Executive Summary

Q4 2024 delivered solid profitability despite softer dry-bulk markets: Revenue $147.2M, diluted EPS $0.18, adjusted EPS $0.16, Adjusted EBITDA $23.2M, Adjusted EBITDA margin improved to 16.4% from 14.9% YoY .
Operating model outperformed benchmarks: TCE $15,942/day, a 48% premium to Baltic Panamax/Supramax; shipping days rose 17% YoY to ~4,800, offsetting lower market rates .
Strategic scale-up completed: 15 handy-size vessels acquired from SSI (18.06M shares issued; ~$100M financing assumed), owned fleet grew to 41; management reiterated focus on expanding ports/terminals and maintaining a stable dividend .
Early Q1 2025 setup softer: 4,982 shipping days booked at $11,412/day; charter-in rate and cost per day trending lower, supporting margin resilience in a volatile start to 2025 .
Consensus estimates from S&P Global were unavailable; no formal guidance was issued. Investors should watch SSI integration execution, terminal ramp in Tampa, and Q1 rate normalization as near-term stock catalysts .

What Went Well and What Went Wrong

What Went Well

TCE premium widened materially: Q4 TCE $15,942/day exceeded Baltic Panamax/Supramax by 48% aided by COAs, specialized fleet, and cargo-focused strategy .
Profitability improved YoY: Adjusted EBITDA up 18% to $23.2M; margin rose to 16.4% (from 14.9%) with 17% more shipping days; charter-hire expense per day fell 23% .
Strategic scale and capabilities increased: Completed SSI fleet merger; owned fleet now 41, enabling broader logistics/terminal expansion and economies of scale. “With the added scale afforded by the SSI transaction, Pangaea is uniquely positioned to drive…above-market TCE rate realization… and our stable cash dividend.” – CEO Mark Filanowski .

What Went Wrong

Market rate pressure: Q4 TCE decreased ~10% YoY (vs 2023), reflecting broader dry-bulk softness despite internal outperformance .
Higher interest burden: Q4 interest expense rose 10.5% due to new debt facilities, with an additional ~$1.3M run rate expected from SSI lease obligations going forward, tempering net income leverage .
Seasonally softer start to 2025: Booked 4,982 shipping days at $11,412/day; management flagged tariff/policy uncertainty and volatile rates; first-half port/terminal ramp is lumpy, pushing incremental EBITDA to 2H25 .

Financial Results

Metric	Q2 2024	Q3 2024	Q4 2024
Total Revenue ($USD Millions)	$131.5	$153.1	$147.2
Diluted EPS ($USD)	$0.08	$0.11	$0.18
Adjusted EPS ($USD)	$0.10	$0.24	$0.16
Adjusted EBITDA ($USD Millions)	$15.9	$23.9	$23.2
Adjusted EBITDA Margin (%)	12.1%	15.6%	16.4%
TCE ($/Day)	$16,223	$16,324	$15,942
Shipping Days (days)	4,117	4,805	4,800
Operating Cash Flow ($USD Millions)	$9.0	$28.5	$19.2 (Q4)

Notes: Q4 operating cash flow was cited as ~$19.3M in the press release; CFO reiterated ~$19.2M on the call; difference reflects rounding .

Q4 YoY context and mix:

Metric	Q4 2023	Q4 2024
Total Revenue ($USD Millions)	$131.9	$147.2
Diluted EPS ($USD)	$0.03	$0.18
Adjusted EPS ($USD)	$0.16	$0.16
Adjusted EBITDA ($USD Millions)	$19.7	$23.2
Adjusted EBITDA Margin (%)	14.9%	16.4%
TCE ($/Day)	$17,685	$15,942
Shipping Days (days)	~4,100 (implied prior-year base; company stated +17% YoY to 4,800)	4,800

Revenue Breakdown:

Revenue Component ($USD Millions)	Q2 2024	Q3 2024	Q4 2024
Voyage Revenue	$124.1	$145.1	$137.6
Charter Revenue	$3.85	$4.86	$6.59
Terminal & Stevedore Revenue	$3.56	$3.13	$2.99
Total Revenue	$131.5	$153.1	$147.2

KPIs and Cost Dynamics:

KPI	Q2 2024	Q3 2024	Q4 2024
Charter-in Cost per Day ($)	$16,583	$14,494	$13,787
Vessel OpEx per Day (net of technical fees) ($)	$6,246	$5,520	$6,525
G&A per Shipping Day ($)	~$1,200 (FY 2024 avg)	~$1,200 (mgmt expects consistent)	~$1,200 (mgmt expects consistent)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
TCE booked ($/day)	Q1 2025 (to-date)	N/A	$11,412/day; 4,982 shipping days booked	Introduced operational color (no formal guidance)
Charter-in days booked and rate	Q1 2025 (to-date)	N/A	~1,736 days at $10,243/day	Introduced operational color
Dividend per share	Q1 2025	$0.10 (Q4 pattern)	$0.10 declared Feb 13, 2025	Maintained

