Earnings release
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World – Class Shipping, Leading – Edge Expertise 1 of 22 Danaos Corporation Reports Third Quarter and Nine Months Results for the Period Ended September 30, 2025 Athens, Greece, November 17, 2025 – Danaos Corporation (“Danaos”) (NYSE: DAC), one of the world’s largest independent owners of container vessels and drybulk vessels, today reported unaudited results for the period ended September 30, 2025. Financial Summary Three Months Ended September 30, 2025 and Three Months Ended September 30, 2024 Unaudited (Expressed in thousands of United States dollars, except as otherwise stated) Three Months Ended Three Months Ended September 30, 2025 September 30, 2024 Financial & Operating Metrics Container Vessels Drybulk Vessels Other Total Container Vessels Drybulk Vessels Other Total Operating Revenues $239,102 $21,628 - $260,730 $235,570 $20,606 - $256,176 Voyage Expenses, excl. commissions $(909) $(3,311) - $(4,220) $757 $(8,019) - $(7,262) Time Charter Equivalent Revenues (1) $238,193 $18,317 - $256,510 $236,327 $12,587 - $248,914 Net income/(loss) $118,703 $3,404 $8,542 $130,649 $124,102 $62 $(1,168) $122,996 Adjusted net income(2) $120,566 $3,404 $159 $124,129 $125,143 $62 $1,640 $126,845 Earnings per share, basic $7.14 $6.36 Earnings per share, diluted $7.11 $6.30 Adjusted earnings per share, diluted (2) $6.75 $6.50 Operating Days 6,679 920 - 6,387 778 - Time Charter Equivalent $/day (1) $35,663 $19,910 - $37,001 $16,179 - Ownership days 6,808 920 - 6,540 913 - Average number of vessels 74.0 10.0 - 71.1 9.9 - Fleet Utilization 98.1% 100.0% - 97.7% 85.2% - Adjusted EBITDA (2) $172,368 $9,128 $124 $181,620 $173,454 $3,826 $1,617 $178,897 Consolidated Balance Sheet & Leverage Metrics As of September 30,2025 As of December 31, 2024 Cash and cash equivalents $596,371 $453,384 Availability under Revolving Credit Facility $258,750 $292,500 Marketable securities (3) $116,302 $60,850 Total cash liquidity & marketable securities(4) $971,423 $806,734 Debt, gross of deferred finance costs $760,911 $744,546 Net Debt (5) $164,540 $291,162 LTM Adjusted EBITDA (6) $719,061 $722,615 Net Debt / LTM Adjusted EBITDA 0.23X 0.40x 1. Time charter equivalent revenues and time charter equivalent US$/day are non -GAAP measures. Refer to the reconciliation provided in the appendix. 2. Adjusted net income, adjusted earnings per share and adjusted EBITDA are non -GAAP measures. Refer to the reconciliation of net income to adjusted net income and adjusted earnings per share; and net income to adjusted EBITDA provided below. 3. Marketable securities refer to fair value of 6,256,181 and 4,070,214 shares of common stock of SBLK on September 30, 2025 and December 31, 2024, respectively. 4. Total cash liquidity & marketable securities includes: (i) cash and cash equivalents, (ii) availability under our Revolving C redit Facility and (iii) marketable securities. 5. Net Debt is defined as debt gross of deferred finance costs less cash and cash equivalents. 6. Last twelve months Adjusted EBITDA. Refer to the reconciliation provided below. For management purposes, the Company is organized based on operating revenues generated from container vessels and drybulk vessels and has two reporting segments: (1) a container vessels segment and (2) a drybulk vessels segment. The Company measures segment performance based on net income. Items included in the applicable segment’s net income are directly allocated to the extent that the items are directly or indirectly attributable to the segments. With regards to the items that are allocated by indirect calculations, their allocation is commensurate to the utilization of key resources. The Other column includes components that are not allocated to any of the Company’s reportable segments and includes investments in an affiliate accounted for using the equity method of accounting and investments in marketable securities.
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2 of 22 Financial Summary Nine Months Ended September 30, 2025 and Nine Months Ended September 30, 2024 Unaudited (Expressed in thousands of United States dollars, except as otherwise stated) Nine Months Ended Nine Months Ended September 30, 2025 September 30, 2024 Financial & Operating Metrics Container Vessels Drybulk Vessels Other Total Container Vessels Drybulk Vessels Other Total Operating Revenues $714,738 $61,453 - $776,191 $699,567 $56,364 - $755,931 Voyage Expenses, excl. commissions $(1,658) $(18,105) - $(19,763) $(179) $(22,115) - $(22,294) Time Charter Equivalent Revenues (1) $713,080 $43,348 - $756,428 $699,388 $34,249 - $733,637 Net income/(loss) $353,641 $(2,872) $25,931 $376,700 $396,144 $2,689 $15,813 $414,646 Adjusted net income / (loss) (2) $357,049 $(2,872) $331 $354,508 $391,062 $2,689 $5,418 $399,169 Earnings per share, basic $20.40 $21.41 Earnings per share, diluted $20.34 $21.22 Adjusted earnings per share, diluted (2) $19.14 $20.43 Operating Days 19,753 2,660 - 18,494 1,978 - Time Charter Equivalent $/day (1) $36,100 $16,296 - $37,817 $17,315 - Ownership days 20,179 2,730 - 18,978 2,244 - Average number of vessels 73.9 10.0 - 69.3 8.2 - Fleet Utilization 97.9% 97.4% - 97.4% 88.1% - Adjusted EBITDA (2) $515,419 $13,677 $238 $529,334 $516,763 $10,730 $5,395 $532,888 1. Time charter equivalent revenues and time charter equivalent $/day are non-GAAP measures. Refer to the reconciliation provided in the appendix. 2. Adjusted net income/(loss), adjusted earnings per share, diluted and adjusted EBITDA are non-GAAP measures. Refer to the reconciliation of net income/(loss) to adjusted net income/(loss) and adjusted earnings per share, diluted; and net income/(loss) to adjusted EBITDA provided below. Highlights for the Third Quarter and Nine Months Ended September 30, 2025 and up to date of this release: • In September 2025, we added two 7,165 TEU newbuilding containership vessels to our orderbook with expected delivery in 2027. We have arranged 5 year charters for both of these vessels and have added approximately $140 million to our contracted revenue backlog. • In November 2025, we added six 1,800 TEU newbuilding containerships to our orderbook with expected deliveries from 2027 through 2029. We have arranged 10 year charters for four out of these six vessels and have added approximately $236 million to our contracted revenue backlog. • In November 2025 we took delivery of one 6,014 TEU containership as per schedule, that is added to prior deliveries under our newbuilding container vessels program of six newbuilding containerships in 2024 and one in January 2025. • Our orderbook currently consists of 23 newbuilding containership vessels with an aggregate capacity of 153,350 TEU with expected deliveries of three vessels in 2026, thirteen vessels in 2027, six vessels in 2028 and one vessel in 2029. All vessels in our orderbook are designed with the latest eco characteristics and will be built in accordance with the latest requirements of the International Maritime Organization (IMO) in relation to Tier III emission standards and Energy Efficiency Design Index (EEDI) Phase III. • On October 17, 2025, we entered into a Memorandum Agreement to purchase a Capesize dry bulk vessel, which is expected to be delivered to us towards the end of the first quarter of 2026. • We have secured multi -year charter arrangements for 21 out of 23 vessels in our newbuilding orderbook, with an average charter duration of approximately 5. 8 years, weighted by aggregate contracted charter hire. • Since the date of our previous earnings release, we have added approximately $745 million to our contracted revenue backlog through a combination of the prior mentioned six new charters for our recently ordered containership newbuilding vessels and charter extensions for 12 of our existing container vessels. • As a result, total contracted cash operating revenues, based on concluded charter contracts through the date of this release, currently stand at $4.1 billion, including newbuildings. The remaining average contracted charter duration for our containership fleet is 4.3 years, weighted by aggregate contracted charter hire.
