Q3 FY2026
Filed Nov 10, 2026Global Ship Lease Q3 2026: operating revenue up 4.5%, EPS $2.75 (up 6.2%), quarterly dividend raised to $0.6875
Third-quarter operating revenue rose 4.5%, GAAP EPS rose 6.2% and utilization improved to 96.6%. Nine-month GAAP EPS fell 9.7% against a prior year that included a $28.3 million vessel sale gain, and nine-month normalized EPS fell 1.9%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total operating revenues, 3Q 2026GAAP | $201.4M | – | 4.5% (up $8.7 million) |
| Total operating revenues, 9M 2026GAAP | $598.1M | – | 3.9% (up $22.6 million) |
| Time charter revenues, 3Q 2026GAAP | $194.9M | – | – |
| Time charter revenues, 9M 2026GAAP | $579.0M | – | – |
| Amortization of intangible liabilities-charter agreements, 3Q 2026GAAP | $6.50M | – | – |
| Amortization of intangible liabilities-charter agreements, 9M 2026GAAP | $19.17M | – | – |
| Vessel operating expenses, 3Q 2026GAAP | $51.28M | – | down 1.5% |
| Vessel operating expenses per day, 3Q 2026GAAP | $7,851 per day | – | decrease of $348 per day, or 4.2% |
| Vessel operating expenses, 9M 2026GAAP | $161.0M | – | – |
| Vessel operating expenses per day, 9M 2026GAAP | $8,309 per day | – | increase of $292 per day, or 3.6% |
| Time charter and voyage expenses, 3Q 2026GAAP | $6.88M | – | – |
| Time charter and voyage expenses, 9M 2026GAAP | $18.97M | – | – |
| Time charter and voyage expenses per ownership day, 9M 2026GAAP | $979 per day | – | increase of $4 per ownership day, or 0.4% |
| Depreciation and amortization, 3Q 2026GAAP | $33.65M | – | – |
| Depreciation and amortization, 9M 2026GAAP | $101.3M | – | – |
| General and administrative expenses, 3Q 2026GAAP | $6.22M | – | – |
| General and administrative expenses, 9M 2026GAAP | $22.24M | – | – |
| Loss/(gain) on sale of vessels, 3Q 2026GAAP | - | – | – |
| Loss/(gain) on sale of vessels, 9M 2026GAAP | - | – | – |
| Operating income, 3Q 2026GAAP | $103.3M | – | – |
| Operating income, 9M 2026GAAP | $294.6M | – | – |
| Interest income, 3Q 2026GAAP | $5.79M | – | – |
| Interest income, 9M 2026GAAP | $17.07M | – | – |
| Interest and other finance expenses, 3Q 2026GAAP | −$7.52M | – | – |
| Interest and other finance expenses, 9M 2026GAAP | −$26.30M | – | – |
| Other income, net, 3Q 2026GAAP | $336K | – | – |
| Other income, net, 9M 2026GAAP | $3.19M | – | – |
| Fair value adjustment on derivative asset and other financial instruments, 3Q 2026GAAP | −$400K | – | – |
| Fair value adjustment on derivative asset and other financial instruments, 9M 2026GAAP | −$1.53M | – | – |
| Income before income taxes, 3Q 2026GAAP | $101.5M | – | – |
| Income before income taxes, 9M 2026GAAP | $287.0M | – | – |
| Net income available to common shareholders, 3Q 2026GAAP | $99.15M | – | – |
| Net income available to common shareholders, 9M 2026GAAP | $279.9M | – | – |
| Earnings allocated to Series B Preferred Shares, 3Q 2026GAAP | −$2.38M | – | – |
| Earnings allocated to Series B Preferred Shares, 9M 2026GAAP | −$7.15M | – | – |
| Earnings per share (EPS), 3Q 2026GAAP | $2.75 per share | – | an increase of 6.2% |
| Earnings per share (EPS), 9M 2026GAAP | $7.77 per share | – | a decrease of 9.7% |
| Normalized net income, 3Q 2026non-GAAP | $99.29M | – | – |
| Normalized net income, 9M 2026non-GAAP | $280.6M | – | – |
| Normalized earnings per share, 3Q 2026non-GAAP | $2.75 per share | – | an increase of 5.0% |
| Normalized earnings per share, 9M 2026non-GAAP | $7.79 per share | – | a decrease of 1.9% |
| Adjusted EBITDA, 3Q 2026non-GAAP | $138.8M | – | – |
| Adjusted EBITDA, 9M 2026non-GAAP | $403.4M | – | an increase of $6.7 million or 1.7% |
| Fleet utilization, 3Q 2026other | 96.6% | – | – |
| Fleet utilization, 9M 2026other | 97.2% | – | – |
| Off-hire days, 3Q 2026other | 221 days (206 for scheduled drydockings for seven vessels) | – | – |
| Off-hire days, 9M 2026other | 549 days (471 for scheduled drydockings for 11 vessels) | – | – |
| Operating fleet at September 30, 2026other | 71 operating containerships | – | – |
| Contracted revenue including newbuildings, at September 30, 2026other | $3.4 billion, TEU-weighted average remaining duration 3.5 years | – | – |
