Danaos Corp_2025-06-30

EXHIBIT 99.1

DANAOS CORPORATION

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The following discussion and analysis should be read in conjunction with our interim condensed consolidated financial statements (unaudited) and the notes thereto included elsewhere in this report.

Results of Operations

Three months ended June 30, 2025 compared to three months ended June 30, 2024

During the three months ended June 30, 2025, Danaos had an average of 74 container vessels and 10 Capesize drybulk vessels compared to 68.7 container vessels and 7.6 drybulk vessels during the three months ended June 30, 2024. Our container vessels utilization for the three months ended June 30, 2025 was 98.4% compared to 97.4% for the three months ended June 30, 2024. Our drybulk vessels utilization for the three months ended June 30, 2025 was 99.8% compared to 87.0% in the three months ended June 30, 2024.

Operating Revenues

Operating revenues increased by $15.9 million, to $262.2 million in the three months ended June 30, 2025 from $246.3 million in the three months ended June 30, 2024.

Operating revenues of our container vessels segment increased by 3.9%, or $8.9 million, to $239.4 million in the three months ended June 30, 2025, compared to $230.5 million in the three months ended June 30, 2024, analyzed as follows:

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$19.7 million increase in revenues as a result of newbuilding containership vessel additions;

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$2.7 million increase in revenues as a result of higher fleet utilization between the two periods;

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$8.2 million decrease in revenues as a result of lower charter rates between the two periods; and

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$5.3 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 44.3%, or $7.0 million, to $22.8 million in the three months ended June 30, 2025, compared to $15.8 million of revenues in the three months ended June 30, 2024, analyzed as follows:

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$6.9 million increase in revenues as a result of dry bulk vessel acquisitions; and

●

$0.1 million net increase in revenues as a result of higher dry bulk vessel utilization partially offset by lower charter rates between the two periods.

Voyage Expenses

Voyage expenses increased by $4.1 million to $16.8 million in the three months ended June 30, 2025 from $12.7 million in the three months ended June 30, 2024, mainly driven by a $3.6 million increase in voyage expenses of our dry bulk vessels, attributed to the different mix of time charter and voyage charter contracts under which our dry bulk vessels were deployed between the two periods.

Voyage expenses of our container vessels segment increased by $0.4 million to $8.9 million in the three months ended June 30, 2025, from $8.5 million in the three months ended June 30, 2024, mainly due to increased commissions. For the three months ended June 30, 2025, total voyage expenses of our container vessels comprised of $8.5 million in commissions and $0.4 million in other voyage expenses, compared to $8.0 million in commissions and $0.5 million in other voyage expenses for the three months ended June 30, 2024.

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Voyage expenses of our drybulk vessels segment increased by $3.7 million to $7.9 million in the three months ended June 30, 2025 compared to $4.2 million voyage expenses in the three months ended June 30, 2024. For the three months ended June 30, 2025, voyage expenses of our drybulk vessels comprised of $1.5 million in commissions and $6.4 million in other voyage expenses, mainly comprised of bunkers cost and port expenses, compared to $0.9 million in commissions and $3.3 million in other voyage expenses for the three months ended June 30, 2024.

Vessel Operating Expenses

Vessel operating expenses increased by $9.3 million to $56.4 million in the three months ended June 30, 2025 from $47.1 million in the three months ended June 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, combined with an increase in the average daily operating cost of our vessels to $7,556 per vessel per day for the three months ended June 30, 2025 compared to $6,961 per vessel per day for the three months ended June 30, 2024, mainly due to increased total repairs & maintenance expenses between the two periods. Management believes that our daily operating costs remain among the most competitive in the industry.

Depreciation

Depreciation expense increased by $5.3 million, to $40.7 million in the three months ended June 30, 2025 from $35.4 million in the three months ended June 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 dry-docking and special survey costs increased by $4.5 million to $11.5 million in the three months ended June 30, 2025, from $7.0 million in the three months ended June 30, 2024, reflecting a larger number of vessels drydocked for which vessels drydocking amortization costs were recognized during the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

General and Administrative Expenses

General and administrative expenses decreased by $0.1 million, to $11.2 million in the three months ended June 30, 2025 from $11.3 million in the three months ended June 30, 2024.

Net Gain on Disposal / Sale of Vessels

During the three months ended June 30, 2024 we recognized a $7.1 million gain on the disposal of vessel Stride, while we did not have any vessel sale and associated gain or loss during the three months ended June 30, 2025.

Interest Expense and Interest Income

Interest expense increased by $4.6 million, to $9.7 million, in the three months ended June 30, 2025 from $5.1 million in the three months ended June 30, 2024. The increase in interest expense is a result of:

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$3.5 million increase in interest expense due to an increase in our average indebtedness by $264.9 million between the two periods. Average indebtedness was $776.9 million in the three months ended June 30, 2025, compared to average indebtedness of $512.0 million in the three months ended June 30, 2024. This increase was also partially offset by a decrease in our debt service cost by approximately 0.9% as a result of lower SOFR rates between the two periods;

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$0.8 million increase in interest expense due to a decrease in the amount of interest expense capitalized on our vessels under construction that was $4.8 million in the three months ended June 30, 2025, when compared to capitalized interest of $5.6 million in the three months ended June 30, 2024; and

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$0.3 million increase in the amortization of deferred finance costs between the two periods.

As of June 30, 2025, our outstanding debt, gross of deferred finance costs, was $770.3 million, which included $262.8 million principal amount of our Senior Notes. These balances compare to debt of $577.8 million, which included $262.8 million principal amount of our Senior Notes, gross of deferred finance costs, as of June 30, 2024. The increase in our outstanding debt is due to loans drawn down to partially finance our container vessel newbuilding deliveries.

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Interest income increased by $0.8 million to $3.7 million in the three months ended June 30, 2025 compared to $2.9 million in the three months ended June 30, 2024, mainly driven by higher average cash balances between the two periods.

Gain on Investments

The change in fair value of our shareholding interest in Star Bulk Carriers Corp. (“SBLK”) of $14.7 million was recognized in the three months ended June 30, 2025 as gain on investments compared to a $2.2 million gain on investments representing the change in fair value of this investment in the three months ended June 30, 2024.

Dividend Income

Dividend income of $0.3 million was derived from our investment in marketable securities in the three months ended June 30, 2025 compared to $3.1 million of dividend income in the three months ended June 30, 2024.

Equity Loss on Investments

Equity loss on investments amounting to $0.3 million and $0.1 million in the three months June 30, 2025 and June 30, 2024, respectively, relates to our share of 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 increased by $0.1 million to $1.0 million in the three months ended June 30, 2025 compared to $0.9 million in the three months ended June 30, 2024.

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 June 30, 2025 and June 30, 2024.

Other Income/(expenses), net

Other income/expenses, net amounted to an expense of $1.4 million in the three months ended June 30, 2025 compared to an expense of $0.1 million in the three months ended June 30, 2024.

Six months ended June 30, 2025 compared to six months ended June 30, 2024

During the six months ended June 30, 2025, Danaos had an average of 73.9 container vessels and 10 Capesize drybulk vessels compared to 68.3 container vessels and 7.3 Capesize drybulk vessels during the six months ended June 30, 2024. Our container vessels utilization for the six months ended June 30, 2025 was 97.8% compared to 97.3% for the six months ended June 30, 2024. Our drybulk vessels utilization for the six months ended June 30, 2025 was 96.1% compared to 90.2% in the six months ended June 30, 2024.

Operating Revenues

Operating revenues increased by $15.7 million, to $515.5 million in the six months ended June 30, 2025 from $499.8 million in the six months ended June 30, 2024.

Operating revenues of our container vessels segment increased by 2.5%, or $11.7 million, to $475.7 million in the six months ended June 30, 2025, compared to $464.0 million in the six months ended June 30, 2024, analyzed as follows:

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$43.6 million increase in revenues as a result of newbuilding containership vessel additions;

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$17.5 million decrease in revenues as a result of lower charter rates between the two periods;

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$10.7 million decrease in revenues due to lower non-cash revenue recognition in accordance with US GAAP;

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$3.5 million decrease in revenues as a result of lower fleet utilization between the two periods; and

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$0.2 million decrease in revenues due to the disposal of one containership vessel.

Operating revenues of our drybulk vessels segment increased by 11.2%, or $4.0 million, to $39.8 million in the six months ended June 30, 2025, compared to $35.8 million of revenues in the six months ended June 30, 2024, analyzed as follows:

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$13.0 million increase in revenues as a result of dry bulk vessel acquisitions; and

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$9.0 million net decrease in revenues as a result of lower charter rates partially offset by higher fleet utilization between the two periods.

Voyage Expenses

Voyage expenses increased by $1.9 million to $34.9 million in the six months ended June 30, 2025 from $33.0 million in the six months ended June 30, 2024, mainly driven by a $1.4 million increase in commissions.

Voyage expenses of our container vessels segment increased by $1.0 million to $17.7 million in the six months ended June 30, 2025, from $16.7 million in the six months ended June 30, 2024, mainly due to increased commissions. For the six months ended June 30, 2025, total voyage expenses of our container vessels comprised of $17.0 million in commissions and $0.7 million in other voyage expenses compared to $15.8 million in commissions and $0.9 million in other voyage expenses for the six months ended June 30, 2024.

Voyage expenses of our drybulk vessels segment increased by $0.9 million to $17.2 million in the six months ended June 30, 2025 compared to $16.3 million voyage expenses in the six months ended June 30, 2024. For the six months ended June 30, 2025, voyage expenses of our drybulk vessels comprised of $2.4 million in commissions and $14.8 million in other voyage expenses, mainly comprised of bunkers cost and port expenses, compared to $2.2 million in commissions and $14.1 million in other voyage expenses for the six months ended June 30, 2024.

Vessel Operating Expenses

Vessel operating expenses increased by $17.9 million to $108.1 million in the six months ended June 30, 2025 from $90.2 million in the six months ended June 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, combined with an increase in the average daily operating cost of our vessels to $7,294 per vessel per day for the six months ended June 30, 2025 compared to $6,729 per vessel per day for the six months ended June 30, 2024, mainly due to increased total repairs & maintenance expenses between the two periods. Management believes that our daily operating costs remain among the most competitive in the industry.

Depreciation

Depreciation expense increased by $11.5 million, to $80.7 million in the six months ended June 30, 2025 from $69.2 million in the six months ended June 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 dry-docking and special survey costs increased by $10.1 million to $22.5 million in the six months ended June 30, 2025, from $12.4 million in the six months ended June 30, 2024, reflecting a larger number of vessels drydocked for which vessels drydocking amortization costs were recognized during the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

General and Administrative Expenses

General and administrative expenses increased by $1.9 million, to $23.4 million in the six months ended June 30, 2025 from $21.5 million in the six months ended June 30, 2024. The increase was mainly attributable to $1.6 million higher management fees due to the increase in the average number of vessels in our fleet and a $0.3 million increase in corporate general and administrative expenses.

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Net Gain on Disposal / Sale of Vessels

During the six months ended June 30, 2024 we recognized a $7.1 million gain on the disposal of vessel Stride, while we did not have any vessel sale and associated gain or loss during the six months ended June 30, 2025.

Interest Expense and Interest Income

Interest expense increased by $11.5 million, to $19.7 million, in the six months ended June 30, 2025 from $8.2 million in the six months ended June 30, 2024. The increase in interest expense is a result of:

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$8.7 million increase in interest expense due to an increase in our average indebtedness by $314.4 million between the two periods. Average indebtedness was $777.2 million in the six months ended June 30, 2025, compared to average indebtedness of $462.8 million in the six months ended June 30, 2024. This increase was also partially offset by a decrease in our debt service cost by approximately 1% as a result of lower SOFR rates between the two periods;

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$2.2 million increase in interest expense due to a decrease in the amount of interest expense capitalized on our vessels under construction that was $9.3 million in the six months ended June 30, 2025, when compared to capitalized interest of $11.5 million in the six months ended June 30, 2024; and

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$0.6 million increase in the amortization of deferred finance costs between the two periods.

Interest income increased by $1.5 million to $7.3 million in the six months ended June 30, 2025 compared to $5.8 million in the six months ended June 30, 2024, mainly driven by higher average cash balances between the two periods.

Gain on Investments

The change in fair value of our shareholding interest in Star Bulk Carriers Corp. (“SBLK”) of $17.2 million was recognized in the six months ended June 30, 2025 as gain on investments compared to a $13.2 million gain on investments representing the change in the fair value of this investment in the six months ended June 30, 2024.

Dividend Income

Dividend income of $0.7 million was derived from our investment in marketable securities in the six months ended June 30, 2025 compared to $4.0 million of dividend income in the six months ended June 30, 2024.

Equity Loss on Investments

Equity loss on investments amounting to $0.6 million and $0.2 million in the six months June 30, 2025 and June 30, 2024, respectively, relates to our share of 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 increased by $0.3 million to $2.0 million in the six months ended June 30, 2025 compared to $1.7 million in the six months ended June 30, 2024.

Loss on Derivatives

Amortization of deferred realized losses on interest rate swaps remained stable at $1.8 million in each of the six months ended June 30, 2025 and June 30, 2024.

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Other Income/(expenses), net

Other income/expenses, net amounted to expense of $0.9 million in the six months ended June 30, 2025 compared to income of $0.2 million in the six months ended June 30, 2024.

Liquidity and Capital Resources

Our principal source of funds has been operating cash flows and long-term bank borrowings, as well as funds from issuances of equity and debt securities, including offerings of our common stock, most recently in 2019, and unsecured senior notes in 2021. We have also received funds from dividend payments on and sales of investments in marketable securities of other shipping companies. Our principal uses of funds have been capital expenditures to establish, grow and maintain our fleet, including our expansion into the drybulk shipping sector, comply with international shipping standards, environmental laws and regulations and to fund working capital requirements and repayment of debt.

Our short-term liquidity needs primarily relate to the funding of our vessel operating expenses, drydocking costs, installment payments for our contracted containership newbuildings, debt interest payments, servicing our debt obligations, payment of dividends and repurchases of our common stock. Our long-term liquidity needs primarily relate to installment payments for our contracted newbuildings and any additional vessel acquisitions in the containership or drybulk sector and debt repayment. We anticipate that our primary sources of funds will be cash from operations and equity or debt financings. We currently expect that the sources of funds available to us will be sufficient to meet our short-term liquidity and long-term liquidity requirements.

Under our existing multi-year charters as of June 30, 2025, we had $3.5 billion of total contracted cash revenues, with $469.2 million for the remainder of 2025, $864.2 million for 2026 and $2.2 billion thereafter. Although these contracted cash revenues are based on contracted charter rates, we are dependent on the ability and willingness of our charterers to meet their obligations under these charters. In May 2022, we received a $238.9 million charter hire prepayment related to charter contracts for 15 of our vessels, representing partial prepayment of charter hire payable during the period from May 2022 through January 2027. This prepayment is recorded as unearned revenue on our balance sheet and recognized as revenue in our income statement over the term of the applicable charters.

