Pangaea Logistics Solutions Ltd. — Third Quarter 2026 Earnings Summary

Financial Performance

• Reported GAAP net income attributable to Pangaea of $38.3 million ($0.59 per share) for the three months ended September 30, 2026, compared to $12.2 million ($0.19 per share) in the prior-year period.
• Reported adjusted net income attributable to Pangaea of $33.6 million ($0.52 per share) for the quarter, compared to $11.2 million ($0.18 per share) in the prior-year period.
• Total revenue reached $219.1 million for the quarter, up from $168.7 million in the same period last year.
• Adjusted EBITDA increased 81.3% year-over-year to $52.4 million, with an adjusted EBITDA margin of 23.9% compared to 17.1% in the prior year.
• Operating cash flow for the quarter was $57.2 million.
• Time Charter Equivalent (TCE) rates earned were $20,414 per day, a 31% increase year-over-year from $15,559 per day in Q3 2025.
• Total shipping days increased 8% year-over-year to 6,339 days.
• The ratio of net debt to trailing twelve-month Adjusted EBITDA was 1.4x as of September 30, 2026.
• As of September 30, 2026, the Company held $144.9 million in unrestricted cash and cash equivalents.
• Total debt, including finance lease obligations, stood at $340.9 million.
• Deferred revenue increased to $38.1 million as of September 30, 2026, from $24.9 million as of December 31, 2025.

Guidance and Future Outlook

• Management indicated that the underlying fundamentals of the dry bulk market remain encouraged, particularly regarding demand for minor bulks and industrial cargoes supported by disciplined fleet supply growth.
• The Company expects to advance its fleet renewal program and sustain consistent capital returns to shareholders following a debt refinancing completed shortly after the quarter end.
• Late-season Arctic voyages continued to contribute in October following the quarter.
• The Company plans to remain opportunistic in investing in its fleet as market conditions warrant while committing to divesting older, non-core assets.

Business Segments and Product Lines

• Terminal and stevedore revenue increased 73% year-over-year, while dry bulk tons discharged across the network increased 65%.
• The Company completed its first full quarter of terminal operations in the port of 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 during the quarter.
• The Company executed 5,040 shipping days quarter-to-date at an average TCE of $21,423 per day.
• The Company's TCE rates exceeded the average Baltic Panamax, Supramax, and Handysize indices by 13%, supported by long-term contracts of affreightment (COAs) and a cargo-focused strategy.

Market and Competitive Landscape

• The dry bulk market showed strengthening conditions, reinforcing the seasonal strength of Arctic ice-class activity.
• Pangaea's performance demonstrated operating leverage inherent in its model when its niche ice-class fleet and broader commercial platform perform in tandem.
• The integrated model, combining shipping and logistics, strengthens relationships with cargo customers and extends presence along the supply chain.

Risks and Challenges

• The press release notes forward-looking statements subject to risks including fluctuations in charter rates, vessel values, and changes in demand for dry bulk shipping capacity.
• Potential challenges include changes in operating expenses such as bunker prices, dry-docking, and insurance costs.
• Risks also encompass charter counterparty performance, ability to obtain financing, compliance with financing covenants, and changes in governmental rules or political conditions.
• Operational risks include vessel breakdowns, off-hires, and potential disruption of shipping routes due to accidents or political events.

Management Commentary and Tone

• Mads Boye Petersen, President and CEO, described the third quarter as the strongest period for Arctic ice-class activity, driven by a strengthening dry bulk market.
• Management expressed confidence in the operating leverage of their model, citing record quarterly Adjusted EBITDA and Adjusted Net Income.
• Petersen highlighted the meaningful contribution of port and terminal operations to the quarter's results.
• Management stated they are well-positioned to advance the fleet renewal program and maintain a well-capitalized balance sheet.

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.
• Shortly after the quarter end, the Company refinanced $134 million of debt at a meaningfully lower margin.
• During the quarter, the Company paid $6.4 million in cash dividends.
• The Company paid $4.3 million on long-term debt, $7.0 million on financing obligations, and $0.3 million on finance lease liabilities during the three months ended September 30, 2026.
• The Company's conference call to discuss results was held on November 6, 2026.