C3is rides surge in charter rates to post 358% growth in adjusted net income

C3is (NASDAQ:CISS) announced its financial and operational results for the first quarter ended March 31, 2026, delivering substantial bottom-line expansion and enhanced operating leverage.

The ship-owning seaborne transportation company generated voyage revenues of $11.6 million for the three-month period, representing a 34% increase compared to the $8.7 million recorded in the first quarter of 2025.

The revenue acceleration was achieved despite keeping total fleet calendar days steady at 360, highlighting a significant strengthening in global charter markets.

The top-line momentum was primarily catalyzed by surging freight rates across the company’s operating segments.

C3is reported a fleet-wide daily Time Charter Equivalent (TCE) of $32,173 for the quarter, marking an explosive 98.6% year-over-year increase from the $16,202 average captured in Q1 2025.

Market performance was heavily driven by the company’s Aframax oil tanker, which commanded a daily time charter rate of $77,500—up 106% from the prior-year period—alongside steady rate optimization across its three Handysize dry bulk carriers as geopolitical tensions continued to distort global shipping ton-miles.

On the bottom line, C3is reported a GAAP net income of $3.2 million, a decline from the $7.9 million posted in Q1 2025 that was entirely due to a non-cash, $2.3 million fair-value adjustment loss on warrant derivatives.

Stripping out these non-operational, non-cash items and stock-based compensation, the company’s operational profitability surged.

First-quarter adjusted net income jumped 358% year-over-year to $5.5 million, up from $1.2 million in Q1 2025, which translated into an adjusted basic EPS of $5.24 per share.

Adjusted EBITDA concurrently climbed 130% to $6.9 million, compared to $3 million in the prior year's opening quarter.

C3is concluded the quarter with an exceptionally strong financial foundation, holding $27.3 million in cash and cash equivalents—representing an 82% increase from year-end 2025—while maintaining a completely unencumbered fleet with zero bank debt.

This strong liquidity position enabled the firm to aggressively pursue its ongoing fleet diversification strategy, executing agreements to acquire two modern product tankers for an aggregate purchase price of $39.8 million.