Highlights and Recent Activity
Reported Adjusted earnings of $11.6 million and net income attributable to common stockholders of $9.3 million for the three months ended December 31, 2025, or $0.28 Adjusted earnings per basic and diluted share, compared to Adjusted earnings of $10.3 million and net income attributable to common stockholders of $5.1 million, or $0.25 Adjusted earnings per basic and diluted share for the three months ended December 31, 2024. (See reconciliation of net income to Adjusted earnings in the Non-GAAP Measures section.)
Reported Adjusted earnings of $38.8 million and net income attributable to common stockholders of $36.1 million for the year ended December 31, 2025, or $0.95 Adjusted earnings per basic and diluted share, compared to Adjusted earnings of $119.5 million and net income attributable to common stockholders of $128.6 million, or $2.87 Adjusted earnings per basic share and $2.84 Adjusted earnings per diluted share for the year ended December 31, 2024. (See reconciliation of net income to Adjusted earnings in the Non-GAAP Measures section.) The major driver of the variance between Adjusted earnings and net income attributable to common stockholders for the twelve months ended December 31, 2024, was a $12.3 million gain from the sale of the Ardmore Seafarer in April 2024.
Consistent with the Company's variable dividend policy of paying out dividends on its shares of common stock equal to one-third of Adjusted earnings, the Board of Directors declared a cash dividend on February 12, 2026, of $0.09 per common share for the quarter ended December 31, 2025. The dividend will be paid on March 13, 2026, to all shareholders of record on February 27, 2026.
MR tankers earned an average spot TCE rate of $25,257 per day for the three months ended December 31, 2025. Chemical tankers earned an average spot TCE rate of $19,948 per day for the three months ended December 31, 2025. Based on approximately 50% of total revenue days currently fixed for the first quarter of 2026, the average spot TCE rate is approximately $29,100 per day for MR tankers; based on approximately 30% of revenue days fixed for the first quarter of 2026, the average spot TCE rate for chemical tankers is approximately $20,800 per day.
While primarily trading its fleet in the spot market, the Company also enhanced its fixed-rate coverage during the period. One of its 2013-built MRs will commence a 12-month time charter at $26,000 per day in March 2026, and two of its 2014-built MRs commenced two-year time charters in December 2025 at $21,250 per day.
As previously announced, on October 31, 2025, the Company fully redeemed all remaining outstanding shares of its Series A Preferred Stock, for $30.6 million.
Gernot Ruppelt, the Company's Chief Executive Officer, commented:
"Ardmore delivered a strong finish to 2025 and is carrying that momentum into the start of 2026, with earnings benefiting from increased revenue days following the expansion of our owned fleet and the completion of our scheduled drydocking program including multiple vessel upgrades.
Freight markets have continued to rally due to long-term structural trends and near-term geopolitical dynamics. We are capturing these conditions through strong spot market exposure and Ardmore's global operating platform, while locking in selective high-quality term charters to reinforce a robust earnings profile.
As ever, we remain nimble in positioning Ardmore optimally within a complex, fast-moving environment, while staying focused on our strategic priorities and delivering long-term value."
Summary of Recent and Fourth Quarter 2025 Events
Fleet
Fleet Operations and Employment
As of December 31, 2025, the Company had 26 vessels in operation (including one chartered-in vessel), consisting of 20 MR tankers (19 owned Eco-Design and one chartered-in Eco-Mod) ranging in size from 45,000 deadweight tons ("dwt") to 50,200 dwt and six owned Eco-Design IMO 2 product/chemical tankers ranging in size from 25,000 dwt to 37,800 dwt.
MR Tankers (IMO 2/3: 45,000 dwt, 50,200 dwt)
Below is a summary of the average daily MR Tanker spot TCE rates earned during the fourth quarter of 2025 and rates thus far in the first quarter of 2026, together with the corresponding percentage of currently fixed total revenue days for the first quarter:
4Q 2025 Average Daily TCE
1Q 2026 As of February 12, 2026
TCE
% Fixed
MR Tankers
$25,257
$29,100
50 %
Product / Chemical Tankers (IMO 2: 25,000 dwt, 37,800 dwt)
Below is a summary of the average daily Chemical Tanker spot TCE rates earned during the fourth quarter of 2025 and rates thus far in the first quarter of 2026, together with the corresponding percentage of currently fixed total revenue days for the first quarter:
4Q 2025 Average Daily TCE
1Q 2026 As of February 12, 2026
TCE
% Fixed
Chemical Tankers
$19,948
$20,800
30 %
Drydocking
The Company had 120 drydocking days in the fourth quarter of 2025. The Company does not currently have any scheduled statutory drydocking days in the first quarter of 2026.
