Pangaea Logistics Solutions Ltd.

Previous wording

(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 wording

(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, terminal and stevedoring operations by excluding non-cash depreciation and amortization expenses associated with vessels and terminal and stevedoring assets. Adjusted gross profit is not a measure recognized under U.S. GAAP and should not be considered 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.

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 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.

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 2,751 for the second quarter of 2026, up approximately 87%, compared to an average of 1,467 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 59%, to an average of $16,502 in the second quarter of 2026 from $10,347 in the same period of 2025.

Previous 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.

Current wording

For the three months ended June 30, 2026, the Company's TCE rates were up 50% to $18,153 from $12,108 for the three months ended June 30, 2025. The Company's achieved TCE rates increased from the previous quarter as overall dry bulk market rates strengthened for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The Company's achieved TCE rate for the three months ended June 30, 2026 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.

Previous 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.

Current wording

•Net income attributable to Pangaea Logistics Solutions Ltd. was approximately $10.2 million for three months ended June 30, 2026 as compared to a net loss of approximately $2.7 million for the same period of 2025.

Previous 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.

Current wording

•Diluted net income per share was $0.16 for three months ended June 30, 2026, as compared to diluted net loss per share of $0.04 for the same period in 2025.

Previous 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.

Current wording

•Pangaea's TCE rates were $18,153 for the three months ended June 30, 2026 and $12,108 for the three months ended June 30, 2025.

Previous wording

•Adjusted EBITDA was $25.2 million and $14.8 million for the three months ended March 31, 2026 and March 31, 2025, respectively.

Current wording

•Adjusted EBITDA was $35.0 million and $15.6 million for the three months ended June 30, 2026 and June 30, 2025, respectively.

Previous wording

•At the end of the quarter, Pangaea had $90.0 million in cash, cash equivalents, and restricted cash.

Current wording

•At the end of the quarter, Pangaea had $105.9 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 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.

Current wording

Pangaea’s revenues are derived predominately from voyage, time charters, and terminal and stevedore revenue. Total revenue for the three months ended June 30, 2026, was $187.1 million, compared to $156.7 million for the same period in 2025, a 19% increase. The increase in revenues was primarily driven by improved market freight rates. TCE rates increased to $18,153 per day in the second quarter of 2026 from $12,108 per day in the second quarter of 2025, while total shipping days decreased from 6,222 days to 5,735 days. Revenues also benefited from higher terminal and stevedore revenues.

Previous 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

Current wording

Charter Revenues: Charter revenues increased by 67%, to $11.5 million for the three months ended June 30, 2026, compared to $6.9 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 59% from $10,347 per day to $16,502 per day year-over-year. The increase was also due to a 21% increase in time charter days, which increased from 647 to 784 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.

Previous 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.

Current wording

Terminal & Stevedore Revenues: Terminal & Stevedore revenues increased by 11% to $4.0 million for the three months ended June 30, 2026, compared to $3.6 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

In recent years, global cost inflation has contributed to higher vessel operation costs, including crew travel, equipment transportation, and drydocking. While we expect crew payroll expenses to remain stable in the near and medium term, other inflated costs may increase our vessels' daily operating expenses. Typically, any fuel cost increases during voyages are managed through bunker hedging or through fuel cost pass-through arrangements in long-term contracts.

Current wording

In recent years, global cost inflation has contributed to higher vessel operating costs, including crew travel, equipment transportation, and drydocking. While we expect crew payroll expenses to remain stable in the near and medium term, other inflated costs may increase our vessels' daily operating expenses. Typically, any fuel cost increases during voyages are managed through bunker hedging or through fuel cost pass-through arrangements in long-term contracts.

Previous 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.

Current wording

Charter Hire Expenses: Charter hire expenses for the three months ended June 30, 2026 were $39.1 million, compared to $31.4 million for the same period in 2025, a 24% increase. The increase was primarily due to increased market time charter rates. On a per-day basis, charter hire expenses averaged $16,816 in the second quarter of 2026, compared to $11,813 in 2025. This increase was partially offset by a 13% decrease in chartered-in days, from 2,660 days in the second quarter of 2025 to 2,325 days in the same period of 2026. 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

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.

Current wording

Terminal & Stevedore Expenses: Terminal & Stevedore expenses increased by 10% to $3.0 million for the three months ended June 30, 2026, compared to $2.7 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

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 wording

Unrealized Loss on Derivative Instrument: The Company uses forward freight agreements, bunker swaps and interest rate derivatives to manage its exposure to fluctuations in freight rates, bunker prices and interest rates. These instruments are measured at fair value at each balance sheet date, resulting in period-to-period fluctuations in earnings. Unrealized losses increased by $5.5 million, primarily due to a $5.8 million decrease in the fair value of bunker hedges as fuel prices declined toward the end of the second quarter following an earlier increase related to geopolitical tensions involving Iran.

Previous wording

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 wording

During the six months ended June 30, 2026, the Company classified one vessel as held for sale. Upon classification, the vessel was written down to its estimated fair value less costs to sell, resulting in the recognition of a loss on sale. The vessel was subsequently sold in May 2026 for approximately $9.6 million.

Previous wording

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 wording

For the remaining vessels, the Company concluded that no indicators of impairment were present during the six months ended June 30, 2026. Accordingly, no recoverability analysis was required for those vessels. The Company did not identify any triggering events during the six months ended June 30, 2025.

Previous wording

As of March 31, 2026, and December 31, 2025, the Company’s working capital was $97.2 million and $87.7 million, respectively.

Current wording

As of June 30, 2026, and December 31, 2025, the Company’s working capital was $73.8 million and $87.7 million, respectively.

Previous 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.

Current wording

The table below summarizes our primary sources and uses of cash for the six months ended June 30, 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

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 wording

During the six months ended June 30, 2026, net cash provided by operating activities was approximately $25.9 million, compared to $10.0 million for the same period in 2025, representing an increase of $15.8 million. The increase was primarily attributable to higher net income and favorable changes in accounts receivable and accounts payable, accrued expenses and other current liabilities. These factors were partially offset by increased cash used for inventories and advance hire, prepaid expenses and other current assets.

Previous 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.

Current wording

Net cash used in financing activities was approximately $30.4 million for the six months ended June 30, 2026, compared to $35.2 million used in the same period in 2025, representing a decrease in cash used of $4.8 million. The decrease in cash used was primarily attributable to lower cash dividends paid, the absence of dividends paid to non-controlling interests and ordinary share repurchases, and proceeds from long-term debt received during the 2026 period. These factors were partially offset by higher payments of 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 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.

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 June 30, 2026, the Company ownedtwo 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 $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.

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 $8.9 million and $11.9 million for the six months ended June 30, 2026 and 2025, respectively. For the remainder of 2026, the Company expects to perform nine intermediate and special surveys at an aggregate estimated cost of approximately $14 million.