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3 of 22 • Contracted operating days charter coverage for our container vessel fleet is currently 100.0% for 2025, 95% for 2026 and 71% for 2027. This includes newbuildings based on their scheduled delivery dates. • As of the date of this release, Danaos has repurchased a total of 3, 022,527 shares of its common stock in the open market for $213.6 million under its $300.0 million authorized share repurchase program, that was originally introduced in June 2022 and was upsized twice in $100.0 million increments, in November 2023 and in April 2025. • On October 16, 2025, we consummated the pricing of the offering of $500.0 million of 6.875% senior unsecured notes due in 2032. Danaos intends to use the net proceeds from the offering to (i) early redeem in full the $262.8 million outstanding principal amount of our 8.5% Senior Notes due 2028 on or about March 1, 2026, (ii) repay in full the outstanding principal amount under its BNP Paribas/Credit Agricole $130.0 million Secured Credit Facility on December 1, 2025, (iii) repay in full the outstanding principal amount under its Alpha Bank $55.25 million Secur ed Credit Facility on December 1, 2025, (iv) to pay costs, fees and expenses related to the refinancing, including commissions, placement, financial advisory fees and other transaction costs and professional fees, and (v) for general corporate purposes. • Danaos has declared a dividend of $0.90 per share of common stock for the third quarter of 2025. The dividend is payable on December 11, 2025, to stockholders of record as of December 2, 2025. Danaos’ CEO Dr. John Coustas commented: As we enter the final months of the year, operating conditions remain broadly unchanged. The war in Ukraine continues with no end in sight, and while the conflict in the Middle East is in the process of resolution, transit through the Red Sea has not yet resumed and liner s are waiting for more permanent signs of stability to restart the transit. The recent de-escalation in trade and tariff tensions between the United States and China enabled trade to resume unhindered, while the redirection of Chinese exports to the EU and other countries kept trading and container traffic at an all times high dur ing the third quarter of the year. The charter market remains robust, and the idle fleet remains at all -time low. Demand for mid -size and larger vessels continues unabated, and we have secured new charters for vessels opening as far out as the beginning of 2028. Shipyard slots for 2028 deliveries are becoming scarce and newbuilding prices continue to rise. We have selectively extended our newbuilding program at below market prices and we have already secured multi -year employment for these new orders. Following the IMO’s one- year postponement of its Net -Zero Framework, we expect conventional fuels to remain prevalent in the medium term, even as the long- term decarbonization trajectory is unchanged. In relation to our newbuilding program, w e recently added six 1,800 TEU vessels to our orderbook with scheduled deliveries between 2027 and 2029 and have secured 10 year charters for four of these vessels with a contribution to our contracted revenue backlog of approximately $236 million. On the financing front, we recently completed a $500 million unsecured seven year bond offering with a 6.875% coupon. This is one of the most competitively priced deals ever achieved in the shipping industry for an unsecured bond with such tenor and is a testament of our superior credit quality. We intend to use the proceeds to redeem our 2028 $300 million bond as well as prepay in full some smaller secured bank credit facilities. We have already arranged secured debt financing for the majority of our newbuilding program and our fortress balance sheet that has been solidified with the recent bond issuance considerably enhances our capacity to pursue accretive investment opportunities that can propel the growth of Danaos into the next level. Our solid performance has enabled us to continue to deliver strong, profitable performance, enhance our contract backlog and fund investments to reduce the age of our fleet and further cement Danaos’ leadership position in the container charter market. We also continue to opportunistically invest in the dry bulk Capesize market segment, where we expect outsized returns due to supply constraints and ton-mile demand increase. Finally, I am pleased to announce that we are increasing our quarterly dividend to 90 cents per share, consistent with our policy of yearly increases, while also striving to continue to build long term value for the benefit of our shareholders.
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4 of 22 Three months ended September 30, 2025 compared to the three months ended September 30, 2024 During the three months ended September 30, 2025, Danaos had an average of 74 container vessels and 10 Capesize drybulk vessels compared to 71.1 container vessels and 9.9 Capesize drybulk vessels during the three months ended September 30, 2024. Our container vessels utilization for the three months ended September 30, 2025 was 98.1% compared to 97. 7% in the three months ended September 30, 2024. Our drybulk vessels utilization for the three months ended September 30, 2025 was 100.0% compared to 85.2% in the three months ended September 30, 2024. Our adjusted net income amounted to $124.1 million, or $6.75 per diluted share, for the three months ended September 30, 2025 compared to $126.8 million, or $6.50 per diluted share, for the three months ended September 30, 2024. We have adjusted our net income in the three months ended September 30, 2025 for a $8.4 million gain from the change in fair value of investments , a $1.1 million loss on debt extinguishment and a $0.8 million non-cash finance fees amortization. Adjusted net income of our container vessels segment amounted to $120.6 million for the three months ended September 30, 2025 compared to $125.1 million for the three months ended September 30, 2024. We adjusted net income of container vessels segment in the three months ended September 30, 2025 for a $1.1 million loss on debt extinguishment and a $0.8 million non-cash finance fees amortization. Adjusted net income of our drybulk vessels segment amounted to $3. 4 million for the three months ended September 30, 2025 compared to $0.1 million for the three months ended September 30, 2024. The $2. 7 million decrease in our adjusted net income for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 is primarily attributable to (i) $6.1 million increase in total operating expenses, (ii) $2.5 million decrease in dividends received, offset by (iii) $1.0 million decrease in equity loss on investments, (iv) $0.4 million decrease in net finance expenses and (v) $4.5 million increase in operating revenues. Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release. On a non-adjusted basis, our net income amounted to $130.6 million, or $7.11 earnings per diluted share, for the three months ended September 30, 2025 compared to net income of $123.0 million, or $6.30 earnings per diluted share, for the three months ended September 30, 2024. Our net income for the three months ended September 30, 2025 includes $8.4 million gain on marketable securities (gross of dividend income) compared to $2.8 million loss on marketable securities (gross of dividend income) in the three months ended September 30, 2024. On a non- adjusted basis, the net income of our container vessels segment amounted to $118.7 million for the three months ended September 30, 2025 compared to $124.1 million for the three months ended September 30, 2024. On a non-adjusted basis, the net income of our drybulk vessels segment amounted to $3. 4 million net income for the three months ended September 30, 2025 compared to $0.1 million income for the three months ended September 30, 2024. Operating Revenues Operating revenues increased by 1.8%, or by $4.5 million, to $260.7 million in the three months ended September 30, 2025 from $256.2 million in the three months ended September 30, 2024. Operating revenues of our container vessels segment increased by 1.5%, or $3.5 million, to $239.1 million in the three months ended September 30, 2025 from $235.6 million in the three months ended September 30, 2024, analyzed as follows: • $11.2 million increase in revenues as a result of newbuilding containership vessel additions; • $0.8 million increase in revenues as a result of higher fleet utilization between the two periods; • $4.3 million decrease in revenues as a result of lower charter rates between the two periods; and • $4.2 million decrease in revenues due to lower non-cash revenue recognition in accordance with US GAAP. Operating revenues of our drybulk vessels segment increased by 4.9%, or by $1.0 million, to $21.6 million in the three months ended September 30, 2025, compared to $20.6 million of revenues in the three months ended September 30, 2024, as a result of improved charter rates and higher dry bulk vessel utilization between the two periods.
