SFL (SFL) Q1 2026 earnings summary

Executive summary

• Reported Q1 2026 revenues of $174 million and adjusted EBITDA of $108 million, with net income of $26 million or $0.20 per share.

• Declared 89th consecutive quarterly dividend, increased to $0.22 per share, totaling over $3 billion returned since 2004.

• Charter backlog stands at $3.7 billion, with two-thirds from investment-grade counterparties and a weighted average remaining term of 6.3 years.

• Secured a $170 million contract for the Hercules drilling rig, commencing in Q1 2027 in Canada, and refinanced Linus and Hercules rigs with $250 million in new credit.

• Fleet consists of 57 maritime assets, including vessels, rigs, and newbuildings.

Financial highlights

• Q1 2026 operating revenues were $174.5 million, nearly flat sequentially, with $151.5 million from shipping and $23 million from energy.

• Adjusted EBITDA was $108 million, including $8 million from associates.

• GAAP net profit of $26 million, a swing from a $4.6 million loss in Q4 2025.

• Cash and equivalents at quarter-end were $128 million, with $160 million in undrawn credit facilities and total available liquidity of $288 million.

• Net gain on vessel sale of $11.5 million, with positive mark-to-market effects from derivatives and equity investments.

Outlook and guidance

• Expect continued strong cash flows from spot market tankers, with 53% of Q2 vessel days covered at $185,000/day.

• Will seek longer-term charters for spot vessels when market conditions are favorable.

• Backlog and high-quality counterparties provide strong earnings visibility in volatile markets.

• Five 16,800 TEU container vessels under construction, scheduled for delivery in 2028, with $850 million in remaining capex.

• Minimum 400-day, $170 million contract for the Hercules drilling rig commencing Q1 2027 in Canada.