Fleet
While primarily trading its fleet in the spot market, the Company also enhanced its fixed-rate coverage during the period. One of its 2013-built MRs will commence a 12-month time charter at $26,000 per day in March 2026, and two of its 2014-built MRs commenced two-year time charters in December 2025 at $21,250 per day. In total the Company currently has four MRs employed on time charter at an average rate of $22,650 per day, and one Chemical tanker on a three-year time charter at $19,250 per day.
Preferred Stock Redemption
On October 31, 2025, the Company fully redeemed all remaining 30,000 outstanding shares of its Series A Preferred Stock, for $30.6 million, which represents the stipulated redemption price of 102% of the liquidation preference per share.
Dividend on Common Shares
Consistent with the Company's variable dividend policy of paying out dividends on its shares of common stock equal to one-third of Adjusted earnings, as calculated for dividends (see "Adjusted earnings (for purposes of dividend calculations)" in the Non-GAAP Measures section), the Board of Directors declared a cash dividend on February 12, 2026 of $0.09 per common share for the quarter ended December 31, 2025. The dividend will be paid on March 13, 2026, to all shareholders of record on February 27, 2026.
Geopolitical and Economic Uncertainty
Over the past year, governments have taken actions to implement new or increased tariffs on foreign imports and port fees. These actions have been disruptive to global markets, resulting in significant volatility in stock and commodity prices and an increase in general global economic uncertainty, including the risk of economic recessions. As a result of this rapidly changing and unpredictable geopolitical climate, the shipping industry is experiencing uncertainty as to future vessel demand, trade routes, rates and operating costs.
Geopolitical Conflicts
The ongoing Russia-Ukraine conflict has disrupted energy supply chains, caused instability and significant volatility in the global economy and resulted in economic sanctions by several nations. This conflict has contributed to increases in spot tanker rates.
Geopolitical tensions in the Middle East region have escalated since the commencement of the Israel-Hamas conflict in October 2023. Since mid-December 2023, Houthi rebels in Yemen have carried out numerous attacks on vessels in the Red Sea area. As a result of these attacks, many shipping companies have routed their vessels away from the Red Sea, which has affected trading patterns, rates, and expenses. Continuing instability or any further escalation or expansion of hostilities in the Middle East or elsewhere could continue to affect the price of crude oil and the oil industry, the tanker industry and demand for the Company's services.
Results for the Three Months Ended December 31, 2025 and 2024
The Company reported net income attributable to common stockholders of $9.3 million for the three months ended December 31, 2025, or $0.23 earnings per basic and diluted share, as compared to net income attributable to common stockholders of $5.1 million, or $0.12 earnings per basic and diluted share for the three months ended December 31, 2024.
Results for the Year Ended December 31, 2025 and 2024
The Company reported net income attributable to common stockholders of $36.1 million for the year ended December 31, 2025, or $0.89 earnings per basic share and $0.88 earnings per diluted share, as compared to net income attributable to common stockholders of $128.6 million, or $3.09 earnings per basic share and $3.06 earnings per diluted share for the year ended December 31, 2024.
Management's Discussion and Analysis of Financial Results for the Three Months Ended December 31, 2025 and 2024
Revenue. Revenue for the three months ended December 31, 2025 was $82.9 million, an increase of $0.9 million from $82.0 million for the three months ended December 31, 2024.
The Company's average number of operating vessels was 26.1 for the three months ended December 31, 2025, a slight increase from 26.0 for the three months ended December 31, 2024.
The Company had 1,836 spot revenue days for the three months ended December 31, 2025, as compared to 2,245 for the three months ended December 31, 2024. The Company had 19 vessels employed directly in the spot market as of December 31, 2025, as compared to 25 vessels as of December 31, 2024. The reduction in spot revenue days reflects both the heavier drydocking program in 2025 and the lower number of vessels trading in the spot market. These factors together resulted in a decrease in revenue of $14.4 million for the three months ended December 31, 2025, as compared to the three months ended December 31, 2024. Increases in spot rates during the three months ended December 31, 2025 resulted in an increase in revenue of $8.4 million.
The Company had six product tankers and one chemical tanker employed under time charters as of December 31, 2025, as compared to one product tanker and no chemical tankers as of December 31, 2024. There were 458 revenue days derived from time charters for the three months ended December 31, 2025, as compared to 92 revenue days for the three months ended December 31, 2024. The increase in revenue days for time-chartered vessels resulted in an increase in revenue of $6.9 million for the three months ended December 31, 2025.
