Q2 2026 and first six months of 2026
Filed Aug 26, 2026TORM reported record Q2 2026 results as exceptional product-tanker rates lifted TCE earnings to USD 512 m, EBITDA to USD 416 m, and net profit to USD 338 m, while full-year TCE and EBITDA guidance was raised.
Q2 revenue, TCE earnings, EBITDA, operating profit, net profit, EPS, ROIC, and free cash flow materially exceeded the prior-year quarter, supported by exceptionally favorable freight market conditions. TORM also raised its full-year 2026 TCE and EBITDA outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q2 2026 RevenueGAAP | $662.8M | – | 110% |
| First six months of 2026 RevenueGAAP | $1.06B | – | USD 421m |
| Q2 2026 Time charter equivalent earnings (TCE)non-GAAP | $512M | – | – |
| First six months of 2026 Time charter equivalent earnings (TCE)non-GAAP | $798.1M | – | – |
| Q2 2026 EBITDAnon-GAAP | $415.6M | – | – |
| First six months of 2026 EBITDAnon-GAAP | $616.5M | – | – |
| Q2 2026 Adjusted EBITDAnon-GAAP | $408.8M | – | – |
| First six months of 2026 Adjusted EBITDAnon-GAAP | $614.5M | – | – |
| Q2 2026 EBITDA marginnon-GAAP | 62.7 % | – | – |
| First six months of 2026 EBITDA marginnon-GAAP | 57.9 % | – | – |
| Q2 2026 Operating profit (EBIT)GAAP | $355.1M | – | – |
| First six months of 2026 Operating profit (EBIT)GAAP | $496.4M | – | – |
| Q2 2026 Operating profit (EBIT) marginGAAP | 53.5 % | – | – |
| Q2 2026 Net profit for the periodGAAP | $338.3M | – | – |
| First six months of 2026 Net profit for the periodGAAP | $460.7M | – | – |
| Q2 2026 Net profit excluding non-recurring itemsnon-GAAP | $339.6M | – | – |
| First six months of 2026 Net profit excluding non-recurring itemsnon-GAAP | $460.7M | – | – |
| Q2 2026 Basic earnings per shareGAAP | USD 3.31 | – | – |
| Q2 2026 Diluted earnings per shareGAAP | USD 3.25 | – | – |
| First six months of 2026 Basic earnings per shareGAAP | USD 4.52 | – | – |
| First six months of 2026 Diluted earnings per shareGAAP | USD 4.43 | – | – |
| Q2 2026 Return on invested capital (ROIC)non-GAAP | 44.2 % | – | – |
| First six months of 2026 Return on invested capital (ROIC)non-GAAP | 31.4 % | – | – |
| Q2 2026 TCE per earning daynon-GAAP | USD/day 59,301 | – | 122 % |
| First six months of 2026 TCE per earning daynon-GAAP | USD 47,259 | – | 77% |
| Q2 2026 Operating expenses per operating dayother | USD 8,315 | – | 6 % |
| Q2 2026 Free cash flownon-GAAP | $245.9M | – | – |
| First six months of 2026 Free cash flownon-GAAP | $229.2M | – | – |
| First six months of 2026 Net cash flow from operating activitiesGAAP | $455.4M | – | – |
| First six months of 2026 Net cash flow from investing activitiesGAAP | USD -226.2m | – | – |
| First six months of 2026 Net cash flow from financing activitiesGAAP | USD -21.6m | – | – |
| Cash and cash equivalents including restricted cash as of 30 June 2026GAAP | $368.2M | – | – |
| Net interest-bearing debt as of 30 June 2026non-GAAP | $715M | – | – |
| Liquidity as of 30 June 2026non-GAAP | $804.1M | – | – |
| Total assets as of 30 June 2026GAAP | $3.82B | – | – |
| Total equity as of 30 June 2026GAAP | $2.55B | – | – |
| Net Asset Value as of 30 June 2026non-GAAP | $3.74B | – | – |
| Net Asset Value per share as of 30 June 2026non-GAAP | USD 36.5 | – | – |
| Net Loan-to-value ratio as of 30 June 2026non-GAAP | 22.4 % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Tanker segmentExceptionally favorable freight market conditions, including disruption to oil trade flows from the US-Iran conflict and the closure of the Strait of Hormuz, lifted tanker earnings. | $658.8M | – | – |
| Marine Engineering segmentNo specific Q2 revenue driver was provided. | $6.9M | – | – |
Full year 2026 outlook
- NoteTCE earnings are now estimated to USD 1,400 - 1,600 m.
