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Pangaea Logistics Solutions Ltd. (PANL)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered resilient operations but soft profitability: GAAP net loss of $2.7M (-$0.04 per share), adjusted net loss of $1.4M (-$0.02), Adjusted EBITDA $15.3M on $156.7M total revenue; TCE $12,108/day with a 17% premium to Baltic indices .
  • Sequentially better revenue vs Q1 ($156.7M vs $122.8M), but EBITDA margin compressed to 9.8% (Q1 12.0%; Q4 2024 ~16.4–16.7%), driven by lower market rates and higher interest costs post-SSI acquisition .
  • Management cited stabilization heading into peak Arctic season: Q3-to-date 3,671 shipping days at $14,272/day TCE, implying potential sequential uplift in unit economics near term .
  • Capital deployment remains balanced: $0.05 dividend declared, 202,822 shares repurchased in Q2 (additional 135,000 post-quarter), vessel financings of $18M initiated to enhance liquidity; sale of 2010-built Strategic Endeavor closed in July for $7.7M .

What Went Well and What Went Wrong

What Went Well

  • Premium TCE and operational scale: TCE $12,108/day exceeded Baltic Panamax/Supramax/Handysize by 17%; shipping days +51% YoY to 6,222 on expanded fleet and charter-in flexibility .
  • Positive near-term rate momentum: “As we enter the third quarter and the peak of our arctic trade season, we see some signs of stabilization and increased activity... Quarter-to-date in the third quarter, we've executed 3,671 shipping days at an average TCE of $14,272 per day” — CEO .
  • Disciplined capital actions: repurchased ~203k shares in Q2 at ~$4.96, continued $0.05 dividend, initiated $18M vessel financings to bolster liquidity, completed asset sale aligned with fleet renewal .

What Went Wrong

  • Earnings pressure from lower market rates and higher finance costs: Adjusted EBITDA margin down to 9.8% (vs 12.1% YoY; 12.0% in Q1) with interest expense rising on new facilities and SSI-related leases .
  • TCE down 25% YoY; mix headwinds as Handysize lagged larger segments despite late-quarter improvement, underscoring vulnerability to broader demand softness .
  • Macro/trade policy uncertainty deferring shipper decisions on certain routes; tariff/port-fee risk created hesitancy though some issues later eased, slowing long-term commitments per management .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Total Revenue ($USD Millions)$147.2 $122.8 $156.7
GAAP Diluted EPS ($)$0.18 -$0.03 -$0.04
Adjusted Diluted EPS ($)$0.16 -$0.03 -$0.02
Adjusted EBITDA ($USD Millions)$23.2 $14.8 $15.3
Adjusted EBITDA Margin (%)16.4 (CFO remarked 16.7 )12.0 9.8
TCE ($/day)$15,942 $11,390 $12,108
TCE Premium vs Baltic Indices (%)48% 33% 17%
Shipping Days (days)4,800 5,210 6,222

Segment revenue composition:

Revenue Component ($USD)Q4 2024Q1 2025Q2 2025
Voyage Revenue$137,600,720 $109,659,800 $146,268,745
Charter Revenue$6,588,091 $9,992,999 $6,850,141
Terminal & Stevedore Revenue$2,985,966 $3,149,087 $3,570,556
Total Revenue$147,174,777 $122,801,886 $156,689,442

Selected KPIs and balance sheet:

KPI / Balance SheetQ4 2024Q1 2025Q2 2025
Cash & Cash Equivalents ($)$86,805,470 $63,948,677 $59,252,910
Total Debt incl. Finance Obligations ($)$401.8M $390.8M $379.7M
Charter-in Cost ($/day)$13,787 $10,108 $11,813
Vessel OpEx ($/day, net of tech mgmt fees)$6,525 $5,528 $5,876
Dividend per Share (Declared)$0.10 in Q4 2024 paid in Q1 2025 $0.05 (June 16 payment) $0.05 (Sept 15 payment)
Share Repurchases (shares)—Authorization $15M 202,822 in Q2; +135,000 post-Q2

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
DividendQuarterly$0.05 (Q1 maintained) $0.05 declared, payable Sept 15, 2025 Maintained
Share RepurchaseOngoing$15M authorization (May 8, 2025) Executed ~203k shares in Q2; +135k post-Q2 Executing program
Q3 Operating ColorQ3 2025Q2 preview: 4,275 days at $12,524/day for Q2 Q3-to-date: 3,671 days at $14,272/day Raised realized day rate QoQ (operating update)
Vessel FinancingsAug–Sep 2025—Strategic Spirit $9.0M (7-year), Strategic Vision $9.0M (5-year), SOFR+1.95%, expected close Aug/Sep New financings to add ~$18M liquidity
Fleet Actions2025Integration of 15 handysizes Sold Strategic Endeavor for $7.7M (July) Portfolio optimization