Voyage Expenses. Voyage expenses were $29.7 million for the three months ended December 31, 2025, a decrease of $3.1 million from $32.8 million for the three months ended December 31, 2024. The decrease is primarily driven by $5.4 million of lower bunker consumption resulting from fewer spot trading days, partially offset by a $2.3 million increase in port, agency and broker commissions during the three months ended December 31, 2025, compared to the three months ended December 31, 2024.
TCE Rate. The average TCE rate for the Company's fleet was $23,524 per day for the three months ended December 31, 2025, an increase of $1,171 per day from $22,353 per day for the three months ended December 31, 2024. TCE rates represent net revenues (a non-GAAP measure representing revenue less voyage expenses) divided by revenue days. Net revenue utilized to calculate TCE is determined on a discharge-to-discharge basis, which is different from how the Company records revenue under U.S. GAAP.
Vessel Operating Expenses. Vessel operating expenses were $19.1 million for the three months ended December 31, 2025, an increase of $4.0 million from $15.1 million for the three months ended December 31, 2024. The increase is primarily attributable to the addition of three vessels to the Company's fleet during the year.
Charter Hire Costs. Total charter hire expense was $1.9 million for the three months ended December 31, 2025, a decrease of $3.9 million from $5.8 million for the three months ended December 31, 2024. This decrease is a result of having one chartered-in vessel during the three months ended December 31, 2025 as compared to four chartered-in vessels during the three months ended December 31, 2024. Total charter hire expense for the three months ended December 31, 2025 was comprised of an operating expense component of $1.0 million and a vessel lease expense component of $0.9 million (December 31, 2024: $3.0 million and $2.8 million, respectively).
Depreciation. Depreciation expense for the three months ended December 31, 2025 was $9.5 million, an increase of $1.7 million from $7.8 million for the three months ended December 31, 2024. This increase is primarily attributable to the addition of three vessels to the Company's fleet during the third quarter of 2025.
Amortization of Deferred Drydock Expenditures. Amortization of deferred drydock expenditures for the three months ended December 31, 2025 was $1.8 million, an increase of $0.9 million from $0.9 million for the three months ended December 31, 2024 due to increased drydocking activity compared to the previous period. Deferred drydocking costs for a given vessel are amortized on a straight-line basis to the next scheduled drydocking of the vessel.
General and Administrative Expenses: Corporate general and administrative expenses for the three months ended December 31, 2025 were $5.3 million, a decrease of $1.5 million from $6.8 million for the three months ended December 31, 2024. The decrease primarily reflects a reduction in variable-based compensation and one-time expenses during the three months ended December 31, 2024.
General and Administrative Expenses: Commercial and Chartering expenses are the expenses attributable to Ardmore's chartering and commercial operations departments in connection with its spot trading activities. Commercial and chartering expenses for the three months ended December 31, 2025 were $1.1 million, a decrease of $0.2 million from $1.3 million for the three months ended December 31, 2024.
Interest Expense and Finance Costs. Interest expense and finance costs for the three months ended December 31, 2025 were $2.4 million, an increase of $1.3 million from $1.1 million for the three months ended December 31, 2024. The increase was due to drawdowns made on the Company's revolving credit facilities to finance the purchase of three MR tankers during the third quarter of 2025. Amortization of deferred finance fees for the three months ended December 31, 2025 was $0.2 million, generally consistent with $0.3 million for the three months ended December 31, 2024.
Impairment of Equity Method Investment. During the three months ended December 31, 2025, the Company did not record any impairment loss related to its equity method investments. During the three months ended December 31, 2024, the Company recognized an impairment loss of $4.4 million related to its equity method investment in Element 1 Corporation. The fair value was assessed based on market conditions and the financial performance of Element 1 Corporation. The impairment loss was included in Impairment of equity method investment in the consolidated statement of operations.
Extinguishment of Preferred Stock. During the three months ended December 31, 2025, the Company redeemed the remaining 30,000 shares of its Series A Preferred Stock. As the fair value of the preferred stock redemption was greater than the carrying amount, a loss on extinguishment of $2.2 million was recognized during the three months ended December 31, 2025. During the three months ended December 31, 2024, the Company recorded a loss on extinguishment of $0.7 million in connection with the redemption of 10,000 shares of Series A Preferred Stock.