As of June 30, 2025, we had cash and cash equivalents of $546.2 million. Additionally, as of June 30, 2025, there was $270.0 million of remaining borrowing availability under our Citibank $382.5 mil. Revolving Credit Facility, $44.0 million under our Syndicated $450.0 million Facility and $850.0 million under our Syndicated $850.0 million Facility. As of June 30, 2025, we had $770.3 million of outstanding indebtedness (gross of deferred finance costs), including $262.8 million relating to our Senior Notes. As of June 30, 2025, we were obligated to make quarterly fixed amortization payments, totaling $37.7 million to June 30, 2026, related to the long-term bank debt. See “—Credit Facilities” below. We are also obligated to make certain payments to our Manager, Danaos Shipping, and Danaos Chartering under our management agreements.

In 2022, 2023, 2024 and 2025, we entered into contracts for the construction of a total of 23 containerships aggregating 186,618 TEU in capacity for an aggregate purchase price of $2.1 billion. As of June 30, 2025, seven of these newbuilding containerships had been delivered to us. The aggregate purchase price of the remaining sixteen vessel construction contracts amounts to $1,516.6 million, out of which $62.2 million, $180.4 million and $40.0 million was paid in the six months ended June 30, 2025 and in the years ended December 31, 2024 and 2023, respectively.

The remaining contractual commitments under these 16 vessel construction contracts are analyzed as follows as of June 30, 2025 (in millions of U.S. dollars):


Payments due by period ending	US$ mil.
December 31, 2025	$	113.9
December 31, 2026		435.2
December 31, 2027		590.4
December 31, 2028		94.5
Total contractual commitments	$	1,234.0

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Additionally, a supervision fee of $850 thousand per newbuilding vessel is payable to Danaos Shipping Company Limited (the “Manager”) over the construction period. Supervision fees totaling $0.4 million and $3.0 million were charged by the Manager and capitalized to the vessels under construction in the six months ended June 30, 2025 and in the year ended December 31, 2024, respectively. Interest expense amounting to $9.3 million and $21.5 million was capitalized to the vessels under construction in the six months ended June 30, 2025 and in the year ended December 31, 2024, respectively.

On May 13, 2025, we declared a dividend of $0.85 per share of common stock which was paid on June 5, 2025 to holders of record on May 27, 2025, and on August 4, 2025, we declared a dividend of $0.85 per share of common stock payable on August 28, 2025, to holders of record on August 19, 2025. We intend to pay a regular quarterly dividend on our common stock, which will have an impact on our liquidity. Payments of dividends are subject to the discretion of our board of directors, provisions of Marshall Islands law affecting the payment of distributions to stockholders and the terms of our credit facilities, which permit the payment of dividends so long as there has been no event of default thereunder nor would occur as a result of such dividend payment, finance leases and Senior Notes, which include limitations on the amount of dividends and other restricted payments that we may make, and will be subject to conditions in the container and drybulk shipping industries, our financial performance and us having sufficient available excess cash and distributable reserves.

In June 2022, we announced a share repurchase program of up to $100 million of our common stock. A $100 million increase to the existing share repurchase program, for a total aggregate amount of $200 million, was approved by our Board of Directors on November 10, 2023. On April 14, 2025, following Board approval, the Company announced the upsizing of its common stock repurchase program by an additional $100 million to a total of $300 million. We repurchased 678,060 shares of our common stock in the open market for $52.7 million in the six months ended June 30, 2025; 661,103 shares for $53.8 million in the year ended December 31, 2024; 1,131,040 shares for $70.6 million in the year ended December 31, 2023 and 466,955 shares for $28.6 million in the year ended December 31, 2022. All purchases have been made on the open market within the safe harbor provisions of Regulation 10b-18 under the Exchange Act. Under the share repurchase program, shares of our common stock may be purchased in open market or privately negotiated transactions, at times and prices that are considered to be appropriate by the Company, and the program may be suspended or discontinued at any time.

We may also at any time and from time to time, seek to retire or purchase our outstanding debt securities through cash purchases, in open-market purchases, privately negotiated transactions or otherwise.

Star Bulk Carriers Corp. Shares

In June 2023, we acquired marketable securities of Eagle Bulk Shipping Inc., which was an owner of bulk carriers listed on the New York Stock Exchange (Ticker: EGLE) consisting of 1,552,865 shares of common stock for $68.2 million (out of which $24.4 million from Virage International Ltd., our related company).

On December 11, 2023, Star Bulk Carriers Corp. (Ticker: SBLK) and EGLE announced that both companies had entered into a definitive agreement to combine in an all-stock merger, which was completed on April 9, 2024. Under the terms of the agreement, EGLE shareholders received 2.6211 shares of SBLK common stock in exchange for each share of EGLE common stock owned. During the six months ended June 30, 2025, we purchased an additional 2,185,967 shares of common stock of “SBLK” in the open market for $29.9 million. As a result, as of August 1, 2025, we own 6,256,181 shares of common stock of Star Bulk Carriers Corp., a Nasdaq-listed owner and operator of drybulk vessels.

As of June 30, 2025 and December 31, 2024, these marketable securities were fair valued at $107.9 million and $60.9 million, respectively. We recognized a $17.2 million gain and a $13.2 million gain on these marketable securities reflected under “Gain / (loss) on investments” in the condensed consolidated statement of income for the six months ended June 30, 2025 and June 30, 2024, respectively. Additionally, we recognized dividend income on these shares amounting to $0.7 million in the six months ended June 30, 2025 and $4.0 million for the six months ended June 30, 2024.

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Carbon Termination Technologies Corporation

In March 2023, we invested $4.3 million in the common shares of a newly established company Carbon Termination Technologies Corporation (“CTTC”), incorporated in the Republic of the Marshall Islands, that engages in research and development of decarbonization technologies for the shipping industry. This investment represents a 49% ownership interest which is recorded in our books under equity method of accounting. In 2024 and 2025 we have also provided CTTC with additional funding of $2.1 million in the form of debt which bears interest at a rate of SOFR plus a margin of 2% and has a maturity date of December 31, 2025. Our share of CTTC’s expenses amounted to $0.6 million and $0.2 million for the six months ended June 30, 2025 and June 30, 2024, respectively, and is presented in the consolidated statements of income under “Equity loss on investments”.

Impact of Inflation and Interest Rates Risk on our Business

We continue to see near-term impacts on our business due to elevated inflation in the United States of America, Eurozone and other countries, including ongoing global prices pressures in the wake of the war in Ukraine, driving up energy prices and commodity prices, which continue to affect our operating expenses to a moderate extent. Interest rates have increased rapidly and substantially as central banks in developed countries raised interest rates in an effort to subdue inflation. The eventual long-term implications of tight monetary policy, and higher long-term interest rates may continue to drive a higher cost of capital for our business, including because borrowings under our credit facilities, which are increasing as we fund the cost of out contracted container vessel newbuildings, are advanced at a floating rate based on SOFR and we do not have any interest rate hedging arrangements.

Tariffs

Trade protectionism, including in the form of tariffs, could significantly adversely affect global economic conditions, global trade volume and the demand for seaborne transportation of containerized cargo. In April 2025, the United States imposed blanket 10% tariffs on virtually all imports to the U.S. and significantly higher tariffs applicable to imports from many countries, including tariffs aggregating over 100% on imports from China, plus tariffs on specific goods which have resulted in other countries imposing additional tariffs on imports from the U.S., including substantial additional tariffs on imports from the U.S., announced by China, and is likely to continue to result in more retaliatory tariffs. On April 9, 2025, the U.S. announced a temporary pause on its tariffs applicable to many countries, while increasing the tariffs applicable to imports from China, with the U.S. subsequently announcing the imposition of substantial tariffs, well in excess of the blanket 10% tariff threshold previously announced, on numerous countries and specific goods effective from August 1, 2025. The new U.S. administration has threatened to continue to broadly impose tariffs, which could lead to corresponding punitive actions by the countries with which the U.S. trades.

In April 2025, the U.S. also announced that it would impose additional port fees on (1) Chinese-owned ships of $50 per net ton for the arriving vessel commencing October 14, 2025, increasing to $80 per net ton on April 17, 2026, $110 per net ton on April 17, 2027 and $140 per net ton on April 17, 2028 and (2) operators of Chinese-built vessels of $18 per net ton ($120 per container, if applicable) commencing October 14, 2025, increasing to $23 per net ton ($153 per container, if applicable) on April 17, 2026, $28 per net ton ($195 per container, if applicable) on April 17, 2027 and $33 per net ton ($250 per container, if applicable) on April 17, 2028. The fees will be charged up to five times per year, per vessel. It is unknown the effect that these proposed new port fees, whether adopted in the form proposed or with modifications, will have on us and our fleet, which includes a number of Chinese-built vessels, or our industry generally.

These policy pronouncements have created significant uncertainty about the future relationship between the United States and China, Canada, Mexico, the EU and other exporting countries, including with respect to trade policies, treaties, government regulations and tariffs, and has led to concerns regarding the potential for an extended trade war. While the ultimate impact such protectionist developments, or the perception they may occur, will have on our industry and us is currently unknown, such developments may have a material adverse effect on global economic conditions, and may significantly reduce global trade, which could adversely and materially affect freight rates and charter rates for our containerships to the extent we are seeking employment for our vessels and our business, results of operations, and financial condition.

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Segments

Until the acquisition of the drybulk vessels in 2023, we reported financial information and evaluated our operations by total charter revenues. Since 2023, for management purposes, we are organized based on operating revenues generated from container vessels and drybulk vessels and have two reporting segments: (1) a container vessels segment and (2) a drybulk vessels segment. The container vessels segment owns and operates container vessels which are primarily chartered on multi-year, fixed-rate time charter and bareboat charter agreements. The drybulk vessels segment owns and operates drybulk vessels to provide drybulk commodities transportation services.

Our chief operating decision maker monitors and assesses the performance of the container vessels segment and the drybulk vessels segment 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 segment includes components that are not allocated to any of our reportable segments and includes investments in affiliate accounted for using the equity method of accounting and investments in marketable securities.

The following table summarizes our selected financial information for the six months ended and as of June 30, 2025, by segment (in thousands):


	Container		Dry bulk vessels
Income Statement Metrics for the six months ended June 30, 2025 (thousands US$)	vessels segment		segment		Total
Operating revenues	$	475,636	$	39,825	$	515,461
Voyage expenses		(17,734)		(17,211)		(34,945)
Vessel operating expenses		(92,571)		(15,516)		(108,087)
Depreciation		(74,154)		(6,572)		(80,726)
Amortization of deferred drydocking and special survey costs		(18,252)		(4,233)		(22,485)
Interest income		7,208		—		7,208
Interest expense		(19,714)		—		(19,714)
Other segment items ⁽¹⁾		(25,481)		(2,569)		(28,050)
Net Income per segment	$	234,938	$	(6,276)	$	228,662
Gain on investments, dividend income and equity loss on investments, net of interest income						17,389
Net Income					$	246,051

1.	Other segment items for each reportable segment include general and administrative expenses, other finance expenses, other income/(expenses) and loss on derivatives


	Container		Dry bulk vessels
Balance Sheet Metrics as of June 30, 2025 (thousands US$)	vessels segment		segment		Total
Total Assets per segment	$	4,147,326	$	265,676	$	4,413,002
Marketable Securities						107,919
Receivable from affiliates						239
Total Assets					$	4,521,160

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The following table summarizes our selected financial information for the six months ended and as of June 30, 2024, by segment (in thousands):


	Container		Dry bulk
Income Statement Metrics for the six months ended June 30, 2024 (thousands US$)	vessels segment		vessels segment		Total
Operating revenues	$	463,997	$	35,758	$	499,755
Voyage expenses		(16,741)		(16,279)		(33,020)
Vessel operating expenses		(79,430)		(10,774)		(90,204)
Depreciation		(65,255)		(3,988)		(69,243)
Amortization of deferred drydocking and special survey costs		(12,135)		(289)		(12,424)
Interest income		5,859		—		5,859
Interest expense		(8,230)		—		(8,230)
Gain on disposal of vessel		7,094		—		7,094
Other segment items ⁽¹⁾		(23,117)		(1,801)		(24,918)
Net Income per segment	$	272,042	$	2,627	$	274,669
Gain on investments, dividend income and equity loss on investments						16,981
Net Income					$	291,650

1.	Other segment items for each reportable segment include general and administrative expenses, other finance expenses, other income/(expenses) and loss on derivatives


	Container		Dry bulk
Balance Sheet Metrics as of June 30, 2024 (thousands US$)	vessels segment		vessels segment		Total
Total Assets per segment	$	3,710,004	$	237,057	$	3,947,061
Marketable Securities						99,232
Investment in affiliates						64
Total Assets					$	4,046,357

Cash Flows


	Six Months		Six Months
	ended		ended
	June 30, 2025		June 30, 2024

	(In thousands US$)
Net cash provided by operating activities	$	296,639	$	307,567
Net cash used in investing activities	$	(135,610)	$	(331,216)
Net cash (used in) / provided by financing activities	$	(68,249)	$	124,286

Net Cash Provided by Operating Activities

Net cash flows provided by operating activities decreased by $11.0 million, to $ 296.6 million provided by operating activities in the six months ended June 30, 2025 compared to $307.6 million provided by operating activities in the six months ended June 30, 2024. The decrease was the combined result of: (i) a $20.2 million increase in total operating expenses, (ii) a $13.2 million increase in dry-docking expenses, (iii) a $11.4 million increase in net finance costs and (iv) a $3.3 million decrease in dividend income, partially offset by: (v) a $27.0 million increase in cash operating revenues and (vi) a $10.1 million positive change in working capital.

Net Cash Used in Investing Activities

Net cash flows used in investing activities improved by $195.6 million, to $135.6 million used in investing activities in the six months ended June 30, 2025 compared to $331.2 million used in investing activities in the six months ended June 30, 2024. The improvement was due to: (i) $166.1 million lower payments for vessels under construction, (ii) $60.1 million lower payments for vessel acquisitions, and (iii) an $8.7 million decrease in vessel cost additions, partially offset by: (iv) a $30.3 million increase in investments and (v) a $9.0 million decrease in net proceeds and insurance proceeds from disposal of vessel.

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Net Cash (Used in) / Provided by Financing Activities

Net cash flows (used in)/provided by financing activities decreased by $192.5 million, to a financing activities outflow of $68.2 million in the six months ended June 30, 2025 compared to a financing activities inflow of $124.3 million in the six months ended June 30, 2024. This decrease is attributed to (i) a decrease of $137.0 million in debt proceeds, (ii) a $4.5 million increase in amortization payments of long-term debt, (iii) a $2.6 million increase in finance costs, (iv) a $48.0 million increase in repurchase of our common stock and (v) a $0.4 million decrease in dividend payments on our common stock.