| Contract cover, 2026 / 2027 / 2028other | 100% / 98% / 74% | – | – |
| Total debt at September 30, 2026other | $637.8M | – | – |
| Total shareholders' equity at September 30, 2026GAAP | $2.03B | – | – |
| Net cash provided by operating activities, 3Q 2026GAAP | $120.2M | – | – |
| Net cash provided by operating activities, 9M 2026GAAP | $326.8M | – | – |
| Class A common shares dividend paid, 3Q 2026GAAP | −$22.56M | – | – |
| Class A common shares dividend paid, 9M 2026GAAP | −$67.57M | – | – |
| Quarterly dividend declared per Class A common share, Q3 2026other | $0.6875 per share | 25.0% ($0.0625 per share) increase in the quarterly supplemental dividend, as stated by the company | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Denmark (Maersk), nine months ended September 30, 2026Share of revenue 29.24% in 9M 2026; 185.49 USD million and 32.23% in 9M 2025. Company uses charterer head office country as a proxy for revenue origin. | 174.90 USD million | – | – |
| France (CMA CGM), nine months ended September 30, 2026Share of revenue 19.63% in 9M 2026; 104.96 USD million and 18.24% in 9M 2025. | 117.41 USD million | – | – |
| Germany (Hapag Lloyd), nine months ended September 30, 2026Share of revenue 18.69% in 9M 2026; 110.64 USD million and 19.23% in 9M 2025. | 111.77 USD million | – | – |
| Switzerland (MSC), nine months ended September 30, 2026Share of revenue 14.94% in 9M 2026; 63.37 USD million and 11.01% in 9M 2025. | 89.38 USD million | – | – |
| China, including Hong Kong (COSCO & OOCL), nine months ended September 30, 2026Share of revenue 7.35% in 9M 2026; 32.48 USD million and 5.64% in 9M 2025. | 43.98 USD million | – | – |
| Israel (ZIM), nine months ended September 30, 2026Share of revenue 6.43% in 9M 2026; 51.45 USD million and 8.94% in 9M 2025. | 38.47 USD million | – | – |
| Singapore (ONE), nine months ended September 30, 2026Share of revenue 2.45% in 9M 2026; 17.65 USD million and 3.07% in 9M 2025. | 14.64 USD million | – | – |
| Thailand (RCL Feeder), nine months ended September 30, 2026Share of revenue 1.27% in 9M 2026; 1.38 USD million and 0.24% in 9M 2025. | 7.58 USD million | – | – |
| USA (Matson), nine months ended September 30, 2026No revenue printed for 9M 2026; 5.80 USD million and 1.00% in 9M 2025. | - | – | – |
| Taiwan (Wan Hai), nine months ended September 30, 2026No revenue printed for 9M 2026; 2.28 USD million and 0.40% in 9M 2025. | - | – | – |
Capital returns
- Declared a dividend of $0.6875 per Class A common share for the third quarter of 2026, payable December 3, 2026 to shareholders of record as of November 20, 2026.
- Paid a dividend of $0.625 per Class A common share for the second quarter of 2026 on September 3, 2026.
- The Board stated that sustained market demand and forward fixtures at attractive levels support a 25.0% ($0.0625 per share) increase in the quarterly supplemental dividend, bringing total annualized dividends to $2.75 per share, commencing with the Third Quarter Dividend.
- Class A common shares dividend paid: $(22,560) thousand in 3Q 2026 and $(67,566) thousand in 9M 2026, versus $(18,809) thousand and $(53,615) thousand in the prior-year periods.
- Series B Preferred Shares dividend paid: $(2,384) thousand in 3Q 2026 and $(7,152) thousand in 9M 2026, unchanged from the prior-year periods. The 8.75% coupon is stated in the release.
- No share repurchase amounts are printed in the release.
What drove it
- Company explanation for the 3Q 2026 revenue increase: principally the net effect of higher rates on charter renewals, and the addition of the Three Newly Acquired Vessels offset by the sale of Dimitris Y, plus a non-cash $0.1 million positive effect from straight lining and intangible liability amortization.
- Company explanation for the 9M 2026 revenue increase: principally higher rates on charter renewals and the addition of the Three Newly Acquired Vessels, offset by the 2025 sales of four vessels, plus a non-cash $4.6 million positive effect from straight lining and intangible liability amortization.
