Safe Bulkers (NYSE:SB) management said it navigated a volatile dry bulk market in 2025 and ended the year with adjusted earnings of $0.14 per share in the fourth quarter, while continuing its shareholder return program and fleet renewal strategy.
Quarterly results and dividend
President Loukas Barmparis said the dry bulk market saw “increased market volatility” during 2025, largely tied to geopolitical factors. For the fourth quarter of 2025, the company reported adjusted earnings per share of $0.14 and said its board declared a quarterly dividend of $0.05 per share, which management described as its seventeenth consecutive quarterly dividend and equated to a 3.3% dividend yield.
Operating metrics and costs
Adamopoulos said Safe Bulkers averaged 45 vessels in operation during the fourth quarter of 2025 and generated an average time charter equivalent (TCE) of $17,050, compared with 45.9 vessels and a TCE of $16,521 in the year-ago quarter.
Costs increased year over year. The CFO said daily vessel operating expenses rose 13% to $5,683, compared with $5,047 in the fourth quarter of 2024. Excluding drydocking and delivery expenses, daily vessel OpEx increased 6% to $5,057 from $4,787.
Market outlook: supply, demand, and freight conditions
On the supply side, Barmparis cited projections that the dry bulk fleet will grow about 3% in 2026, with the highest growth expected in the Panamax and Supramax segments. He said the order book stands at about 11.4% of the current fleet, and referenced BIMCO forecasts for supply growth of 2.5% in 2026 and 3% in 2027 after adjusting for sailing speed.
Management said asset prices remain elevated and that recycling volumes are expected to rise but remain low versus historical levels. Barmparis also discussed alternative-fuel readiness in newbuilds, stating that about 11% of the dry bulk order book will be able to use alternative fuels upon delivery, with roughly half using methanol, 36% LNG, and the remainder ammonia and hydrogen. However, he characterized the dual-fuel order book in dry bulk as small and said the postponement of the International Maritime Organization’s global fuel standard adoption could shift decarbonization toward “more pragmatic solutions.”
On demand, Barmparis pointed to the IMF’s January forecast for global GDP growth of around 3% in 2026 and 2027, alongside easing inflation pressures. He cited BIMCO expectations for dry bulk demand growth of 2% to 3% in 2026, with cargo volumes projected to expand 1% to 2% and average sailing distances rising 0.5% to 1.5% annually, supporting tonne-mile demand.
By commodity, he said:
- Iron ore shipments are expected to grow up to 1% in 2026 and similarly in 2027, though he flagged high Chinese port inventories (up 11% year over year) as a potential headwind for imports in the first half of 2026.
- Coal shipments are projected to decline 1% to 2% in 2026, and the International Energy Agency expects global coal demand to fall 1.4% between 2025 and 2027 with coal imports down 4%. He said India and parts of Asia remain growth pockets, with thermal coal weakening and coking coal more resilient.
- Grain shipments were described as the strongest major bulk category, estimated to grow 5% to 6% in 2026, though he cited risks tied to China’s push for greater self-sufficiency and reduced soya meal usage.
- Minor bulks growth is expected at 3.5% to 4.5% in 2026, with energy transition-related ores supported, bauxite growth potentially moderating due to China’s aluminum production cap, and fertilizer demand expanding more slowly.
Barmparis said China remains central to dry bulk demand but faces “structural headwinds,” including a weak property sector, elevated inventories, industrial adjustments, trade barriers, and export licensing controls. He also said trade tensions between the U.S. and China remain a source of uncertainty despite a truce, and highlighted India’s projected 6.4% GDP growth in 2026. He also discussed Japan’s political environment following February snap elections and described the government’s ability to pursue more proactive fiscal policy aimed at lifting the economy out of deflation.
Summarizing the balance, Barmparis said supply growth is expected to “marginally match” demand in 2026. He said the freight market showed strength in the fourth quarter of 2025 and remained healthy in early 2026.
Fleet renewal, order book, and capital allocation
Management emphasized a balance between spot and time-charter exposure to capture market opportunities while maintaining cash-flow visibility and a “strong capital structure.” Barmparis said seven Capesize vessels are on period time charters, with an average remaining duration of 1.8 years and average daily hire of $24,000, which he said totals more than $130 million in contracted revenue backlog from Capes alone.
On fleet composition and efficiency, Barmparis said Safe Bulkers has 12 “Phase three” vessels in the water delivered from 2022 onward, with 26 vessels having undergone environmental upgrades and 11 designated as Eco. He said about 80% of the fleet is Japanese-built, compared with a global average of roughly 40%, and added that the company has seen improved quality and fuel efficiency in its Chinese-built ships. He put the company’s average fleet age at 10.5 years versus 12.6 years globally.
Looking ahead, Barmparis said Safe Bulkers expects to take delivery of its remaining order book of eight Phase three vessels, and that by the first quarter of 2029 the fleet will comprise 38 Phase three vessels. He also highlighted an aging global fleet, saying 35% of vessels exceed 15 years of age and that older tonnage faces increasing inspections that can affect operations.
During the quarter, management said the company ordered two Kamsarmax Phase III newbuilds in January and sold a 2012 Chinese-built Capesize vessel in February. The company also maintained a $10 million share repurchase program.
Liquidity, leverage, and contracted revenue
Barmparis said Safe Bulkers had liquidity and capital resources of $382 million and leverage of 34%, along with net revenues of $72.6 million. In his remarks, he also cited $164 million in revenue backlog and described the company’s balance sheet as providing “flexibility in our capital allocation.”
Adamopoulos later updated liquidity figures, stating the company had about $167 million in cash as of February 13, plus $218 million available under revolving credit facilities, for combined liquidity and capital resources of $385 million. He also referenced contracted revenue of $178 million.
Q&A: secondhand availability and charter duration
In response to a question about renewing the Capesize fleet, management said secondhand prices have been rising, but availability of “quality tonnages” is limited, with few modern Japanese-built or newer Chinese vessels on the market. Management attributed the lack of sale candidates to improving market prospects, saying owners are holding assets following a strong fourth quarter and “very strong Q1.” As a result, management said the practical option for a company seeking quality tonnage is to look to shipyards, though it noted shipyard capacity is largely booked through 2028, pushing potential deliveries into 2029.
On the time-charter market, management said there was not yet interest in two- to three-year contracts as the market is still in the early stages of improvement. Management said six- to 12-month charters are currently easier to fix, and that longer-duration deals may require more sustained market strength into the second or third quarter. On structure, management said it traditionally prefers fixed rates but sometimes uses index-linked exposure, adding that one-year deals were “approaching $18,000 or $19,000 a day” for Eco Kamsarmax vessels.
About Safe Bulkers (NYSE:SB)
Safe Bulkers Inc (NYSE: SB) is a dry bulk shipping company engaged in the ocean transport of commodities such as iron ore, coal, grain, and fertilizers. The company operates a modern fleet of vessels, including Panamax, Supramax and Kamsarmax bulk carriers, designed to serve a variety of trade routes and cargo types. Safe Bulkers’ fleet is employed under both time charter and voyage charter arrangements, offering flexibility to respond to market demand and optimize vessel utilization.
Founded in 2008, Safe Bulkers began trading its shares on the New York Stock Exchange in the same year, establishing itself as a publicly listed provider of dry bulk transportation services.