Non-GAAP Financial Measures

We report our financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). Management believes, however, 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 our performance. See the table below for supplemental financial data and corresponding reconciliation to GAAP financial measures. The non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. The non-GAAP financial measures as presented below may not be comparable to similarly titled measures of other companies in the shipping or other industries.

EBITDA and Adjusted EBITDA

EBITDA represents net income before interest income and expense, depreciation, as well as amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred realized losses on interest rate swaps, amortization of finance costs and commitment fees. 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 realized losses of cash flow interest rate swaps, amortization of finance costs and commitment fees, change in fair value of investments and stock-based compensation of executives and employees. We 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. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. EBITDA and Adjusted EBITDA are also used: (i) by prospective and current customers as well as potential lenders to evaluate potential transactions; and (ii) to evaluate and price potential acquisition candidates. Our EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.

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EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Some of these limitations are: (i) EBITDA/Adjusted EBITDA does not reflect changes in, or cash requirements for, working capital needs; and (ii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA/Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. 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. Because of these limitations, EBITDA/Adjusted EBITDA should not be considered as principal indicators of our performance.

Reconciliation of Net Income to EBITDA and Adjusted EBITDA


	Six Months		Six Months
	ended		ended
	June 30, 2025		June 30, 2024

	(In thousands)
Net income	$	246,051	$	291,650
Depreciation		80,726		69,243
Amortization of deferred drydocking & special survey costs		22,485		12,424
Amortization of assumed time charters		—		(4,534)
Amortization of deferred realized losses on interest rate swaps		1,796		1,806
Amortization of finance costs and commitment fees		2,685		2,299
Interest income		(7,266)		(5,859)
Interest expense excluding amortization of finance costs		18,169		7,259
EBITDA		364,646	$	374,288
Gain on investments		(17,217)		(13,203)
Net gain on disposal of vessel		—		(7,094)
Stock based compensation of executives and employees		285		—
Adjusted EBITDA	$	347,714	$	353,991

EBITDA decreased by $9.7 million, to $364.6 million in the six months ended June 30, 2025 from $374.3 million in the six months ended June 30, 2024. This decrease was attributed to (i) a $22.8 million increase in total operating expenses, (ii) a $0.4 million increase in net finance expenses, (iii) a $3.3 million decrease in dividends received, (iv) a $0.4 million increase in equity loss on investments and (v) a $7.1 million decrease in gain from sale of vessel, partially offset by (vi) a $20.3 million increase in operating revenues (excluding $4.5 million decrease in amortization of assumed time-charters), and (vii) a $4.0 million increase in fair value gain on investments.

Adjusted EBITDA decreased by 1.8%, or $6.3 million, to $347.7 million in the six months ended June 30, 2025 from $354.0 million in the six months ended June 30, 2024. This decrease was attributed to (i) a $22.5 million increase in total operating expenses, (ii) a $0.4 million increase in net finance expenses, (iii) a $3.3 million decrease in dividends received and (iv) a $0.4 million increase in equity loss on investments partially offset by (v) a $20.3 million increase in operating revenues (excluding $4.5 million decrease in amortization of assumed time-charters).

Adjusted EBITDA for the six months ended June 30, 2025 is adjusted for a $17.2 million change in fair value of investments and stock based compensation of $0.3 million.

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Net Income Reconciliation to Adjusted EBITDA per segment (in thousands):


	Six Months Ended								Six Months Ended
	June 30, 2025								June 30, 2024
	Container		Drybulk						Container		Drybulk
	Vessels		Vessels		Other		Total		Vessels		Vessels		Other		Total
Net income/(loss)	$	234,938	$	(6,276)	$	17,389	$	246,051	$	272,042	$	2,627	$	16,981	$	291,650
Depreciation		74,154		6,572		—		80,726		65,255		3,988		—		69,243
Amortization of deferred drydocking & special survey costs		18,252		4,233		—		22,485		12,135		289		—		12,424
Amortization of assumed time charters		—		—		—		—		(4,534)		—		—		(4,534)
Amortization of deferred finance costs and commitment fees		2,685		—		—		2,685		2,299		—		—		2,299
Amortization of deferred realized losses on interest rate swaps		1,796		—		—		1,796		1,806		—		—		1,806
Interest income		(7,208)		—		(58)		(7,266)		(5,859)		—		—		(5,859)
Interest expense excluding amortization of finance costs		18,169		—		—		18,169		7,259		—		—		7,259
Change in fair value of investments		—		—		(17,217)		(17,217)		—		—		(13,203)		(13,203)
Stock based compensation of executives and employees		265		20		—		285		—		—		—		—
Net gain on disposal of vessel		—		—		—		—		(7,094)		—		—		(7,094)
Adjusted EBITDA⁽¹⁾	$	343,051	$	4,549	$	114	$	347,714	$	343,309	$	6,904	$	3,778	$	353,991

Time Charter Equivalent Revenues and Time Charter Equivalent US$/day per segment

Time charter equivalent revenues represent operating revenues less voyage expenses excluding commissions presented per container vessels segment and drybulk vessels segment separately. 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. Operating days of each segment is calculated by deducting vessels off-hire days of each segment from total ownership days of each segment. TCE rate is a measure of the average daily net revenue performance of our vessels in 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 management in evaluating our financial performance.

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Container vessels fleet utilization


	Three months			Three months			Six months			Six months
	ended			ended			ended			ended
	June 30,			June 30,			June 30,			June 30,
Container Vessels Fleet Utilization (No. of Days)	2025			2024			2025			2024
Ownership Days		6,734			6,253			13,371			12,438
Less Off-hire Days:
Scheduled Off-hire Days		(103)			(95)			(270)			(162)
Other Off-hire Days		(8)			(70)			(27)			(169)
Operating Days⁽¹⁾		6,623			6,088			13,074			12,107
Vessel Utilization		98.4	%		97.4	%		97.8	%		97.3	%

Operating Revenues (in ‘000s of US$)	$	239,446		$	230,586		$	475,636		$	463,997
Less: Voyage Expenses excluding commissions (in ‘000s of US$)		(442)			(448)			(749)			(936)
Time Charter Equivalent Revenues (in ‘000s of US$)	$	239,004		$	230,138		$	474,887		$	463,061
Time Charter Equivalent US$/per day⁽²⁾	$	36,087		$	37,802		$	36,323		$	38,247


	Three months			Three months			Six months			Six months
	ended			ended			ended			ended
	June 30,			June 30,			June 30,			June 30,
Drybulk Vessels Fleet Utilization (No. of Days)	2025			2024			2025			2024
Ownership Days		910			694			1,810			1,331
Less Off-hire Days:
Scheduled Off-hire Days		—			(90)			(56)			(121)
Other Off-hire Days		(2)			—			(14)			(10)
Operating Days⁽¹⁾		908			604			1,740			1,200
Vessel Utilization		99.8	%		87.0	%		96.1	%		90.2	%

Operating Revenues (in ‘000s of US$)	$	22,708		$	15,720		$	39,825		$	35,758
Less: Voyage Expenses excluding commissions (in ‘000s of US$)		(6,424)			(3,269)			(14,794)			(14,096)
Time Charter Equivalent Revenues (in ‘000s of US$)	$	16,284			12,451		$	25,031			21,662
Time Charter Equivalent US$/per day⁽²⁾	$	17,934		$	20,614		$	14,386		$	18,052

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.

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 management in evaluating our financial performance.

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Credit Facilities

We, as borrower or guarantor, and certain of our subsidiaries, as borrowers or guarantors, have entered into a number of credit facilities in connection with financing the acquisition of certain vessels in our fleet. Our existing credit facilities are secured by, among other things, our vessels (as described below). The following summarizes certain terms of our credit facilities and our Senior Notes as of June 30, 2025:


	Outstanding
	Principal
	Amount
Credit Facility	(in millions)		Collateral Vessels
BNP Paribas/Credit Agricole $130.0 mil. Facility	$	82.4	Wide Alpha, Stephanie C, Euphrates, Wide Hotel, Wide India and Wide Juliet
Alpha Bank $55.25 mil. Facility	$	36.5	Bremen and Kota Santos
Syndicated $450.0 mil. Facility	$	388.7	Catherine C, Greenland, Greenville, Greenfield, Interasia Accelerate, Interasia Amplify, Phoebe and Hull No. CV5900-08
Citibank $382.5 mil. Revolving Credit Facility	$	—	Express Berlin, Express Rome, Express Athens, Kota Plumbago, Speed, Ambition, Pusan C, Le Havre, Europe, America, CMA CGM Musset, Racine, CMA CGM Rabelais, CMA CGM Nerval, YM Maturity and YM Mandate
Syndicated $850.0 mil. Facility	$	—	Hull No. HN YZJ2023-1556, Hull No. HN YZJ2023-1557, Hull No. HN YZJ2024-1612, Hull No. HN YZJ2024-1613, Hull No. HN YZJ2024-1625, Hull No. HN YZJ2024-1626, Hull No. HN YZJ2024-1668, Hull No. HN C9200-7, Hull No. HN C9200-8, Hull No. HN C9200-9, Hull No. HN C9200-10, Hull No. HN C9200-11, Hull No. HNH2596 and Hull No. HNH2597.
Senior Notes	$	262.8	None

As of June 30, 2025, there was a $270 million remaining borrowing availability under the Company’s Citibank $382.5 mil. Revolving Credit Facility, $44.0 million under the Syndicated $450.0 million Facility and $850.0 million under the Syndicated $850.0 million Facility. See Note 8 “Long-term Debt, net” to our unaudited condensed consolidated financial statements included in this report for additional information regarding our outstanding debt and the related repayment schedule.

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Senior Notes

On February 11, 2021, we consummated an offering of $300 million aggregate principal amount of 8.500% Senior Notes due 2028 of Danaos Corporation, which we refer to as the Senior Notes. The Senior Notes are general senior unsecured obligations of Danaos Corporation.

The Senior Notes were issued pursuant to an Indenture, dated as of February 11, 2021, between the Company and Citibank, N.A., London Branch, as trustee, paying agent, registrar and transfer agent. The Senior Notes bear interest at a rate of 8.500% per year, payable in cash on March 1 and September 1 of each year, commencing September 1, 2021. The Senior Notes will mature on March 1, 2028.

In December 2022, we repurchased $37.2 million aggregate principal amount of our Senior Notes in a privately negotiated transaction. For additional details regarding the Senior Notes please refer to Note 8, “Long-term Debt, net” in the unaudited condensed consolidated financial statements included elsewhere in this report and “Item 5. Operating and Financial Review and Prospects –Senior Notes” in our Annual Report on Form 20-F for the year ended December 31, 2024 filed with the Securities and Exchange Commission on March 6, 2025.

Qualitative and Quantitative Disclosures about Market Risk

Interest Rate Risk

In the past, we entered into interest rate swap agreements converting floating interest rate exposure into fixed interest rates in order to hedge our exposure to fluctuations in prevailing market interest rates, as well as interest rate swap agreements converting the fixed rate we paid in connection with certain of our credit facilities into floating interest rates in order to economically hedge the fair value of the fixed rate credit facilities against fluctuations in prevailing market interest rates. All of these interest rate swap agreements have expired and we do not currently have any outstanding interest rate swap agreements. Refer to Note 9, “Financial Instruments”, to our unaudited condensed consolidated financial statements included in this report.

Foreign Currency Exchange Risk

We did not enter into derivative instruments to hedge the foreign currency translation of assets or liabilities or foreign currency transactions during the six months ended June 30, 2025 and 2024.

Impact of Inflation and Interest Rates Risk on our Business

We continue to see near-term impacts on our business due to elevated inflation in the United States of America, Eurozone and other countries, including ongoing global prices pressures in the wake of the war in Ukraine, driving up energy and commodity prices, which continue to affect our operating expenses to a moderate extent. Interest rates have increased rapidly and substantially as central banks in developed countries raise interest rates in an effort to subdue inflation. The eventual implications of tighter monetary policy, and potentially higher long-term interest rates may drive a higher cost of capital for our business, including because borrowings under our credit facilities, which are increasing as we fund the cost of our contracted container vessel newbuildings, are advanced at a floating rate based on SOFR and we do not have any interest rate hedging arrangements.

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Capitalization and Indebtedness

The table below sets forth our consolidated capitalization as of June 30, 2025.

There have been no other material changes to our capitalization from debt or equity issuances, re-capitalizations, special dividends, or debt repayments as adjusted in the table below between July 1, 2025 and August 1, 2025.


	As of June 30, 2025
	(US Dollars in thousands)
Debt:
Senior unsecured notes	$	262,766
BNP Paribas/Credit Agricole $130 mil. Facility		82,400
Alpha Bank $55.25 mil. Facility		36,500
Syndicated $450.0 mil. Facility		388,660
Syndicated $850.0 mil. Facility		—
Citibank $382.5 mil. Revolving Credit Facility		—
Total debt ^{(1) (2)}	$	770,326
Stockholders’ equity:
Preferred stock, par value $0.01 per share; 100,000,000 preferred shares authorized and none issued; actual and as adjusted		—
Common stock, par value $0.01 per share; 750,000,000 shares authorized; 25,586,083 shares issued and 18,309,654 shares outstanding		183
Additional paid-in capital		601,653
Accumulated other comprehensive loss		(68,053)
Retained earnings⁽³⁾		3,058,770
Total stockholders’ equity		3,592,553
Total capitalization	$	4,362,879

(1)

All of the indebtedness reflected in the table, other than Danaos Corporation’s unsecured senior notes due 2028 ($262.8 million), is secured and is guaranteed by Danaos Corporation, in the case of loan obligations of our subsidiaries ($36.5 million), or by our subsidiaries, in the case of indebtedness of Danaos Corporation ($471.1 million). See Note 8 “Long-Term Debt, net” to our unaudited condensed consolidated financial statements included elsewhere in this report.

(2)	Total debt is presented gross of deferred finance costs, which amounted to $9.1 million.

(3)	Does not reflect dividend of $0.85 per share of common stock declared by the Company payable on August 28, 2025, to holders of record as of August 19, 2025.