- NoteEBITDA for the full year 2026 is expected to be in the range of USD 1,000 – 1,200 m based on the current fleet size.
- NoteFor the full year 2026, 70% of the earning days have been fixed at an average rate of USD/day 45,391.
- NoteThe remaining part of the earning days in 2026 - equivalent to 10,271 days - remains open and thus subject to market fluctuations.
- NoteA change in freight rates of USD/day 1,000 will, all else equal, impact EBITDA by approximately USD 10 m.
Capital returns
- The Board approved an interim dividend for the second quarter of 2026 of USD 2.40 per share.
- The expected total dividend payment is USD 246 m.
- The distribution for the quarter is equivalent to 73% of net profit.
- The dividend will be paid on 24 September 2026 to shareholders of record as of 10 September 2026.
- Dividends paid in the first six months of 2026 were USD 143.0m.
What drove it
- Q2 revenue increased by 110% or USD 348m to USD 663m compared with the same quarter last year.
- The US-Iran conflict and subsequent closure of the Strait of Hormuz from late February 2026 through most of Q2 2026 disrupted trade flows and escalated freight rates.
- An unprecedented shift of LR2 vessels into crude trading reduced CPP-carrying capacity.
- Fleet-wide available earning days increased to 8,519 from 7,888.
- LR2 TCE per earning day was USD 66,993, LR1 TCE per earning day was USD 57,550, and MR TCE per earning day was USD 57,040.
- TORM took delivery of two 2015-built MR vessels during Q2, increasing the fleet to 97 vessels.
Concerns
- Freight rates remain highly volatile and TORM has limited visibility on TCE rates that are not yet fixed with customers.
- The remaining 2026 earning days equivalent to 10,271 days remain open and subject to market fluctuations.
- MR tanker rates came under pressure in the second half of Q2 as ballasting vessels heading toward the US Gulf reached record highs in late April and early May.
- The outlook remains exposed to geopolitical conflicts, global economic growth or recession, refined-product consumption, bunker prices, fleet growth, refinery activity, and business-partner risk.
- Port expenses, bunkers, commissions, and other cost of goods and services sold were USD 150.0m in Q2 2026, compared with USD 104.9m in Q2 2025.
What to watch
- Q3 2026 coverage of 73% at an average rate of USD/day 38,606 as of 18 August 2026.
- Q3 coverage by vessel class: LR2s at 83% and USD/day 49,255, LR1s at 61% and USD/day 32,608, and MRs at 71% and USD/day 35,247.
- Full-year 2026 coverage of 70% at an average rate of USD/day 45,391.
- The continued impact of disruptions in the Strait of Hormuz and Bab el-Mandeb Strait on trade routes, ton-mile demand, and fleet utilization.
- Delivery timing for six MR resale vessels scheduled from the first quarter of 2027 through 2028 and six MR newbuilding vessels scheduled for delivery in 2029.
- Financing secured after quarter-end for ten vessels totaling USD 217 m.
Balance sheet and cash flow
- Cash and cash equivalents including restricted cash were USD 368.2m as of 30 June 2026.
- Liquidity was USD 804.1m, including undrawn credit facilities and committed facilities of USD 435.9m.
- Net interest-bearing debt was USD 715.0m and the net loan-to-value ratio was 22.4 %.
- Total borrowings were USD 1,076.2m as of 30 June 2026.
- Total assets were USD 3,823.2m and total equity was USD 2,550.3m as of 30 June 2026.
