Costamare locks in $6 billion charter backlog as Q3 profit slips

Costamare booked $89.4 million in adjusted net income for the third quarter of 2026, down from $98 million a year earlier, while its contracted containership revenue backlog climbed to roughly $6 billion — more than double the $2.6 billion reported in the same quarter last year.

Adjusted earnings from continuing operations came in at $0.74 per share, against $0.81 in the third quarter of 2025. Net income from continuing operations available to common stockholders was $88.5 million, compared with $92.6 million a year earlier.

Why did revenue decline?

Voyage revenue fell 1.8% to $212.1 million, from $215.9 million in the prior-year quarter. The company blamed the drop mainly on lower charter rates for certain vessels and additional off-hire days, most of them tied to scheduled dry-dockings.

The earnings dip did not strain the balance sheet. Liquidity stood at $733.1 million at the end of September 2026.

How much of the fleet is chartered?

On a TEU basis, Costamare has secured employment for 100% of its containership capacity in 2026 and 99% in 2027, according to its charter position as of 27 October. That coverage underpins the approximately $6 billion in total contracted revenues, with a TEU-weighted charter duration of 5.8 years.

The backlog includes contracts tied to 22 newbuild containerships and two secondhand vessels the company has agreed to acquire. Costamare currently operates 69 containerships in the water with a combined capacity of about 520,000 TEUs. The 22 vessels under construction plus the two planned secondhand acquisitions add another 152,600 TEUs — an expansion of nearly 30% on the existing fleet.

What is happening with debt?

The company pressed ahead with its refinancing programme during the quarter. Since the end of June, Costamare has completed previously announced financing agreements and drawn $1.3 billion to refinance debt across 39 vessels.

It also signed a $92 million loan agreement with an Asian bank covering two vessels, with the funds expected to be drawn in the fourth quarter of 2026. The new arrangements will reduce interest costs and extend debt maturities, according to the company.

Chief Financial Officer Gregory Zikos said the refinancing programme would leave Costamare without debt maturities until 2030.

What does the charter market look like?

Zikos also weighed in on the wider containership charter market, noting that idle vessel capacity remained below 1%, a level that reflects strong fleet employment.

"The fast-rising number of shipping services returning to the Suez Canal has not yet affected market fundamentals," Zikos said. His comment points to a key question for owners and charterers alike: whether the normalization of Asia–Europe routings through the canal will release enough effective capacity to soften charter rates that have stayed firm through the Red Sea disruption period.

Beyond its owned fleet, Costamare continues to build out Neptune Maritime Leasing, in which it holds a controlling interest. The platform now counts 47 shipping assets funded or under commitment, with total investments and commitments exceeding $650 million — a diversification that gives the group exposure to asset finance returns alongside its core chartering business.

Shareholder returns

Costamare declared a quarterly common stock dividend of $0.125 per share, payable on 5 November 2026. At that rate, a shareholder receives $0.50 per share over a full year, against a quarter in which adjusted earnings ran at $0.74 per share — a payout comfortably covered by current profitability.

The combination of near-total charter coverage through 2027, a 5.8-year average contract duration and no debt maturities until 2030 positions Costamare to ride out any softening in spot charter rates; the next test will be whether returning Suez transits finally loosen a market where fewer than one in a hundred boxships sits idle.