Star Bulk Carriers (NASDAQ:SBLK) management highlighted “solid profitability,” continued capital returns, and a strong liquidity position while discussing fourth quarter 2025 results, alongside updates on fleet investment, environmental compliance initiatives, and dry bulk market conditions.
Fourth quarter profitability and per-vessel performance
Co-Chief Financial Officer Simos Spyrou said the quarter reflected disciplined capital allocation and balance sheet strength in what he described as a moderate rate environment. Star Bulk reported net income of $65.2 million for the fourth quarter of 2025, while adjusted net income was $74.5 million, or $0.16 in adjusted earnings per share. Adjusted EBITDA totaled $126.4 million.
Capital returns: dividends, buybacks, and updated policy
Star Bulk continued returning cash to shareholders through both buybacks and dividends. During the fourth quarter, the company repurchased 1.2 million shares for $22.7 million. Spyrou added that in the first quarter of 2026, the company had repurchased about 1.9 million shares totaling $37.9 million.
The board declared a dividend of $0.37 per share for the fourth quarter, payable March 19 to shareholders of record as of March 9, 2026.
Management also introduced an updated distribution framework. Going forward, the company said it intends to distribute 100% of free cash flow, while maintaining a minimum cash balance of $2.1 million per vessel and preserving a minimum quarterly dividend of $0.05 per share. In addition, Star Bulk authorized a new $100 million share repurchase program on substantially the same terms as the prior program. Spyrou described the approach as a “dual track” strategy—dividends plus opportunistic buybacks funded from vessel sales—intended to allow flexible capital allocation depending on market conditions and how the shares trade relative to intrinsic value.
In the Q&A portion of the call, President Hamish Norton said the incentive to pay dividends increases as the share price performs better, relative to repurchasing shares. Asked how to think about free cash flow versus earnings, Norton said earnings are “not terrible” as an approximation, but investors should consider depreciation versus debt repayment and working capital changes. Co-CFO Christos Begleris added that debt principal repayment is slightly higher than depreciation, which makes free cash flow lower than net income. He also noted that working capital can consume cash in a rapidly rising market and can release cash in a declining market.
Liquidity, leverage, and cash movement
Spyrou described the balance sheet as a strategic advantage. Star Bulk ended the period with approximately $459 million of total cash and cash equivalents, about $1 billion of outstanding debt, and $110 million of undrawn revolving credit capacity. Management also pointed to 27 debt-free vessels with an aggregate market value of about $630 million, describing this unencumbered fleet as a source of flexibility for both growth opportunities and downside protection.
On cash evolution during the quarter, Spyrou said the company started the fourth quarter with $457 million in cash and generated $101 million in operating cash flow. After factoring in vessel sale proceeds, debt drawdowns and repayments, capital expenditures related to newbuilding installments and fleet upgrades, share repurchases, and the fourth quarter dividend payment, the company ended the quarter with $502 million in cash.
Spyrou also discussed operating leverage based on Star Bulk’s fleet availability and the forward freight agreement (FFA) curve. Using an FFA curve assumption of about $18,500 per day on a fleet-wide basis, he said the company would generate about $2.7 per share of free cash flow over the next 12 months, representing an implied cash flow yield of nearly 11%. He added that every $1,500 per day increase in fleet-wide TCE would equate to about a $73 million increase in EBITDA, which he said would translate to $0.65 per share of incremental dividends under the company’s distribution approach.
Fleet investments, efficiency upgrades, and vessel sales
Chief Operating Officer Nicos Rescos said Star Bulk continued to operate one of the most cost-efficient platforms in the dry bulk sector. For the fourth quarter, daily operating expenses were $5,045 per vessel and net cash G&A was $1,399 per vessel. Rescos said the company’s cost discipline had not come at the expense of quality, noting Star Bulk’s strong RightShip safety scores relative to listed peers.
On newbuildings, management said all eight Kamsarmax newbuilds remain on track for delivery during 2026, with $206.6 million of remaining capital expenditures. Financing was described as well advanced, with $130 million of debt secured against five Qingdao vessels and an expected additional $74 million against three Chengxi vessels.