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Our Fleet

The following table describes in detail our container vessels deployment profile as of August 1, 2025:


Vessel Details			Charter Arrangements
	Year	Size	Expiration of	Contracted Employment	Charter			Extension Options ⁽⁴⁾
Vessel Name	Built	(TEU)	Charter ⁽¹⁾	through ⁽²⁾	Rate ⁽³⁾			Period	Charter Rate
Ambition (ex Hyundai Ambition)	2012	13,100	April 2027	April 2027	$	51,500		+ 6 months	$	51,500
								+10.5 to 13.5 months	$	51,500
								+10.5 to 13.5 months	$	51,500
Speed (ex Hyundai Speed)	2012	13,100	March 2027	March 2027	$	51,500		+ 6 months	$	51,500
								+10.5 to 13.5 months	$	51,500
								+10.5 to 13.5 months	$	51,500
Kota Plumbago (ex Hyundai Smart)	2012	13,100	July 2027	July 2027	$	54,000		+3 to 26 months	$	54,000
Kota Primrose (ex Hyundai Respect)	2012	13,100	April 2027	April 2027	$	54,000		+3 to 26 months	$	54,000
Kota Peony (ex Hyundai Honour)	2012	13,100	March 2027	March 2027	$	54,000		+3 to 26 months	$	54,000
Express Rome	2011	10,100	May 2027	May 2027	$	37,000		+ 6 months	$	37,000
Express Berlin	2011	10,100	December 2029	December 2026	$	33,000
				December 2029	$	45,500		+ 4 months	$	45,500
Express Athens	2011	10,100	May 2027	May 2027	$	37,000		+ 6 months	$	37,000
Le Havre	2006	9,580	June 2028	June 2028	$	58,500		+ 4 months	$	58,500
Pusan C	2006	9,580	May 2028	May 2028	$	58,500		+ 4 months	$	58,500
Bremen	2009	9,012	January 2028	January 2028	$	56,000		+ 4 months	$	56,000
C Hamburg	2009	9,012	January 2028	January 2028	$	56,000		+ 4 months	$	56,000
Niledutch Lion	2008	8,626	May 2028	May 2026	$	47,500
				May 2028	$	40,500		+ 1 month	$	40,500
Belita	2006	8,533	June 2028	July 2025	$	45,000
				June 2028	$	37,000		+ 3 months	$	37,000
Kota Manzanillo	2005	8,533	December 2028	February 2026	$	47,500
				December 2028	$	39,300		+ 4 months	$	39,300
								+ 9 to 11 months	$	39,300
CMA CGM Melisande	2012	8,530	January 2028	January 2028	$	34,500		+ 3 to 13.5 months	$	34,500
CMA CGM Attila	2011	8,530	May 2027	May 2027	$	34,500		+ 3 to 13.5 months	$	34,500
CMA CGM Tancredi	2011	8,530	July 2027	July 2027	$	34,500		+ 3 to 13.5 months	$	34,500
CMA CGM Bianca	2011	8,530	September 2027	September 2027	$	34,500		+ 3 to 13.5 months	$	34,500
CMA CGM Samson	2011	8,530	November 2027	November 2027	$	34,500		+ 3 to 13.5 months	$	34,500
America	2004	8,468	April 2028	April 2028	$	56,000		+ 4 months	$	56,000
Europe	2004	8,468	May 2028	May 2028	$	56,000		+ 4 months	$	56,000
Kota Santos	2005	8,463	June 2029	August 2025	$	55,000
				August 2026	$	50,000
				June 2029	$	39,300		+ 4 months	$	39,300
								+ 9 to 11 months	$	39,300
Catherine C ⁽⁶⁾	2024	8,010	June 2029	June 2029	$	42,000		+ 2 months	$	42,000
Greenland ⁽⁶⁾	2024	8,010	August 2029	August 2029	$	42,000		+ 2 months	$	42,000
Greenville ⁽⁷⁾	2024	8,010	October 2029	October 2029	$	42,000		+ 2 months	$	42,000
Greenfield ⁽⁸⁾	2024	8,010	November 2029	November 2029	$	42,000		+ 2 months	$	42,000
Interasia Accelerate ⁽⁶⁾	2024	7,165	April 2027	April 2027	$	36,000		+ 4 months	$	36,000
								+ 22 to 26 months	$	40,000
Interasia Amplify ⁽⁷⁾	2024	7,165	September 2027	September 2027	$	36,000		+ 4 months	$	36,000
								+ 22 to 26 months	$	40,000
CMA CGM Moliere	2009	6,500	March 2027	March 2027	$	55,000		+ 2 months	$	55,000
CMA CGM Musset	2010	6,500	July 2027	September 2025	$	60,000
				July 2027	$	40,000		+ 3 months	$	40,000
CMA CGM Nerval	2010	6,500	November 2025	November 2025	$	40,000		+ 2 months	$	40,000
								+ 23 to 25 months	$	30,000
CMA CGM Rabelais	2010	6,500	January 2026	January 2026	$	40,000		+ 2 months	$	40,000
								+ 23 to 25 months	$	30,000
Racine	2010	6,500	June 2029	June 2026	$	32,500
				June 2029	$	35,500		+ 4 months	$	35,500
YM Mandate	2010	6,500	January 2028	January 2028	$	26,890	(5)	+ 8 months	$	26,890
YM Maturity	2010	6,500	April 2028	April 2028	$	26,890	(5)	+ 8 months	$	26,890
Dimitra C	2002	6,402	April 2027	April 2027	$	35,000		+ 2 months	$	35,000
								+ 11 to 13 months	$	35,000
Savannah (ex ZIM Savannah)	2002	6,402	June 2027	August 2025	$	25,650
				June 2027	$	40,000		+ 1.5 months	$	40,000
								+ 10.5 to 13.5 months	$	30,000
Phoebe ⁽⁹⁾	2025	6,014	October 2031	December 2026	$	35,000		+ 3 months	$	35,000
				October 2031	$	32,500		+ 4 months	$	32,500
								+ 9 to 11 months	$	32,500
								+ 10 to 12 months	$	32,500
Kota Lima	2002	5,544	September 2025	September 2025	$	27,500		+ 2 months	$	27,500
								+ 10 to 12 months	$	24,000
Suez Canal	2002	5,610	April 2028	April 2026	$	27,500
				April 2028	$	30,000		+ 2 months	$	30,000
Wide Alpha	2014	5,466	January 2030	August 2025	$	20,750
				July 2027	$	34,000
				January 2030	$	27,450		+ 2 months	$	27,450
								+ 23.5 to 26 months	$	25,000
Stephanie C	2014	5,466	September 2028	October 2025	$	55,500
				September 2028	$	33,750		+2 months	$	33,750
								+23 to 25 months	$	33,750

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Vessel Details			Charter Arrangements
	Year	Size	Expiration of	Contracted Employment	Charter		Extension Options ⁽⁴⁾
Vessel Name	Built	(TEU)	Charter ⁽¹⁾	through ⁽²⁾	Rate ⁽³⁾		Period	Charter Rate
Euphrates (ex Maersk Euphrates)	2014	5,466	September 2028	October 2025	$	20,500
				September 2028	$	33,750	+2 months	$	33,750
							+23 to 25 months	$	33,750
Wide Hotel	2015	5,466	March 2030	October 2025	$	20,750
				September 2027	$	34,000
				March 2030	$	27,450	+ 2 months	$	27,450
							+ 23.5 to 26 months	$	25,000
Wide India	2015	5,466	October 2028	November 2025	$	53,500
				October 2028	$	33,750	+ 2 months	$	33,750
							+ 23 to 25 months	$	33,750
Wide Juliet	2015	5,466	August 2026	September 2025	$	24,750
				August 2026	$	25,000	+ 2 months	$	25,000
							+ 10 to 12 months	$	30,000
Rio Grande	2008	4,253	November 2026	November 2026	$	30,000	+ 2 months	$	30,000
Merve A	2008	4,253	August 2027	September 2025	$	24,000
				August 2027	$	26,000	+ 2 months	$	26,000
Kingston	2008	4,253	June 2027	June 2027	$	35,500	+ 2.5 months	$	35,500
Monaco (ex ZIM Monaco)	2009	4,253	September 2026	September 2026	$	30,000	+ 5 months	$	30,000
Dalian	2009	4,253	April 2028	April 2026	$	48,000
				April 2028	$	27,250	+ 3.5 months	$	27,250
ZIM Luanda	2009	4,253	August 2028	December 2025	$	30,000
				August 2028	$	35,000	+ 2 months	$	35,000
Seattle C	2007	4,253	October 2026	October 2026	$	30,000	+ 2 months	$	30,000
Vancouver	2007	4,253	November 2026	November 2026	$	30,000	+ 2 months	$	30,000
Derby D	2004	4,253	January 2027	January 2027	$	36,275	+ 3 months	$	36,275
Tongala	2004	4,253	November 2026	November 2026	$	30,000	+ 1.5 months	$	30,000
Dimitris C	2001	3,430	September 2027	November 2025	$	40,000
				September 2027	$	30,000	+ 3 months	$	30,000
							+ 11 to 13 months	$	30,000
Express Argentina	2010	3,400	December 2026	December 2026	$	27,000	+2 months	$	27,000
Express Brazil	2010	3,400	April 2027	April 2027	$	30,000	+ 3 months	$	30,000
							+ 11 to 13 months	$	30,000
Express France	2010	3,400	July 2027	September 2025	$	37,750
				July 2027	$	30,000	+ 3 months	$	30,000
							+ 11 to 13 months	$	30,000
Express Spain	2011	3,400	January 2027	January 2027	$	28,500	+ 2 months	$	28,500
Express Black Sea	2011	3,400	January 2027	January 2027	$	28,500	+ 2 months	$	28,500
Singapore	2004	3,314	March 2027	March 2027	$	27,750	+2 months	$	27,750
Colombo	2004	3,314	January 2027	January 2027	$	28,500	+ 2 months	$	28,500
Zebra	2001	2,602	November 2025	November 2025	$	26,250	+ 2 months	$	26,250
							+ 11 to 13 months	$	19,000
Artotina	2001	2,524	January 2026	January 2026	$	23,000	+ 2 months	$	23,000
Phoenix D	1997	2,200	March 2026	March 2026	$	23,000	+ 3 months	$	23,000
Sprinter	1997	2,200	May 2026	May 2026	$	21,000	+ 2 months	$	21,000
Future	1997	2,200	May 2026	May 2026	$	21,000	+ 2 months	$	21,000
Advance	1997	2,200	June 2026	June 2026	$	21,000	+ 2 months	$	21,000
Bridge	1998	2,200	January 2028	January 2028	$	16,000	+ 2 months	$	16,000
Highway	1998	2,200	January 2028	January 2028	$	17,000	+ 2 months	$	17,000
Progress C	1998	2,200	April 2026	April 2026	$	21,000	+ 2 months	$	21,000

1.	Earliest date charters could expire. Most charters include options for the charterers to extend their terms as described in the “Extension Options” column.

This column indicates the date through which the charter rate set forth in the column to the immediate right of such date is payable. For charters with the same charter rate throughout the fixed term of the charter, this date is the same as the charter expiration date set forth in the “Expiration of Charter” column.

3.	Gross charter rate, which does not include charter commissions.

4.	At the option of the charterer.

5.	Bareboat charter rate.

6.	The newbuilding vessels were delivered in the second quarter of 2024.

7.	The newbuilding vessels were delivered in the third quarter of 2024.

8.	The newbuilding vessel was delivered in the fourth quarter of 2024.

9.	The newbuilding vessel was delivered in the first quarter of 2025.

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The specifications of our 16 contracted container vessels under construction as of August 1, 2025 are as follows:


					Minimum			Extension Options⁽³⁾
				Expected	Charter	Charter			Charter
Hull Number	Year Built	Size (TEU)	Shipyard	Delivery Period	Duration⁽¹⁾	rate⁽²⁾		Period	Rate⁽²⁾
Hull No. CV5900-08	2025	6,014	Qingdao Yangfan	Q4 2025	1.9 years	$	35,000	+ 3 months	$	35,000
					4.8 years	$	32,500	+ 4 months	$	32,500
								+ 9 to 11 months	$	32,500
								+ 10 to 12 months	$	32,500
Hull No. CV5900-09	2027	6,014	Qingdao Yangfan	Q2 2027	4.8 years	$	34,900	+ 4 months	$	34,900
								+ 9 to 11 months	$	34,900
								+ 10 to 12 months	$	34,900
Hull No. YZJ2023-1556	2026	8,258	Yangzijiang	Q3 2026	5 years	$	42,000	+ 3 months	$	42,000
			Jiangsu NewYangzi					+ 19.5 to 22.5 months	$	42,000
Hull No. YZJ2023-1557	2026	8,258	Yangzijiang	Q4 2026	5 years	$	42,000	+ 3 months	$	42,000
			Jiangsu NewYangzi					+ 19.5 to 22.5 months	$	42,000
Hull No. YZJ2024-1612	2026	8,258	Yangzijiang	Q4 2026	5 years	$	42,000	+ 3 months	$	42,000
			Jiangsu NewYangzi					+ 19.5 to 22.5 months	$	42,000
Hull No. YZJ2024-1613	2027	8,258	Yangzijiang	Q2 2027	5 years	$	42,000	+ 3 months	$	42,000
			Jiangsu NewYangzi					+ 19.5 to 22.5 months	$	42,000
Hull No. YZJ2024-1625	2027	8,258	Yangzijiang	Q2 2027	5 years	$	42,000	+ 3 months	$	42,000
			Jiangsu NewYangzi					+ 19.5 to 22.5 months	$	42,000
Hull No. YZJ2024-1626	2027	8,258	Yangzijiang	Q3 2027	5 years	$	42,000	+ 3 months	$	42,000
			Jiangsu NewYangzi					+ 19.5 to 22.5 months	$	42,000
Hull No. YZJ2024-1668	2027	8,258	Yangzijiang	Q3 2027	5 years	$	42,000	+ 3 months	$	42,000
			Jiangsu NewYangzi					+ 19.5 to 22.5 months	$	42,000
Hull No. C9200-7	2027	9,200	Dalian Shanhaiguan	Q1 2027	4.8 years	$	50,000	+ 4 months	$	50,000
								+ 20 to 24 months	$	50,000
Hull No. C9200-8	2027	9,200	Dalian Shanhaiguan	Q2 2027	4.8 years	$	50,000	+ 4 months	$	50,000
								+ 20 to 24 months	$	50,000
Hull No. C9200-9	2027	9,200	Dalian Shanhaiguan	Q4 2027	4.8 years	$	50,000	+ 4 months	$	50,000
								+ 20 to 24 months	$	50,000
Hull No. C9200-10	2028	9,200	Dalian Shanhaiguan	Q2 2028	4.8 years	$	50,000	+ 4 months	$	50,000
								+ 20 to 24 months	$	50,000
Hull No. C9200-11	2028	9,200	Dalian Shanhaiguan	Q3 2028	4.8 years	$	50,000	+ 4 months	$	50,000
								+ 20 to 24 months	$	50,000
Hull No. H2596	2027	9,200	CSSC Huangpu	Q3 2027	6 years	$	48,500	+12 months	$	48,500
			Wenchong					+ 28 to 32 months	$	48,500
Hull No. H2597	2027	9,200	CSSC Huangpu	Q4 2027	6 years	$	48,500	+12 months	$	48,500
			Wenchong					+ 28 to 32 months	$	48,500

1.	Earliest period charters could expire. Most charters include options for the charterers to extend their terms as described in the “Extension Options” column.

