Thank you, operator, and welcome to the Pangaea Logistics Solutions second quarter 2026 results conference call. Leading the call with me today are CEO, Mads Petersen, and Chief Financial Officer, Gianni Del Signore.

Today's discussion contains forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the SEC.

Except as required by law, we undertake no obligation to update our forward-looking statements. At the conclusion of our prepared remarks, we will open the line for questions.

With that, I would like to turn the call over to Mads.

Thank you, Stefan, and welcome to those joining us on the call today. We generated strong results in both revenue and profitability during the second quarter.

Our financial performance was driven by strong execution across both our owned and chartered-in fleet, as well as balanced positioning of our assets to take advantage of stronger overall demand, especially in Asia. Robust markets contributed to a 50% increase in our TCE rates for the second quarter.

Notably, our TCE rates averaged 10% above the prevailing market for the Panamax, Supramax, and Handysize indices. This premium reflects the benefits of our fleet positioning strategy, the value of our operating platform, long-standing customer relationships, and ability to manage a volatile market effectively.

We generated significant operating leverage from the favorable market environment, with second quarter adjusted EBITDA growing by nearly $20 million year over year to $35 million. Just as important, these results highlight the value of the business model, which allows us to protect, and in many cases expand, our margins in dynamic market environments.

We actively managed volatile fuel markets through hedging and contract terms, while our continued focus on fleet positioning and backhaul trades allowed us to capture arbitrage opportunities. Our balanced approach to fleet deployment, including a greater concentration of vessels in the Pacific region, contributed positively, and our increased exposure to shorter-term time charters enabled us to benefit from positive developments in our core Atlantic markets.

Strong execution across our chartered-in business underscores our ability to translate favorable conditions into positive margins. We continued to grow our onshore logistics platform in the second quarter, commencing operations at the Port of Tampa.

Tampa joins our operations at Aransas and Lake Charles, all under multiyear contracts that started operations within the last 12 months. Terminal and stevedore revenue grew 11% year over year to approximately $4 million.

We continue to expect roughly $3 million of incremental EBITDA from these operations on a full-year basis. Strategically, this is recurring revenue business that deepens our integration into customer supply chains beyond ocean freight, and it pairs naturally with our Supramax and Handysize fleet.

We also advanced our fleet renewal strategy. During the second quarter, we completed the previously announced sale of the 2006-built Bulk Jamaica for $9.6 million.

This follows the sale of the Bulk Freedom late last year, also for $9.6 million, and together, these transactions reflect a consistent approach of monetizing older tonnage at attractive values, avoiding the capital and off-hire associated with upcoming drydockings, and steadily improving the efficiency and environmental profile of our fleet. We will continue to selectively and opportunistically invest in modern, high-quality vessels that fit our commercial model, remaining disciplined on price and transacting only when the returns are clear.

Looking at the market, demand for dry bulk commodities carried positive momentum through the first half of the year, driven by increased trade in both iron ore and grain compared to last year. That strength was broad-based, supporting earnings not only in the larger Capesize segment, but also across the mid-size and smaller classes where we are most active.

Minor bulk trades, which are central to our cargo book, likewise grew compared to the prior year. Encouragingly, this momentum continued into the third quarter.

Our outlook for the balance of 2026 remained positive. At the market level, we expect moderate fleet growth to be broadly offset by comparable ton-mile demand, with the continued disruption and lengthening of trade routes translating measured cargo volume growth into stronger ton-mile demand, which is what ultimately drives utilization and freight rates.

For Pangaea specifically, the second half carries a well-established seasonal tailwind as our high ice class fleet is most active during the Arctic summer trading season, which peaks in the third quarter and tapers through the fourth, typically driving our strongest utilization and earnings from these specialized higher-margin trades. Through today, we have booked 4,873 shipping days at a TCE of $20,258 per day for the third quarter.

In summary, our second quarter results highlighted the value of our commercial platform and dynamic fleet positioning. As we enter the second half of the year, our results will further reflect the strategic advantages of our specialized ice class fleet and long-term contracts, which command a durable premium to the market.

Our growing onshore terminal network adds a recurring layer of earnings with a long runway ahead, and our modern fleet and strong balance sheet lets us fund growth and return capital at the same time. With fundamentals supportive and our strongest seasonal quarters just beginning, we are focused on converting these advantages into sustained earnings growth and lasting value for shareholders.

With that, I'll turn the call over to Gianni to walk through our second quarter financial results.

Thank you, Mads, and welcome to those joining us on the call today. Our second quarter financial results were highlighted by sustained TCE premiums relative to the prevailing market.

Second quarter TCE rates were $18,153 per day, a premium of 10% over the average published market rate of $16,502 per day for Panamax, Supramax, and Handysize vessels in the period. Our adjusted EBITDA for the second quarter was $35 million, a year-over-year increase of nearly $20 million, driven by a 50% increase in TCE rates.

Our total charter hire expense increased by 24% compared to the second quarter of 2025 due to an increase in market rates to charter in vessels. Our chartering cost on a per-day basis was approximately $16,816 per day in the second quarter, and through today, we booked 2,200 days at $17,537 per day for the third quarter.

Vessel operating expenses were essentially flat year over year. On a per-day basis through the second quarter of 2026, vessel operating expenses, including technical management fees, was $6,247 per day, a 2% increase from the prior year.

Total general and administrative expenses increased by 25% from $7.2 million to approximately $9 million. The increase was primarily due to an increase in incentive compensation expense due to improved results, along with higher compensation costs associated with added headcount across the organization as we grow our business.

