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DATE

Wednesday, May 13, 2026 at 8:30 a.m. ET

CALL PARTICIPANTS

  • Chief Financial Officer — Gregory Zikos
  • Operator

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TAKEAWAYS

  • Adjusted Net Income -- $12.4 million, representing $0.51 per share, as reported for the quarter.
  • Net Income -- $9.9 million, or $0.41 per share, as disclosed on Slide 3.
  • Net Cash Position -- Total cash exceeded debt by approximately $127 million due to $270 million in cash and around $140 million in debt at period end.
  • Legacy Trading Portfolio Transfer -- Majority of legacy trades have been transferred to Cargill, leaving only one vessel to be novated. Full derisking is expected by year-end.
  • Fleet Renewal Actions -- Sale of a 2011-built Capesize vessel generated capital gains of around $7 million, and a 2018-built Ultramax was acquired.
  • Charter-in and Charter-out Activity -- Newbuilding Kamsarmax chartered in for a minimum of 5 years with extension and purchase options. It is already chartered out at a profitable rate for at least 11 months.
  • Segment Focus -- Current operating platform centers on the Kamsarmax segment with 20 third-party-owned dry bulk vessels.
  • Chartering Strategy -- Most owned vessels are under index-linked period charter agreements offering a fixed-rate conversion option.
  • Market Overview -- Q1 dry bulk market saw elevated volatility. Capesize was supported by high iron ore and bauxite shipments and positive ton-mile demand from West Africa-China trade.
  • Panamax Support Factors -- Panamax Index benefited from a record Brazilian soybean harvest and the late-2025 U.S.-China agreement, resulting in increased long-haul soybean shipments during the quarter.
  • Supramax Update -- Supramax segment managed to offset a roughly 50% reduction in Persian Gulf exports from the Strait of Hormuz closure via increased grain and minor bulk flows.
  • Order Book -- New vessel order book stands at 13.5% of the global fleet.

SUMMARY

Costamare Bulkers Holdings Limited (CMDB 2.35%) reported two distinct net income metrics, highlighted progress derisking its balance sheet via the transfer of legacy trades to Cargill, and executed both fleet divestment and expansion initiatives. The company emphasized a majority shift toward the Kamsarmax segment through active chartering and platform concentration, while management noted market volatility fueled by geopolitical disruption alongside commodity-driven demand gains. Index-linked charter agreements and profitable charter-out arrangements were identified as central to current vessel employment strategy.

  • Management stated, "We have derisked to a large extent our balance sheet and expect that by year-end, we will not have any remaining legacy positions."
  • Gregory Zikos noted continued "countercyclical" growth ambitions, pointing to a net cash positive financial position able to support asset acquisitions in a lower price environment.
  • The company expects delivery of another newbuilding Kamsarmax under a long-term charter agreement.
  • Dry bulk sentiment and specific indexes are described as benefiting from commodity flows and recent international agreements. Recent Panamax and Supramax resilience is partly linked to global trade realignments.
  • Charter market rates strengthened over the reporting period, with further upside observed since April.

INDUSTRY GLOSSARY

  • Kamsarmax: Dry bulk vessel type, typically 81,000 to 85,000 deadweight tons, optimized for maximum size permitted at the Port of Kamsar, Guinea.
  • Capesize: The largest class of dry bulk carriers, too large for Suez or Panama Canals, mainly used for long-haul iron ore and coal shipping.
  • Ultramax: A dry bulk vessel class, usually about 63,000 deadweight tons, designed for versatile, fuel-efficient cargo transport.
  • Index-Linked Period Charter: Vessel hire agreement where rates fluctuate based on benchmark freight indexes over the contract term.
  • Novation: Transfer of vessel charter obligations from one party to another, legally substituting the original party.

Full Conference Call Transcript

Gregory Zikos: Thank you, and good morning, ladies and gentlemen. During the first quarter of the year, Costamare Bulkers generated an adjusted net income of $12.4 million. As of today, we have successfully transferred a majority of the company's legacy trading portfolio pursuant to our deal with Cargill, effectively derisking our balance sheet. We expect that our trading platform will be free of the remaining legacy trades by year-end. As part of our fleet renewal program, we recently concluded the sale of 2011-built Capesize vessel and the acquisition of 2018-built Ultramax. At the same time, we accepted delivery of newbuilding Kamsarmax chartered in for a minimum period of 5 years.

The vessel has been chartered out at a profitable rate for a minimum period of 11 months. With total cash of about $270 million and debt of circa $140 million, the company is net cash positive, positioning us favorably to grow countercyclically in a lower asset value environment. Regarding the market, during the first 4 months of the year, the market exhibited elevated volatility relative to historical averages, driven by increased activity and inefficiencies, while geopolitical instability contributed additional uncertainty. Capesize earnings were supported by robust iron ore and bauxite volumes, coupled with limited fleet growth. Ton-mile demand was further reinforced by the expansion of the West Africa-China trade flows across both commodities.

Alongside the firm Capesize market and broadly positive dry bulk sentiment, the Panamax Index was further supported by a record soybean harvest in Brazil as well as the U.S.-China agreement reached at the end of '25, which drove long-haul soybean shipments during the first quarter. Finally, the Supramax segment recorded a solid start to the year as increased grain and minor bulk flows offset the negative impact of the Strait of Hormuz closure, which reduced Persian Gulf export volumes by approximately 50%. Moving now to the slide presentation. On Slide 3, you can see our Q1 results. Net income for the period was $9.9 million or $0.41 per share. Adjusted net income was $12.4 million or $0.51 per share.

By the end of Q1, total cash exceeded debt by approximately $127 million. As part of our fleet renewal strategy, we concluded the acquisition of 2018-built Ultramax vessel and took delivery of a newbuilding Kamsarmax. This newbuilding is chartered in for a minimum 5-year period with extension and purchase options and has already been chartered out for 1 year at profitable levels. Another newbuilding Kamsarmax is expected to be delivered under a long-term chartering agreement with similar options. Finally, we have concluded the sale of one Capesize vessel with capital gains of approximately $7 million. Slide 5. The transfer of the trading book to Cargill is substantially complete with only 1 vessel remaining to be novated.

We have derisked to a large extent our balance sheet and expect that by year-end, we will not have any remaining legacy positions. Our operating platform is currently focused on the Kamsarmax segment and consists of 20 third-party-owned dry bulk vessels. Slide 6. Regarding the owned vessels, most of the fleet is employed on index-linked period charter agreements with the option to convert to a fixed rate. And finally, moving to Slide 7. Charter rates strengthened during Q1 '26 with further upside momentum since April. The vessel -- the new vessel order book stands at 13.5%. With that, we conclude our presentation, and we can now take questions. Thank you. Operator, we can take questions now.

Operator: There are no questions at this time. I would like to turn the conference back over to Mr. Zikos for any closing remarks.

Gregory Zikos: Thank you for dialing in, in today's quarterly results call. We're looking forward to speaking with you again during the second quarter 2026 results. Thank you.

Operator: You may now disconnect.