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5 of 22 Vessel Operating Expenses Vessel operating expenses increased by $2.4 million to $52.3 million in the three months ended September 30, 2025 from $49.9 million in the three months ended September 30, 2024, primarily as a result of the increase in the average number of vessels in our fleet due to container vessel newbuilding deliveries and dry bulk vessels acquisitions and the increase in average daily operating cost of our vessels to $6,927 per vessel per day for the three months ended September 30, 2025 compared to $6,860 per vessel per day for the three months ended September 30, 2024. Management believes that our daily operating cost s remain among the most competitive in the industry. Depreciation & Amortization Depreciation & Amortization includes Depreciation and Amortization of Deferred Drydoc king and Special Survey Costs. Depreciation Depreciation expense increased by $2.5 million, to $41.2 million in the three months ended September 30, 2025 from $38.7 million in the three months ended September 30, 2024 due to the increase in the average number of vessels in our fleet. Amortization of Deferred Drydocking and Special Survey Costs Amortization of deferred drydocking and special survey costs increased by $3.3 million to $10.8 million in the three months ended September 30, 2025 from $7.5 million in the three months ended September 30, 2024, reflecting a larger number of vessels drydocked for which vessels drydocking amortization costs were recognized during the three months ended September 30, 2025 compared to the three months ended September 30, 2024. General and Administrative Expenses General and administrative expenses increased by $1.6 million, to $12.6 million in the three months ended September 30, 2025 from $11.0 million in the three months ended September 30, 2024. The increase was mainly attributable to $0.3 million higher management fees due to the increase in the average number of vessels in our fleet and a $1.3 million increase in corporate general and administrative expenses. Other Operating Expenses Other Operating Expenses include Voyage Expenses. Voyage Expenses Voyage expenses decreased by $3.1 million to $13.9 million in the three months ended September 30, 2025 from $17.0 million in the three months ended September 30, 2024, driven by a $3.0 million decrease in other voyage expenses, mainly attributed to a different mix of time charter and voyage charter contracts under which our dry bulk vessels were deployed between the two periods. More analytically, voyage expenses of our dry bulk vessels segment decreased by $4.5 million, to $4.7 million in the three months ended September 30, 2025, compared to $9.2 million voyage expenses in the three months ended September 30, 2024. For the three months ended September 30, 2025, voyage expenses of our dry bulk vessels comprised of $1.4 million in commissions and $ 3.3 million in other voyage expenses, mainly comprised of bunkers cost and port expenses, compared to $1.2 million in commissions and $8 .0 million in other voyage expenses for the three months ended September 30, 2024, reflecting an increase in time charter employment of our dry bulk vessels during the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Voyage expenses of our container vessels segment increased by $1.4 million to $9.2 million in the three months ended September 30, 2025, from $7.8 million in the three months ended September 30, 2024. Interest Expense and Interest Income Interest expense increased by $0.5 million, to $8.5 million in the three months ended September 30, 2025 from $8.0 million in the three months ended September 30, 2024. The increase in interest expense is a result of: • $0.9 million increase in interest expense due to an increase in our average indebtedness by $120.7 million between the two periods , partially offset by a decrease in our average debt service cost . Average indebtedness was $767.5 million in the three months ended September 30, 2025, compared to average indebtedness of $646.8 million in the three months ended September 30, 2024, while our average debt service cost decreased by approximately 0.74% as a result of lower SOFR rates between the two periods; • $0.2 million increase in the amortization of deferred finance costs between the two periods; and
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6 of 22 • $0.6 million decrease in interest expense due to an increase in the amount of interest expense capitalized on our vessels under construction that was $6.0 million in the three months ended September 30, 2025, when compared to capitalized interest of $5.4 million in the three months ended September 30, 2024. As of September 30, 2025, our outstanding debt, gross of deferred finance costs, was $760.9 million, which included $262.8 million principal amount of our existing 8.5% Senior Notes. These balances compare to debt of $689.5 million, which included $262.8 million principal amount of our existing 8.5% Senior Notes as of September 30, 2024. The increase in our outstanding debt is mainly due to loans dr awn down to partially finance our container vessel newbuildings. Interest income increased by $0.7 million to $3.8 million in the three months ended September 30, 2025 compared to $3.1 million in the three months ended September 30, 2024, mainly driven by higher average cash balances between the two periods, partially offset by lower interest rates on cash deposits. Gain on Investments The $8.7 million gain on investments in the three months ended September 30, 2025 consisted of the gain from the change in fair value of our shareholding interest in Star Bulk Carriers Corp. (“SBLK”) of $8.4 million and dividend income on these shares of $0.3 million. This compares to a $0.04 million gain on investments in the three months ended September 30, 2024, representing a $2.8 million loss from the change in fair value change on our SBLK shareholding interest, which was offset by dividend income on these shares of $2.8 million. Loss on Debt Extinguishment The loss on debt extinguishment of $1.1 million in the three months ended September 30, 2025 related to our early extinguishment of debt compared to nil in the three months ended September 30, 2024. Equity Loss on Investments Equity loss on investments amounting to $0.2 million and $1.2 million in the three months September 30, 2025 and September 30, 2024, respectively, relates to our share of initial expenses of Carbon Termination Technologies Corporation (“CTTC”), currently engaged in the research and development of decarbonization technologies for the shipping industry. Other Finance Expenses Other finance expenses remained stable at $0.9 million in each of the three months ended September 30, 2025 and September 30, 2024, respectively. Loss on Derivatives Amortization of deferred realized losses on interest rate swaps remained stable at $0.9 million in each of the three months ended September 30, 2025 and September 30, 2024. Other Income/(Expenses), Net Other expenses, net, amounted to an expense of $0.3 million in the three months ended September 30, 2025 compared to an expense of $0.7 million in the three months ended September 30, 2024. Adjusted EBITDA Adjusted EBITDA in creased by 1. 5%, or by $2.7 million, to $181. 6 million in the three months ended September 30, 2025 from $178.9 million in the three months ended September 30, 2024. The increase was attributed to (i) $4. 5 million increase in operating revenues, (ii) $1.0 million decrease in equity loss on investments, partially offset by (iii) $2.5 million decrease in dividends received, (iv) $0. 2 million increase in total operating expenses and (v) $0.1 million increase in net financing expenses. Adjusted EBITDA for the three months ended September 30, 2025 is adjusted for (i) $8.4 million gain from the change in fair value of investments , (ii) $1.1 million of loss on debt extinguishment and (iii) $0.1 million expense of stock based compensation. Tables reconciling Adjusted EBITDA to Net Income can be found at the end of this earnings release. Adjusted EBITDA of container vessels segment decreased by 0.6%, or by $1.1 million, to $172.4 million in the three months ended September 30, 2025 from $173.5 million in the three months ended September 30, 2024. Adjusted EBITDA of drybulk vessels segment increased by $5. 3 million to $9.1 million in the three months ended September 30, 2025 from $3.8 million in the three months ended September 30, 2024.
