlook and guidance

• Forward contract cover of $1.9 billion over 2.3 years provides strong revenue visibility.

• Focus on financial resilience, maximizing optionality, and capitalizing on market volatility.

• Ongoing fleet renewal as vessels age, with CAPEX for 2025–2026 including $2.74–$2.77 million per ship for dry-docking and surveys.

• Decarbonization CAPEX to be negotiated with charterers; regulatory compliance is a priority.

• Market rates remain supportive, but forward visibility is limited due to macro and geopolitical uncertainties.