Pangaea Logistics Solutions Ltd.
For the period ended Mar 31, 2026. Filed May 11, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 11, 2026
PANL$7.57+2.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-10.
0001606909-25-000164
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-11.
0001628280-26-033658
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 92 previous paragraphs and 80 current paragraphs.
41 unchanged; 23 reworded; 14 added; 27 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
Key Operating Metrics
Current report
(2)Time Charter Equivalent (“TCE”) rate is a non-GAAP measure commonly used in the shipping industry and represents shipping segment revenue, consisting of voyage revenue and charter revenue, less voyage expenses, divided by total shipping days.
Current report
Non-GAAP Financial Measures
Current report
Management uses certain non-GAAP financial measures to evaluate the Company’s operating performance. These measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with U.S. GAAP.
Current report
(1)Adjusted gross profit is defined as GAAP gross profit excluding transportation and service depreciation and amortization. Management believes this measure provides investors with additional insight into the operating performance of the Company’s shipping operations by excluding non-cash depreciation expenses associated with the Company’s vessels. Adjusted gross profit is not a measure recognized under U.S. GAAP and should not be considered as an alternative to gross profit, operating income or net income. The Company’s definition of adjusted gross profit may not be comparable to similarly titled measures used by other companies.
Current report
(2)Adjusted EBITDA represents net income before interest expense, interest income, income taxes, depreciation and amortization, gain or loss on sale of vessels, share-based compensation, unrealized gains or losses on derivative instruments and other non-operating or non-recurring items, if any. Management uses Adjusted EBITDA as a supplemental performance measure and believes it provides investors with useful information to evaluate the Company’s operating performance and its ability to generate cash flows from operations. Adjusted EBITDA is also reviewed periodically as a measure of financial performance by the Company’s Board of Directors. Adjusted EBITDA is not a measure recognized under U.S. GAAP and should not be considered an alternative to net income, operating income or any other indicator of operating performance prepared in accordance with U.S. GAAP.
Current report
First Quarter Highlights
Current report
•Adjusted EBITDA was $25.2 million and $14.8 million for the three months ended March 31, 2026 and March 31, 2025, respectively.
Current report
Voyage Expenses: Voyage expenses were $73.7 million for the three months ended March 31, 2026, compared to $60.3 million for the same period in 2025, representing an increase of approximately 22%. The increase was primarily driven by a 22% increase in voyage days, with corresponding increases in bunkers consumed and port costs incurred in the period.
Current report
Unrealized Gain on Derivative Instrument: The Company uses derivative instruments, including forward freight agreements, bunker swaps and interest rate derivatives, to manage exposure to fluctuations in freight rates, bunker prices and interest rates. These instruments are marked to market at each balance sheet date, which can result in period-to-period fluctuations in earnings. For the three months ended March 31, 2026, the Company recognized an unrealized gain on bunker swaps of approximately $6.7 million, partially offset by an unrealized loss on FFAs of approximately $6.9 thousand and an unrealized loss on interest rate derivatives of approximately $0.1 million.
Current report
During the three months ended March 31, 2026, the Company identified one vessel that met the criteria to be classified as held for sale. Upon classification, the vessel was written down to its estimated fair value less costs to sell, as the expected sale price was below its carrying value, resulting in the recognition of an impairment charge.
Current report
For the remaining vessels, the Company concluded that no indicators of impairment were present during the three months ended March 31, 2026. Accordingly, no recoverability analysis was required for those vessels. The Company did not identify any triggering events during the three months ended March 31, 2025.
Current report
During the three months ended March 31, 2026, net cash provided by operating activities was approximately $4.5 million, compared to net cash used in operating activities of $4.4 million for the same period in 2025, representing an increase of $9.1 million. The improvement was primarily driven by higher net income and favorable changes in accounts payable and accrued expenses, partially offset by increased working capital outflows, including inventories and advance hire, prepaid expenses and other current assets.
Current report
Net cash used in investing activities for the three months ended March 31, 2026 and 2025 was approximately $1.3 million and $0.5 million, respectively, representing an increase of $0.9 million. The increase was primarily driven by higher expenditures for vessel improvements and equipment purchases, partially offset by dividends received from equity method investments.
Removed paragraphs (27)
Previous report
(a) EBITDA for prior-year periods has been recast to include income taxes to conform to the current period presentation.