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7 of 22 Nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 During the nine months ended September 30, 2025, Danaos had an average of 73.9 container vessels and 10 drybulk vessels compared to 69.3 container vessels and 8.2 drybulk vessels during the nine months ended September 30, 2024. Our container vessels utilization for the nine months ended September 30, 2025 was 97.9% compared to 97.4% in the nine months ended September 30, 2024. Our drybulk vessels utilization for the nine months ended September 30, 2025 was 97.4% compared to 88.1% in the nine months ended September 30, 2024. Our adjusted net income amounted to $354.5 million, or $19.14 per diluted share, for the nine months ended September 30, 2025 compared to $399.2 million, or $20.43 per diluted share, for the nine months ended September 30, 2024. We have adjusted our net income in the nine months ended September 30, 2025 for $25.6 million gain from the change in fair value of investments , a $1.1 million loss on debt extinguishment and a $2.3 million non-cash finance fees amortization. Adjusted net income of our container vessels segment amounted to $357.0 million for the nine months ended September 30, 2025 compared to $391.1 million for the nine months ended September 30, 2024. We adjusted net income of container vessels segment in the nine months ended September 30, 2025 for a $1.1 million loss on debt extinguishment and a $2.3 million non-cash finance fees amortization. Adjusted net loss of our drybulk vessels segment amounted to $2.9 million loss for the nine months ended September 30, 2025 compared to $2.7 million income for the nine months ended September 30, 2024. The $44.7 million decrease in adjusted net income for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, is primarily attributable to (i) a $50.5 million increase in total operating expenses, (ii) a $5.8 million decrease in dividends received, (iii) a $9.3 million increase in net finance expenses, offset by (iv) $20.3 million increase in operating revenues and (v) a $0.6 million decrease in equity loss on investments. Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release. On a non-adjusted basis, our net income amounted to $376.7 million, or $20.34 earnings per diluted share, for the nine months ended September 30, 2025 compared to net income of $414.6 million, or $21.22 earnings per diluted share, for the nine months ended September 30, 2024. Our net income for the nine months ended September 30, 2025 includes $ 25.6 million gain on marketable securities (gross of dividend income) compared to $10.4 million gain on marketable securities (gross of dividend income) in the nine months ended September 30, 2024. On a non-adjusted basis, the net income of our container ves sels segment amounted to $353.6 million for the nine months ended September 30, 2025 compared to $396. 1 million for the nine months ended September 30, 2024. On a non- adjusted basis, the net loss of our drybulk vessels segment amounted to $2.9 million for the nine months ended September 30, 2025 compared to $2.7 million net income for the nine months ended September 30, 2024. Operating Revenues Operating revenues increased by 2.7% , or by $20.3 million, to $776.2 million in the nine months ended September 30, 2025 from $755.9 million in the nine months ended September 30, 2024. Operating revenues of our container vessels segment increased by 2.2%, or by $15.1 million, to $714.7 million in the nine months ended September 30, 2025 from $699.6 million in the nine months ended September 30, 2024, analyzed as follows: • $54.9 million increase in revenues as a result of newbuilding containership vessel additions; • $21.9 million decrease in revenues as a result of lower charter rates between the two periods; • $14.9 million decrease in revenues due to lower non-cash revenue recognition in accordance with US GAAP; • $2.8 million decrease in revenues as a result of lower fleet utilization between the two periods; and • $0.2 million decrease in revenues due to the disposal of one containership vessel. Operating revenues of our drybulk vessels segment increased by 9.2%, or by $5.2 million, to $61.5 million in the nine months ended September 30, 2025, compared to $56.3 million of revenues in the nine months ended September 30, 2024, analyzed as follows: • $13.0 million increase in revenues as a result of dry bulk vessel acquisitions; and
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8 of 22 • $7.8 million net decrease in revenues as a result of lower charter rates partially offset by higher fleet utilization between the two periods. Vessel Operating Expenses Vessel operating expenses increased by $20.2 million to $160.3 million in the nine months ended September 30, 2025 from $1 40.1 million in the nine months ended September 30, 2024 , primarily as a result of the increase in the average number of vessels in our fleet due to container vessel newbuilding deliveries and dry bulk vessels acquisitions and the increase in average daily operating cost of our vessels to $7,170 per vessel per day for the nine months ended September 30, 2025 compared to $6,775 per vessel per day for the nine months ended September 30, 2024. Management believes that our daily operating costs remain among the most competitive in the industry. Depreciation & Amortization Depreciation & Amortization includes Depreciation and Amortization of Deferred Drydocking and Special Survey Costs. Depreciation Depreciation expense increased by $13.9 million, to $121.9 million in the nine months ended September 30, 2025 from $108.0 million in the nine months ended September 30, 2024, due to the increase in the average number of vessels in our fleet. Amortization of Deferred Drydocking and Special Survey Costs Amortization of deferred drydocking and special survey costs increased by $13.3 million to $33.2 million in the nine months ended September 30, 2025 from $19.9 million in the nine months ended September 30, 2024, reflecting a larger number of vessels drydocked for which vessels drydocking amortization costs were recognized during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. General and Administrative Expenses General and administrative expenses increased by $3.5 million, to $36.0 million in the nine months ended September 30, 2025 from $32.5 million in the nine months ended September 30, 2024. The increase was mainly attributable to $1.9 million higher management fees due to the increase in the average number of vessels in our fleet and a $1.6 million increase in corporate general and administrative expenses. Other Operating Expenses Other Operating Expenses include Voyage Expenses. Voyage Expenses Voyage expenses decreased by $1.2 million to $48.8 million in the nine months ended September 30, 2025 from $50.0 million in the nine months ended September 30, 2024. Voyage expenses of container vessels segment increased by $2.5 million to $27.0 million in the nine months ended September 30, 2025 from $24.5 million in the nine months ended September 30, 2024. Total voyage expenses of container vessels comprised $25.3 million commissions and $1.7 million other voyage expenses in the nine months ended September 30, 2025 compared to $24.3 million in commissions and $0.2 million in other voyage expenses in the nine months ended September 30, 2024. Voyage expenses of our drybulk vessels segment decreased by $3. 7 million to $2 1.8 million in the nine months ended September 30, 2025 compared to $25.5 million voyage expenses in the nine months ended September 30, 2024. For the nine months ended September 30, 2025, voyage expenses of our drybulk vessels comprised of $3. 7 million in commissions and $18. 1 million in other voyage expenses, mainly comprised of bunkers cost and port expenses, compared to $3.4 million in commissions and $22.1 million in other voyage expenses for the nine months ended September 30, 2024. Interest Expense and Interest Income Interest expense increased by $12.1 million, to $28.3 million in the nine months ended September 30, 2025 from $16.2 million in the nine months ended September 30, 2024. The increase in interest expense is a result of: • $9.7 million increase in interest expense due to an increase in our average indebtedness by $249.3 million between the two periods, partially offset by a decrease in our average debt service cost. Average indebtedness was $773.9 million in the nine months ended September 30, 2025, compared to average indebtedness of $524.6 million in the nine months ended September 30,
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9 of 22 2024, while our average debt service cost decreased by approximately 0.87% as a result of lower SOFR rates between the two periods; • $1.6 million increase in interest expense due to a decrease in the amount of interest expense capitalized on our vessels under construction that was $15.2 million in the nine months ended September 30, 2025, when compared to capitalized interest of $16.8 million in the nine months ended September 30, 2024; and • $0.8 million increase in the amortization of deferred finance costs between the two periods. As of September 30, 2025, our outstanding debt, gross of deferred finance costs, was $760.9 million, which included $262.8 million principal amount of our existing 8.5% Senior Notes. These balances compare to debt of $689.5 million, which included $262.8 million principal amount of our existing 8.5% Senior Notes as of September 30, 2024. The increase in our outstanding debt is mainly due to loans drawn down to partially finance our container vessel newbuildings. Interest income increased by $2.1 million to $11.1 million in the nine months ended September 30, 2025 compared to $9.0 million in the nine months ended September 30, 2024, mainly driven by higher average cash balances between the two periods, partially offset by lower interest rates on cash deposits between the corresponding periods. Gain on Investments The $26.6 million gain on investments in the nine months ended September 30, 2025 consisted of the gain from the change in fair value of our shareholding interest in Star Bulk Carriers Corp. (“SBLK”) of $25.6 million and dividend income on these shares of $1.0 million. This compares to a $17.2 million gain on investments in the nine months ended September 30, 2024, representing an $10.4 million gain from the change in fair value on our SBLK shareholding interest and dividend income on these shares of $6.8 million. Loss on Debt Extinguishment The loss on debt extinguishment of $1.1 million in the nine months ended September 30, 2025 related to our early extinguishment of debt compared to nil in the nine months ended September 30, 2024. Equity Loss on Investments Equity loss on investments amounting to $0.8 million and $1.4 million in the nine months September 30, 2025 and September 30, 2024, respectively, relates to our share of initial expenses of CTTC, currently engaged in the research and development of decarbonization technologies for the shipping industry. Other Finance Expenses Other finance expenses increased by $0.2 million to $2.9 million in the nine months ended September 30, 2025 compared to $2.7 million in the nine months ended September 30, 2024. Loss on Derivatives Amortization of deferred realized losses on interest rate swaps remained stable at $2.7 million in each of the nine months ended September 30, 2025 and September 30, 2024. Other Income/(Expenses), Net Other income/expenses, net, amounted to an expense of $1.1 million in the nine months ended September 30, 2025 compared to an expense of $0.6 million in the nine months ended September 30, 2024. Adjusted EBITDA Adjusted EBITDA decreased by 0.7%, or by $3.6 million, to $5 29.3 million in the nine months ended September 30, 2025 from $532.9 million in the nine months ended September 30, 2024. The decrease was attributed to (i) $22.7 million increase in total operating expenses , (ii) $ 5.8 million decrease in dividends received, (iii) $0.5 million increase in net financing expenses, partially offset by (iv) $24.8 million increase in operating revenues (excluding $4.5 million decrease in amortization of assumed time- charters) and (ii) $0.6 million decrease in equity loss on investments. Adjusted EBITDA for the nine months ended September 30, 2025 is adjusted for (i) $25.6 million gain from the change in fair value of investments, (ii) $1.1 million of loss on debt extinguishment and (iii) $0.4 million expense of stock based compensation. Adjusted EBITDA of container vessels segment decreased by 0.3%, or by $1.4 million, to $515.4 million in the nine months ended September 30, 2025 from $516.8 million in the nine months ended September 30, 2024. Adjusted EBITDA of drybulk vessels segment increased by $3.0 million to $13.7 million in the nine months ended September 30, 2025 from $10.7 million in the nine months ended September 30, 2024.
