SFL (NYSE:SFL) Issues Quarterly Earnings Results, Beats Expectations By $0.11 EPS

SFL (NYSE:SFL) released its earnings results on Wednesday, August 26th. The shipping company reported $0.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.11, FiscalAI reports. SFL had a net margin of 8.76% and a return on equity of 3.41%. The business had revenue of $200.77 million for the quarter, compared to analyst estimates of $179.65 million. During the same quarter in the previous year, the business earned $0.01 earnings per share. SFL’s revenue for the quarter was up 4.1% on a year-over-year basis.

Here are the key takeaways from SFL’s conference call:

• Positive Sentiment: SFL reported strong second-quarter results, with revenue of $201 million, adjusted EBITDA of $130 million—up 20% sequentially—and net income of $34 million, or $0.25 per share.
• Positive Sentiment: The company declared its 90th consecutive quarterly dividend of $0.22 per share and ended the quarter with a $3.8 billion charter backlog; approximately 65% is tied to investment-grade customers.
• Positive Sentiment: SFL expanded its car-carrier portfolio by ordering four 7,000-CEU LNG dual-fuel vessels and securing charters for two, adding approximately $233 million of firm backlog. Management cited growing Chinese vehicle exports and expected supply-demand tightening from 2029–2030 onward.
• Positive Sentiment: Two Suezmax tankers benefited substantially from the strong spot market, earning average TCE of approximately $133,000 per day in the quarter versus $54,000 in Q1; 63% of third-quarter vessel days were covered at roughly $93,000 per day.
• Negative Sentiment: The Suezmax earnings surge is market-dependent and may not persist, while the Hercules drilling rig remains warm-stacked until its expected contract start in the first half of 2027. SFL also has approximately $1.2 billion of remaining newbuilding capital expenditures and recently issued $100 million of equity, creating potential execution and dilution considerations.

SFL Trading Down 0.8%

SFL traded down $0.11 on Friday, hitting $13.64. 1,025,320 shares of the company were exchanged, compared to its average volume of 1,486,169. The company has a debt-to-equity ratio of 1.75, a quick ratio of 0.38 and a current ratio of 0.38. The firm has a fifty day simple moving average of $12.20 and a two-hundred day simple moving average of $11.49. The stock has a market capitalization of $1.97 billion, a PE ratio of 28.42 and a beta of 0.40. SFL has a 12 month low of $6.73 and a 12 month high of $13.98.

SFL Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 22nd. Investors of record on Wednesday, September 9th will be issued a dividend of $0.22 per share. The ex-dividend date is Wednesday, September 9th. This represents a $0.88 annualized dividend and a yield of 6.5%. SFL’s dividend payout ratio is currently 183.33%.

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. Wall Street Zen upgraded shares of SFL from a “hold” rating to a “buy” rating in a research note on Saturday, August 22nd. Weiss Ratings raised SFL from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, August 27th. Benchmark restated a “buy” rating on shares of SFL in a research note on Wednesday, August 26th. Finally, BTIG Research reiterated a “buy” rating and set a $14.00 price target on shares of SFL in a research note on Wednesday, August 26th. Two research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $14.00.

SFL Company Profile

SFL Corporation Ltd. is a maritime asset owner and chartering company headquartered in Hamilton, Bermuda. The company owns and leases a diversified fleet of vessels and offshore assets to customers under long-term charter and lease arrangements.

SFL’s fleet has included crude oil tankers, product and chemical tankers, container ships, dry bulk carriers, car carriers, gas carriers and offshore support assets. Through its leasing and chartering activities, the company provides transportation and marine infrastructure services to energy, industrial and shipping customers worldwide.

The company was established in 2003 as Ship Finance International Limited and later adopted the name SFL Corporation Ltd.