2.	Gross charter rate, which does not include charter commissions.

3.	At the option of the charterer.

The following table describes the details of our Capesize drybulk vessels as of August 1, 2025:


	Year	Capacity
Vessel Name	Built	(DWT)
Achievement	2011	175,966
Genius	2012	175,580
Ingenuity	2011	176,022
Integrity	2010	175,966
Peace	2010	175,858
W Trader	2009	175,879
E Trader	2009	175,886
Gouverneur (ex Xin Hang) ⁽¹⁾	2010	178,043
Valentine (ex Star Audrey) ⁽¹⁾	2011	175,125
Danaos (ex Guo May) ⁽²⁾	2011	176,536

1.	The vessels were delivered to us in the second quarter of 2024.

2.	The vessel was delivered to us in the third quarter of 2024.

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Management Agreement

On August 1, 2025, we entered into an Amended and Restated Management Agreement with Danaos Shipping, which provides that, for the additional twelve-month term ending December 31, 2026, we will pay Danaos Shipping the following fees: (i) an annual management fee of $2,500,000 and 100,000 shares of our common stock, payable in the fourth quarter of 2026, (ii) a daily vessel management fee of $550 for vessels on bareboat charter, pro-rated for the number of calendar days we own each vessel, (iii) a daily vessel management fee of $1,100 for vessels on time charter, pro-rated for the number of calendar days we own each vessel, and (iv) a flat fee of $850,000 per newbuilding vessel, which we capitalize, for the on premises supervision of any newbuilding contracts by selected engineers and others of its staff. We also entered into an Amended and Restated Brokerage Services Agreement with Danaos Chartering on August 1, 2025, to reflect the extension of the term from December 31, 2025 to December 31, 2026, with no change in the fees payable thereunder.

Forward Looking Statements

Matters discussed in this report 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 and may include statements concerning our operations, cash flows, financial position, including with respect to vessel and other asset values, plans, objectives, goals, strategies, future events, performance or business prospects, changes and trends in our business and the markets in which we operate, 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 and 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 drydocking, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, our ability to 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 conflicts in the Middle East, 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 us with the U.S. Securities and Exchange Commission.

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INDEX TO FINANCIAL STATEMENTS


Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 (unaudited)	F-2

Condensed Consolidated Statements of Income for the Three and Six Months Ended June 30, 2025 and 2024 (unaudited)	F-3

Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2025 and 2024 (unaudited)	F-4

Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Six Months Ended June 30, 2025 and 2024 (unaudited)	F-5

Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 (unaudited)	F-6

Notes to the Unaudited Condensed Consolidated Financial Statements	F-7

F-1

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DANAOS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(Expressed in thousands of United States Dollars, except share and per share amounts)


		As of
		June 30,		December 31,
	Notes	2025		2024
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	546,164	$	453,384
Accounts receivable, net			27,454		25,578
Inventories			21,621		23,881
Prepaid expenses			4,939		1,902
Due from related parties	14		49,102		52,572
Other current assets	6		158,162		113,650
Total current assets			807,442		670,967
NON-CURRENT ASSETS
Fixed assets at cost, net of accumulated depreciation of $1,539,705 (2024: $1,458,978)	4		3,284,665		3,290,309
Advances for vessels acquisition and vessels under construction	4		304,686		265,838
Deferred charges, net	5		64,079		58,759
Other non-current assets	6		60,288		57,781
Total non-current assets			3,713,718		3,672,687
Total assets		$	4,521,160	$	4,343,654

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable		$	23,595	$	29,039
Accrued liabilities	7		23,385		23,644
Current portion of long-term debt, net	8		37,660		35,220
Unearned revenue			41,519		49,665
Other current liabilities			24,559		31,386
Total current liabilities			150,718		168,954

LONG-TERM LIABILITIES
Long-term debt, net	8		723,534		699,563
Unearned revenue, net of current portion			11,157		22,901
Other long-term liabilities	14		43,198		27,436
Total long-term liabilities			777,889		749,900
Total liabilities			928,607		918,854

Commitments and Contingencies	10

STOCKHOLDERS’ EQUITY
Preferred stock (par value $0.01, 100,000,000 preferred shares authorized and not issued as of June 30, 2025 and December 31, 2024)	11		—		—
Common stock (par value $0.01, 750,000,000 common shares authorized as of June 30, 2025 and December 31, 2024. 25,586,083 and 25,585,985 shares issued as of June 30, 2025 and December 31, 2024; and 18,309,654 and 18,987,616 shares outstanding as of June 30, 2025 and December 31, 2024)	11		183		190
Additional paid-in capital			601,653		650,864
Accumulated other comprehensive loss			(68,053)		(70,430)
Retained earnings			3,058,770		2,844,176
Total stockholders’ equity			3,592,553		3,424,800
Total liabilities and stockholders’ equity		$	4,521,160	$	4,343,654

The accompanying notes are an integral part of these condensed consolidated financial statements.

F-2

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DANAOS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(Expressed in thousands of United States Dollars, except share and per share amounts)


		Three months ended				Six months ended
		June 30,				June 30,
	Notes	2025		2024		2025		2024

OPERATING REVENUES	4,12,15	$	262,154	$	246,306	$	515,461	$	499,755

OPERATING EXPENSES
Voyage expenses	14		(16,810)		(12,678)		(34,945)		(33,020)
Vessel operating expenses			(56,385)		(47,090)		(108,087)		(90,204)
Depreciation			(40,698)		(35,380)		(80,726)		(69,243)
Amortization of deferred drydocking and special survey costs	5		(11,515)		(6,972)		(22,485)		(12,424)
General and administrative expenses	14		(11,206)		(11,297)		(23,428)		(21,541)
Net gain on disposal of vessel	4		—		7,094		—		7,094
Income From Operations			125,540		139,983		245,790		280,417

OTHER INCOME (EXPENSES):
Interest income			3,661		2,923		7,266		5,859
Interest expense			(9,711)		(5,106)		(19,714)		(8,230)
Gain on investments	6		14,734		2,224		17,217		13,203
Dividend income	6		313		3,052		679		3,984
Equity loss on investments	3		(333)		(97)		(565)		(206)
Other finance expenses			(973)		(868)		(1,960)		(1,750)
Other income/(expenses), net			(1,424)		(56)		(866)		179
Loss on derivatives	9		(903)		(903)		(1,796)		(1,806)
Total Other Income/(Expenses), net			5,364		1,169		261		11,233

Net Income		$	130,904	$	141,152	$	246,051	$	291,650

EARNINGS PER SHARE
Basic earnings per share		$	7.14	$	7.30	$	13.27	$	15.05
Diluted earnings per share		$	7.12	$	7.23	$	13.24	$	14.92
Basic weighted average number of common shares (in thousands)	13		18,344		19,348		18,546		19,380
Diluted weighted average number of common shares (in thousands)	13		18,396		19,520		18,588		19,552

The accompanying notes are an integral part of these condensed consolidated financial statements.

F-3

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DANAOS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

(Expressed in thousands of United States Dollars)

Three months ended

Six months ended

June 30,

Notes

2025

2024

2025

2024

Net income for the period

130,904

141,152

246,051

291,650

Other comprehensive income:

Prior service cost of defined benefit plan

291

263

581

526

Amortization of deferred realized losses on cash flow hedges

903

1,796

1,806

Total Other Comprehensive Income

1,194

1,166

2,377

2,332

Comprehensive Income

132,098

142,318

248,428

293,982

The accompanying notes are an integral part of these condensed consolidated financial statements.

F-4

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DANAOS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (unaudited)

(Expressed in thousands of United States Dollars, except number of shares in thousands and per share amounts)


	Common Stock					Accumulated
	Number			Additional		other
	of	Par		paid‑in		comprehensive		Retained
	shares	value		capital		loss		earnings		Total
As of December 31, 2023	19,419	$	194	$	690,190	$	(75,979)	$	2,401,912	$	3,016,317
Net Income	—		—		—		—		150,498		150,498
Dividends ($0.80 per share)	—		—		—		—		(15,535)		(15,535)
Repurchase of common stock	(58)		—		(4,132)		—		—		(4,132)
Stock based compensation	—		—		1,576		—		—		1,576
Net movement in other comprehensive income	—		—		—		1,166		—		1,166
As of March 31, 2024	19,361	$	194	$	687,634	$	(74,813)	$	2,536,875	$	3,149,890
Net Income	—		—		—		—		141,152		141,152
Dividends ($0.80 per share)	—		—		—		—		(15,477)		(15,477)
Repurchase of common stock	(15)		(1)		(1,090)		—		—		(1,091)
Issuance of common stock	—		—		1		—		—		1
Stock based compensation	—		—		1,577		—		—		1,577
Net movement in other comprehensive income	—		—		—		1,166		—		1,166
As of June 30, 2024	19,346	$	193	$	688,122	$	(73,647)	$	2,662,550	$	3,277,218


	Common Stock					Accumulated
	Number			Additional		other
	of	Par		paid‑in		comprehensive		Retained
	shares	value		capital		loss		earnings		Total
As of December 31, 2024	18,988	$	190	$	650,864	$	(70,430)	$	2,844,176	$	3,424,800
Net Income	—		—		—		—		115,147		115,147
Dividends ($0.85 per share)	—		—		—		—		(15,894)		(15,894)
Repurchase of common stock	(414)		(4)		(33,212)		—		—		(33,216)
Stock based compensation	—		—		1,705		—		—		1,705
Issuance of common stock	—		—		4		—		—		4
Net movement in other comprehensive income	—		—		—		1,183		—		1,183
As of March 31, 2025	18,574	$	186	$	619,361	$	(69,247)	$	2,943,429	$	3,493,729
Net Income	—		—		—		—		130,904		130,904
Dividends ($0.85 per share)	—		—		—		—		(15,563)		(15,563)
Repurchase of common stock	(264)		(3)		(19,434)		—		—		(19,437)
Stock based compensation	—		—		1,723		—		—		1,723
Issuance of common stock	—		—		3		—		—		3
Net movement in other comprehensive income	—		—		—		1,194		—		1,194
As of June 30, 2025	18,310	$	183	$	601,653	$	(68,053)	$	3,058,770	$	3,592,553

The accompanying notes are an integral part of these condensed consolidated financial statements.

F-5

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DANAOS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(Expressed in thousands of United States Dollars)


	Six months ended
	June 30,
	2025		2024

Cash Flows from Operating Activities
Net income	$	246,051	$	291,650

Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization of right-of-use assets		80,726		69,243
Amortization of deferred drydocking and special survey costs		22,485		12,424
Amortization of assumed time charters		—		(4,534)
Amortization of finance costs		1,545		971
Gain on investments		(17,217)		(13,203)
Payments for drydocking and special survey costs deferred		(27,805)		(14,618)
Net gain on disposal of vessel		—		(7,094)
Equity loss on investments		565		206
Prior service cost and periodic cost		2,807		715
Stock based compensation		3,428		3,153
Amortization of deferred realized losses on interest rate swaps		1,796		1,806
(Increase)/Decrease in
Accounts receivable		(2,586)		(12,795)
Inventories		2,260		2,602
Prepaid expenses		(3,037)		47
Due from related parties		3,470		4,636
Other assets, current and non-current		8,832		13,922
Increase/(Decrease) in
Accounts payable		(5,444)		1,586
Accrued liabilities		(259)		4,181
Unearned revenue, current and long-term		(19,890)		(29,142)
Other liabilities, current and long-term		(1,088)		(18,189)
Net Cash provided by Operating Activities		296,639		307,567

Cash Flows from Investing Activities
Vessels additions and advances for vessels under construction		(107,021)		(341,855)
Net proceeds and insurance proceeds from disposal of vessel		1,681		10,639
Investments in affiliates/marketable securities		(30,270)		—
Net Cash used in Investing Activities		(135,610)		(331,216)

Cash Flows from Financing Activities
Proceeds from long-term debt		44,000		181,000
Payments of long-term debt		(18,220)		(13,750)
Dividends paid		(31,449)		(31,011)
Repurchase of common stock		(53,212)		(5,223)
Finance costs		(9,368)		(6,730)
Net Cash (used in)/ provided by Financing Activities		(68,249)		124,286

Net Increase in cash and cash equivalents		92,780		100,637
Cash and cash equivalents at beginning of period		453,384		271,809
Cash and cash equivalents at end of period	$	546,164	$	372,446
Supplemental information: Cash paid for interest, net of amounts capitalized		18,921		5,322

The accompanying notes are an integral part of these condensed consolidated financial statements.

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DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 Basis of Presentation and General Information

The accompanying condensed consolidated financial statements (unaudited) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The reporting and functional currency of Danaos Corporation and its subsidiaries (“Danaos” or the “Company”) is the United States Dollar.

Danaos Corporation, formerly Danaos Holdings Limited, was formed on December 7, 1998 under the laws of Liberia and is presently the sole owner of all outstanding shares of the companies listed below. Danaos Holdings Limited was redomiciled in the Marshall Islands on October 7, 2005. In connection with the re-domiciliation, the Company changed its name to Danaos Corporation. On October 14, 2005, the Company filed and the Marshall Islands accepted Amended and Restated Articles of Incorporation. The authorized capital stock of Danaos Corporation is 750,000,000 shares of common stock with a par value of $0.01 and 100,000,000 shares of preferred stock with a par value of $0.01. Refer to Note 11, “Stockholders’ Equity”. The Company’s principal business is the acquisition and operation of vessels. Danaos conducts its operations through the vessel owning companies whose principal activity is the ownership and operation of container vessels and dry bulk vessels that are under the exclusive management of a related party of the Company.

In the opinion of management, the accompanying condensed consolidated financial statements (unaudited) of Danaos and subsidiaries contain all adjustments necessary to state fairly, in all material respects, the Company’s condensed consolidated financial position as of June 30, 2025, the condensed consolidated results of operations for the three and six months ended June 30, 2025 and 2024 and the condensed consolidated cash flows for the six months ended June 30, 2025 and 2024. All such adjustments are deemed to be of a normal, recurring nature. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in Danaos’ Annual Report on Form 20-F for the year ended December 31, 2024. The results of operations for the three and six months ended June 30, 2025, are not necessarily indicative of the results to be expected for the full year. The year-end condensed consolidated balance sheet data was derived from annual financial statements. These condensed consolidated financial statements do not include all disclosures required by accounting principles generally accepted in the United States of America.

The condensed consolidated financial statements (unaudited) have been prepared to reflect the consolidation of the companies listed below. The historical balance sheets and results of operations of the companies listed below have been reflected in the condensed consolidated balance sheets and condensed consolidated statements of income, comprehensive income, cash flows and stockholders’ equity at and for each period since their respective incorporation dates.

