Pangaea Logistics Solutions Ltd. — Q3 2026 Earnings Summary

Financial Performance:

• Reported total revenue of $219.1 million for the three months ended September 30, 2026, compared to $168.7 million in the prior-year period.
• GAAP net income attributable to Pangaea was $38.3 million ($0.59 per share), up from $12.2 million ($0.19 per share) in the same period last year.
• Adjusted net income attributable to Pangaea was $33.6 million ($0.52 per share), compared to $11.2 million ($0.18 per share) in the prior year.
• Adjusted EBITDA increased 81.3% year-over-year to $52.4 million, with an adjusted EBITDA margin of 23.9% versus 17.1% in the prior year.
• Operating cash flow for the quarter was $57.2 million.
• Time Charter Equivalent (TCE) rates reached $20,414 per day, a 31% increase from $15,559 per day in the prior year.
• Total shipping days increased 8% year-over-year to 6,339 days.
• Net debt to trailing twelve-month Adjusted EBITDA ratio stood at 1.4x.
• Unrestricted cash and cash equivalents were $144.9 million as of September 30, 2026.
• Total debt, including finance lease obligations, was $340.9 million.
• Deferred revenue increased to $38.1 million from $24.9 million at December 31, 2025.

Guidance and Future Outlook:

• Management expressed encouragement regarding underlying dry bulk market fundamentals, specifically demand for minor bulks and industrial cargoes supported by disciplined fleet supply growth.
• The company remains positioned to advance its fleet renewal program and sustain consistent capital returns to shareholders following a recent debt refinancing.
• Late-season Arctic voyages are expected to continue contributing in October.
• The company intends to remain opportunistic in fleet investment as market conditions warrant while continuing to divest older, non-core assets.

Business Segments and Product Lines:

• Port and terminal operations contributed significantly, with terminal and stevedore revenue increasing 73% year-over-year and dry bulk tons discharged increasing 65%.
• The company completed its first full quarter of terminal operations in Tampa Bay, Florida, in Q3 2026.
• The owned fleet of 38 vessels operated at high efficiency, supplemented by an average of 31 chartered-in vessels.
• The niche ice-class fleet operated at peak seasonal activity on Arctic trades.
• Voyage revenue was $193.1 million, charter revenue was $18.8 million, and port terminal & stevedore revenue was $7.1 million for the quarter.

Market and Competitive Landscape:

• Pangaea's TCE rates exceeded the average Baltic Panamax, Supramax, and Handysize indices by 13% for the quarter.
• Performance was supported by long-term contracts of affreightment (COAs), a specialized fleet, and a cargo-focused strategy.
• The integrated shipping and logistics model is designed to deliver premium returns measured in TCE per day across commodity and niche markets.

Risks and Challenges:

• The press release notes standard industry risks including fluctuations in charter rates, vessel values, bunker prices, dry-docking costs, and insurance costs.
• Risks also include changes in demand for dry bulk shipping capacity, counterparty performance, availability of financing, and regulatory changes.
• Potential disruptions from accidents, political events, vessel breakdowns, and off-hires are identified as factors that could affect results.

Management Commentary and Tone:

• CEO Mads Boye Petersen described the third quarter as the company's strongest period for Arctic ice-class activity, reinforced by a strengthening dry bulk market.
• Management highlighted the operating leverage inherent in their model when the niche ice-class fleet and commercial platform perform in tandem, resulting in record quarterly Adjusted EBITDA and Adjusted Net Income.
• Petersen noted that the quarter demonstrated the full contribution of port operations commenced over the past year, strengthening customer relationships.
• The tone was confident, citing a well-capitalized balance sheet and a simplified capital structure following the refinancing of $134 million of debt at a lower margin shortly after quarter-end.

Other Key Points:

• The Board of Directors declared a quarterly cash dividend of $0.10 per common share, payable on December 15, 2026, to shareholders of record as of December 1, 2026.
• The company paid $6.4 million in cash dividends during the quarter.
• Shortly after quarter-end, the company refinanced $134 million of debt at a meaningfully lower margin.
• During the quarter, the company made debt payments of $4.3 million on long-term debt, $7.0 million on financing obligations, and $0.3 million on finance lease liabilities.
• The company paid $13.6 million in cash dividends over the nine months ended September 30, 2026.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $83.1 million.
• Net cash used in financing activities for the nine months ended September 30, 2026, was $48.3 million.