Previous report
(1)Adjusted EBITDA is net income (or loss) under U.S. GAAP, excluding interest expense and income, income taxes, depreciation and amortization, impairment losses, gain or loss on vessel sales, sale and leaseback losses, share-based compensation, non-operating items, and other non-recurring items. Management and certain investors use Adjusted EBITDA to assess operating performance, and Pangaea’s Board reviews it periodically. It is a non-GAAP measure and may differ from definitions used by other companies.
Previous report
(3) Net transportation and service revenue represents total revenue less the total direct costs of transportation and services, which includes charter hire, voyage and vessel operating expenses and terminal & stevedore expenses. Net transportation and service revenue is included because it is used by management and certain investors to measure performance by comparison to other logistic service providers. Net transportation and service revenue is not an item recognized by the generally accepted accounting principles in the United States of America, or U.S. GAAP, and should not be considered as an alternative to net income, operating income, or any other indicator of a company's operating performance required by U.S. GAAP. Pangaea’s definition of net transportation and service revenue used here may not be comparable to an operating measure used by other companies.
Previous report
(4)Gross profit represents total revenue less cost of transportation and service revenue less vessel and terminal equipment depreciation.
Previous report
In addition to broader market pressures, our operating results for the third quarter of 2025 also reflect the impact of fleet expansion. At December 30, 2024, the Company acquired 15 vessels to its owned fleet, representing a 54% increase in total vessel count. In July 2025, the Company sold one of these vessels. Overall, available owned shipping days increased by 1,067 days in the current quarter compared to the same period in 2024, which should be considered when comparing period-over-period performance metrics.
Previous report
Third Quarter Highlights
Previous report
•Adjusted EBITDA was $28.9 million and $24.0 million for the three months ended September 30, 2025 and September 30, 2024, respectively.
Previous report
Voyage Expenses: Voyage expenses were $73.2 million for the three months ended September 30, 2025, compared to $71.5 million for the same period in 2024, representing an increase of approximately 2%. The increase was primarily driven by a 18% increase in voyage days, partially offset by a 13% decline in bunker prices during the period.
Previous report
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Previous report
Revenues
Previous report
Pangaea’s revenues are derived predominately from voyage and time charters. For the nine months ended September 30, 2025, total revenue was $448.2 million, an increase of 15% compared to $389.4 million for the same period in 2024. The increase was primarily driven by an increase in total shipping days from 12,606 days in 2024 to 17,304 days 2025, reflecting the Company’s fleet expansion. This increase was partially offset by a decline in market charter rates.
Previous report
Components of revenue are as follows:
Previous report
Voyage Revenues: Voyage revenues increased by 15% to $411.2 million for the nine months ended September 30, 2025, compared to $356.5 million for the same period in 2024. The increase was primarily attributable to a 34% increase in voyage days, from 11,289 days in 2024 to 15,148 days in 2025, resulting from the acquisition of the SSI vessels at the end of 2024. This increase was partially offset by lower market freight rates, as evidenced by a 17% decline in the Baltic Dry Index (BDI) during the period.
Previous report
Charter Revenues: Charter revenues increased to $26.1 million from $23.7 million, or 10%, for the nine months ended September 30, 2025 compared to the same period in 2024. The increase was primarily driven by a significant rise in time charter days, which increased 64% to 2,156 days from 1,318 days in the prior-year period. Although the average time charter rate declined to $12,125 per day from $18,011 per day, the higher number of charter days more than offset the rate decrease, resulting in overall revenue growth. The optionality of our chartering strategy allows the Company to selectively release excess ship days, if any, into the market under time charter arrangements.
Previous report
Terminal & Stevedore Revenues: Terminal & Stevedore revenues increased by 19% for the nine months ended September 30, 2025 to $10.8 million compared to $9.1 million for the same period in 2024 due to the addition of 2 new port operations in the current year.
Previous report
Operating and Business Expenses
Previous report
Voyage Expenses: Voyage expenses were $211.3 million for the nine months ended September 30, 2025, compared to $169.8 million for the same period in 2024, reflecting an increase of 24%. The increase was mainly attributable to higher voyage days, which increased by 34% to 15,148 days from 11,289 days in the prior year, reflecting the Company’s expanded fleet. Correspondingly, total bunker, port, and canal costs increased in line with the higher level of operating activity.