As of June 30, 2025, Danaos included the vessel owning companies (the “Danaos Subsidiaries”) of container vessels and drybulk vessels listed below:

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DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1 Basis of Presentation and General Information (Continued)

Container vessels:


Company	Date of Incorporation	Vessel Name	Year Built	TEU ⁽¹⁾
Megacarrier (No. 1) Corp.	September 10, 2007	Kota Peony	2012	13,100
Megacarrier (No. 2) Corp.	September 10, 2007	Kota Primrose	2012	13,100
Megacarrier (No. 3) Corp.	September 10, 2007	Kota Plumbago	2012	13,100
Megacarrier (No. 4) Corp.	September 10, 2007	Speed	2012	13,100
Megacarrier (No. 5) Corp.	September 10, 2007	Ambition	2012	13,100
CellContainer (No. 6) Corp.	October 31, 2007	Express Berlin	2011	10,100
CellContainer (No. 7) Corp.	October 31, 2007	Express Rome	2011	10,100
CellContainer (No. 8) Corp.	October 31, 2007	Express Athens	2011	10,100
Karlita Shipping Co. Ltd.	February 27, 2003	Pusan C	2006	9,580
Ramona Marine Co. Ltd.	February 27, 2003	Le Havre	2006	9,580
Oceancarrier (No. 2) Corp.	October 15, 2020	Bremen	2009	9,012
Oceancarrier (No. 3) Corp.	October 15, 2020	C Hamburg	2009	9,012
Blackwell Seaways Inc.	January 9, 2020	Niledutch Lion	2008	8,626
Oceancarrier (No.1) Corp.	February 19, 2020	Kota Manzanillo	2005	8,533
Springer Shipping Co.	April 29, 2019	Belita	2006	8,533
Teucarrier (No. 1) Corp.	January 31, 2007	CMA CGM Attila	2011	8,530
Teucarrier (No. 2) Corp.	January 31, 2007	CMA CGM Tancredi	2011	8,530
Teucarrier (No. 3) Corp.	January 31, 2007	CMA CGM Bianca	2011	8,530
Teucarrier (No. 4) Corp.	January 31, 2007	CMA CGM Samson	2011	8,530
Teucarrier (No. 5) Corp.	September 17, 2007	CMA CGM Melisande	2012	8,530
Oceanew Shipping Ltd.	January 14, 2002	Europe	2004	8,468
Oceanprize Navigation Ltd.	January 21, 2003	America	2004	8,468
Rewarding International Shipping Inc.	October 1, 2019	Kota Santos	2005	8,463
Teushipper (No 1) Corp.	March 14, 2022	Catherine C	2024	8,010
Teushipper (No 2) Corp.	March 14, 2022	Greenland	2024	8,010
Teushipper (No 3) Corp.	March 14, 2022	Greenville	2024	8,010
Teushipper (No 4) Corp.	March 14, 2022	Greenfield	2024	8,010
Boxsail (No. 1) Corp	March 4, 2022	Interasia Accelerate	2024	7,165
Boxsail (No. 2) Corp	March 4, 2022	Interasia Amplify	2024	7,165
Boxcarrier (No. 1) Corp.	June 27, 2006	CMA CGM Moliere	2009	6,500
Boxcarrier (No. 2) Corp.	June 27, 2006	CMA CGM Musset	2010	6,500
Boxcarrier (No. 3) Corp.	June 27, 2006	CMA CGM Nerval	2010	6,500
Boxcarrier (No. 4) Corp.	June 27, 2006	CMA CGM Rabelais	2010	6,500
Boxcarrier (No. 5) Corp.	June 27, 2006	Racine	2010	6,500
Expresscarrier (No. 1) Corp.	March 5, 2007	YM Mandate	2010	6,500
Expresscarrier (No. 2) Corp.	March 5, 2007	YM Maturity	2010	6,500
Actaea Company Limited	October 14, 2014	Zim Savannah	2002	6,402
Asteria Shipping Company Limited	October 14, 2014	Dimitra C	2002	6,402
Boxsail (No. 3) Corp.	March 4, 2022	Phoebe ⁽²⁾	2025	6,014
Averto Shipping S.A.	June 12, 2015	Suez Canal	2002	5,610
Sinoi Marine Ltd.	June 12, 2015	Kota Lima	2002	5,544
Oceancarrier (No. 4) Corp.	July 6, 2021	Wide Alpha	2014	5,466
Oceancarrier (No. 5) Corp.	July 6, 2021	Stephanie C	2014	5,466
Oceancarrier (No. 6) Corp.	July 6, 2021	Maersk Euphrates	2014	5,466
Oceancarrier (No. 7) Corp.	July 6, 2021	Wide Hotel	2015	5,466
Oceancarrier (No. 8) Corp.	July 6, 2021	Wide India	2015	5,466
Oceancarrier (No. 9) Corp.	July 6, 2021	Wide Juliet	2015	5,466
Continent Marine Inc.	March 22, 2006	Monaco	2009	4,253
Medsea Marine Inc.	May 8, 2006	Dalian	2009	4,253
Blacksea Marine Inc.	May 8, 2006	Zim Luanda	2009	4,253
Bayview Shipping Inc.	March 22, 2006	Rio Grande	2008	4,253
Channelview Marine Inc.	March 22, 2006	Merve A	2008	4,253
Balticsea Marine Inc.	March 22, 2006	Kingston	2008	4,253
Seacarriers Services Inc.	June 28, 2005	Seattle C	2007	4,253
Seacarriers Lines Inc.	June 28, 2005	Vancouver	2007	4,253
Containers Services Inc.	May 30, 2002	Tongala	2004	4,253
Containers Lines Inc.	May 30, 2002	Derby D	2004	4,253
Boulevard Shiptrade S.A	September 12, 2013	Dimitris C	2001	3,430
Wellington Marine Inc.	January 27, 2005	Singapore	2004	3,314
Auckland Marine Inc.	January 27, 2005	Colombo	2004	3,314
CellContainer (No. 4) Corp.	March 23, 2007	Express Spain	2011	3,400
CellContainer (No. 5) Corp.	March 23, 2007	Express Black Sea	2011	3,400
CellContainer (No. 1) Corp.	March 23, 2007	Express Argentina	2010	3,400
CellContainer (No. 2) Corp.	March 23, 2007	Express Brazil	2010	3,400
CellContainer (No. 3) Corp.	March 23, 2007	Express France	2010	3,400
Vilos Navigation Company Ltd.	May 30, 2013	Zebra	2001	2,602
Sarond Shipping Inc.	January 18, 2013	Artotina	2001	2,524
Speedcarrier (No. 7) Corp.	December 6, 2007	Highway	1998	2,200
Speedcarrier (No. 6) Corp.	December 6, 2007	Progress C	1998	2,200
Speedcarrier (No. 8) Corp.	December 6, 2007	Bridge	1998	2,200
Speedcarrier (No. 1) Corp.	June 28, 2007	Phoenix D	1997	2,200
Speedcarrier (No. 2) Corp.	June 28, 2007	Advance	1997	2,200
Speedcarrier (No. 5) Corp.	June 28, 2007	Future	1997	2,200
Speedcarrier (No. 4) Corp.	June 28, 2007	Sprinter	1997	2,200
Vessels under construction
Boxsail (No. 4) Corp.	March 4, 2022	Hull No. CV5900-08 ⁽³⁾	2025	6,014
Boxline (No. 8) Corp	June 6, 2025	Hull No. CV5900-09	2027	6,014
Boxline (No. 1) Corp.	June 7, 2023	Hull No. YZJ2023-1556	2026	8,258
Boxline (No. 2) Corp.	June 7, 2023	Hull No. YZJ2023-1557	2026	8,258
Boxline (No. 3) Corp.	February 2, 2024	Hull No. YZJ2024-1612	2026	8,258
Boxline (No. 4) Corp.	February 2, 2024	Hull No. YZJ2024-1613	2027	8,258
Boxline (No. 5) Corp.	March 8, 2024	Hull No. YZJ2024-1625	2027	8,258
Boxline (No. 6) Corp.	March 8, 2024	Hull No. YZJ2024-1626	2027	8,258
Boxline (No. 7) Corp.	May 30, 2024	Hull No. YZJ2024-1668	2027	8,258
Boxsail (No. 5) Corp.	June 13, 2024	Hull No. C9200-07	2027	9,200
Boxsail (No. 6) Corp.	June 13, 2024	Hull No. C9200-08	2027	9,200
Boxsail (No. 7) Corp.	June 13, 2024	Hull No. C9200-09	2027	9,200
Boxsail (No. 8) Corp.	June 13, 2024	Hull No. C9200-10	2027	9,200
Boxsail (No. 9) Corp.	June 13, 2024	Hull No. C9200-11	2027	9,200
Boxsail (No. 10) Corp.	June 13, 2024	Hull No. H2596	2027	9,200
Boxsail (No. 11) Corp.	June 13, 2024	Hull No. H2597	2027	9,200

(1)	Twenty-feet equivalent unit, the international standard measure for containers and container vessels capacity.

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DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1 Basis of Presentation and General Information (Continued)

(2)	The vessel ‘Phoebe’ was delivered during the first quarter of 2025.

(3)	The vessel is expected to be delivered during the fourth quarter of 2025.

Capesize drybulk vessels


Company	Date of Incorporation	Vessel Name	Year Built	DWT⁽¹⁾
Bulk No. 1 Corp.	July 14, 2023	Integrity	2010	175,996
Bulk No. 2 Corp.	July 14, 2023	Achievement	2011	175,850
Bulk No. 3 Corp.	July 14, 2023	Ingenuity	2011	176,022
Bulk No. 4 Corp.	July 14, 2023	Genius	2012	175,580
Bulk No. 5 Corp.	July 14, 2023	Peace	2010	175,858
Bulk No. 6 Corp.	September 15, 2023	W Trader	2009	175,879
Bulk No. 7 Corp.	September 25, 2023	E Trader	2009	175,886
Bulk No. 8 Corp.	January 31, 2024	Danaos	2011	176,536
Bulk No. 9 Corp.	February 2, 2024	Gouverneur	2010	178,043
Bulk No. 10 Corp.	February 15, 2024	Valentine	2011	175,125

(1)	DWT, dead weight tons, the international standard measure for drybulk vessels capacity.

2 Significant Accounting Policies

For a detailed discussion about the Company’s significant accounting policies, see Note 2 “Significant Accounting Policies” in the Company’s consolidated financial statements included in the Annual Report on Form 20-F for the year ended December 31, 2024 filed with the Securities and Exchange Commission on March 5, 2025. During the three and six months ended June 30, 2025, there were no significant changes made to the Company’s significant accounting policies.

3 Investments in Affiliates

In March 2023, we invested $4.3 million in the common shares of a newly established company, Carbon Termination Technologies Corporation (“CTTC”), incorporated in the Republic of the Marshall Islands, that engages in research and development of decarbonization technologies for the shipping industry. This investment represents a 49% ownership interest which is recorded in our books under equity method of accounting. In 2024 and 2025, the Company has provided CTTC with additional funding of $2.1 million in the form of a loan which bears interest at a rate of SOFR plus a margin of 2.0% and has a maturity date as of December 31, 2025. The Company’s share of CTTC’s initial expenses amounted to $0.6 million and $0.2 million for the six months ended June 30, 2025 and June 30, 2024, respectively, and is presented in the consolidated statements of income under “Equity loss on investments”.

4 Fixed Assets, Advances for Vessels Acquisition and Vessels under Construction

In June 2025, the Company entered into a contract with Qingdao Yangfan shipyard for the construction of a 6,014 TEU container vessel with expected delivery in the second quarter of 2027.

In January 2025, the Company took delivery of a 6,014 TEU newbuild container vessel, named Phoebe, which commenced a long-term charter upon delivery. In 2024, the Company took delivery of four 8,010 TEU newbuild container vessels and two 7,165 TEU newbuild container vessels. Each of these six newbuild vessels delivered to the Company commenced a long-term time charter upon delivery. Additionally, in 2024, the Company entered into agreements to acquire 3 Capesize bulk carriers built in 2010 through 2011 that aggregate 529,704 DWT for a total purchase price of $79.8 million. Two of these vessels were delivered to the Company in the second quarter of 2024 and one in the third quarter of 2024.

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DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

4 Fixed Assets, Advances for Vessels Acquisition and Vessels under Construction (Continued)

In March 2024, the Company sold for scrap the vessel Stride, which had been off-hire since January 8, 2024 due to damage from a fire in the engine room that was subsequently contained. The Company recognized $11.9 million of net insurance proceeds for total loss of vessel and recorded a gain on the disposal of this vessel amounting to $8.3 million in the year ended December 31, 2024, separately presented under “Net gain on disposal/sale of vessels” in the Consolidated Statements of Income.

In April 2023, the Company entered into contracts for the construction of two 6,014 TEU container vessels with expected vessel deliveries in 2025, one of which was delivered in the first quarter of 2025. In June 2023, the Company entered into contracts for the construction of two 8,258 TEU container vessels with expected vessel deliveries in 2026. In February and March 2024, the Company entered into contracts for the construction of four 8,258 TEU container vessels with one of these vessels expected to be delivered in 2026 and the remaining three vessels expected to be delivered in 2027. In June and July 2024 the Company entered into contracts for the construction of one 8,258 TEU and five 9,200 TEU container vessels with four of these vessels expected to be delivered in 2027 and the remaining two vessels expected to be delivered in 2028. In December 2024, the Company entered into contracts for the construction of two 9,200 TEU vessels with expected deliveries in 2027. In June 2025, the Company entered into a contract for the construction of one 6,014 TEU container vessel, expected to be delivered in 2027. The aggregate purchase price of the remaining sixteen vessel construction contracts amounts to $1,516.6 million, out of which $62.2 million, $180.4 million and $40.0 million was paid in the six months ended June 30, 2025 and in the years ended December 31, 2024 and 2023, respectively.

The remaining contractual commitments of the remaining 16 vessel construction contracts are analyzed as follows as of June 30, 2025 (in thousands):


Payments due by period ended	$ thousands
December 31, 2025	$	113,844
December 31, 2026		435,240
December 31, 2027		590,392
December 31, 2028		94,500
Total contractual commitments	$	1,233,976

Additionally, a supervision fee of $850 thousand per newbuilding vessel is payable to Danaos Shipping Company Limited (the “Manager”) over the construction period. Supervision fees totaling $0.6 million and $3.0 million were charged by the Manager and capitalized to the vessels under construction in the six months ended June 30, 2025 and in the year ended December 31, 2024, respectively. Interest expense amounting to $9.3 million and $21.5 million was capitalized to the vessels under construction in the six months ended June 30, 2025 and in the year ended December 31, 2024, respectively.