- Company explanation for lower 3Q 2026 vessel operating expenses: a decrease in stores, spares and maintenance expenses tied to the planned schedule, partly offset by higher crew expenses (crew wages up approximately 6.3%) and inflation on fees and expenses.
- Company explanation for higher 9M 2026 vessel operating expenses: addition of the Three Newly Acquired Vessels, higher crew expenses from a decision to increase seafarers on board, higher P&I premiums and inflation, offset by lower stores, spares and maintenance spending.
- Company explanation for higher depreciation and amortization in 3Q 2026: ten drydockings completed after September 30, 2025 and the addition of the Three Newly Acquired Vessels, offset by the sale of Dimitris Y.
- Company explanation for higher general and administrative expenses: a non-cash charge for stock-based compensation on awards of Class A common shares under the Equity Incentive Plan.
- Company explanation for lower 3Q 2026 interest expense: $2.4 million of interest capitalized in vessels under construction.
- Company explanation for the 9M 2026 EPS decline: the prior-year period included a $28.3 million gain from the sales of Tasman, Akiteta and Keta in the first quarter of 2025.
- Company explanation for the Adjusted EBITDA change in 9M 2026: the reason noted for the revenue increase, as stated in the release.
Concerns
- 9M 2026 GAAP EPS of $7.77 is down 9.7% and 9M 2026 operating income of $294,613 thousand compares with $329,463 thousand, a period that included the 2025 vessel sale gain of $(28,329) thousand.
- 9M 2026 normalized EPS of $7.79 is down 1.9% from $7.94.
- Net cash provided by operating activities for 9M 2026 is $326,809 thousand versus $334,498 thousand in 9M 2025.
- Current portion of long-term debt rose to $262,358 thousand from $147,567 thousand at December 31, 2025.
- General and administrative expenses rose to $22,241 thousand in 9M 2026 from $12,419 thousand, which the company attributes to non-cash stock-based compensation.
- Contract cover is 74% for 2028, against 98% for 2027 and 100% for 2026, and the new newbuildings deliver between the fourth quarter of 2028 and the first quarter of 2030.
- The company states that five regulatory drydockings were in progress at September 30, 2026 and five further are anticipated during 2026.
- Interest income includes the company's cash, but the release also refers to forward sales of four non-core vessels, with the Manet sale completed on November 4, 2026 at a $13.5 million price.
What to watch
- Delivery schedule of the 17 newbuildings (Hull 1 to Hull 17), with deliveries scheduled from 4Q 2028 to 1Q 2030, and the drawdown of the $1.0 billion New Facility in tranches.
- Commencement of forward-fixed charters, including GSL Maria, GSL Melita, GSL Tegea and GSL Dorothea expected between 4Q 2026 and 1Q 2027, and GSL Château d'If expected in 4Q 2026.
- Charterer option on the New Charters for GSL Alexandra, GSL Sofia, GSL Effie and GSL Lydia, which may be cancelled no later than April 1, 2027.
- Remaining forward sales of Ian H (4Q 2027 delivery), Kumasi (1Q 2027) and Julie (3Q 2027), with the net gain disclosed for Manet at approximately $5.7 million.
- Completion of the five regulatory drydockings anticipated during 2026 and the level of off-hire days.
- Contract cover for 2027 and 2028 and the TEU-weighted remaining duration of 3.5 years.
- Payment of the Third Quarter Dividend of $0.6875 per share on December 3, 2026.
Balance sheet and cash flow
- Cash and cash equivalents: $383,034 thousand at September 30, 2026 versus $273,876 thousand at December 31, 2025.
- Time deposits: $111,300 thousand at September 30, 2026 versus $199,100 thousand at December 31, 2025.
- Current portion of long-term debt: $262,358 thousand at September 30, 2026 versus $147,567 thousand at December 31, 2025.
- Long-term debt, net of current portion and deferred financing costs: $371,373 thousand at September 30, 2026 versus $541,575 thousand at December 31, 2025.
- Debt composition at September 30, 2026: $307.8 million of secured bank debt, $140.0 million of 2027 Secured Notes and $190.0 million under sale and leaseback financing. 21 vessels were unencumbered.
- Total assets: $2,992,757 thousand at September 30, 2026 versus $2,861,203 thousand at December 31, 2025. Total liabilities: $965,351 thousand versus $1,060,119 thousand.
- Vessels under construction: $193,370 thousand at September 30, 2026, with advances for vessels under construction of $(193,135) thousand in 9M 2026 cash flow.
- Net cash used in investing activities: $(71,067) thousand in 3Q 2026 and $(109,216) thousand in 9M 2026, versus $(188,755) thousand and $(197,810) thousand in the prior-year periods.