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10 of 22 Dividend Payment Danaos has declared a dividend of $0.90 per share of common stock for the third quarter of 2025, which is payable on December 11, 2025 to stockholders of record as of December 2, 2025. Recent Developments On October 1, 2025, we prepaid early the outstanding principal amount of $42.78 million of vessel Phoebe which was under the Syndicated $450.0 mil. Facility. On October 30, 2025, we received $80 million pursuant to a Japanese operating sale & lease back agreement for vessel Phoebe (the “JOLCO Facility”) with a tenor of 8 years. Conference Call and Webcast On Tuesday, November 18, 2025 at 9:00 A.M. ET, the Company's management will host a conference call to discuss the results. Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 833 890 6464 (US Toll Free Dial In), 0 800 279 9489 (UK Toll Free Dial In) or +44 (0) 2075 441 375 (Standard International Dial In). Please indicate to the operator that you wish to join the Danaos Corporation earnings call. A telephonic replay of the conference call will be available until November 25, 2025 by dialing 1 855 669 9658 (US Toll Free Dial In) or 1-412-317-0088 (Standard International Dial In) and using 3186440# as the access code. Audio Webcast There will also be a live and then archived webcast of the conference call on the Danaos website (www.danaos.com). Participants of the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. Slide Presentation A slide presentation regarding the Company and the container and drybulk industry will also be available on the Danaos website (www.danaos.com). About Danaos Corporation Danaos Corporation is one of the largest independent owners of modern, large-size container vessels. Our current fleet of 75 container vessels aggregating 477,491 TEUs and 23 under construction container vessels aggregating 153,350 TEUs ranks Danaos among the largest container vessels charter owners in the world based on total TEU capacity. Danaos has also invested in the dry bulk sector with the acquisition of 11 capesize drybulk vessels, which on a fully delivered basis, aggregating approximately to 1,943,286 DWT. Our container vessels fleet is chartered to many of the world's largest liner companies on fixed-rate charters. Our long track record of success is predicated on our efficient and rigorous operational standards and environmental controls. Danaos Corporation's shares trade on the New York Stock Exchange under the symbol "DAC". Forward-Looking Statements Matters discussed in this release may constitute forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements reflect our current views with respect to future events and financial performance, including contracted revenue, fleet growth and market conditions, and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward- looking statements in this release are based upon various assumptions. Although Danaos Corporation believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Danaos Corporation cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward- looking statements include the strength of world economies and currencies, geopolitical conditions, including any trade disruptions resulting from tariffs , port fees or other protectionist measures imposed by the United States or other countries, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydoc king, changes in Danaos Corporation's operating expenses, including bunker prices, drydocking and insurance costs, our ability to
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11 of 22 operate profitably in the drybulk sector, performance of shipyards constructing our contracted newbuilding vessels, ability to obtain financing and comply with covenants in our financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, including the conflict in Ukraine and related sanctions, the conflict in Israel and the Gaza Strip, potential disruption of shipping routes such as Houthi attacks in the Red Sea and the Gulf of Aden, due to accidents and political events or acts by terrorists. Risks and uncertainties are further described in reports filed by Danaos Corporation with the U.S. Securities and Exchange Commission. Visit our website at www.danaos.com For further information please contact: Company Contact: Evangelos Chatzis Chief Financial Officer Danaos Corporation Athens, Greece Tel.: +30 210 419 6480 E-Mail: cfo@danaos.com Investor Relations and Financial Media Rose & Company New York Tel. 212-359-2228 E-Mail: danaos@rosecoglobal.com
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12 of 22 APPENDIX Container Vessels Fleet Utilization Container Vessels Utilization (No. of Days) Three months ended Three months ended Nine months ended Nine months ended September 30, September 30, September 30, September 30, 2025 2024 2025 2024 Ownership Days 6,808 6,540 20,179 18,978 Less Off-hire Days: Scheduled Off-hire Days (122) (127) (392) (289) Other Off-hire Days (7) (26) (34) (195) Operating Days(1) 6,679 6,387 19,753 18,494 Fleet Utilization 98.1% 97.7% 97.9% 97.4% Operating Revenues (in '000s of US$) $239,102 $235,570 $714,738 $699,567 Less: Voyage Expenses excluding commissions (in '000s of US$) (909) 757 (1,658) (179) Time Charter Equivalent Revenues (in '000s of US$) 238,193 236,327 713,080 699,388 Time Charter Equivalent US$/per day(2) $35,663 $37,001 $36,100 $37,817 Drybulk Vessels Fleet Utilization Drybulk Vessels Utilization (No. of Days) Three months ended Three months ended Nine months ended Nine months ended September 30, September 30, September 30, September 30, 2025 2024 2025 2024 Ownership Days 920 913 2,730 2,244 Less Off-hire Days: Scheduled Off-hire Days - (119) (56) (240) Other Off-hire Days - (16) (14) (26) Operating Days(1) 920 778 2,660 1,978 Fleet Utilization 100.0% 85.2% 97.4% 88.1% Operating Revenues (in '000s of US$) $21,628 $20,606 $61,453 $56,364 Less: Voyage Expenses excluding commissions (in '000s of US$) (3,311) (8,019) (18,105) (22,115) Time Charter Equivalent Revenues (in '000s of US$) 18,317 12,587 43,348 34,249 Time Charter Equivalent US$/per day(2) $19,910 $16,179 $16,296 $17,315 1) We define Operating Days as the total number of Ownership Days net of Scheduled off -hire days (days associated with scheduled repairs, drydockings or special or intermediate surveys or days) and net of off-hire days associated with unscheduled repairs or days waiting to find employment but including days our vessels were sailing for repositioning. The shipping industry uses Operating Days to measure the number of days in a period during which vessels actually generate revenues or are sailing for repositioning purposes. Our definition of Operating Days may not be comparable to that used by other companies in the shipping industry. 2) Time charter equivalent US$/per day (“TCE rate”) represents the average daily TCE rate of our container vessels segment and drybulk vessels segment calculated dividing time charter equivalent revenues of each segment by operating days of each segment. TCE rate is a standard shipping industry performance measure used primarily to compare period to period changes in a shipping company’s performance despite changes in the mix of charter types i.e., voyage charters, time charters, bareboat charters under which its vessels may be employed between the periods. Our method of computing TCE rate may not necessarily be comparable to TCE rates of other companies due to differences in methods of calculation. We include TCE rate, a non - GAAP measure, as it provides additional meaningful information in conjunction with operating revenues, the most directly comparable GAAP measure, and it assists our management in making decisions regarding the deployment and use of our operating vessels and assists investors and our ma nagement in evaluating our financial performance.
