TORM PLC reported record second-quarter 2026 results on Tuesday, with revenue of $662.8 million exceeding Wall Street estimates by 30.8%. Adjusted earnings per share came in at $3.25, missing the $3.30 consensus by $0.05. Basic EPS stood at $3.31.
Time Charter Equivalent earnings surged 146% year-over-year to $512 million, while EBITDA jumped 228% to $416 million. Net profit reached $338 million, up 473% from the prior-year period. The fleet-wide average TCE rate more than doubled to $59,301 per day, compared with $27,100 in Q2 2025. Operating expenses averaged $8,315 per day, reflecting cost pressures from crew changes and consumables.
Net interest-bearing debt declined to $715 million from $894 million at the end of Q1, with a net loan-to-value ratio of 22.4%. The board approved an interim dividend of $2.40 per share, totaling $246 million, yielding 8.9% at current prices. Since 2023, TORM has distributed $15.1 per share in dividends, amounting to $1.5 billion in shareholder returns.
Full-year 2026 guidance was raised across key metrics. TCE earnings guidance was lifted to a range of $1.4 billion to $1.6 billion, up from the prior $1.15 billion to $1.45 billion. EBITDA guidance was increased to $1.0 billion to $1.2 billion, from $800 million to $1.1 billion previously. Analysts project full-year EPS of $7.24. Remaining open days were reduced to 10,271, about 30% of total fleet capacity.
TORM’s fleet expanded to 97 vessels by quarter-end, up from 78 at the end of 2022. The company’s resale and newbuilding pipeline extends from 2027 through 2029, with financing structured at roughly 50% leverage. Approximately 30% of the fleet is 15 years or older. Operational disruptions persisted, including a July voyage by the LR1 vessel TORM Innovation, which was rerouted from the Bab el-Mandeb via Suez to the Cape of Good Hope due to security concerns, extending the voyage by over 30 days.
CEO Jacob Meldgaard highlighted the company’s integrated operating model, stating, 'This is unlikely to be a temporary market event. It looks increasingly like a structural reset.' CFO Kim noted that incremental revenue conversion into earnings remained efficient, with TCE up $226 million from Q1 and EBITDA rising $215 million over the same period. The fixed-cost base, he added, allows a large share of additional revenue to flow through to the bottom line.