Previous report
Charter Hire Expenses: Charter hire expenses for the nine months ended September 30, 2025 were $82.9 million, compared to $96.3 million for the same period in 2024, a 14% decrease. The decrease in charter hire expenses was primarily due to a decrease in market rates to charter-in vessels. The average published market rates for supramax, panamax and handysize vessels decreased approximately 22% from an average of $14,161 in the nine months ended months ended September 30, 2024 to $11,043 in the same period of 2025. Despite the rate decline, chartered-in days increased to 6,607 days for the nine months ended September 30, 2025, compared to 6,025 days in the nine months ended September 30, 2024. The Company's flexible charter-in strategy allows it to supplement its owned fleet with short term chartered-in tonnage at prevailing market prices, when needed, to meet cargo demand.
Previous report
Vessel Operating Expenses: Vessel operating expenses for the nine months ended September 30, 2025 were $67.3 million, compared to $41.3 million for the same period in 2024, an increase of approximately 63%. This increase was due to the expansion of the owned fleet during the period. Excluding technical management fees, vessel operating expenses on a per day basis were $5,806 for the nine months ended September 30, 2025 and $5,686 for the same period in 2024. Technical management fees were approximately $2.7 million and $3.4 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous report
Terminal & Stevedore Expenses: Terminal & Stevedore expenses increased by 14% to $8.4 million for the nine months ended September 30, 2025, compared to $7.3 million for the same period in 2024. This increase was in line with the higher terminal and stevedore revenue during the period.
Previous report
General and Administrative Expenses: For the nine months ended September 30, 2025, general and administrative expenses were $24.3 million, compared to $18.3 million for the same period in 2024. The increase was primarily attributable to the consolidation of Seamar, which contributed approximately $2.8 million of G&A in the current year; in the prior year, Seamar was accounted for as an investment in an unconsolidated subsidiary. Additionally, G&A increased by approximately $2.0 million related to the acquisition of Strategic at year-end 2024, which resulted in additional employees and office space in Southport, Connecticut. The remaining increase was due to higher compensation costs associated with added headcount to support strategic acquisition initiatives and other incremental costs, including approximately $0.5 million increase in non-cash share based compensation..
Previous report
The Company concluded that no triggering event had occurred during the nine months ended September 30, 2025 and 2024, which would require impairment testing.
Previous report
During the nine months ended September 30, 2025, net cash provided by operating activities was approximately $38.6 million, compared to $46.4 million for the same period in 2024, decreased by $7.8 million. The decline was mainly due to lower net income and higher drydocking costs, which were about $10.8 million more than last year. These factors were partly offset by stronger non-cash adjustments, including higher depreciation and amortization, and favorable working capital changes such as increased accounts payable and deferred revenue.
Previous report
Net cash provided by investing activities for the nine months ended September 30, 2025, was approximately $1.9 million, compared to net cash used in investing activities of approximately $57.4 million for the same period in 2024. The $59.3 million change primarily reflects a significant reduction in vessel acquisition expenditures. In the prior-year period, the Company invested approximately $57.0 million in the purchase of two vessels. In contrast, during the current period, the Company completed the sale of one vessel for approximately $7.7 million and incurred approximately $5.5 million in capital expenditures related to the purchase of vessel and service equipment.
Previous report
•A 14.0 million decrease in payments of debt, financing obligations and finance leases due to final balloon payments incurred in 2024;
Previous report
•Proceeds from financing obligation was approximately $18.0 million during the nine months ended September 30, 2025, compared to approximately $8.0 million in the same period in 2024, and
Previous report
•The absence of $64.2 million in proceeds from long-term debt in the current period, compared to the same amount received in the prior year in connection with a long-term debt refinancing transaction.
Reworded paragraphs (23)
Previous wording
Time Charter Equivalent ‘‘TCE’’ rates. The Company defines TCE rates as total revenues less voyage expenses divided by the length of the voyage, which is consistent with industry standards. TCE rate is a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because rates for vessels on voyage charters are generally not expressed in per-day amounts while rates for vessels on time charters generally are expressed in per-day amounts.
Current wording
Time Charter Equivalent ‘‘TCE’’ rates. The Company defines TCE rates as total shipping segment revenue less voyage expenses, divided by total shipping days. TCE rates are a common shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters because rates for vessels on voyage charters generally are not expressed on a per-day basis, while rates for vessels on time charters generally are expressed on a per-day basis. The Company believes this measure is consistent with industry practice.
Previous wording
(2)Shipping days are defined as the aggregate number of days in a period during which its owned or chartered-in vessels are performing either a voyage charter (voyage days) or time charter (time charter days).
