Automatic translation: Originally published in undefined 26/08/2026, 06:49 GMT. Give feedback here.

TORM has released its Q2 2026 financial report this morning, marking the strongest quarter in the company's history. EBITDA is in line with consensus expectations, while the dividend is raised significantly compared to both the same period last year and the previous quarter. At the same time, TORM is upgrading its 2026 guidance for both TCE Earnings and EBITDA.

Thus, TORM realized TCE earnings of USD 512m for the quarter vs. USD 208m in the same period last year and USD 286m in Q1 2026. No consensus is available for TCE earnings. The progress was primarily driven by significantly higher TCE rates of USD/day 59,301 (Q2 2025: USD/day 26,672), while the number of earning days increased by 8% to 8,519 (Q2 2025: 7,888). At the segment level, LR2 realized USD/day 66,993, LR1 USD/day 57,550, and MR USD/day 57,040 – for the MR segment, this corresponds to more than a doubling year-on-year.

Adj. EBITDA landed at USD 409m for the quarter compared to the consensus according to S&P Capital IQ of USD 409.4m. EBITDA was USD 416m, including unrealized gains on financial instruments of USD 7m. By comparison, EBITDA in Q2 2025 was USD 127m, while USD 201m was realized in Q1 2026. Net profit for the period came in at USD 338m vs. USD 59m in Q2 2025, corresponding to a basic EPS of USD 3.31 (Q2 2025: USD 0.60). Return on Invested Capital landed at 44.2% vs. 10.0% in the same period last year.

The extraordinary earnings should be viewed in light of the fact that freight rates rose to unprecedented levels during the quarter as a result of the conflict between the US, Israel, and Iran, as well as the subsequent closure of the Strait of Hormuz, which remained largely closed throughout the majority of the quarter. According to the company, global product flows were approximately 18% below the pre-closure level in April and May, while a continued high share of the LR2 fleet in "dirty" trade has decreased the effective product tanker capacity by approx. 5% since the beginning of the year. Following the ceasefire on June 17, traffic through the strait began to normalize, but the market continues to operate in a "no war, no peace" environment, and at the beginning of Q3, the ceasefire collapsed, which, according to the company, has led to a new effective closure of the Strait of Hormuz alongside renewed attacks in Bab el-Mandeb.

Against this background, TORM is upgrading its 2026 guidance and now expects TCE earnings of USD 1,400-1,600m from previously USD 1,150-1,450m. EBITDA expectations are likewise upgraded and are now expected to land at USD 1,000-1,200m from previously USD 800-1,100m. As of August 18, 2026, TORM has covered 73% of the earning days in Q3 2026 at an average rate of USD/day 38,606, while 70% of the full-year earning days are covered at USD/day 45,391. The remaining 10,271 open earning days mean that a change in freight rates of USD/day 1,000 will, all else being equal, impact EBITDA by approx. USD 10m.

For Q2 2026, a dividend of USD 2.40 per share is proposed, corresponding to 73% of the period's profit and a total dividend payment of USD 246m. Last year, the dividend for the same period was USD 0.40 per share, while the dividend in Q1 2026 was USD 0.70 per share. The dividend will be paid on September 24, 2026, with an ex-date of September 9, 2026, on Nasdaq Copenhagen.

Finally, TORM took delivery of two secondhand MR vessels during the quarter, bringing the fleet up to 97 vessels. In addition, the company purchased six MR resale vessels during the quarter for delivery from Q1 2027 to 2028, and following the end of the quarter, TORM has entered into an agreement to acquire six MR newbuildings for delivery in 2029 with options for an additional two vessels for delivery in 2030. Following the end of the quarter, the company has also secured financing for ten vessels totaling USD 217m. The market value of the fleet stood at USD 4,056m as of June 30, 2026, vs. USD 2,888m at the same time last year, while NAV amounted to USD 3,737m vs. USD 2,300m, corresponding to a NAV per share of USD 36.50 (June 30, 2025: USD 23.50).

TORM will present its financial report to investors on Inderes later today at 4:00 PM CEST, where CFO Kim Balle will review the quarter and answer questions. Sign up here.

Disclaimer: HC Andersen Capital receives payment from TORM for a Digital IR subscription agreement. /Rasmus Køjborg, CFA at 08:45 AM CEST on August 26, 2026.