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13 of 22 Fleet List The following table describes in detail our container vessels deployment profile as of November 14, 2025: Vessel Name Vessel Size Year Built Expiration of Charter(2) (TEU) (1) Ambition 13,100 2012 April 2027 Speed 13,100 2012 March 2027 Kota Plumbago 13,100 2012 July 2027 Kota Primrose 13,100 2012 April 2027 Kota Peony 13,100 2012 March 2027 Express Rome 10,100 2011 November 2030 Express Berlin 10,100 2011 December 2029 Express Athens 10,100 2011 October 2030 Le Havre 9,580 2006 June 2028 Pusan C 9,580 2006 May 2028 Bremen 9,012 2009 January 2028 C Hamburg 9,012 2009 January 2028 Niledutch Lion 8,626 2008 May 2028 Kota Manzanillo 8,533 2005 December 2028 Belita 8,533 2006 June 2028 CMA CGM Melisande 8,530 2012 January 2028 CMA CGM Attila 8,530 2011 May 2027 CMA CGM Tancredi 8,530 2011 July 2027 CMA CGM Bianca 8,530 2011 September 2027 CMA CGM Samson 8,530 2011 November 2027 America 8,468 2004 April 2028 Europe 8,468 2004 May 2028 Kota Santos 8,463 2005 June 2029 Catherine C(3) 8,010 2024 June 2029 Greenland(3) 8,010 2024 August 2029 Greenville(4) 8,010 2024 October 2029 Greenfield(5) 8,010 2024 November 2029 Interasia Accelerate(3) 7,165 2024 April 2032 Interasia Amplify(4) 7,165 2024 September 2032 CMA CGM Moliere 6,500 2009 March 2027 CMA CGM Musset 6,500 2010 July 2027 CMA CGM Nerval 6,500 2010 November 2027 CMA CGM Rabelais 6,500 2010 January 2028 Racine 6,500 2010 June 2029 YM Mandate 6,500 2010 January 2028 YM Maturity 6,500 2010 April 2028 Savannah 6,402 2002 June 2027 Dimitra C 6,402 2002 April 2027 Phoebe(6) 6,014 2025 October 2031 Greenhouse(7) 6,014 2025 August 2032 Suez Canal 5,610 2002 April 2028 Kota Lima 5,544 2002 September 2026 Wide Alpha 5,466 2014 January 2030 Stephanie C 5,466 2014 September 2028 Euphrates 5,466 2014 September 2028 Wide Hotel 5,466 2015 March 2030 Wide India 5,466 2015 October 2028 Wide Juliet 5,466 2015 August 2026 Seattle C 4,253 2007 June 2029 Vancouver 4,253 2007 November 2026 Derby D 4,253 2004 January 2027 Tongala 4,253 2004 November 2026 Rio Grande 4,253 2008 November 2026 Merve A 4,253 2008 December 2027 Kingston 4,253 2008 June 2027
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14 of 22 Monaco 4,253 2009 May 2029 Dalian 4,253 2009 April 2028 Jamaica (ex Luanda) 4,253 2009 August 2028 Dimitris C 3,430 2001 September 2027 Express Black Sea 3,400 2011 January 2027 Express Spain 3,400 2011 January 2027 Express Argentina 3,400 2010 December 2026 Express Brazil 3,400 2010 April 2027 Express France 3,400 2010 July 2027 Singapore 3,314 2004 March 2027 Colombo 3,314 2004 January 2027 Zebra 2,602 2001 December 2026 Artotina 2,524 2001 November 2027 Advance 2,200 1997 June 2026 Future 2,200 1997 May 2026 Sprinter 2,200 1997 May 2026 Bridge 2,200 1998 January 2028 Progress C 2,200 1998 April 2026 Phoenix D 2,200 1997 June 2027 Highway 2,200 1998 January 2028 (1) Twenty-feet equivalent unit, the international standard measure for containers and container vessels capacity. (2) Earliest date charters could expire. Some charters include options for the charterer to extend their terms. (3) The newbuilding vessels were delivered in the second quarter of 2024. (4) The newbuilding vessels were delivered in the third quarter of 2024. (5) The newbuilding vessel was delivered in the fourth quarter of 2024. (6) The newbuilding vessel was delivered in the first quarter of 2025. (7) The newbuilding vessel was delivered on November 10, 2025. Container vessels under construction as of November 14, 2025: Hull Number Vessel Size Expected Delivery Year (2) Minimum Charter Duration (TEU) (1) Hull No. YZJ2023-1556 8,258 2026 5 years Hull No. YZJ2023-1557 8,258 2026 5 years Hull No. YZJ2024-1612 8,258 2026 5 years Hull No. C9200-7 9,200 2027 4.8 years Hull No. C9200-8 9,200 2027 4.8 years Hull No. CV5900-09 (3) 6,014 2027 4.8 years Hull No. YZJ2024-1613 8,258 2027 5 years Hull No. YZJ2024-1625 8,258 2027 5 years Hull No. YZJ2024-1626 8,258 2027 5 years Hull No. YZJ2024-1668 8,258 2027 5 years Hull No. H2596 9,200 2027 6 years Hull No. C7100-9 (4) 7,165 2027 5 years Hull No. C7100-10 (4) 7,165 2027 5 years Hull No. C9200-9 9,200 2027 4.8 years Hull No. H2597 9,200 2027 6 years Feeder containership 1 (5) 1,800 2027 9.9 years Feeder containership 2 (5) 1,800 2028 9.9 years Hull No. C9200-10 9,200 2028 4.8 years Feeder containership 3 (5) 1,800 2028 9.9 years Feeder containership 4 (5) 1,800 2028 9.9 years Hull No. C9200-11 9,200 2028 4.8 Years Feeder containership 5 (5) 1,800 2028 - Feeder containership 6 (5) 1,800 2029 - (1) Twenty-feet equivalent unit, the international standard measure for containers and container vessels capacity. (2) Under construction container vessels’ expected delivery dates were shorted based on the upcoming deliveries. (3) The newbuilding containership vessel was added to our orderbook in the second quarter of 2025. (4) The newbuilding containership vessels were added to our orderbook in the third quarter of 2025. (5) The newbuilding containership vessels were added to our orderbook in the fourth quarter of 2025.
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15 of 22 The following table presents details of our Capesize drybulk vessels currently on the water as of November 14, 2025 (excluding the Capesize drybulk vessel that was agreed to be purchased on October 17, 2025, and is expected to be delivered to the Company in the first quarter of 2026): Vessel Name Capacity Year Built (2) (DWT) (1) Genius 175,580 2012 Achievement 175,966 2011 Ingenuity 176,022 2011 Danaos (3) 176,536 2011 Valentine (4) 175,125 2011 Integrity 175,966 2010 Peace 175,858 2010 Gouverneur (4) 178,043 2010 W Trader 175,879 2009 E Trader 175,886 2009 (1) DWT, dead weight tons, the international standard measure for drybulk vessels capacity. (2) Capesize drybulk carrier vessels was shorted by their year built, from newest to oldest. (3) The vessel was delivered in the third quarter of 2024. (4) The vessels were delivered in the second quarter of 2024.