Liquidity
As of December 31, 2025, the Company had $272.2 million in liquidity available, with cash and cash equivalents of $46.8 million (December 31, 2024: $47.0 million) and amounts available and undrawn under its revolving credit facilities of $225.4 million (December 31, 2024: $196.4 million).
Conference Call
The Company plans to host a conference call on February 12, 2026, at 12:00 p.m. Eastern Time to discuss its financial results for the quarter ended December 31, 2025. All interested parties are invited to listen to the live conference call and review the related slide presentation by choosing from the following options:
By dialing 800‑836‑8184 (U.S.) or +1-646-357-8785 (International) and referencing "Ardmore Shipping."
By accessing the live webcast at Ardmore's website at www.ardmoreshipping.com
Participants should dial into the call 10 minutes before the scheduled time.
If you are unable to participate at this time, an audio replay of the call will be available through February 19, 2026 at 888-660-6345 or 646-517-4150. Enter the passcode 44766 to access the audio replay. A recording of the webcast, with associated slides, will also be available on the Company's website. The information provided on the teleconference is only accurate at the time of the conference call, and the Company takes no responsibility for providing updated information.
About Ardmore Shipping Corporation
Ardmore owns and operates a fleet of MR product and chemical tankers ranging from 25,000 to 50,200 deadweight tons. Ardmore provides, through its modern, fuel-efficient fleet of mid-size tankers, seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies.
Ardmore's core strategy is to continue to develop a modern, high-quality fleet of product and chemical tankers, build key long-term commercial relationships and maintain its cost advantage in assets, operations and overhead, while creating synergies and economies of scale as the company grows. Ardmore provides its services to customers through voyage charters and time charters, and enjoys close working relationships with key commercial and technical management partners.
Ardmore Shipping Corporation
Unaudited Condensed Consolidated Balance Sheets
As of
In thousands of U.S. Dollars, except as indicated
December 31, 2025
December 31, 2024
ASSETS
Current assets
Cash and cash equivalents
46,845
46,988
Receivables, net of allowance for bad debts of $1.3 million (2024: $1.9 million)
47,537
60,871
Prepaid expenses and other assets
3,687
4,298
Advances and deposits
4,869
3,084
Inventories
8,912
11,308
Total current assets
111,850
126,549
Non-current assets
Investments and other assets, net
4,983
5,236
Vessels and vessel equipment, net
638,123
545,594
Deferred drydock expenditures, net
27,068
14,252
Advances for vessel equipment
—
4,845
Deferred finance fees, net
4,920
2,746
Operating lease, right-of-use asset
1,780
5,577
Total non-current assets
676,874
578,250
TOTAL ASSETS
788,724
704,799
LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY
Current liabilities
Accounts payable
5,066
6,070
Accrued expenses and other liabilities
18,585
18,313
Deferred revenue
1,598
482
Current portion of operating lease obligations
598
4,965
Total current liabilities
25,847
29,830
Non-current liabilities
Non-current portion of long-term debt
127,000
38,796
Non-current portion of operating lease obligations
1,272
476
Other non-current liabilities
268
273
Total non-current liabilities
128,540
39,545
TOTAL LIABILITIES
154,387
69,375
Redeemable Preferred Stock
Cumulative Series A 8.5% redeemable preferred stock
—
27,782
Total redeemable preferred stock
—
27,782
Stockholders' equity
Common stock
443
440
Additional paid in capital
478,619
475,812
Treasury stock
(33,524)
(33,524)
Retained earnings
188,799
164,914
Total stockholders' equity
634,337
607,642
Total redeemable preferred stock and stockholders' equity
634,337
635,424
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK AND EQUITY
788,724
704,799
Ardmore Shipping Corporation
Unaudited Condensed Consolidated Statements of Operations
Three Months Ended
Year Ended
In thousands of U.S. Dollars except per share and share data
December 31, 2025
December 31, 2024
December 31, 2025
December 31, 2024
Revenue, net
82,911
82,039
310,197
405,784
Voyage expenses
(29,687)
(32,769)
(114,361)
(132,612)
Vessel operating expenses
(19,113)
(15,141)
(66,159)
(60,254)
Time charter-in
Operating expense component
(986)
(3,015)
(9,382)
(11,828)
Vessel lease expense component
(907)
(2,775)
(8,632)
(10,883)
Depreciation
(9,541)
(7,830)
(33,849)
(30,244)
Amortization of deferred drydock expenditures
(1,760)
(944)
(5,558)
(3,636)
General and administrative expenses
