SFL (NYSE:SFL) Issues Quarterly Earnings Results

SFL (NYSE:SFL) posted its quarterly earnings results on Wednesday, August 26th. The shipping company reported $0.25 EPS for the quarter, topping 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 during the quarter, compared to the consensus estimate of $179.65 million. During the same quarter in the previous year, the firm posted $0.01 earnings per share. The company’s quarterly revenue was up 4.1% compared to the same quarter last year.

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 Stock Down 1.8%

SFL stock traded down $0.23 during midday trading on Friday, reaching $12.34. The company’s stock had a trading volume of 846,107 shares, compared to its average volume of 1,472,914. SFL has a fifty-two week low of $6.78 and a fifty-two week high of $13.98. The company has a quick ratio of 0.38, a current ratio of 0.38 and a debt-to-equity ratio of 1.75. The company has a market cap of $1.78 billion, a P/E ratio of 25.71 and a beta of 0.43. The business has a 50-day simple moving average of $12.79 and a 200-day simple moving average of $11.86.

SFL Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 22nd. Investors of record on Wednesday, September 9th were issued a $0.22 dividend. This represents a $0.88 annualized dividend and a yield of 7.1%. The ex-dividend date of this dividend was Wednesday, September 9th. SFL’s dividend payout ratio is 183.33%.

Wall Street Analysts Forecast Growth

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

SFL Company Profile

SFL Corporation Ltd. is a Bermuda-based maritime asset-owning and chartering company listed on the New York Stock Exchange under the symbol SFL. The company owns and leases a diversified fleet of vessels and offshore assets to customers under a combination of long-term charters and other commercial arrangements.

SFL’s fleet and activities have included crude oil and product tankers, container ships, dry bulk carriers, car carriers, offshore support and drilling units, and other specialized maritime assets.