Himalaya Shipping Ltd. reported Q4 2025 results that surpassed revenue expectations while delivering a modest earnings beat. Net income rose to $13.5 million from $1.1 million in the same quarter a year earlier, and earnings per share reached $0.29, slightly above the consensus estimate of $0.297 and a beat of $0.003. Total revenue climbed to $42.1 million, up 42% from $29.6 million in Q4 2024, and exceeded analyst forecasts of $41.48 million and $41.80 million.
The earnings beat can be traced to a sharp improvement in charter economics. Average time‑charter equivalent (TCE) earnings jumped to $39,600 per day from $27,800 per day in Q4 2024, driven by higher freight rates for the company’s modern Newcastlemax vessels. The Baltic 5TC Capesize index also rose to $28,875 per day from $18,301, reflecting a broader market upturn that the company captured through its index‑linked charter strategy.
Revenue growth was underpinned by a 45% increase in TCE rates and a 30% rise in operating days, reflecting strong demand for iron ore from Brazil and Guinea. The company’s fleet expansion and the low order book—only a 25‑year low—tightened supply and allowed Himalaya to command premium rates. These factors offset the modest increase in operating costs, which rose to $6,400 per day from an unspecified level in 2024.
Full‑year net income fell to $17.7 million from $21.1 million in 2024, largely because financial expenses climbed to $50.5 million in 2025 from a lower base in 2024. The increase reflects higher average debt following recent vessel deliveries and the sale‑leaseback structure that underpins the company’s capital base. Operating costs also rose, but the company’s improved TCE rates helped maintain a healthy EBITDA margin of 25% in Q4 2025 versus 18% a year earlier.
CEO Lars‑Christian Svensen said the quarter represented “the best start to the Capesize and Newcastlemax market this year since 2010,” citing the surge in iron‑ore volumes from Brazil. He highlighted structural tailwinds such as high ton‑mile demand, the Simandou ramp‑up, and an aging fleet that is tightening supply. The company’s management emphasized that it will continue to focus on cost discipline and strategic fleet expansion, while acknowledging the headwinds of higher financial expenses and operating costs. No new guidance was issued for the next quarter, leaving investors to assess the company’s outlook based on the current performance and market conditions.
Investors responded favorably to the results, citing strong TCE rates and robust demand for the company’s modern vessels.
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