Danaos Corporation (DAC) Income Statement

The revenue trajectory is remarkably stable, with quarterly revenues hovering between $246M and $274M over the past ten quarters. The 2.8% YoY growth in 2026Q2 is consistent with the laddered charter structure, but the recent acquisition of Capesize vessels suggests management is seeking growth outside the container segment. Investors should monitor whether this diversification can sustain growth without diluting the high-margin container business.

The gross margin of 60.3% in 2026Q2 is a significant drop from the 81.8% seen in 2025Q4, which appears to be an outlier. The more consistent range of 56-61% suggests that the 2025Q4 figure may have benefited from one-off items or lower cost allocations. Despite the variability, DAC's gross margin remains well above the peer average, indicating strong pricing power and efficient cost pass-through. However, the recent decline warrants monitoring for potential structural margin compression.

Operating leverage appears muted as revenue growth has not translated into disproportionate operating income growth. The SG&A line has been volatile, with 2026Q1 at $25.4M and 2025Q4 at $28.4M, compared to the typical $11-15M. This variability may indicate one-time expenses or changes in administrative cost structure. The stable operating margin around 48% suggests that DAC is not currently benefiting from economies of scale, but the high gross margin provides a cushion.

The cost structure is dominated by COGS, which includes vessel operating expenses and depreciation. The wide fluctuation in COGS, particularly the $48M in 2025Q4, is unusual and may reflect changes in voyage cost allocations or dry-docking timing. SG&A has been lean, averaging around $15M, but the spikes in 2025Q4 and 2026Q1 warrant investigation. The absence of R&D is typical for a shipping company, but the focus should be on maintaining cost discipline as the fleet ages.