- Net cash used in financing activities: $(63,570) thousand in 3Q 2026 and $(131,960) thousand in 9M 2026, versus $(58,085) thousand and $(22,626) thousand in the prior-year periods.
- Cash and cash equivalents and restricted cash at end of period: $424,973 thousand at September 30, 2026 versus $361,686 thousand at September 30, 2025.
- In October 2026 the company agreed a $1.0 billion syndicated loan facility bearing SOFR + 1.5% with a seven-year duration, to finance 15 newbuildings through tranches matching deliveries. The release does not print any drawdown amount at September 30, 2026.
Analysis
Global Ship Lease reported third-quarter 2026 operating revenues of $201,363 thousand, up 4.5% from $192,668 thousand, and GAAP net income available to common shareholders of $99,150 thousand, or $2.75 per share, up 6.2% from $2.59. The company attributes the revenue increase principally to higher rates on charter renewals and to the Three Newly Acquired Vessels, partly offset by the sale of Dimitris Y. Utilization improved to 96.6% from 95.9%, although third-quarter off-hire rose to 221 days from 263 days in the prior-year quarter, with 206 days tied to scheduled drydockings in 2026 compared with 137 days in 2025.
The nine-month picture is weaker on a GAAP basis. Operating revenues rose 3.9% to $598,131 thousand, but operating income fell to $294,613 thousand from $329,463 thousand, and net income available to common shareholders fell to $279,887 thousand from $306,698 thousand. The prior-year period included a $28.3 million gain on the sale of three vessels, which the company states in its own explanation of the EPS change. Adjusted EBITDA for 9M 2026 was $403,384 thousand, up 1.7%, and normalized EPS was $7.79, down 1.9%. Cost lines moved in both directions: nine-month vessel operating expenses rose to $160,997 thousand, with the company citing crew costs and P&I premiums, while general and administrative expenses rose to $22,241 thousand, which the company attributes to non-cash stock-based compensation.
Interest and other finance expenses fell to $7,524 thousand in the quarter from $9,542 thousand. The company attributes the decrease mainly to $2.4 million of interest capitalized in vessels under construction. Interest income rose to $5,794 thousand from $5,434 thousand. Total debt stood at $637.8 million at September 30, 2026, against $731.6 million a year earlier, and cash and cash equivalents rose to $383,034 thousand from $273,876 thousand at December 31, 2025, while time deposits fell to $111,300 thousand from $199,100 thousand. Current portion of long-term debt increased to $262,358 thousand from $147,567 thousand.
Capital allocation was tilted toward shareholders and newbuilding growth. The Board declared a $0.6875 quarterly dividend, a 25.0% increase in the quarterly supplemental dividend that the company ties to market demand and forward fixtures. Class A dividends paid were $(22,560) thousand in the quarter and $(67,566) thousand for nine months. Vessels under construction reached $193,370 thousand, and the company reports 17 newbuildings, 15 of them with multi-year charters and a $1.0 billion syndicated facility agreed in October 2026. Contracted revenue stands at $3.4 billion over a TEU-weighted average remaining duration of 3.5 years, with contract cover of 100% for 2026, 98% for 2027 and 74% for 2028. The release contains no numerical guidance for future periods, so the outlook can only be read through these contract cover and backlog figures.
Management, verbatim
GSL once again benefitted from our focus on maximizing optionality and providing our customers with highly flexible tonnage.
George Youroukos, Executive Chairman
Optionality, prudence, and discipline continue to be foundational to how we operate.
Thomas Lister, Chief Executive Officer
Not in the filing
stated, not guessed- No forward guidance figures for revenue, margins, expenses, tax or other metrics are provided in the release, and no previous outlook was supplied for comparison.
- Prior-year percentage changes are not printed for most line items, including time charter revenues, operating income, interest income, interest expense, depreciation and amortization, general and administrative expenses, net income and adjusted EBITDA for the quarter.
- No prior-quarter (second quarter 2026) figures are printed for the income statement, so all sequential changes are null.
- Free cash flow is not reported; capital expenditure and drydocking payments are shown only as line items in the cash flow statement.
- Share repurchase amounts are not printed in the release.
- Total assets and equity comparisons are against December 31, 2025, not against a prior-year period, and are shown in the balance sheet notes rather than as prior-year figures.
- Revenue by country gives no prior-year change or revenue for 3Q 2026; the 9M percentages are shares of revenue, not growth rates.
- Income tax expense is shown as nil in both periods and no tax rate is printed.
- Consensus estimates, analyst expectations and share price reaction are not part of the filing and are not provided.
- Drawdown amounts of the New Facility as of September 30, 2026 are not printed; the facility was agreed in October 2026.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.