In total, our reported GAAP net income for the second quarter was $10.2 million, or 16 cents per diluted share. Our GAAP net income included a significant unrealized loss resulting from our hedging strategy on bunker fuel exposure.

The decline in fuel prices late in the second quarter decreased the fair value of our bunker derivatives. Some of these same derivatives translated into significant unrealized gain during the first quarter as fuel prices increased due to the escalation of the conflict with Iran.

The first quarter's unrealized gain and the second quarter's unrealized loss essentially offset each other, leaving us in a neutral position for the year. More importantly, all of our hedges are placed against our own bunker requirements over the course of the year, keeping our fuel cost management aligned with our actual physical consumption.

When excluding the impact of the second quarter unrealized loss from derivative instruments, as well as other non-GAAP adjustments, our reported adjusted net income was $16.9 million, or 26 cents per diluted share. Moving on to the cash flows, our strong profitability during the quarter resulted in robust operating cash flow.

This, combined with $9.7 million of cash proceeds received from the sale of the Bulk Jamaica during the quarter, drove our unrestricted cash balance to $105 million. At quarter end, we had total debt, including finance lease obligations, of approximately $350 million, and to note, our current portion of long-term debt increased to $40 million due to a $24 million balloon payment, which we expect to refinance in the coming months.

We are also pleased to announce an increase in our quarterly dividend to 10 cents per share. This increase reflects the strengthening fundamentals and the balance sheet of the business, and underscores our commitment to returning capital to shareholders, consistent with the disciplined capital allocation strategy we have always followed.

Looking ahead, we will continue to allocate capital with a focus on preserving financial flexibility, supporting the growth of our integrated logistics platform, and returning capital to shareholders. We remain focused on investments that enhance the durability of our earnings base, including the expansion of our terminal and port service capabilities, and ongoing fleet renewal initiatives that improve efficiency, support customer needs, and position us for evolving regulatory requirements.

With that, we will now open the line for questions.

Thank you. Good morning, Mads.

Good morning, Gianni.

Morning, Liam.

Mads, you talked about activity in the Pacific region. Is this a new strategy for you?

I typically think of your fleet active in the Atlantic with very little activity in Asia. Have you changed your positioning strategy at all?

No, I don't think it's a result of that, but of course, we want to grow in that region, and I think just as a result of our larger fleet and larger scale, we need to take advantage of the opportunities we see out there. Early in the year, we saw positive momentum, and so we maybe positioned a little bit more of our ships out there than we've had in the past.

It's a dynamic business, and we'll go where we feel we get the best returns. It's a combination, I would say.

Great. Gianni, you talked about a balloon payment due this year.

You have plenty of cash. How do you balance refinancing versus just taking the cash balance, paying it down?

I'll throw in the question of raising the dividend, and how do you balance everything?

It's what we look at all the time, Liam, and what we're seeing as far as margins on debt facilities, we're really seeing competitive rates on margins. The market seems to be reacting, and there's a lot of opportunities for some well-priced debt.

We're looking at it. The balloon payment I've referenced, it's in a joint venture.

It's our Nordic Bulk Holding Company joint venture with Glencore, we will look at that with our partners and decide what to do. Our expectation looking at that one specifically is to roll it out and refinance it.

Shipping is volatile. We look at opportunities.

We want to be opportunistic. If we can keep some cash and look at different vessel opportunities as they present themselves and be a little bit more nimble, I think that's how we think about our capital going forward is really being opportunistic when we see something in the market.

Great. Thank you, Mads.

Thank you, Gianni.

Yep.

Good morning. I'd like to follow up on the comment about the Pacific trade or Pacific region.

Are there any particular cargoes that are driving that? Then, secondly, can you highlight whether that has continued into third quarter, or sort of how you look at that over the second half of the year?

I wouldn't say that it's a specific cargo that sort of drives that growth in earnings. I do see that the markets have rebalanced a bit in terms of the Atlantic trading off and then the Pacific maybe [climbing?]

a little bit. I'm not envisioning sort of in the short term a huge change to how we employ the ships.

It was, I think, more of an opportunistic look at where we could get the best returns in the short term, mainly because the Pacific seemed to be a little bit more disrupted from the connections in the Strait of Hormuz than the Atlantic, we saw an opportunity there.

Great. Thank you, Mads.

Then when you look at your own fleet, you just sold one, what are you seeing opportunities on either side of the equation, either sell assets or buy assets? Can you just give me an idea of what the tone of the S&P market looks like to you right now?

I think it's absolutely firm. Values are high, and we take advantage of that when we are looking at the older ships in our fleet that are coming up against some of the fourth or the fifth special survey and take advantage of that exit market for ships in that age group.

On the other side of it, we are always looking at ships from the second-hand market to add to the fleet, but we are quite determined to only pursue the assets that are attractive to us from a specification and price point. In the meantime, we can, in the short term at least, substitute with a little bit more activity in the chartered-in part of the business.

Okay. Then if you wouldn't mind highlighting your drydocking activity over the next 12 months, second half of the year and into the first half of '27?

Poe, I can run through that. For the second half of the year, we have about nine more drydockings to go, and we're estimating about $14 million of cost associated with that.

Then next year, we have a little bit of a lighter year compared to 2025 and 2026. Really, it's the second half of this year, maybe early next year, where we have those nine drydockings and about $14 million of cost associated.

Great. Thank you so much.

Yep. Thanks, Poe.

Once again, thank you for joining our call. Should you have any questions, please feel free to contact us at [email protected], and a member of our team will follow up with you.

This concludes our call today.