Costamare Bulkers Q2 2026 Earnings: Derivative Marks Widen the Adjusted Profit Gap

Costamare Bulkers Holdings Limited (NYSE: CMDB) reported Q2 2026 total voyage revenue of $111.6 million and diluted EPS of $0.21; the company did not present comparable Q2 2025 figures because it was not a separate legal entity before its May 2025 spin-off. GAAP net income was $5.2 million, compared with adjusted net income of $9.8 million, while quarterly operating cash flow was $1.3 million. The balance sheet remained net cash positive, with $331.5 million of liquidity at quarter-end.

Core Financial Results

Revenue comprised $100.5 million of voyage revenue and $11.1 million from related parties. Costamare Bulkers recorded $7.2 million of operating income, representing an operating margin of approximately 6.4%, before $2.0 million of net other expenses reduced GAAP net income to $5.2 million.

The company’s owned-and-chartered fleet model carried substantial operating costs during the quarter, including $38.9 million of charter-in hire expenses, $30.2 million of voyage expenses and $16.4 million of vessel operating expenses. The following figures cover only the three months ended June 30, 2026, because prior-year quarterly comparisons were not presented.

Fleet and Operating Platform

Costamare Bulkers operated an average of 29.8 owned vessels and chartered in an average of 23.1 third-party vessels during Q2. The owned fleet generated 2,715 ownership days and achieved 99.1% utilization, with daily vessel operating expenses of $6,036.

As of July 31, 2026, the owned fleet consisted of 30 dry bulk vessels, including one agreed for sale, with approximately 2.7 million DWT of capacity. The fleet included six Capesize, seven Kamsarmax, nine Ultramax and eight Supramax vessels. Twenty-three vessels were on period charters, of which 12 had index-linked rates and 11 had fixed rates.

The operating platform had 26 third-party-owned vessels and was primarily focused on Kamsarmax and Panamax ships. Costamare Bulkers completed the transfer of the legacy trading portfolio designated for Cargill, with no related trading-book transfers still pending. Management nevertheless expects three other legacy positions to remain until they are cleared by year-end.

Fleet renewal also continued. The company took delivery of the 60,297-DWT Astros during Q2 and agreed to sell the 2009-built Bermondi. The latter was classified as held for sale at June 30, but no impairment loss was recorded because estimated fair value less selling costs exceeded carrying value. Completion of the sale is expected in Q3 2026.

Derivative Marks Widened the Gap Between Adjusted and GAAP Profit

Adjusted net income exceeded GAAP net income by approximately $4.6 million. The largest reconciliation item was a $3.7 million adjustment for losses on derivative instruments excluding realized effects. Other additions included $1.1 million of non-cash general and administrative expenses and $0.6 million of operating-platform realignment costs, partly offset by deferred charter-in expense and amortization adjustments.

The consolidated income statement separately recorded a net derivative loss of $0.8 million, which included realized components. Because the derivatives do not qualify for hedge accounting, changes in fair value flow through reported earnings. Their aggregate fair value was a net liability of $1.0 million at June 30, making derivative marks an important source of potential volatility between GAAP and adjusted results.

Cash Flow and Balance Sheet

Quarterly operating cash flow of $1.3 million trailed GAAP net income of $5.2 million. The largest reported cash use within operating assets and liabilities was a $15.5 million change in prepayments and other assets. Decreases in accrued liabilities and accounts payable also used cash, while a $6.4 million increase in unearned revenue provided a partial offset.

Investing activities used $21.4 million, mainly because of $21.9 million in vessel acquisition advances and additions to vessel costs. Financing activities used another $3.6 million for debt repayments. Consequently, cash, cash equivalents and restricted cash decreased by $23.7 million during the quarter to $234.8 million.

Despite that quarterly decline, liquidity totaled $331.5 million at June 30. This consisted of $234.8 million in cash and cash equivalents including restricted cash, $12.0 million of margin deposits and $84.7 million of undrawn facility capacity. Cash including margin deposits exceeded approximately $137.9 million of debt by $108.9 million.

Management Commentary

CEO Gregory Zikos described a volatile dry bulk market, particularly for Capesize vessels. He attributed the volatility to geopolitical uncertainty, energy-market turbulence and weather disruptions. Capesize rates peaked in late May before falling by nearly $20,000 per day through the end of June, although management said they subsequently remained at robust levels.

The Panamax market benefited from Capesize conditions and renewed Chinese seaborne coal demand. Supramax rates followed a more gradual upward trend, supported by grain and minor-bulk volumes as well as higher Liberian iron ore exports. Management also said the company’s net cash position could support countercyclical fleet growth if vessel values decline.

Risks for Investors

• Freight-rate volatility: Capesize rates moved sharply during the quarter, while 12 owned-fleet period charters remain index-linked. Rate declines can therefore flow through to revenue and earnings, although the company can elect to convert those contracts to fixed rates using the prevailing FFA curve.
• Derivative and legacy-position exposure: Derivatives produced a quarterly earnings adjustment of $3.7 million excluding realized effects, and three legacy trading positions are expected to remain through year-end.
• Weak quarterly cash conversion: Operating cash flow was only $1.3 million despite $5.2 million of net income, largely because of working-capital movements. Continued cash use could reduce the flexibility provided by the current liquidity position.
• Short-term charter-in exposure: Most of the platform’s Kamsarmax and Panamax vessels are chartered in under short-term period charters or time-charter trips, making results sensitive to changing freight rates and the spread between charter-in and charter-out economics.

Summary

Costamare Bulkers was profitable in Q2 2026 and maintained 99.1% owned-fleet utilization, but derivative marks and other non-cash items created a substantial gap between GAAP and adjusted earnings. Its net cash position provides financial flexibility, while freight-rate volatility, short-term charter exposure, cash conversion and the removal of remaining legacy positions are the principal items to monitor in coming quarters.