On fleet upgrades, Star Bulk said it installed energy-saving devices (ESDs) on 13 additional vessels during 2025 and fitted six vessels with high-efficiency propellers. The company has completed 55 of 80 planned ESD installations, with another 14 planned for 2026. Management also said telemetry retrofits were nearly complete, with 121 of 126 eligible vessels fitted with digital monitoring equipment.
Rescos outlined a 2026 drydock schedule totaling about $55.6 million and approximately 1,585 off-hire days for the year. He also said the company would continue to optimize the fleet by selectively disposing of older, non-ECO tonnage. During the fourth quarter, Star Bulk delivered three vessels to new owners (Star Runner, Star Sandpiper, and Star Emily). It also agreed in December to sell Star Stonington, which was delivered in February. Looking to the first quarter of 2026, the company committed two additional older vessels for sale—Star Scarlett and Star Mariella—with deliveries expected in April.
Star Bulk said it continues to maintain seven long-term chartering contracts and, on a fully delivered basis, will operate 141 vessels with an average age of about 12.1 years.
Regulatory and market outlook: supply, demand, and ton-mile dynamics
Chief Strategy Officer Charis Plakantonaki discussed environmental and technology initiatives. She noted the IMO Net-Zero Framework was postponed by one year in October 2025, but said Star Bulk remained committed to reducing greenhouse gas emissions through fleet renewal and efficiency measures. In the quarter, the company tested hull cleaning robots and silicone antifouling coatings. Plakantonaki said the fleet achieved an average “C” rating in RightShip’s greenhouse gas rating during 2025, maintained a “B” score in CDP environmental management, and continued work through the Maritime Emissions Reduction Center. To comply with FuelEU Maritime, she said Star Bulk entered a pooling agreement with an external party to cover 100% of its CO2 deficit for 2026 and part of 2027 by purchasing surplus units.
Head of Market Analysis Constantinos Simantiras reviewed industry fundamentals. On supply, he said 36.2 million deadweight was delivered in 2025 and 5.2 million deadweight was demolished, resulting in net fleet growth of 31 million deadweight, or 3% year over year. He said the orderbook remains relatively low at 12.8% of the fleet, while contracting fell to 45.8 million deadweight in 2025 due to limited yard capacity through 2028, high costs, and uncertainty over green propulsion technologies—an uncertainty he said may extend into 2026 following the IMO postponement. Simantiras also said the fleet is aging, with about 50% expected to be over 15 years old by end-2027, and that third special surveys and drydocks could reduce effective capacity by about 0.5% in 2026 and 2027. He added that port congestion fell to six-year lows in the fourth quarter but returned to long-term average levels, and he flagged potential upside from time-intensive loading at new mining hubs in West Africa.
On demand, Simantiras cited Clarksons data showing dry bulk trade up 1.3% in volume and 2.1% in ton-miles in 2025, supported by record bauxite and minor bulk exports and a second-half recovery in iron ore, coal, and grain. He said Red Sea crossings improved after an October ceasefire but remained roughly 40% below pre-Houthi levels. Looking ahead, he said dry bulk demand is projected to grow 0.6% in tons and 1.9% in ton-miles in 2026. He also pointed to the IMF raising its 2026 global GDP forecast to 3.3% and said easing trade tensions should reduce uncertainty, while elevated Chinese stockpiles and softer industrial activity present downside risks.
In Q&A, management said other commodities besides bauxite and iron ore could support ton-mile demand even if underlying volumes are flat or weaker. They pointed to grains—projected to grow roughly 7.5% to 8%, with significant volumes from Brazil—and suggested Indonesian coal export cuts could shift sourcing to longer-haul routes, potentially boosting ton-miles. Management also discussed expectations for increased congestion in West Africa in the short term, with gradual improvement over the next few years as infrastructure upgrades progress.
About Star Bulk Carriers (NASDAQ:SBLK)
Star Bulk Carriers Corp is a global shipping company engaged in the ocean transport of dry bulk commodities. The company owns and operates a diversified fleet of bulk carriers, including Handymax, Supramax, Panamax and Capesize vessels. Its ships are designed to carry a broad range of cargoes, such as iron ore, coal, grain, bauxite and phosphate, catering to industrial and agricultural customers worldwide.
The company’s vessels operate on major trade routes across the Atlantic, Pacific and Indian Oceans, connecting producers and consumers in Asia, Europe, North and South America.
