Pangaea Logistics Swings to Profit as Rates Jump 50%
Pangaea Logistics Solutions (PANL) posted a 50% year-over-year jump in its average daily charter rate to $18,153, driving Adjusted EBITDA past $35 million and prompting the company to double its quarterly dividend.
Pangaea Logistics Solutions (PANL), a dry-bulk shipping operator, reported a swing to profitability in the second quarter of 2026, with its time charter equivalent rate rising 50% year over year to $18,153 a day, up from $12,108 in the same period last year and a sharper gain than the 34% increase logged in the first quarter.
The rate acceleration came even as the company's fleet shrank. Total shipping days fell 8% year over year to 5,735 following the sale of two owned vessels, reversing a run of double-digit shipping-day growth that had been fueled by the 2024 handysize fleet acquisition. That the rate gain widened while capacity contracted pointed to a market in which Pangaea earned more per voyage rather than simply running more ships, a shift echoed in the premium it commanded over Baltic benchmark indices, which narrowed to 10% from 20% in the first quarter as broader index rates caught up.
Revenue rose 19% year over year to $187.1 million from $156.7 million, and climbed sequentially from $170.6 million in the first quarter. GAAP net income attributable to Pangaea was $10.2 million, or $0.16 a share, reversing a $2.7 million net loss a year earlier, though it slipped from $13.3 million, or $0.21 a share, in the first quarter. Adjusted net income told a stronger story, swinging to $16.9 million, or $0.26 a share, from an adjusted net loss of $1.4 million a year ago and more than doubling the $7.0 million posted in the prior quarter. Adjusted EBITDA more than doubled year over year, up 125.1% to $35.0 million from $15.6 million, with margin expanding to 18.7% from 9.8%, continuing a trend that had already lifted margin to 14.8% in the first quarter and 16% in the fourth quarter of 2025.
The company completed the start-up of port and terminal operations at Port Tampa Bay, Florida, during the quarter, a launch that had been described as "on track" in the first-quarter release and pushed back through several earlier disclosures, including a target of "early 2026" set out in the third-quarter 2025 release. Pangaea also closed the sale of the 2006-built Bulk Xaymaca for $9.6 million, an agreement first disclosed as pending in the fourth-quarter 2025 release.
For the third quarter of 2026, Pangaea guided to a quarter-to-date TCE rate of $20,258 a day on 4,873 shipping days, above the $18,808 figure it had cited entering the second quarter and the $14,917 figure entering the first quarter, extending a run of rising forward guidance across the past four quarters.
Balance-sheet metrics improved alongside earnings. Unrestricted cash rose to $105.7 million from $89.7 million at the end of the first quarter, while total debt, including finance leases, fell to $352.4 million from $363.2 million, continuing a decline from $386.3 million in the third quarter of 2025. Net debt to trailing-twelve-month Adjusted EBITDA improved to 2.1x from 2.4x, and operating cash flow jumped to $21.1 million from just $4.5 million in the first quarter, though it remained below the $28.6 million generated in the third quarter of 2025.
Pangaea doubled its quarterly dividend to $0.10 a share from $0.05, a rate that had held for the prior four quarters. The results marked the second full quarter under Chief Executive Mads Boye Petersen, who succeeded Mark Filanowski beginning with the fourth-quarter 2025 release.