Current wording
(1)Shipping days are defined as the aggregate number of days in a period during which its owned or chartered-in vessels are performing either a voyage charter (voyage days) or time charter (time charter days).
Previous wording
The reconciliation of gross profit to net transportation and service revenue and net income in accordance with U.S. GAAP to Adjusted EBITDA is as follows:
Current wording
The reconciliation of Gross profit to Adjusted Gross Profit and Net income to Adjusted EBITDA is as follows:
Previous wording
The Baltic Dry Index (“BDI”), a broader market measure of the cost to transport drybulk commodities by sea, offers a market view into global supply demand trends and is considered the standard benchmark for drybulk cargo pricing. The BDIaveraged 1,978 for the third quarter of 2025, up approximately 6%, compared to an average of 1,871 for the same quarter of 2024. The average published market rates for Panamax, Supramax, and Handysize vessels, reflecting the composition of the company's fleet, also increased approximately 3%, to an average of $14,130 in the third quarter of 2025 from $13,707 in the same period of 2024.
Current wording
The Baltic Dry Index (“BDI”), a broader market measure of the cost to transport drybulk commodities by sea, offers a market view into global supply demand trends and is considered the standard benchmark for drybulk cargo pricing. The BDI averaged 1,955 for the first quarter of 2026, up approximately 75%, compared to an average of 1,118 for the same quarter of 2025. The average published market rates for Panamax, Supramax, and Handysize vessels, reflecting the composition of the company's fleet, also increased approximately 49%, to an average of $12,696 in the first quarter of 2026 from $8,548 in the same period of 2025.
Previous wording
For the three months ended September 30, 2025, the Company's TCE rates were down 5% to $15,559 from $16,324 for the three months ended September 30, 2024. The Company's achieved TCE rates declined from the previous quarter as overall dry bulk market rates weakened for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The Company's achieved TCE rate for the three months ended September 30, 2025 outperformed the average of the Baltic panamax, supramax, and handysize market indexes by approximately 10% due to its long-term contracts of affreightment, ("COAs"), its specialized fleet and its cargo-focused strategy.
Current wording
For the three months ended March 31, 2026, the Company's TCE rates were up 34% to $15,252 from $11,390 for the three months ended March 31, 2025. The Company's achieved TCE rates increased from the previous quarter as overall dry bulk market rates strengthened for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The Company's achieved TCE rate for the three months ended March 31, 2026 outperformed the average of the Baltic panamax, supramax, and handysize market indexes by approximately 20% due to its long-term contracts of affreightment, ("COAs"), its specialized fleet and its cargo-focused strategy.
Previous wording
•Net income attributable to Pangaea Logistics Solutions Ltd. was approximately $12.2 million for three months ended September 30, 2025 as compared to net income of approximately $5.1 million for the same period of 2024.
Current wording
•Net income attributable to Pangaea Logistics Solutions Ltd. was approximately $13.3 million for three months ended March 31, 2026 as compared to a net loss of approximately $2.0 million for the same period of 2025.
Previous wording
•Net income per share was $0.19 for three months ended September 30, 2025, as compared to diluted net income per share of $0.11 for the same period in 2024.
Current wording
•Diluted net income per share was $0.21 for three months ended March 31, 2026, as compared to diluted net loss per share of $0.03 for the same period in 2025.
Previous wording
•Pangaea's TCE rates were $15,559 for the three months ended September 30, 2025 and $16,324 for the three months ended September 30, 2024.
Current wording
•Pangaea's TCE rates were $15,252 for the three months ended March 31, 2026 and $11,390 for the three months ended March 31, 2025.
Previous wording
•At the end of the quarter, Pangaea had $94.3 million in cash, cash equivalents, and restricted cash.
Current wording
•At the end of the quarter, Pangaea had $90.0 million in cash, cash equivalents, and restricted cash.
Previous wording
Pangaea’s revenues are derived predominately from voyage, time charters, and terminal and stevedore revenue. Total revenue for the three months ended September 30, 2025, was $168.7 million, compared to $153.1 million for the same period in 2024, a 10% increase. The increase in revenues was primarily driven by a 22% rise in total shipping days, reaching 5,872 days for the three months ended September 30, 2025, compared to 4,805 days for the same period in 2024.