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16 of 22 DANAOS CORPORATION Condensed Consolidated Statements of Income - Unaudited (Expressed in thousands of United States dollars, except per share amounts) Three months ended Three months ended Nine months ended Nine months ended September 30, September 30, September 30, September 30, 2025 2024 2025 2024 OPERATING REVENUES $260,730 $256,176 $776,191 $755,931 OPERATING EXPENSES Vessel operating expenses (52,256) (49,866) (160,343) (140,070) Depreciation & amortization (51,939) (46,211) (155,150) (127,878) General & administrative (12,589) (10,978) (36,017) (32,519) Other operating expenses (13,895) (16,999) (48,840) (50,019) Net gain/(loss) on disposal of vessel - (443) - 6,651 Income From Operations 130,051 131,679 375,841 412,096 OTHER INCOME/(EXPENSES) Interest income 3,811 3,124 11,077 8,983 Interest expense (8,541) (8,013) (28,255) (16,243) Gain on investments 8,696 41 26,592 17,228 Loss on debt extinguishment (1,082) - (1,082) - Other finance expenses (907) (944) (2,867) (2,694) Equity loss on investments (189) (1,232) (754) (1,438) Other income/(expenses), net (277) (746) (1,143) (567) Realized loss on derivatives (913) (913) (2,709) (2,719) Total Other Income/(Expenses), net 598 (8,683) 859 2,550 Net Income 130,649 122,996 376,700 414,646 EARNINGS PER SHARE Earnings per share, basic $7.14 $6.36 $20.40 $21.41 Earnings per share, diluted $7.11 $6.30 $20.34 $21.22 Basic weighted average number of common shares (in thousands of shares) 18,310 19,345 18,467 19,368 Diluted weighted average number of common shares (in thousands of shares) 18,384 19,517 18,519 19,540 Non-GAAP Measures1 Reconciliation of Net Income to Adjusted Net Income – Unaudited Three months ended Three months ended Nine months ended Nine months ended September 30, September 30, September 30, September 30, 2025 2024 2025 2024 Net Income $130,649 $122,996 $376,700 $414,646 Change in fair value of investments (8,383) 2,808 (25,600) (10,395) Loss on debt extinguishment 1,082 - 1,082 - Net (gain)/loss on disposal of vessel - 443 - (6,649) Amortization of financing fees 781 598 2,326 1,569 Adjusted Net Income $124,129 $126,845 $354,508 $399,169 Adjusted Earnings Per Share, diluted $6.75 $6.50 $19.14 $20.43 Diluted weighted average number of shares (in thousands of shares) 18,384 19,517 18,519 19,540 1 The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non- GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company' s performance. See the Table above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and nine months ended September 30, 2025 and 2024. The non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.
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17 of 22 DANAOS CORPORATION Condensed Consolidated Balance Sheets - Unaudited (Expressed in thousands of United States dollars) As of As of September 30, December 31, 2025 2024 ASSETS CURRENT ASSETS Cash and cash equivalents $596,371 $453,384 Accounts receivable, net 30,832 25,578 Other current assets 240,107 192,005 867,310 670,967 NON-CURRENT ASSETS Fixed assets, net 3,245,135 3,290,309 Advances for vessels under construction 396,798 265,838 Deferred charges, net 60,830 58,759 Other non-current assets 44,662 57,781 3,747,425 3,672,687 TOTAL ASSETS $4,614,735 $4,343,654 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Long-term debt, current portion $77,288 $35,220 Accounts payable, accrued liabilities & other current liabilities 110,588 133,734 187,876 168,954 LONG-TERM LIABILITIES Long-term debt, net 675,242 699,563 Other long-term liabilities 41,028 50,337 716,270 749,900 STOCKHOLDERS’ EQUITY Common stock 183 190 Additional paid-in capital 603,400 650,864 Accumulated other comprehensive loss (66,850) (70,430) Retained earnings 3,173,856 2,844,176 3,710,589 3,424,800 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $4,614,735 $4,343,654
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18 of 22 DANAOS CORPORATION Condensed Consolidated Statements of Cash Flows - Unaudited (Expressed in thousands of United States dollars) Three months ended Three months ended Nine months ended Nine months ended September 30, September 30, September 30, September 30, 2025 2024 2025 2024 Operating Activities: Net income $130,649 $122,996 $376,700 $414,646 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 41,177 38,726 121,903 107,969 Amortization of deferred drydocking & special survey costs and finance costs 11,543 8,083 35,573 21,478 Amortization of assumed time charters - - - (4,534) Prior service cost and periodic cost 601 1,133 3,408 1,848 (Gain)/loss on investments (8,383) 2,808 (25,600) (10,395) Loss on debt extinguishment 1,082 - 1,082 - Net (gain)/loss on disposal of vessels - 443 - (6,651) Payments for drydocking/special survey costs deferred (7,513) (14,072) (35,318) (28,690) Amortization of deferred realized losses on cash flow interest rate swaps 913 913 2,709 2,719 Equity loss on investments 189 1,232 754 1,438 Stock based compensation 1,743 1,594 5,171 4,747 Accounts receivable 218 6,216 (2,368) (6,579) Other assets, current and non-current 7,042 2,568 18,567 23,775 Accounts payable and accrued liabilities (7,379) (6,728) (13,082) (961) Other liabilities, current and long-term (3,259) (8,368) (24,237) (55,699) Net Cash provided by Operating Activities 168,623 157,544 465,262 465,111 Investing Activities: Vessel additions and advances for vessels under construction (92,289) (239,353) (199,310) (581,208) Net proceeds and insurance proceeds from disposal of vessel - (443) 1,681 10,196 Investments in affiliates/marketable securities - (1,225) (30,270) (1,225) Net Cash used in Investing Activities (92,289) (241,021) (227,899) (572,237) Financing Activities: Proceeds from long-term debt - 118,000 44,000 299,000 Debt repayment (9,415) (6,290) (27,635) (20,040) Dividends paid (15,559) (15,476) (47,008) (46,487) Repurchase of common stock - (492) (53,212) (5,715) Finance costs (1,153) (375) (10,521) (7,105) Net Cash (used in)/provided by Financing Activities (26,127) 95,367 (94,376) 219,653 Net increase in cash and cash equivalents 50,207 11,890 142,987 112,527 Cash and cash equivalents, beginning of period 546,164 372,446 453,384 271,809 Cash and cash equivalents, end of period $596,371 $384,336 $596,371 $384,336
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19 of 22 DANAOS CORPORATION Reconciliation of Net Income to Adjusted EBITDA - Unaudited (Expressed in thousands of United States dollars) Three months ended Three months ended Nine months ended Nine months ended September 30, September 30, September 30, September 30, 2025 2024 2025 2024 Net income $130,649 $122,996 $376,700 $414,646 Depreciation 41,177 38,726 121,903 107,969 Amortization of deferred drydocking & special survey costs 10,762 7,485 33,247 19,909 Amortization of assumed time charters - - - (4,534) Amortization of finance costs and commitment fees 1,326 1,235 4,011 3,534 Amortization of deferred realized losses on interest rate swaps 913 913 2,709 2,719 Interest income (3,811) (3,124) (11,077) (8,983) Interest expense excluding amortization of finance costs 7,760 7,415 25,929 14,674 Change in fair value of investments (8,383) 2,808 (25,600) (10,395) Loss on debt extinguishment 1,082 - 1,082 - Stock based compensation 145 - 430 - Net (gain)/loss on disposal of vessels - 443 - (6,651) Adjusted EBITDA(1) $181,620 $178,897 $529,334 $532,888 Last twelve months ended Last twelve months ended September 30, December 31, 2025 2024 Net income $467,127 $505,073 Depreciation 162,278 148,344 Amortization of deferred drydocking & special survey costs 42,499 29,161 Amortization of assumed time charters - (4,534) Amortization of finance costs and commitment fees 5,382 4,905 Amortization of deferred realized losses on interest rate swaps 3,622 3,632 Interest income (14,984) (12,890) Interest expense excluding amortization of finance costs 35,114 23,859 Change in fair value of investments 9,974 25,179 Loss on debt extinguishment 1,082 - Stock based compensation 8,648 8,218 Net gain on disposal of vessels (1,681) (8,332) Adjusted EBITDA(1) $719,061 $722,615 1) Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs and commitment fees, amortization of deferred realized losses on interest rate swaps, adjusted for the change in fair value of investments, stock based compensation, loss on debt extinguishment and net gain/loss on disposal of vessels. However, Adjusted EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or “GAAP.” We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that EBITDA and Adjusted EBITDA assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that ou r future results will be unaffected by unusual or non -recurring items. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipp ing or other industries. Note: Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to net income. Charges negatively impacting net income are reflected as increases to net income. The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and nine months ended September 30, 2025 and September 30, 2024. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.