The Company assumed time charter liabilities related to its acquisition of vessels in the second half of 2021. The amortization of these assumed time charters amounted to nil and $4.5 million in the six months ended June 30, 2025 and June 30, 2024, respectively and is presented under “Operating revenues” in the condensed consolidated statement of income.

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Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

5 Deferred Charges, net

Deferred charges, net consisted of the following (in thousands):


	Drydocking and
	Special Survey Costs
As of January 1, 2024	$	38,012
Additions		50,568
Write-off		(660)
Amortization		(29,161)
As of December 31, 2024		58,759
Additions		27,805
Write-off		—
Amortization		(22,485)
As of June 30, 2025	$	64,079

The Company follows the deferral method of accounting for drydocking and special survey costs in accordance with accounting for planned major maintenance activities, whereby actual costs incurred are deferred and amortized on a straight-line basis over the period until the next scheduled survey, which is two and a half years. If special survey or drydocking is performed prior to the scheduled date, the remaining unamortized balances are immediately written off. Furthermore, when a vessel is drydocked in more than one reporting period, the respective costs are identified and recorded in the period in which they were incurred and not at the conclusion of the drydocking.

6 Other Current and Non-current Assets

Other current and non-current assets consisted of the following (in thousands):


	As of		As of
	June 30, 2025		December 31, 2024
Straight-lining of revenue	$	25,268	$	22,170
Marketable securities		107,919		60,850
Claims receivable		14,970		14,387
Other current assets		10,005		16,243
Total other current assets	$	158,162	$	113,650

Straight-lining of revenue	$	39,319	$	47,423
Other non-current assets		20,969		10,358
Total other non-current assets	$	60,288	$	57,781

In June 2023, the Company acquired marketable securities of Eagle Bulk Shipping Inc., an owner of bulk carriers, which was listed on the New York Stock Exchange (Ticker: EGLE) consisting of 1,552,865 shares of common stock for $68.2 million (out of which $24.4 million from Virage International Ltd., a related company). EGLE owned and operated a fleet of bulk carriers.

On December 11, 2023, Star Bulk Carriers Corp. (Ticker: SBLK), a NASDAQ-listed owner and operator of drybulk vessels, and EGLE, announced that both companies had entered into a definitive agreement to combine in an all-stock merger, which was completed on April 9, 2024. Under the terms of the agreement, EGLE shareholders received 2.6211 shares of SBLK common stock in exchange for each share of EGLE common stock owned. During the six months ended June 30, 2025, the Company purchased an additional 2,185,967 shares of common stock of “SBLK” in the open market for $29.9 million. As a result, as of June 30, 2025, the Company owned 6,256,181 shares of SBLK common stock and this has remained the same through the date of this report.

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DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

6 Other Current and Non-current Assets (Continued)

As of June 30, 2025 and December 31, 2024, these marketable securities were fair valued at $107.9 million and $60.9 million, respectively and the Company recognized a $17.2 million gain and a $13.2 million gain, respectively on these marketable securities reflected under “Gain on investments” in the condensed consolidated statements of income in the six months ended June 30, 2025 and June 30, 2024, respectively. Additionally, the Company recognized dividend income on these shares amounting to $0.7 million in the six months ended June 30, 2025 and $4.0 million for the six months ended June 30, 2024.

7 Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):


	As of		As of
	June 30, 2025		December 31, 2024
Accrued interest	$	9,846	$	10,599
Accrued dry-docking expenses		3,146		5,334
Accrued expenses		10,393		7,711
Total	$	23,385	$	23,644

Accrued expenses mainly consisted of accruals related to the operation of the Company’s fleet as of June 30, 2025 and December 31, 2024.

8 Long-Term Debt, net

Long-term debt, net consisted of the following (in thousands):


	Balance as of		Balance as of
Credit Facility	June 30, 2025		December 31, 2024
BNP Paribas/Credit Agricole $130 mil. Facility	$	82,400	$	86,200
Alpha Bank $55.25 mil. Facility		36,500		40,250
Syndicated $450.0 mil. Facility		388,660		355,330
Citibank $382.5 mil. Revolving Credit Facility		—		—
Syndicated $850.0 mil. Facility		—		—
Senior unsecured notes		262,766		262,766
Total long-term debt	$	770,326	$	744,546
Less: Deferred finance costs, net		(9,132)		(9,763)
Less: Current portion		(37,660)		(35,220)
Total long-term debt net of current portion and deferred finance costs	$	723,534	$	699,563

In February 2025, the Company entered into a syndicated loan facility agreement for a maximum principal amount of up to $850 million (the “Syndicated $850.0 mil. Facility”), to finance a portion of the purchase price of fourteen newbuilding container vessels. The facility is expected to be drawn upon delivery of each vessel in separate tranches. Each vessel tranche is repayable in 20 equal quarterly instalments of approximately $0.8 million per tranche followed by a final payment on the fifth anniversary of each vessel’s tranche of between $42.4 million and $46.7 million per tranche up to December 2033. The facility bears interest at SOFR plus a margin of 1.65% and commitment fee of 0.50%.

In March 2024, the Company entered into a syndicated loan facility agreement for a maximum principal amount of up to $450 million (the “Syndicated $450.0 mil. Facility”), which is secured by eight of the Company’s container vessels one of which is under construction and expected to be delivered in the fourth quarter of 2025.

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DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8 Long-Term Debt, net (Continued)

The facility is being drawn in separate vessel tranches upon delivery of each vessel and as of June 30, 2025, a $44 million tranche is expected to be utilized during the fourth quarter of 2025 upon delivery of the final vessel. Each vessel tranche is repayable in 20 equal quarterly instalments ranging between $0.6 and $0.9 million per tranche followed by a final payment on the fifth anniversary of each vessel’s tranche of between $31.8 million and $45.5 million per tranche up to September 2030. The facility bears interest at SOFR plus a margin of 1.85% and commitment fee of 0.74%.

In June 2022, the Company put in place a $130.0 million senior secured term loan facility with BNP Paribas and Credit Agricole, which is secured by six 5,466 TEU sister vessels acquired in 2021.

This facility is repayable in eight quarterly instalments of $5.0 million followed by twelve quarterly instalments of $1.9 million, together with a balloon payment of $67.2 million payable at maturity of the facility’s five year term in June 2027. The facility bears interest at SOFR plus a margin of 2.16% as adjusted by the sustainability margin adjustment.

In December 2022, the Company early extinguished the remaining $437.75 million of the Citibank/Natwest $815 mil. Facility and replaced it with a $382.5 million Revolving Credit Facility with Citibank, out of which nil is drawn down as of June 30, 2025, and with a $55.25 million credit facility with Alpha Bank, which was utilized in full. The Citibank $382.5 mil. Revolving Credit Facility is reducing and repayable over 5 years in 20 quarterly reductions of $11.25 million each together with a final reduction of $157.5 million at maturity in December 2027. This facility bears interest at SOFR plus a margin of 2.0% and commitment fee of 0.8% on undrawn availability and is secured by sixteen of the Company’s vessels. The Alpha Bank $55.25 mil. facility is repayable over 5 years with 20 consecutive quarterly instalments of $1.875 million each, together with a balloon payment of $17.75 million at maturity in December 2027. This facility bears interest at SOFR plus a margin of 2.3% and is secured by two of the Company’s vessels.

The Company incurred interest expense amounting to $27.4 million, out of which $9.3 million was capitalized in the six months ended June 30, 2025 compared to $18.7 million of interest expense incurred, out of which $11.4 million was capitalized in the six months ended June 30, 2024.

As of June 30, 2025, there was a $270 million remaining borrowing availability under the Company’s Citibank $382.5 mil. Revolving Credit Facility, $44 million under the Syndicated $450 million Facility and $850 million under the Syndicated $850 million Facility. Thirty-one of the Company’s vessels having a net carrying value of $2,053.7 million as of June 30, 2025 and fifteen container vessels under construction, were subject to first preferred mortgages as collateral to the Company’s credit facilities other than its senior unsecured notes.

On February 11, 2021, the Company issued in a private placement, $300.0 million aggregate principal amount of senior unsecured notes, which bear interest at a fixed rate of 8.50% per annum and mature on March 1, 2028. At any time on or after March 1, 2024, March 1, 2025 and March 1, 2026 the Company may elect to redeem all or any portion of the notes, respectively, at a price equal to 104.25%, 102.125% and 100%, respectively, of the principal amount being redeemed. Prior to March 1, 2024 the Company may redeem up to 35% of the aggregate principal of the notes from equity offering proceeds at a price equal to 108.50% within 90 days after the equity offering closing. In December 2022, the Company repurchased $37.2 million aggregate principal amount of its unsecured senior notes in a privately negotiated transaction. Interest payments on the notes are payable semi-annually commencing on September 1, 2021. $9.0 million of bond issuance costs were deferred and are recognized over the life of the bond through the effective interest method.

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DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8 Long-Term Debt, net (Continued)

The scheduled debt maturities of long-term debt subsequent to June 30, 2025 are as follows (in thousands):


	Principal
Payments due by period ending	repayments
June 30, 2026	$	37,660
June 30, 2027		104,860
June 30, 2028		306,826
June 30, 2029		153,260
June 30, 2030		167,720
Total long-term debt	$	770,326

Alpha Bank $55.25 mil. Facility, Citibank $382.5 mil. Revolving Credit Facility, Syndicated $450.0 mil. Facility and Syndicated $850.0 mil. Facility contain a requirement to maintain minimum fair market value of collateral vessels to loan value coverage of 120% and the BNP Paribas/Credit Agricole $130 mil. Facility of 125%. Additionally, these facilities require to maintain the following financial covenants:

(i)

minimum liquidity of $30.0 million;

(ii)

maximum consolidated debt (less cash and cash equivalents) to consolidated EBITDA ratio of 6.5x; and

(iii)

minimum consolidated EBITDA to net interest expense ratio of 2.5x.

Each of the credit facilities except for senior unsecured notes are collateralized by first preferred mortgages over the vessels financed, general assignment of all hire freights, income and earnings, the assignment of their insurance policies, as well as any proceeds from the sale of mortgaged vessels, stock pledges and benefits from corporate guarantees. The Company was in compliance with the financial covenants contained in the credit facilities agreements as of June 30, 2025 and December 31, 2024.

9 Financial Instruments

The following is a summary of the Company’s risk management strategies and the effect of these strategies on the Company’s condensed consolidated financial statements.

Interest Rate Risk: Interest rate risk arises on bank borrowings. The Company monitors the interest rate on borrowings closely to ensure that the borrowings are maintained at favorable rates.

Concentration of Credit Risk: Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents and trade accounts receivable. The Company places its temporary cash investments, consisting mostly of deposits, with established financial institutions. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company’s investment strategy. The Company is exposed to credit risk in the event of non-performance by counterparties, however, the Company limits this exposure by diversifying among counterparties with high credit ratings. The Company depends upon a limited number of customers for a large part of its revenues. Credit risk with respect to trade accounts receivable is generally managed by the selection of customers among the major liner companies in the world and their dispersion across many geographic areas.

Fair Value: The carrying amounts reflected in the accompanying consolidated balance sheets of financial assets and liabilities (excluding long-term bank loans and certain other non-current assets) approximate their respective fair values due to the short maturity of these instruments. The fair values of long-term floating rate bank loans approximate the recorded values, generally due to their variable interest rates. The fair value of senior unsecured notes is measured based on quoted market prices. The fair value of marketable securities is measured based on the closing price of the securities on a stock exchange.

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Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9 Financial Instruments (Continued)

a. Interest Rate Swap Hedges

The Company currently has no outstanding interest rate swaps agreements. However, in the past years, the Company entered into interest rate swap agreements with its lenders in order to manage its floating rate exposure. Certain variable-rate interests on specific borrowings were associated with vessels under construction and were capitalized as a cost of the specific vessels. In accordance with the accounting guidance on derivatives and hedging, the amounts related to realized gains or losses on cash flow hedges that have been entered into and qualified for hedge accounting, in order to hedge the variability of that interest, were recognized in accumulated other comprehensive loss and are reclassified into earnings over the depreciable life of the constructed asset, since that depreciable life coincides with the amortization period for the capitalized interest cost on the debt. An amount of $1.8 million was reclassified into earnings for the six months ended June 30, 2025 and 2024, representing its amortization over the depreciable life of the vessels. An amount of $3.6 million is expected to be reclassified into earnings within the next 12 months.

b. Fair Value of Financial Instruments

The Company determines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy.

Level I: Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation of these items does not entail a significant amount of judgment.

Level II: Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date.

Level III: Inputs that are unobservable. The Company did not use any Level 3 inputs as of June 30, 2025 and December 31, 2024.

The estimated fair values of the Company’s financial instruments are as follows:


	As of June 30, 2025				As of December 31, 2024
	Book Value		Fair Value		Book Value		Fair Value

	(in thousands of $)
Cash and cash equivalents	$	546,164	$	546,164	$	453,384	$	453,384
Marketable securities	$	107,919	$	107,919	$	60,850	$	60,850
Secured long-term debt, including current portion⁽¹⁾	$	507,560	$	507,560	$	481,780	$	481,780
Unsecured long-term debt⁽¹⁾	$	262,766	$	226,291	$	262,766	$	259,834

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Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9 Financial Instruments (Continued)

The estimated fair value of the financial instruments that are measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of June 30, 2025:


	Fair Value Measurements as of June 30, 2025
	Total		(Level I)		(Level II)		(Level III)

	(in thousands of $)
Marketable securities	$	107,919	$	107,919	$	—	$	—

The estimated fair value of the financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of June 30, 2025:


	Fair Value Measurements as of June 30, 2025
	Total		(Level I)		(Level II)		(Level III)

		(in thousands of $)
Cash and cash equivalents	$	546,164	$	546,164	$	—	$	—
Secured long-term debt, including current portion⁽¹⁾	$	507,560	$	—	$	507,560	$	—
Unsecured long-term debt⁽¹⁾	$	226,291	$	226,291	$	—	$	—

The estimated fair value of the financial instruments that are measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2024:


	Fair Value Measurements as of December 31, 2024
	Total		(Level I)		(Level II)		(Level III)

	(in thousands of $)
Marketable securities	$	60,850	$	60,850	$	—	$	—

The estimated fair value of the financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2024:


	Fair Value Measurements as of December 31, 2024
	Total		(Level I)		(Level II)		(Level III)

	(in thousands of $)
Cash and cash equivalents	$	453,384	$	453,384	$	—	$	—
Secured long-term debt, including current portion⁽¹⁾	$	481,780	$	—	$	481,780	$	—
Unsecured long-term debt⁽¹⁾	$	259,834	$	259,834	$	—	$	—

(1)

Secured and unsecured long-term debt, including current portion is presented gross of deferred finance costs of $9.1 million and $9.8 million as of June 30, 2025 and December 31, 2024, respectively. The fair value of the Company’s secured debt is estimated based on currently available debt with similar contract terms, interest rate and remaining maturities.