- Investment in tangible fixed assets was USD 256.9m in the first six months of 2026.
- Net cash flow from operating activities was USD 455.4m in the first six months of 2026.
- Net cash flow from investing activities was USD -226.2m in the first six months of 2026.
- Net cash flow from financing activities was USD -21.6m in the first six months of 2026.
Analysis
TORM delivered record Q2 results as a sharp rise in product-tanker freight rates drove revenue to USD 662.8m from USD 315.2m, TCE earnings to USD 512.0m from USD 208.2m, and EBITDA to USD 415.6m from USD 126.8m. Net profit was USD 338.3m compared with USD 58.7m, while basic EPS was USD 3.31 compared with USD 0.60. The reported EBITDA margin expanded to 62.7 % from 40.2 %, operating profit margin increased to 53.5 % from 23.7 %, and ROIC reached 44.2 % from 10.0 %.
The operating inflection was led by the Tanker segment, which generated Q2 revenue of USD 658.8m. Fleet-wide TCE per earning day was USD/day 59,301, compared with USD/day 26,672 in Q2 2025, while available earning days increased to 8,519 from 7,888. The filing attributes the move in freight rates to the US-Iran conflict, the closure of the Strait of Hormuz, disrupted global oil trade flows, and the shift of LR2 vessels into crude trading, which reduced CPP-carrying capacity. Higher port expenses and bunker costs lifted Q2 port expenses, bunkers, commissions, and other cost of goods and services sold to USD 150.0m from USD 104.9m, but this was outweighed by the revenue increase.
Cash generation remained strong, with first-half net cash flow from operating activities of USD 455.4m and Q2 free cash flow of USD 245.9m. TORM invested USD 256.9m in tangible fixed assets during the first half, principally alongside vessel acquisitions and fleet investment. At 30 June 2026, liquidity was USD 804.1m, cash and cash equivalents including restricted cash were USD 368.2m, and net interest-bearing debt was USD 715.0m. The net loan-to-value ratio was 22.4 %. The Board approved a Q2 interim dividend of USD 2.40 per share, corresponding to an expected total payment of USD 246 m and 73% of quarterly net profit.
Fleet expansion continued with two MR deliveries in Q2, taking the fleet to 97 vessels. TORM also acquired six MR resale vessels due for delivery from the first quarter of 2027 through 2028. After quarter-end, it agreed to acquire six MR newbuilding vessels for 2029 delivery, with options for two additional vessels in 2030, and secured USD 217 m of financing for ten vessels. The fleet’s broker value was USD 4,055.5m at 30 June 2026, while NAV was USD 3,736.8m and NAV per share was USD 36.5.
Management raised full-year 2026 TCE guidance to USD 1,400 - 1,600 m from previous guidance of USD 1,150 - 1,450 m and raised EBITDA guidance to USD 1,000 – 1,200 m from USD 800 - 1,100 m. As of 18 August 2026, TORM had fixed 73% of Q3 earning days at USD/day 38,606 and 70% of full-year earning days at USD/day 45,391. The central swing factor is the 10,271 open earning days in 2026, alongside the persistence of disruptions in major oil-shipping routes and volatile tanker rates.
Management, verbatim
We delivered the strongest quarterly results in TORM’s history, turning exceptional market conditions into tangible value for our shareholders.
Jacob Meldgaard, CEO
Strong earnings and our confidence in continued market strength have led us to raise our full-year guidance by USD 200m.
Jacob Meldgaard, CEO
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Standalone Q2 2026 operating cash flow, investing cash flow, and financing cash flow were not reported.
- Prior-quarter consolidated revenue, TCE earnings, EBITDA, operating profit, net profit, EPS, cash flow, and margin comparisons were not reported on the respective line items.
- Revenue, gross margin, operating expenses, and tax-rate guidance were not provided.
- Share repurchases or share repurchase authorization were not reported.
- A previous-release outlook section was not provided, so no actual-versus-prior-guidance comparison is included.
AlphAI 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.