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20 of 22 DANAOS CORPORATION Reconciliation of Net Income to Adjusted EBITDA per segment Three Months Ended September 30, 2025 and Three Months Ended September 30, 2024 Unaudited (Expressed in thousands of United States dollars) Three Months Ended Three Months Ended September 30, 2025 September 30, 2024 Container Vessels Drybulk Vessels Other Total Container Vessels Drybulk Vessels Other Total Net income/(loss) $118,703 $3,404 $8,542 $130,649 $124,102 $62 $(1,168) $122,996 Depreciation 37,819 3,358 - 41,177 35,520 3,206 - 38,726 Amortization of deferred drydocking & special survey costs 8,406 2,356 - 10,762 6,927 558 - 7,485 Amortization of deferred finance costs and commitment fees 1,326 - - 1,326 1,235 - - 1,235 Amortization of deferred realized losses on interest rate swaps 913 - - 913 913 - - 913 Interest income (3,776) - (35) (3,811) (3,101) - (23) (3,124) Interest expense excluding amortization of finance costs 7,760 - - 7,760 7,415 - - 7,415 Change in fair value of investments - - (8,383) (8,383) - - 2,808 2,808 Loss on debt extinguishment 1,082 - - 1,082 - - - - Stock based compensation 135 10 - 145 - - - - Net loss on disposal of vessel - - - - 443 - - 443 Adjusted EBITDA(1) $172,368 $9,128 $124 $181,620 $173,454 $3,826 $1,617 $178,897 1) Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of deferred finance costs and commitment fees, amortization of deferred realized losses on interest rate swaps and adjusted for the change in fair value of investments, stock based compensation, loss on debt extinguishment and net loss on disposal of vessel. However, Adjusted EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or “GAAP.” We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that EBITDA and Adjusted EBITDA assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance . In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries. Note: Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to net income. Charges negatively impacting net income are reflected as increases to net income. The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and nine months ended September 30, 2025 and 2024. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.
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21 of 22 DANAOS CORPORATION Reconciliation of Net Income to Adjusted EBITDA per segment Nine Months Ended September 30, 2025 and Nine Months Ended September 30, 2024 Unaudited (Expressed in thousands of United States dollars) Nine Months Ended Nine Months Ended September 30, 2025 September 30, 2024 Contain er Vessels Drybulk Vessels Other Total Container Vessels Drybulk Vessels Other Total Net income/(loss) $353,641 $(2,872) $25,931 $376,700 $396,144 $2,689 $15,813 $414,646 Depreciation 111,973 9,930 - 121,903 100,775 7,194 - 107,969 Amortization of deferred drydocking & special survey costs 26,658 6,589 - 33,247 19,062 847 - 19,909 Amortization of assumed time charters - - - - (4,534) - - (4,534) Amortization of finance costs and commitment fees 4,011 - - 4,011 3,534 - - 3,534 Amortization of deferred realized losses on interest rate swaps 2,709 - - 2,709 2,719 - - 2,719 Interest income (10,984) - (93) (11,077) (8,960) - (23) (8,983) Interest expense excluding amortization of finance costs 25,929 - - 25,929 14,674 - - 14,674 Change in fair value of investments - - (25,600) (25,600) - - (10,395) (10,395) Loss on debt extinguishment 1,082 - - 1,082 - - - - Stock based compensation 400 30 - 430 - - - - Net gain on disposal of vessel - - - - (6,651) - - (6,651) Adjusted EBITDA(1) $515,419 $13,677 $238 $529,334 $516,763 $10,730 $5,395 $532,888 1) Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs and commitment fees, amortization of deferred realized losses on interest rate swaps and adjusted for the change in fair value of investments, stock based compensation, loss on debt extinguishment and net gain on disposal of vessel. However, Adjusted EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or “GAAP.” We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that EBITDA and Adjusted EBITDA assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries. Note: Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to net income. Charges negatively impacting net income are reflected as increases to net income. he Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and nine months ended September 30, 2025 and 2024. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.
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22 of 22 DANAOS CORPORATION Reconciliation of Net Income to Adjusted Net Income per segment Three Months Ended September 30, 2025 and Three Months Ended September 30, 2024 Unaudited (Expressed in thousands of United States dollars) Three Months Ended Three Months Ended September 30, 2025 September 30, 2024 Container Vessels Drybulk Vessels Other Total Container Vessels Drybulk Vessels Other Total Net income/(loss) $118,703 $3,404 $8,542 $130,649 $124,102 $62 $(1,168) $122,996 Change in fair value of investments - - (8,383) (8,383) - - 2,808 2,808 Loss on debt extinguishment 1,082 - - 1,082 Amortization of financing fees 781 - - 781 598 - - 598 Net loss on disposal of vessel - - - - 443 - - 443 Adjusted Net income/(loss)(1) $120,566 $3,404 $159 $124,129 $125,143 $62 $1,640 $126,845 Adjusted Earnings per Share, diluted $6.75 $6.50 Diluted weighted average number of shares (in thousands of shares) 18,384 19,517 DANAOS CORPORATION Reconciliation of Net Income to Adjusted Net Income per segment Nine Months Ended September 30, 2025 and Nine Months Ended September 30, 2024 Unaudited (Expressed in thousands of United States dollars) Nine Months Ended Nine Months Ended September 30, 2025 September 30, 2024 Container Vessels Drybulk Vessels Other Total Container Vessels Drybulk Vessels Other Total Net income/(loss) $353,641 $(2,872) $25,931 $376,700 $396,144 $2,689 $15,813 $414,646 Change in fair value of investments - - (25,600) (25,600) - - (10,395) (10,395) Loss on debt extinguishment 1,082 - - 1,082 - - - - Amortization of financing fees 2,326 - - 2,326 1,569 - - 1,569 Net gain on disposal of vessel - - - - (6,651) - - (6,651) Adjusted Net income/(loss)(1) $357,049 $(2,872) $331 $354,508 $391,062 $2,689 $5,418 $399,169 Adjusted Earnings per Share, diluted $19.14 $20.43 Diluted weighted average number of shares (in thousands of shares) 18,519 19,540 1) The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non -GAAP financial measures used in managing the business may provide users of this financial information additional meanin gful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non- GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Table above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and six months ended September 30, 2025 and 2024. Non-GAAP financial measures should be viewed in addition to, and not as an alternative f or, the Company’s reported results prepared in accordance with GAAP. The non -GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.