Genco Declares $0.50 Dividend as EBITDA Jumps 94% Sequentially
Company declared a $0.50 per share Q4 dividend based on $41 million operating cash flow and a $19.5 million reserve, marking its highest payout since Q4 2022 while adjusted EBITDA rose 94% sequentially to $42 million. Genco expects Q1 2026 TCE of $18,000 per day for 80% of the quarter.
1. Dividend and Cash Flow Results
The board approved a $0.50 per share dividend for Q4, funded by $41 million in operating cash flow and a $19.5 million voluntary reserve, representing the largest quarterly payout since late 2022 under the policy of distributing 100% of operating cash flow minus reserves.
2. EBITDA and Net Income Growth
Adjusted EBITDA reached $42 million in Q4, a 94% sequential increase, while adjusted net income was $17.3 million, or $0.40 per share, excluding $1.9 million of shareholder-related expenses. Full-year 2025 adjusted EBITDA totaled $85.9 million.
3. Fleet Expansion and Financing
Genco agreed to acquire two Newcastlemax vessels built in 2020 for $131 million of remaining capex, to be funded mainly via revolver proceeds and an $80 million accordion increase to its $600 million credit facility, boosting total capacity to $680 million and maintaining net loan-to-value at 12%.
4. Q1 2026 Guidance and Operating Costs
Management forecasts Q1 2026 TCE of $18,000 per day for 80% of the quarter, the strongest seasonal outlook since 2024, with a cash flow break-even of $9,715 per vessel per day. Vessel operating expenses are expected to rise slightly due to crew timing before returning to Q4 levels later in the year.