10 Commitments and Contingencies

There are no material legal proceedings to which the Company is a party or to which any of its properties are the subject, or other contingencies that the Company is aware of, other than routine litigation incidental to the Company’s business.

The Company has outstanding commitments under vessel construction contracts as of June 30, 2025, see Note 4 “Fixed Assets, Advances for Vessels Acquisition and Vessels under Construction”.

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DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

11 Stockholders’ Equity

In the period ended June 30, 2025, the Company declared a dividend of $0.85 per share of common stock paid in each of February and June amounting to $31.5 million. In the period ended June 30, 2024, the Company declared a dividend of $0.80 per share of common stock paid in each of March and June amounting to $31.0 million.The Company issued 98 and 11 shares of common stock pursuant to its dividends reinvestment plan in the periods ended June 30, 2025 and June 30, 2024, respectively.

In June 2022, the Company announced a share repurchase program of up to $100 million of the Company’s common stock. This share repurchase program was upsized by $100 million on November 10, 2023 and by an additional $100 million on April 14, 2025 for a total aggregate amount of $300 million. The Company repurchased 678,060 shares of the Company’s common stock in the open market for $52.7 million in the six months ended June 30, 2025, 661,103 shares for $53.9 million in the year ended December 31, 2024, 1,131,040 shares for $70.6 million in the year ended December 31, 2023 and 466,955 shares for $28.6 million in the period ended December 31, 2022. In total, as of June 30, 2025, the Company had repurchased a total of 2,937,158 shares of common stock for $205.7 million under this repurchase program.

As of April 18, 2008, the Board of Directors and the Compensation Committee approved incentive compensation of the Manager’s employees with its shares from time to time, after specific for each such time, decision by the compensation committee and the Board of Directors in order to provide a means of compensation in the form of free shares to certain employees of the Manager of the Company’s common stock. The plan was effective as of December 31, 2008. Pursuant to the terms of the plan, employees of the Manager may receive (from time to time) shares of the Company’s common stock as additional compensation for their services offered during the preceding period. The total amount of stock to be granted to employees of the Manager will be at the Company’s Board of Directors’ discretion only and there will be no contractual obligation for any stock to be granted as part of the employees’ compensation package in future periods. In December 2024, the Company granted 30,000 shares of restricted stock to certain employees of the Manager, out of which 2,000 shares are scheduled to vest in December 2025, 4,000 shares in December 2026, 8,000 shares in December 2027 and the remaining 16,000 shares in December 2028. The vesting of these shares is subject to satisfaction of the vesting terms, under the Company’s 2006 Equity Compensation Plan, as amended. The 30,000 restricted shares were issued and outstanding as of December 31, 2024, with aggregate compensation expense of $2.3 million related thereto expected to be recognized as the shares vest over a 4 year period. In relation to the vesting of these 30,000 restricted shares to certain employees of the Manager and the 100,000 shares to vest to the Manager at the end of 2025 under the amended and restated management agreement (please refer to Note 14 “Related Party Transactions”), an amount of $3.4 million was expensed in the six months ended June 30, 2025 and an additional $3.5 million is expected to be recognized as stock based compensation to the Manager for the remainder of 2025.

The aggregate number of shares of common stock for which awards may be granted under the Plan shall not exceed 1,000,000 shares plus the number of unvested shares granted before August 2, 2019. The equity awards may be granted by the Company’s Compensation Committee or Board of Directors under its amended and restated 2006 equity compensation plan. Awards made under the Plan that have been forfeited, cancelled or have expired, will not be treated as having been granted for purposes of the preceding sentence.

In November 2024, the Company granted 100,000 fully vested shares to executive officers.

The Company has also established the Directors Share Payment Plan under its 2006 equity compensation plan. The purpose of the plan is to provide a means of payment of all or a portion of compensation payable to directors of the Company in the form of Company’s Common Stock. The plan was effective as of April 18, 2008. Each member of the Board of Directors of the Company may participate in the plan. Pursuant to the terms of the plan, directors may elect to receive in Common Stock all or a portion of their compensation. Following December 31 of each year, the Company delivers to each Director the number of shares represented by the rights credited to their Share Payment Account during the preceding calendar year. During the six months ended June 30, 2025 and June 30, 2024, none of the directors elected to receive their compensation in Company shares.

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Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

12 Lease Arrangements

Charters-out

As of June 30, 2025, the Company generated leasing operating revenues from its 74 container vessels on time charter or bareboat charter agreements, with remaining terms ranging from less than one year to October 2031. Additionally, the Company contracted 5- year and 7-year time charter agreements for fifteen out of the sixteen container vessels under construction as of June 30, 2025. Under the terms of the charter party agreements, most charterers have options to extend the duration of contracts ranging from less than one year to three years after the expiration of the contract. The Company determines fair value of its vessels at the lease commencement date and at the end of lease term for lease classification with the assistance from valuations obtained by third party independent shipbrokers. The Company manages its risk associated with the residual value of its vessels after the expiration of the charter party agreements by seeking multi-year charter arrangements for its vessels.

In May 2022, the Company received $238.9 million of charter hire prepayment related to charter contracts for 15 of the Company’s vessels, representing partial prepayment of charter hire payable up to January 2027. This charter hire prepayment is recognized in revenue through the remaining period of each charter party agreement, in addition to the contracted future minimum payments reflected in the table below. As of June 30, 2025, the outstanding balances of the current and non-current portion of unearned revenue in relation to this prepayment amounted to $27.6 million and $11.2 million, respectively. As of December 31, 2024, the outstanding balances of the current and non-current portion of unearned revenue in relation to this prepayment amounted to $37.2 million and $22.9 million, respectively.

The future minimum payments, expected to be received on non-cancellable time charters and bareboat charters classified as operating leases consisted of the following as of June 30, 2025 (in thousands):


Period	$ thousands
Remainder of 2025	$	469,228
2026		864,217
2027		669,928
2028		463,747
2029		347,631
2030 and thereafter		673,797
Total future rentals	$	3,488,548

Rentals from time charters are not generally received when a vessel is off-hire, including time required for normal periodic maintenance of the vessel. In arriving at the future minimum rentals, an estimated time off-hire to perform periodic maintenance on each vessel has been deducted, although there is no assurance that such estimate will be reflective of the actual off-hire in the future.

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Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

13 Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share:


	Three months ended
	June 30, 2025		June 30, 2024

	(in thousands)
Numerator:
Net income	$	130,904	$	141,152

Denominator (number of shares in thousands):
Basic weighted average common shares outstanding		18,344		19,348
Effect of dilutive securities:
Dilutive effect of non-vested shares		52		172
Diluted weighted average common shares outstanding		18,396		19,520
Basic earnings per share (in $ per share)	$	7.14	$	7.30
Diluted earnings per share (in $ per share)	$	7.12	$	7.23


	Six months ended
	June 30, 2025		June 30, 2024

	(in thousands)
Numerator:
Net income	$	246,051	$	291,650

Denominator (number of shares in thousands):
Basic weighted average common shares outstanding		18,546		19,380
Effect of dilutive securities:
Dilutive effect of non-vested shares		42		172
Diluted weighted average common shares outstanding		18,588		19,552
Basic earnings per share (in $ per share)	$	13.27	$	15.05
Diluted earnings per share (in $ per share)	$	13.24	$	14.92

14 Related Party Transactions

On February 3, 2025, the Company entered into an amended and restated management agreement with Danaos Shipping Company Limited (“the Manager”), removing the provision of certain commercial services to us by Danaos Shipping and the related fees payable by us. Under this agreement the Company pays to the Manager the following fees, effective as of January 1, 2025: an annual management fee of $2.0 million and 100,000 shares of the Company’s common stock, payable annually, (ii) a daily vessel management fee of $475 for vessels on bareboat charter, pro-rated for the number of calendar days the Company owns each vessel, (iii) a daily vessel management fee of $950 for vessels on time charter and voyage charter, pro-rated for the number of calendar days the Company owns each vessel, (iv) a flat fee of $850 thousand per newbuilding vessel, which is capitalized to the newbuilding cost, for the on premises supervision of any newbuilding contracts by selected engineers and others of its staff and (v) a fee of $1 per Emission Allowance required to be surrendered by the Responsible entity under the EU ETS or any other applicable Emission Scheme in any Calendar Year.

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Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

14 Related Party Transactions (Continued)

Management fees to the Manager amounted to $15.3 million and $13.9 million in the six months ended June 30, 2025 and 2024, respectively, and are presented under “General and administrative expenses” in the condensed consolidated statements of income. Additionally, supervision fees for vessels under construction totaling $0.6 million and $3.0 million were charged by the Manager and capitalized to vessels under construction costs in the six months ended June 30, 2025 and the year ended December 31, 2024, respectively.

We also entered into a brokerage services agreement with Danaos Chartering Services Inc. (“Danaos Chartering”) for the provision of such commercial services for the same fees previously payable to Danaos Shipping being: (i) a fee of 1.25% on all freight, charter hire, ballast bonus and demurrage for each vessel, (ii) a fee of 1.0% based on the contract price of any vessel bought or sold by it on the Company’s behalf, including newbuilding contracts, effective as of January 1, 2025. Danaos Chartering is a newly-formed affiliate of Danaos Shipping, and is also ultimately owned by DIL, the Company’s largest stockholder.

Commercial services commissions amounted to $6.4 million and $5.9 million in the six months ended June 30, 2025 and 2024, respectively and are presented under “Voyage expenses” in the condensed consolidated statements of income. Commissions on acquisition of vessels totaling $0.6 million and $6.0 million in the six months ended June 30, 2025 and year ended December 31, 2024, respectively, were capitalized to the cost of the acquired vessels.

The balance “Due from related parties” in the condensed consolidated balance sheets totaling $49.1 million and $52.6 million as of June 30, 2025 and December 31, 2024, respectively, represents advances to the Manager on account of the vessels’ operating and other expenses. Defined benefit obligation for the executive officers of $15.1 million and $12.9 million is presented under “Other long-term liabilities” in the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024. The Company recognized prior service cost and periodic cost of this defined benefit executive retirement plan amounting to $2.8 million and $0.7 million in the six months ended June 30, 2025 and June 30, 2024, respectively.

15 Operating Revenue

Operating revenue from time charters and bareboat charters and voyage charters for the six months ended June 30, 2025 and 2024, were as follows:


	Six months ended
	June 30, 2025		June 30, 2024
Time charters and bareboat charters	$	488,717	$	476,853
Voyage charters		26,744		22,902
Total Revenue	$	515,461	$	499,755

As of June 30, 2025 and December 31, 2024, the Company had accounts receivable from voyage charter agreements amounting to $1.4 million and $0.4 million, respectively. The charter hire received in advance from voyage charter agreements amounting to $2.2 million and $1.7 million is presented under current “Unearned revenue” as of June 30, 2025 and December 31, 2024, respectively. Unearned revenue as of December 31, 2024 was recognized in earnings in the six months ended June 30, 2025 as the performance obligations were satisfied in that period. Unearned revenue related to voyage charter agreements in progress as of June 30, 2025 will be recognized in earnings as performance obligations will be satisfied.

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Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

16 Segments

Until the acquisition of the drybulk vessels in 2023, the Company reported financial information and evaluated its operations by total charter revenues. Since 2023, 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 container vessels segment owns and operates container vessels which are primarily chartered on multi-year, fixed-rate time charter and bareboat charter agreements. The drybulk vessels segment owns and operates drybulk vessels to provide drybulk commodities transportation services.

The Company’s chief operating decision maker, chief executive officer monitors and assesses the performance of the container vessels segment and the drybulk vessels segment 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. Investments in marketable securities and investments in affiliates accounted for using the equity method accounting are not allocated to any of the Company’s reportable segments.

The following table summarizes our selected financial information for the six months ended and as of June 30, 2025, by segment (in thousands):


	Container		Dry bulk
Income Statement Metrics for the six months	vessels		vessels
ended June 30, 2025 (thousands US$)	segment		segment		Total
Operating revenues	$	475,636	$	39,825	$	515,461
Voyage expenses		(17,734)		(17,211)		(34,945)
Vessel operating expenses		(92,571)		(15,516)		(108,087)
Depreciation		(74,154)		(6,572)		(80,726)
Amortization of deferred drydocking and special survey costs		(18,252)		(4,233)		(22,485)
Interest income		7,208		—		7,208
Interest expense		(19,714)		—		(19,714)
Other segment items ⁽¹⁾		(25,481)		(2,569)		(28,050)
Net Income per segment	$	234,938	$	(6,276)	$	228,662
Gain on investments, dividend income and equity loss on investments, net of interest income						17,389
Net Income					$	246,051

1.	Other segment items for each reportable segment include general and administrative expenses, other finance expenses, other income/(expenses) and loss on derivatives


	Container		Dry bulk
Balance Sheet Metrics as of June 30, 2025	vessels		vessels
(thousands US$)	segment		segment		Total
Total Assets per segment	$	4,147,326	$	265,676	$	4,413,002
Marketable Securities						107,919
Receivable from affiliates						239
Total Assets					$	4,521,160

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Table of Contents

DANAOS CORPORATION

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

16 Segments (Continued)

The following table summarizes our selected financial information for the six months ended and as of June 30, 2024, by segment (in thousands):


	Container		Dry bulk
Income Statement Metrics for the six months	vessels		vessels
ended June 30, 2024 (thousands US$)	segment		segment		Total
Operating revenues	$	463,997	$	35,758	$	499,755
Voyage expenses		(16,741)		(16,279)		(33,020)
Vessel operating expenses		(79,430)		(10,774)		(90,204)
Depreciation		(65,255)		(3,988)		(69,243)
Amortization of deferred drydocking and special survey costs		(12,135)		(289)		(12,424)
Interest income		5,859		—		5,859
Interest expense		(8,230)		—		(8,230)
Net gain on disposal of vessel		7,094		—		7,094
Other segment items ⁽¹⁾		(23,117)		(1,801)		(24,918)
Net Income per segment	$	272,042	$	2,627	$	274,669
Gain on investments, dividend income and equity loss on investments						16,981
Net Income					$	291,650

1.	Other segment items for each reportable segment include general and administrative expenses, other finance expenses, other income/(expenses) and loss on derivatives


	Container			Dry bulk
	vessels			vessels
Balance Sheet Metrics as of June 30, 2024 (thousands US$)	segment			segment		Total
Total Assets per segment	$	3,710,004	$	237,057	$	3,947,061
Marketable Securities						99,232
Investment in affiliates						64
Total Assets					$	4,046,357

17 Subsequent Events

The Company has declared a dividend of $0.85 per share of common stock payable on August 28, 2025, to holders of record on August 19, 2025.

F-22