Management did not issue formal revenue/EPS/margin guidance; focus was on operational bookings and dividend consistency .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
TCE premium vs market	+7% premium; stable execution	+19% premium; seasonal Arctic peak	+48% premium; cargo-focused outperformance	Strengthening premium
Fleet expansion/SSI	Added Brenton/Patience; financing flexibility	Announced merger for 15 handys; JV buyout	SSI merger completed; owned fleet 41	Scale achieved
Ports/terminals	Port Everglades/Baltimore momentum; Tampa ramp 2H25	Tampa expansion on track 2H25	Tampa progress; broader footprint; dry bulk at terminals improving margins	Building; lumpy near-term, stronger 2H25
Capital allocation & leverage	Debt refinancings; net debt/EBITDA 2.1x	Net debt/EBITDA 2.5x; steady repayments	Steady ~$11M/quarter debt service; leverage ~50–55% of vessel value, significant fixed/capped debt	Disciplined; manageable schedule
Macro/tariffs/policy	Constrained newbuilds supportive of rates	Mixed rates; weather impacts coming	Policy/tariff uncertainty; volatile Q1 rates	Near-term volatility
Dry docking cadence	—	4 in Q4; ~6 in 2025 (incl. intermediate)	12 dry dockings in 2025; 25–30 days each	Higher docking burden in 2025
Dividend policy	Consistent quarterly cash dividend	$0.10 declared Nov 8	$0.10 declared Feb 13; board assesses quarterly	Maintained

Management Commentary

“Our fourth quarter performance was a strong finish to a transformational year… our premium-rate model supported a greater than 18% YoY increase in Adjusted EBITDA, despite pronounced softness in the broader dry bulk market.” – CEO Mark Filanowski .
“With an owned fleet of 41 vessels… we’re in a strong position to materially expand our logistics and terminal services across a broader footprint of high-traffic ports.” – CEO Mark Filanowski .
“Fourth quarter TCE rates were approximately $15,941 per day, a premium of approximately 48%… driven by strong fleet utilization within Arctic trade routes and our long-term COAs.” – CFO Gianni Del Signore .
“Through today, we booked 4,982 shipping days, generating a TCE of $11,412 a day for the current 2025 quarter.” – CEO Mark Filanowski .

Q&A Highlights

TCE premium drivers: Management emphasized taking “tough cargoes” (icy waters, dirty cargoes) and differentiated COAs, enabling outsized TCE premiums vs market .
SSI integration: Progress already with handys moving into higher-margin trades; expect more impact as markets improve later in 2025 .
Ports/terminals margin: Mix shift to more dry-bulk voyages improved margins; new Aransas (Corpus Christi) operation; Tampa Redwing construction underway with ~20 ships planned this year .
Capital allocation and leverage: Steady quarterly debt service (~$11M), significant portion fixed/capped; refinanceable balloon in 2027; leverage ~50–55% by vessel value .
Dividend stance: Board reviews quarterly; aim for consistent and sustainable dividend despite Q1 earnings suppression risk .

Estimates Context

S&P Global consensus estimates were unavailable due to access limitations; as a result, beat/miss vs Wall Street consensus cannot be assessed for Q4 2024 at this time. If/when available, we will update comparisons for Revenue, EPS, and EBITDA versus consensus and highlight any significant deviations [GetEstimates error].

Key Takeaways for Investors

Operational outperformance endures: TCE premium expanded to 48% in Q4, validating the cargo-focused, ice-class strategy even in weaker market conditions .
Scale and synergy tailwinds: SSI fleet addition (41 owned vessels) should enhance utilization, economies of scale, and terminal synergies over 2025–2026; watch evidence of improved handysize margins .
Near-term caution: Q1 bookings at $11,412/day reflect seasonally soft and volatile markets; charter-in rates and costs trending lower help protect margins .
Cash discipline and return of capital: Stable $0.10 dividend reaffirmed; debt service is steady, leverage manageable with capped/fixed rates; refinancing profile appears benign through 2026 .
2025 execution watchpoints: Terminal ramp in Tampa (2H25), increased drydock load (12 ships) and tariff/macro developments could drive quarterly lumpiness; focus on utilization and TCE spread maintenance .
Longer-term thesis: Constrained dry-bulk newbuild supply supports rates; integrated shipping-logistics model and specialized trades should sustain premium returns across cycles .

Pangaea Logistics Solutions Ltd. (PANL)·Q4 2024 Earnings Summary