Current wording
Pangaea’s revenues are derived predominately from voyage, time charters, and terminal and stevedore revenue. Total revenue for the three months ended March 31, 2026, was $170.6 million, compared to $122.8 million for the same period in 2025, a 39% increase. The increase in revenues was primarily driven by improved market freight rates and higher activity levels. TCE rates increased from $11,390 per day in the first quarter of 2025 to $15,252 per day in the first quarter of 2026, while total shipping days increased from 5,210 days to 5,947 days. Revenues also benefited from higher terminal and stevedore revenues.
Previous wording
Voyage Revenues: Voyage revenues increased by 7% for the three months ended September 30, 2025 to $155.3 million compared to $145.1 million for the same period in 2024. The increase in voyage revenues was primarily due to a 18% increase in voyage days from 4,549 in the three months ended September 30, 2024 to 5,377 for the three months ended September 30, 2025. The increase is also attributable to the increase in the Company's fleet size as a result of the acquisition of 15 vessels in December 2024. One of the acquired vessels was sold in July 2025.
Current wording
Voyage Revenues: Voyage revenues increased by 39% for the three months ended March 31, 2026 to $152.0 million compared to $109.7 million for the same period in 2025. The increase in voyage revenues was primarily due to a 22% increase in voyage days from 4,196 in the three months ended March 31, 2025 to 5,120 for the three months ended March 31, 2026. The increase is also attributable to the increase in the market freight rates as discussed above.
Previous wording
Charter Revenues: Charter revenues increased by 91%, to $9.3 million for the three months ended September 30, 2025, compared to $4.9 million for the same period in 2024. The increase was primarily driven by a 93% increase in time charter days, which rose from 256 to 495 days, and by an improvement in average market charter rates, as the Panamax, Supramax, and Handysize indices increased from $13,707 per day to $14,130 per day year-over-year. The Company’s flexible chartering strategy enables the Company to selectively release excess ship days, if any, into the market under time charter arrangements rather than voyage days.
Current wording
Charter Revenues: Charter revenues increased by 25%, to $12.4 million for the three months ended March 31, 2026, compared to $10.0 million for the same period in 2025. The increase was primarily driven by an improvement in average market charter rates, as the Panamax, Supramax, and Handysize indices increased by 49% from $8,548 per day to $12,696 per day year-over-year. This was offset by an 18% decrease in time charter days, which decreased from
Previous wording
Terminal & Stevedore Revenues: Terminal & Stevedore revenues increased by 31% to $4.1 million for the three months ended September 30, 2025, compared to $3.1 million for the same period in 2024 due to the addition of two new port operations in 2025.
Current wording
Terminal & Stevedore Revenues: Terminal & Stevedore revenues increased by 95% to $6.1 million for the three months ended March 31, 2026, compared to $3.1 million for the same period in 2025, primarily due to the addition of two new port operations in Lake Charles and Port Aransas during 2026.
Previous wording
Charter Hire Expenses: Charter hire expenses for the three months ended September 30, 2025 were $33.9 million, compared to $36.5 million for the same period in 2024, a 7% decrease. The decrease was primarily due to a decrease in chartered-in days, as the Company expanded its owned fleet size by 14 vessels, reducing the need for chartered ships. Chartered-in days decreased 13%, from 2,519 days in the third quarter of 2024 to 2,202 days in the same period of 2025. On a per-day basis, charter hire expenses averaged $15,389 in the third quarter of 2025, compared to $14,494 in 2024. The Company's flexible charter-in strategy allows it to supplement its owned fleet with short term chartered-in tonnage at prevailing market prices, when needed, to meet cargo demand.
Current wording
Charter Hire Expenses: Charter hire expenses for the three months ended March 31, 2026 were $39.2 million, compared to $17.6 million for the same period in 2025, a 122% increase. The increase was primarily due to an increase in chartered-in days as well as market time charter rates. Chartered-in days increased 55%, from 1,745 days in the first quarter of 2025 to 2,712 days in the same period of 2026. On a per-day basis, charter hire expenses averaged $14,448 in the first quarter of 2026, compared to $10,108 in 2025. The Company's flexible charter-in strategy allows it to supplement its owned fleet with short term chartered-in tonnage at prevailing market prices, when needed, to meet cargo demand.
