TORM (TRMD) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 earnings driven by exceptionally strong freight rates, disciplined execution, and operational agility amid volatile and disrupted markets.

• Net profit rose to $122 million, up from $63 million year-over-year, with EBITDA at $201 million (Q1 2025: $136 million).

• Fleet expanded to 95 vessels as of March 2026, with further growth expected from new acquisitions and six MR resales scheduled for 2027–2028.

• Geopolitical disruptions, especially the Strait of Hormuz closure, created opportunities, elevated market volatility, and contributed to record-high rates.

• Operational excellence, disciplined capital allocation, and the One TORM platform enabled superior performance and market outperformance.

Financial highlights

• Q1 2026 TCE revenue reached $286 million, up from $214 million in Q1 2025.

• EBITDA was $201 million and net profit $122 million for the quarter, with basic EPS at $1.21 (Q1 2025: $0.64).

• Dividend declared at $0.70 per share, payout ratio 58% (Q1 2025: $0.40/share, 63%).

• Average TCE per day: $34,937 fleet-wide; LR2s above $41,000, MRs just under $33,000, LR1s around $35,000, all up significantly year-over-year.

• Free cash flow for Q1 2026 was negative at $-16.7 million due to significant vessel investments.

Outlook and guidance

• Upgraded full-year 2026 TCE guidance to $1.15–$1.45 billion (from $850 million–$1.25 billion); EBITDA guidance raised to $800 million–$1.1 billion (from $500 million–$900 million).

• 57% of Q2 earning days already fixed at $71,494/day, providing strong near-term earnings visibility.

• 42% of 2026 earning days fixed at an average rate of $50,044/day; remaining days exposed to market volatility.

• Guidance reflects strong Q1 performance, high Q2 coverage, and is subject to market volatility and geopolitical risks.

• EBITDA sensitivity: a $1,000/day change in freight rates impacts EBITDA by $20 million.