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Tariffs/Macro UncertaintyMonitoring proposed tariffs/port fees; aim for consistent dividend amid volatility Shipper decisions deferred earlier; resumed as tariff risk eased; signs of stabilization into Q3 Improving operational clarity; cautious macro
Arctic/SeasonalityQ4 outperformance tied to Arctic routes; Q1: entering seasonal softness Peak Arctic season ahead; Q3-to-date stronger TCE $14,272/day Seasonal uplift QoQ expected
Integrated Logistics/TerminalsQ4: expansion in Port Aransas/Tampa; Terminal margin commentary Tampa equipment installation; new operations starting in Aransas, Lake Charles, Pascagoula Expansion sustained; contribution ramps 2H25–2026
Fleet Strategy/Charter-inQ4: charter-in cost efficiency; scalable platform Charter-in cost $11,813/day; arbitrage supports TCE premium Continuing cost discipline
Capital AllocationQ4: steady amortization; comfortable leverage Repurchases executed; vessel financings for liquidity; dividend maintained Balanced returns + liquidity optimization

Management Commentary

  • CEO: “Our premium TCE performance... was primarily the result of our differentiated charter in strategy... flexible and cost effective fleet deployment... Total shipping days rose 51% YoY” .
  • CEO: “As we enter the third quarter and the peak of our arctic trade season, we see some signs of stabilization... Q3-to-date... TCE of $14,272 per day” .
  • CFO: “Charter-in cost on a per day basis was $11,813 in [Q2 2025], a decrease of ~29% YoY... VOE per day (net) decreased to $5,876... Interest expense increased due to new facilities and SSI leases” .
  • Strategic: “Completed the opportunistic sale of Strategic Endeavor... beginning installation... Redwing Terminal in Tampa... starting new terminal operations in Aransas (TX), Lake Charles (LA), Pascagoula (MS)” .

Q&A Highlights

  • Asset sale specifics: Strategic Endeavor was oldest handysize; sold around upcoming special survey timing to redeploy capital later when asset values are more compelling .
  • Macro/trade routes: Some Far East to U.S. movements paused due to tariff uncertainty; resumed as potential tariff rates came down; company positioning more ships in the Pacific to capture opportunities .
  • Terminal strategy: Focus on organic expansions via leases/port licenses rather than buying expensive real estate; scale up operations in Tampa/Texas/Louisiana/Mississippi .
  • Buyback execution: Program governed by board review; tactical rather than constant rolling; additional ~135k shares repurchased post-quarter .
  • Contract cover: Long-term COA cover averages ~30% of owned fleet; charter-in fleet used for arbitrage and positioning .

Estimates Context

  • Wall Street consensus (S&P Global) for Q2 2025 EPS and revenue was unavailable; GetEstimates returned no values for PANL across Q4 2024, Q1 2025, Q2 2025, FY 2025. Values retrieved from S&P Global.*
  • Without published consensus, we cannot quantify beats/misses versus Street. We recommend focusing on sequential and YoY trajectory: stronger Q3-to-date TCE suggests near-term operating improvement .

Key Takeaways for Investors

  • Unit economics improving into Q3 peak season: Q3-to-date TCE $14,272/day indicates sequential rate uplift; watch for confirmation in Q3 results and updated booking metrics .
  • Structural premium intact: Continued TCE outperformance via COAs, ice-class niche, and charter-in arbitrage supports margin resilience vs broader dry bulk indices .
  • Liquidity actions are supportive: $18M vessel financings closing in Aug/Sep add flexibility amid higher interest expense; dividend maintained; buybacks ongoing .
  • Fleet optimization ongoing: Sale of older asset reduces near-term capex (special survey) and aligns with disciplined return hurdles under current S&P market valuations .
  • Terminal expansion provides diversification: Multiple U.S. Gulf/Mid-Atlantic projects starting in 2H25; expect more meaningful contribution in 2026, smoothing earnings cyclicality .
  • Near-term trading lens: Positive seasonality and stabilized macro/tariff backdrop could catalyze sentiment; monitor charter-in costs per day and vessel op-ex per day for margin capture .
  • Medium-term thesis: Integrated logistics + scaled fleet should sustain TCE premiums through cycles; leverage profile comfortable per management; capital returns balanced with growth .

Citations:
Press release Q2 2025:
Earnings call Q2 2025:
Press release Q1 2025:
Earnings call Q1 2025:
Press release Q4 2024:
Earnings call Q4 2024:

Note: The Q2 2025 8-K 2.02 filing could not be located; Q2 earnings press release and full call transcript were read in full and used as primary sources .