Previous wording
Vessel Operating Expenses: Vessel operating expenses for the three months ended September 30, 2025 were $21.7 million, compared to $13.9 million for the same period in 2024, an increase of approximately 57%. Most of this increase was a result of an increase in ownership days due to the acquisition of vessels in the prior year, with 3,701 days for the three months ended September 30, 2025 compared to 2,293 days in 2024, reflecting an increase of 61%. Excluding technical management fees, vessel operating expenses on a per day basis were $5,634 for the three months ended September 30, 2025, up from $5,520 for the three months ended September 30, 2024. Technical management fees were approximately $0.9 million in the third quarter of 2025, down from $1.2 million in 2024, primarily due to the consolidation of Seamar Management which reclassified from technical management fees to general and administrative expenses, partially offset by the increase in the number of owned vessels.
Current wording
Vessel Operating Expenses: Vessel operating expenses for the three months ended March 31, 2026 were $20.6 million, compared to $22.2 million for the same period in 2025, a decrease of approximately 7%. Most of this decrease was a result of a decrease in ownership days due to the sale of two vessels in the prior year, with 3,510 days for the three months ended March 31, 2026 compared to 3,690 days in 2025, reflecting a decrease of 5%. Excluding technical management fees, vessel operating expenses on a per day basis were $5,644 for the three months ended March 31, 2026, up from $5,528 for the three months ended March 31, 2025. Technical management fees were approximately $0.8 million in the first quarter of 2026, down from $1.8 million in 2025 reflecting, in part, the transition of technical management for 10 vessels from Bernard Schulte Shipmanagement ("BSM") to Seamar, the Company's wholly owned subsidiary.
Previous wording
Terminal & Stevedore Expenses: Terminal & Stevedore expenses increased by 31% to $3.1 million for the three months ended September 30, 2025, compared to $2.4 million for the same period in 2024 in line with the increase in terminal revenues and the addition of two new port operations.
Current wording
Terminal & Stevedore Expenses: Terminal & Stevedore expenses increased by 95% to $4.4 million for the three months ended March 31, 2026, compared to $2.6 million for the same period in 2025, in line with the increase in terminal revenues and the addition of new port operations over the period.
Previous wording
General and Administrative Expenses: General and administrative expenses increased by 64% to $9.9 million for the three months ended September 30, 2025 compared to $6.0 million for the same period in 2024. The increase was primarily driven by the consolidation of Seamar in 2025, which contributed approximately $1.0 million of incremental expense. In addition, higher employee incentive compensation expense of approximately $1.0 million was recognized during the quarter compared to the prior year. The remaining increase was due to higher compensation costs associated with added headcount to support Strategic Shipping Inc. acquisition initiatives and other incremental costs.
Current wording
General and Administrative Expenses: General and administrative expenses increased by 38% to $10.0 million for the three months ended March 31, 2026 compared to $7.3 million for the same period in 2025. The increase was primarily due to higher employee incentive compensation expense of approximately $0.9 million during the quarter, primarily resulting from earlier recognition of certain incentive compensation expenses during the current-year period compared to the prior year. The remaining increase was attributable to higher compensation costs associated with increased headcount across the organization and other incremental costs.
Previous wording
The Company evaluates the recoverability of its fixed assets and other assets in accordance with ASC 360-10-15, Impairment or Disposal of Long-Lived Assets, which requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. If indicators of impairment are present, we perform an analysis of the anticipated undiscounted future net cash flows to be derived from the related long-lived assets. Our assessment is made at the asset group level, which represents the lowest level for which identifiable cash flows are largely independent of other groups of assets. The asset groups established by the Company are defined by vessel size and major characteristic or trade.
Current wording
The Company evaluates the recoverability of its fixed assets and other long-lived assets in accordance with ASC 360-10-15, Impairment or Disposal of Long-Lived Assets, which requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. If indicators of impairment are present, the Company performs an analysis of the anticipated undiscounted future net cash flows to be derived from the related long-lived assets.
Previous wording
As of September 30, 2025, and December 31, 2024, the Company’s working capital was $81.7 million and $82.9 million, respectively.
Current wording
As of March 31, 2026, and December 31, 2025, the Company’s working capital was $97.2 million and $87.7 million, respectively.
Previous wording
The table below summarizes our primary sources and uses of cash for the nine months ended September 30, 2025 and 2024. We have derived these summarized statements of cash flows from the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Amounts in the table below have been calculated based on unrounded numbers. Accordingly, certain amounts may not appear to recalculate due to the effect of rounding.
