TEN Ltd. (NYSE: TEN) reported Q2 2026 voyage revenue of $298.4 million, up 54% from $193.3 million a year earlier, while diluted EPS increased to $4.40 from $0.67. Higher tanker rates lifted average TCE by 50%, more than offsetting slightly lower fleet utilization. Net income attributable to TEN reached $139.3 million, including $38 million of capital gains from vessel sales.
Core Financial Results
The results, released on September 10, 2026, cover the quarter ended June 30. Revenue growth substantially exceeded the increase in fleet size: TEN operated an average of 63.5 vessels, compared with 62.0 a year earlier, while TCE per vessel rose to $46,100 per day.
Profit and cash flow increased faster than revenue. Adjusted EBITDA rose 81%, while operating cash flow nearly tripled from the prior-year quarter.
| Metric | Q2 2026 | Q2 2025 | Year-over-Year Change |
|---|---|---|---|
| Voyage revenue | $298.4 million | $193.3 million | +54% |
| Operating income | $162.7 million | $50.0 million | Approximately +225% |
| Net income attributable to TEN | $139.3 million | $26.8 million | Approximately +419% |
| Diluted EPS | $4.40 | $0.67 | Approximately +557% |
| Adjusted EBITDA | $170.4 million | $93.9 million | +81% |
| Operating cash flow | $184.0 million | $63.8 million | Approximately +188% |
| TCE per vessel per day | $46,100 | $30,767 | +50% |
Adjusted EBITDA and TCE are non-GAAP measures. TEN’s adjusted EBITDA calculation excludes the gain on vessel sales, among other reconciliation items.
Business and Fleet Performance
The main operating driver was the tanker market rather than a large increase in capacity. Average fleet size rose by only 1.5 vessels, and total operating days were relatively stable at 5,484 versus 5,448. However, favorable tanker fundamentals and geopolitical disruptions lifted revenue earned per vessel.
The employment mix also shifted toward fixed-rate charters. Fixed-rate time-charter days increased to 3,569 from 2,969, while variable-rate time-charter and pool days declined to 1,263 from 1,771. Spot voyage days decreased to 652 from 708. This mix supports TEN’s strategy of combining market exposure with contracted revenue.
Utilization eased to 94.8% from 96.6%. Four vessels, including two Suezmax tankers, underwent scheduled drydockings during the quarter, compared with three vessels a year earlier. Vessel operating expenses consequently rose to $57.7 million from $52.7 million, and daily operating expenses increased to $10,640 from $9,982.
Fleet renewal remains a central part of the company’s strategy. TEN’s 26-vessel newbuilding program had seven vessels delivered by the earnings release date, leaving 19 under construction with expected deliveries extending through the first quarter of 2029. The company reported at least $3.6 billion in contracted revenue.
After quarter-end, TEN took delivery of the DP2 Suezmax shuttle tanker Anfield DP. The vessel began a 10-year charter with a U.S. oil major, with extension options through its 20th anniversary. Gross revenue could approach $500 million if all options are exercised.
Vessel-Sale Gains Amplified an Already Strong Operating Quarter
Reported operating margin was approximately 54.5%, compared with 25.9% in Q2 2025. Part of that expansion came from a $37.9 million gain on vessel sales, which also contributed to the sharp increase in GAAP net income and EPS. The prior-year quarter did not include a comparable capital gain, making the EPS comparison especially favorable.
The operating improvement was not solely the result of asset sales. Adjusted EBITDA, which removes the vessel-sale gain, still increased 81% as higher TCE revenue outpaced the growth in operating costs. Depreciation and amortization rose to $46.3 million from $42.1 million, reflecting the larger fleet and the addition of newer and larger vessel classes.
Financing costs provided another benefit. Interest and finance costs decreased by $2.3 million to $22.6 million due to lower borrowing spreads and global interest rates, while quarterly interest income was $3.4 million.
Cash Flow, Debt, and Capital Allocation
TEN ended June with $466.1 million in cash, up from $298.1 million at the end of 2025. For the first half, the company generated $281.2 million of operating cash flow and received $135.2 million from financing activities, against $248.3 million used in investing activities.
Debt and other financial liabilities, net of deferred financing costs, increased to $2.10 billion from $1.92 billion at year-end as TEN funded fleet growth. Advances for vessels under construction rose to $470.1 million from $301.9 million. After subtracting cash, reported debt and other financial liabilities were approximately $1.64 billion, only modestly above the year-end level of approximately $1.62 billion.
Following the quarter, TEN sold the 2006-built Suezmax tankers Alaska and Archangel for net proceeds of $100 million. The company also paid a $1.00-per-share common dividend in July after paying $0.50 per share in February, bringing total common dividends paid in 2026 to $1.50 per share.
Recent Insider Transactions
The supplied six-month aggregate data showed 23.8 million shares purchased across six transactions and 21.8 million shares sold across 29 transactions, for a reported net purchase of approximately 2.0 million shares. The individual transaction data supplied contained four records rather than 10; these are presented without drawing conclusions about insiders’ views of the company.
| Date | Insider | Position | Transaction | Ownership | Reported Value |
|---|---|---|---|---|---|
| Aug. 13, 2026 | Clio Hatzimichalis | Director | Sale at $41.07 per share | Direct | $205,331 |
| July 14, 2026 | Nicholas F. Tommasino | Director | Sale at $40.06 per share | Direct | $99,762 |
| July 8, 2026 | Nikolas P. Tsakos | Chief Executive Officer | Stock gift at $0.00 per share | Direct | $0 |
| April 29, 2026 | Nikolas P. Tsakos | Chief Executive Officer | Purchase at $39.92–$39.95 per share | Indirect | $998,341 |
Risks Investors Should Monitor
- Dependence on tanker rates: The 50% increase in TCE was the principal revenue driver. A reversal in tanker fundamentals or geopolitical ton-mile demand could pressure revenue and EBITDA even if fleet capacity continues to grow.
- Lower utilization and drydocking costs: Utilization declined to 94.8%, while daily operating expenses increased. Additional maintenance periods or lower earning days could offset part of the benefit from higher charter rates.
- Capital demands from fleet expansion: TEN has 19 vessels still under construction, while construction advances and financial liabilities have increased. Ten listed undelivered conventional tanker and LNG projects had employment marked as TBA.
- Nonrecurring gains in reported earnings: The $38 million capital gain enhanced Q2 net income and EPS. Future earnings comparisons may be less favorable if vessel-sale gains are smaller or absent.
- Higher balance-sheet obligations: Although quarterly interest costs declined, debt and other financial liabilities increased as the fleet expanded, leaving financing costs and refinancing conditions important to future cash generation.
Summary
TEN’s Q2 2026 results were driven primarily by higher tanker earnings per vessel, with adjusted EBITDA and operating cash flow confirming an improvement beyond the benefit from vessel-sale gains. The main issues to monitor are whether elevated TCE levels persist, whether utilization recovers, and how TEN balances newbuilding investment with contracted employment, debt, and liquidity.
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