Teekay (TK) investor relations material

Executive summary

• Reported GAAP net income of $154 million ($4.42/share) and adjusted net income of $143 million ($3.69/share) for Q1 2026, both significantly higher than last quarter and year-over-year.

• Spot tanker rates averaged $61,000/day, near record highs, driving $143 million in free cash flow and increasing cash position to nearly $1 billion with no debt.

• Continued fleet renewal with acquisition agreements for two Suezmax newbuildings ($190 million) and sale of older vessels, including a 2009-built Suezmax for $53.5 million.

• Declared regular quarterly dividend of $0.25/share and a special dividend of $1/share, totaling $1.25 per share, payable in June 2026.

• Executed significant gains from vessel sales and acquisitions as part of disciplined capital allocation.

Financial highlights

• Free cash flow from operations reached $143 million in Q1 2026, with cash and equivalents at $996 million at quarter end and no outstanding debt.

• Q1 2026 revenues were $286.1 million, up $27.8 million sequentially; net revenues were $228.5 million, up $39.4 million.

• Gains on vessel sales totaled $22.7 million in Q1, with an additional $32.5 million gain expected in Q2.

• Acquired or agreed to acquire eight modern vessels for $490 million; sold or agreed to sell eleven vessels for $431.5 million over the last 12 months.

• Income from operations increased by $36.4 million sequentially, driven by higher spot rates and vessel acquisitions.

Outlook and guidance

• Q2 2026 spot rates booked to date are at record highs: $141,800/day (VLCC), $121,800/day (Suezmax), $98,000/day (Aframax/LR2), with 71% of VLCC, 60% of Suezmax, and 53% of Aframax/LR2 days booked.

• Net revenues expected to decrease in Q2 2026 due to fewer spot days and more scheduled dry dockings, partially offset by more fixed days.

• Vessel operating expenses projected to rise by $4 million in Q2 2026 due to operational activities and maintenance.

• Interest income expected to increase by $2 million in Q2 2026 from higher cash balances.

• Ongoing geopolitical disruptions and trade inefficiencies expected to support elevated tanker rates.