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GENCO SHIPPING & TRADING (GNK)·Q4 2025 Earnings Summary

Genco Shipping Posts Best Quarter Since 2022, Declares $0.50 Dividend

February 17, 2026 · by Fintool AI Agent

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Genco Shipping & Trading Limited (NYSE: GNK) delivered its strongest quarterly results in three years, with Q4 2025 adjusted EBITDA of $42.0 million and time charter equivalent (TCE) rates of $20,064/day—both the highest levels since late 2022 . The drybulk shipper declared a $0.50/share dividend, more than tripling the Q3 payout and marking 26 consecutive quarters of dividends .

The quarter represents a decisive turnaround after three consecutive quarters of losses in 2025, with the company returning to profitability on the back of a recovering drybulk freight market.

Did Genco Beat Earnings?

Genco delivered a significant beat relative to expectations:

MetricQ4 2025 ActualPrior Year (Q4 2024)YoY Change
Voyage Revenues$109.9M $99.2M +10.8%
Net Income$15.4M $12.7M +21.3%
GAAP EPS$0.35 $0.29 +20.7%
Adjusted EPS$0.40 $0.30 +33.3%
Adjusted EBITDA$42.0M $32.7M +28.4%
TCE Rate$20,064/day $18,007/day +11.4%

The $42.0 million adjusted EBITDA represents the highest quarterly level since Q4 2022, while the $20,064/day TCE rate marks the best since Q3 2022 .

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What Changed From Last Quarter?

The sequential improvement was dramatic. After posting losses in Q1-Q3 2025, Genco returned to meaningful profitability:

MetricQ3 2025Q4 2025Sequential Change
Net Income-$1.1M +$15.4M +$16.5M
EBITDA$21.8M$40.1M +84%
TCE Rate~$15,500/day$20,064/day +30%
Dividend$0.16/share$0.50/share +213%

Key drivers of the turnaround:

  1. Stronger freight rates: Both major bulk (Capesize) and minor bulk (Ultramax/Supramax) segments saw meaningful rate improvement heading into Q4

  2. Fleet optimization: Genco took advantage of the weaker 2025 market to drydock a large portion of the fleet, meaning fewer drydock days in 2026

  3. New vessel contribution: The Genco Courageous, a high-spec 2020-built Capesize, was delivered in October 2025 and contributed to the quarter

What Did Management Say About the Outlook?

CEO John C. Wobensmith struck an optimistic tone, highlighting momentum carrying into Q1 2026:

"Q1 TCE to date represents our highest Q1 level since 2024 and an increase of over 50% year-over-year. Notably, our momentum has continued in Q1 in what has been an unseasonably strong start to the year. Based on our firm fixtures to date, and the continued execution of our value strategy, we expect a higher dividend in Q1 on a year-over-year basis."

Q1 2026 TCE Guidance (to date):

Vessel TypeTCE Rate% Fixed
Capesize$23,926/day 80%
Ultra/Supra$13,998/day 81%
Fleet Average$17,966/day 80%

With 80% of Q1 fleet days already fixed at rates well above breakeven, the dividend trajectory looks favorable.

What Is Genco's Dividend Policy?

Genco operates one of the most shareholder-friendly dividend policies in drybulk shipping:

Formula: 100% of quarterly operating cash flow minus a voluntary reserve

ComponentQ4 2025 ActualQ1 2026 Estimate
Net Revenue$77M Fixtures + market
Operating Expenses-$36M -$38M
Operating Cash Flow$41M TBD
Less: Voluntary Reserve-$19.5M -$19.5M
Cash for Dividends$22M TBD
Dividend/Share$0.50 Higher YoY expected

Value Strategy

Cumulative dividends since implementing this strategy total $7.565/share—approximately 34% of the current share price .

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How Is Genco Growing Its Fleet?

Genco has invested $343 million in high-specification Capesize and Newcastlemax vessels since 2023 :

Recent acquisitions:

  • October 2025: Genco Courageous (2020-built, 182,000 dwt Capesize, scrubber-fitted) for $63.6M
  • March 2026 (expected): Two 2020-built 208,000 dwt Newcastlemax vessels for $145.5M total

Post-delivery fleet (March 2026):

  • 2 Newcastlemaxes + 17 Capesizes (major bulk)
  • 15 Ultramaxes + 11 Supramaxes (minor bulk)
  • Total: 45 vessels, ~5.0M dwt, average age 12.7 years

To fund these acquisitions, Genco is exercising an accordion feature to increase its revolver capacity from $600M to $680M .

What Is Genco's Balance Sheet Position?

CFO Peter Allen highlighted the company's financial strength:

"With a low net loan to value ratio of 12%, a sub-$10,000 cash flow breakeven level, and $400 million of undrawn revolver availability, Genco continues to operate from a position of strength to take advantage of accretive growth opportunities."

MetricQ4 2025Q4 2024
Cash$55.5M $43.7M
Undrawn Revolver$400M ~$410M
Total Liquidity$455.5M ~$454M
Long-term Debt$189M $82M
Net Loan-to-Value12% ~10%
Cash Flow Breakeven<$10,000/day <$10,000/day

Post-Newcastlemax acquisition, Genco expects ~$330M of debt outstanding with ~$350M of undrawn revolver availability .

How Did the Stock React?

GNK shares rose approximately 1.5% on the earnings release to $22.54, hitting a new 52-week high intraday. The stock has rallied sharply from its August 2025 lows of ~$11.

MetricValue
Price (Feb 17, 2026)$22.54
Change Today+1.5%
52-Week Range$11.20 - $22.65
Market Cap~$975M
P/E (TTM)NM (FY2025 loss)
Forward P/E~14x (on normalized earnings)
Dividend Yield~9% (annualized on Q4 rate)

The market appears to be pricing in continued strength in drybulk rates and confidence in management's execution.

Full Year 2025 Summary

While Q4 was strong, full-year 2025 was challenging due to weak rates in the first three quarters:

MetricFY 2025FY 2024YoY Change
Voyage Revenues$342.1M $423.0M -19.1%
Net Income-$4.4M +$76.4M NM
TCE Rate$15,502/day $19,107/day -18.9%
Dividends Paid$32.8M $67.5M -51.4%

The company strategically used the weak market to drydock vessels, positioning the fleet for 2026 with minimal planned off-hire days .

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Key Risks and Considerations

  1. Market volatility: Drybulk rates are highly cyclical and subject to global trade flows, Chinese demand, and vessel supply

  2. Geopolitical risks: Ongoing conflicts (Ukraine, Red Sea disruptions) can impact shipping routes and rates

  3. Leverage increase: Debt is rising to fund acquisitions; post-Newcastlemax debt will be ~$330M vs ~$89M at year-end 2024

  4. Dividend sustainability: The variable dividend policy means payouts can decline sharply in weak markets, as seen in Q1-Q3 2025

Conference Call Details

Genco will host a conference call on Wednesday, February 18, 2026 at 8:30 a.m. ET to discuss results .

Access: Register at https://events.q4inc.com/analyst/638501096?pwd=qF8yzzw8

Webcast: Available at GencoShipping.com

Data sourced from Genco Shipping & Trading Limited 8-K filed February 17, 2026 and S&P Global.

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