Current wording
The table below summarizes our primary sources and uses of cash for the three months ended March 31, 2026 and 2025. We have derived these summarized statements of cash flows from the consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Amounts in the table below have been calculated based on unrounded numbers. Accordingly, certain amounts may not appear to recalculate due to the effect of rounding.
Previous wording
Net cash used in financing activities was approximately $33.0 million for the nine months ended September 30, 2025, compared to net cash provided by financing activities of $5.0 million for the same period in 2024, The $38.1 million change was primarily due to the following:
Current wording
Net cash used in financing activities was approximately $16.5 million for the three months ended March 31, 2026, compared to $18.0 million used in the same period in 2025, representing a decrease in cash used of $1.5 million. The decrease was primarily driven by lower cash dividends paid, partially offset by higher payments on financing obligations and finance leases.
Previous wording
The Company’s capital expenditures relate to the purchase of vessels and interests in vessels, capital improvements to its vessels which are expected to enhance the revenue earning capabilities and safety of these vessels, as well as port & terminal operations. As of September 30, 2025, the Company owned three Panamax, two Ultramax Ice Class 1C, two Ultramax, nine Supramax andfour Post-Panamax Ice Class 1A drybulk vessels. The Company owns two-thirds of its consolidated subsidiary Nordic Bulk Holding Company Ltd. (“NBHC”) which owns a fleet ofsix Panamax Ice Class 1A drybulk vessels, and fourteen Handysize vessels. The Company also holds a 50% equity interest in the owner of a deck barge and operates port and terminal facilities in Fort Lauderdale, Florida, Baltimore, Maryland, and Texas.
Current wording
The Company’s capital expenditures relate to the purchase of vessels and interests in vessels, capital improvements to its vessels which are expected to enhance the revenue earning capabilities and safety of these vessels, as well as port & terminal operations. As of March 31, 2026, the Company owned three Panamax, two Ultramax Ice Class 1C, two Ultramax, eight Supramax andfour Post-Panamax Ice Class 1A drybulk vessels and fourteen Handysize vessels. The Company owns two-thirds of its consolidated subsidiary Nordic Bulk Holding Company Ltd. (“NBHC”) which owns a fleet ofsix Panamax Ice Class 1A drybulk vessels. The Company also holds a 50% equity interest in the owner of a deck barge and operates port and terminal facilities in Fort Lauderdale, Florida, Baltimore, Maryland, Port Aransas, Texas, Tampa, Florida, and Lake Charles, Louisiana.
Previous wording
In addition to vessel acquisitions that the Company may undertake in future periods, its other major capital expenditures include funding its program of regularly scheduled drydockings necessary to make improvements to its vessels, as well as to comply with international shipping standards and environmental laws and regulations. Funding expenses associated with these requirements will be met with cash from operations. The Company anticipates that this process of recertification will require it to reposition these vessels from a discharge port to shipyard facilities, which will reduce the Company’s available days and operating days during that period. The Company capitalized drydocking costs totaling approximately $13.8 million and $3.0 million the nine months ended September 30, 2025 and 2024, respectively. The Company expects to perform two special surveys during the fourth quarter of 2025 at an aggregate estimated cost of approximately $3.7 million and one intermediate survey at an estimated cost of approximately $1.5 million. In 2026, the Company anticipates performing ten special surveys at an aggregate estimated cost of approximately $11.6 million and two intermediate surveys at an aggregate estimated cost of approximately $3.5 million.
Current wording
In addition to vessel acquisitions that the Company may undertake in future periods, its other major capital expenditures include funding its program of regularly scheduled drydockings necessary to make improvements to its vessels, as well as to comply with international shipping standards and environmental laws and regulations. Funding expenses associated with these requirements will be met with cash from operations. The Company anticipates that this process of recertification will require it to reposition these vessels from a discharge port to shipyard facilities, which will reduce the Company’s available days and operating days during that period. The Company capitalized drydocking costs totaling approximately $6.8 million and $6.4 million for the three months ended March 31, 2026 and 2025, respectively. The Company expects to perform one intermediate survey during the second quarter of 2026 at an aggregate estimated cost of approximately $1.5 million. In 2026, the Company anticipates performing four special surveys at an aggregate estimated cost of approximately $5.3 million.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
1,014 to 827 days. The Company’s flexible chartering strategy enables the Company to selectively release excess ship days, if any, into the market under time charter arrangements rather than voyage days.
Current report — wording carried from elsewhere
The Company performs this assessment at the individual vessel level, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The Components of our expenses are as follows: