Q2 FY2026
Filed Aug 26, 2026Preliminary Q2 2026 results and quarterly cash dividend of $0.22 per share
Total operating revenues, operating income, net income, operating cash flow and adjusted EBITDA were higher than the prior quarter, supported by stronger tanker charter hire. The result also included a loss in Energy, substantial debt repayments, new equity issuance, and approximately $1.2 billion of remaining capital expenditure commitments.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Charter revenues: sales-type leases (excluding charter hire treated as Repayments)GAAP | — (in thousands of $) | – | – |
| Charter revenues: operating leases and rig revenue contractsGAAP | 191,383 (in thousands of $) | – | – |
| Profit share incomeGAAP | 2,152 (in thousands of $) | – | – |
| Other operating incomeGAAP | 7,230 (in thousands of $) | – | – |
| Total operating revenuesGAAP | 200,765 (in thousands of $) | – | – |
| Gain/(loss) on sale of vessels and settlement of chartersGAAP | — (in thousands of $) | – | – |
| Vessel and rig operating expensesGAAP | (73,820) (in thousands of $) | – | – |
| Administrative expensesGAAP | (6,933) (in thousands of $) | – | – |
| DepreciationGAAP | (54,792) (in thousands of $) | – | – |
| Vessel impairment chargeGAAP | — (in thousands of $) | – | – |
| Total operating expensesGAAP | (135,545) (in thousands of $) | – | – |
| Operating incomeGAAP | 65,220 (in thousands of $) | – | – |
| Results in associatesGAAP | 576 (in thousands of $) | – | – |
| Interest income from associatesGAAP | 1,138 (in thousands of $) | – | – |
| Interest income, otherGAAP | 1,598 (in thousands of $) | – | – |
| Interest expenseGAAP | (36,443) (in thousands of $) | – | – |
| Interest and valuation gain/(loss) on non-designated derivativesGAAP | 4,009 (in thousands of $) | – | – |
| (Loss)/gain on investments in equity securitiesGAAP | (1,231) (in thousands of $) | – | – |
| Other financial itemsGAAP | (674) (in thousands of $) | – | – |
| TaxesGAAP | (400) (in thousands of $) | – | – |
| Net income/(loss)GAAP | 33,793 (in thousands of $) | – | – |
| Basic earnings/(loss) per share ($)GAAP | 0.25 | – | – |
| Weighted average number of sharesGAAP | 134,572,875 | – | – |
| Common shares outstandingother | 138,670,282 | – | – |
| Adjusted EBITDAnon-GAAP | $130 million, including $8 million from associated companies | – | – |
| Net cash provided by operating activitiesGAAP | 88,323 (in thousands of $) | – | – |
| Net cash (used in)/provided by investing activitiesGAAP | (16,372) (in thousands of $) | – | – |
| Net cash used in financing activitiesGAAP | (86,411) (in thousands of $) | – | – |
| Net (decrease)/increase in cash and cash equivalentsGAAP | (14,460) (in thousands of $) | – | – |
| Cash and cash equivalentsGAAP | 113,104 (in thousands of $) | – | – |
| Short term and current portion of long term interest bearing debtGAAP | 575,539 (in thousands of $) | – | – |
| Long term interest bearing debt, net of deferred chargesGAAP | 1,808,877 (in thousands of $) | – | – |
| Stockholders’ equityGAAP | 1,035,378 (in thousands of $) | – | – |
| Total assetsGAAP | 3,515,759 (in thousands of $) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ShippingShipping operating income was 80,751 (in thousands of $), and Shipping net income was 53,132 (in thousands of $). | 176,511 (in thousands of $) | – | – |
| EnergyEnergy reported an operating loss of (15,531) (in thousands of $) and a net loss of (19,339) (in thousands of $). | 24,254 (in thousands of $) | – | – |
Capital returns
- Quarterly cash dividend declared: $0.22 per share.
- The dividend will be paid on or around September 22, and the record- and ex-dividend date on the New York Stock Exchange will be September 9, 2026.
- The Board of Directors has authorized the repurchase of up to an aggregate of $100 million of the Company's common shares from time to time, valid until June 2029.
- From May through July, the Company raised approximately $100 million in net proceeds through its dividend reinvestment and at-the-market program, issuing approximately 8.8 million new shares at an average price above VWAP for the corresponding period.
- Cash received/(paid) for shares issued or repurchased was 63,007 (in thousands of $).
- Cash dividends paid were (29,714) (in thousands of $).
What drove it
- The fleet generated gross charter hire of $199 million in the second quarter of 2026, compared with $81m for Container, $26m for Car Carrier, $46m for Tanker, $2m for Bulker and $23m for Energy in Q1 2026.
- Container charter hire was $83m, with 2,258 operating days and 99% utilization.
- Car Carrier charter hire was $27m, with 637 operating days and 100% utilization.
- Tanker charter hire was $62m, with 1,453 operating days and 100% utilization.
- Bulker charter hire was $3m, with 181 operating days and 99% utilization.
- Energy charter hire was $24m, with 91 operating days and 50% utilization.
- The two Suezmax tankers and two Kamsarmax dry bulk vessels achieved average daily spot TCE per vessel of approximately $133,000 and $16,000, respectively.
- New three-year time charters for SFL Conductor and SFL Composer will increase firm backlog contribution by approximately $83 million.
- Two of four ordered 7,000 ceu LNG Dual-Fuel PCTC newbuilds are fixed on five-year time charters. The initial period increases total firm backlog by approximately $150 million.
- Contracted fixed rate charter backlog was approximately $3.8 billion, with a weighted remaining charter term of 6.2 years. Approximately 65% was to customers with an investment grade credit rating.
Concerns
- Energy generated an operating loss of (15,531) (in thousands of $) and net loss of (19,339) (in thousands of $).
- Energy utilization was 50% in Q2 2026 and 50% in Q1 2026.
- The quarter's net result included approximately $3.3 million of net positive mark-to-market effects from hedging derivatives and approximately $1.2 million of negative mark-to-market effects from equity investments.
- Total remaining capital expenditure commitments on nine newbuildings were approximately $1.2 billion.
- The Company has two Suezmax tankers and two Kamsarmax dry bulk vessels deployed in the spot and short-term charter market.
What to watch
- Commencement of the three-year charters for SFL Conductor and SFL Composer after their current charters expire at the end of this year and start of next year.
- Delivery of four PCTC newbuilds scheduled in 2029 and five 16,800 TEU container vessels scheduled for delivery in 2028.
- Financing of remaining yard instalments, which the Company expects will primarily be financed by pre- and post-delivery credit facilities.
- Performance of the Suezmax tankers and Kamsarmax dry bulk vessels in the spot and short-term charter market.
- Utilization and earnings in the Energy business.
Balance sheet and cash flow
- Cash and cash equivalents amounted to approximately $113 million as of June 30, 2026.
- The Company had $160 million available under undrawn credit lines, representing total available liquidity of approximately $273 million at quarter end.
- Investment in marketable securities was 5,013 (in thousands of $), compared with 6,213 (in thousands of $) as of March 31, 2026.
- Vessels, rigs and equipment, net was 2,992,540 (in thousands of $), compared with 3,037,733 (in thousands of $) as of March 31, 2026.
- Capital improvements in progress and newbuildings were 188,781 (in thousands of $), compared with 182,147 (in thousands of $) as of March 31, 2026.
- Purchase of vessels, capital improvements and newbuildings was (16,232) (in thousands of $).
- Proceeds from long and short term debt were 155,600 (in thousands of $).
- Repayment of long and short term debt was (276,497) (in thousands of $).
- In the second quarter, the Company raised approximately $78 million through a tap issue of its senior unsecured bonds due 2030. The total outstanding amount was $225 million.
- The Company fully redeemed a $150 million senior unsecured bond loan due 2026.
- The total remaining capital expenditure commitments on all nine newbuildings is approximately $1.2 billion.
Analysis
SFL reported total U.S. GAAP operating revenues of approximately $201 million in Q2 2026, while the income statement reported 200,765 (in thousands of $), compared with 174,483 (in thousands of $) in Q1 2026. Operating income was 65,220 (in thousands of $), compared with 56,354 (in thousands of $), and reported net income was $34 million, or $0.25 per share. Adjusted EBITDA was $130 million, including $8 million from associated companies.
The operating improvement was accompanied by higher charter hire across Container, Car Carrier, Tanker and Bulker operations. Tanker charter hire was $62m versus $46m in Q1 2026, with the two Suezmax tankers achieving average daily spot TCE per vessel of approximately $133,000. Container, Car Carrier, Tanker and Bulker utilization was 99%, 100%, 100% and 99%, respectively. Energy charter hire was $24m, but the Energy segment recorded an operating loss of (15,531) (in thousands of $) and net loss of (19,339) (in thousands of $), with utilization of 50%.
Cash generation strengthened, with net cash provided by operating activities of 88,323 (in thousands of $), compared with 34,086 (in thousands of $) in Q1 2026. The company used (276,497) (in thousands of $) for debt repayment and received 155,600 (in thousands of $) in proceeds from long and short term debt. It also raised approximately $100 million in net proceeds from May through July through its dividend reinvestment and at-the-market program. Cash and cash equivalents were approximately $113 million, and total available liquidity was approximately $273 million at quarter end.
The contracted fixed rate charter backlog was approximately $3.8 billion with a weighted remaining charter term of 6.2 years, and approximately 65% was to investment grade customers. New charters for SFL Conductor and SFL Composer add approximately $83 million of firm backlog, while the initial charters on two PCTC newbuilds add approximately $150 million. The expansion program also carries approximately $1.2 billion of remaining capital expenditure commitments for nine newbuildings. SFL declared its 90th consecutive quarterly dividend of $0.22 per share and retains authorization to repurchase up to an aggregate of $100 million of common shares through June 2029.
Not in the filing
stated, not guessed- Prior-year comparable quarterly figures for income statement, cash flow statement, balance sheet and segment metrics were not provided. The filing provides full-year 2025 figures, not Q2 2025 comparative figures.
- Gross profit and gross margin were not reported.
- Diluted earnings per share were not reported.
- A total interest-bearing debt line was not reported.
- Forward financial guidance for revenue, gross margin, operating expenses, tax rate, earnings, capital expenditure or cash flow was not provided.
- Prior-release outlook was not provided.
- Named executive quotations were not provided.
- Quarter-over-quarter and year-over-year percentage changes were not reported for the financial statement line items or segments.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.