SFL Corporation Ltd. Q4 2025 Preliminary Results Summary
Business Context and Reporting Period
This Form 6-K filing, dated February 11, 2026, reports preliminary unaudited financial results for SFL Corporation Ltd. for the quarter ended December 31, 2025. SFL is a global provider of shipping and energy services, operating a diversified fleet of container vessels, car carriers, tankers, bulkers, and drilling rigs.
Key Financial Metrics
- Revenue: Total operating revenues were $175.5 million ($152.0 million from shipping; $23.5 million from energy).
- Profitability: Reported net loss of $4.7 million ($0.04 per share). Adjusted EBITDA was $109.0 million ($101.2 million consolidated + $7.9 million from associates).
- Cash Flow: Net cash provided by operating activities was $74.6 million. Net cash used in financing activities was $223.9 million, primarily due to debt repayments and dividends.
- Liquidity: Cash and cash equivalents totaled $150.8 million at quarter-end, with an additional $46 million available under undrawn credit lines.
- Debt: Total interest-bearing debt (short-term and long-term) was approximately $2.57 billion ($605.9 million short-term + $1.96 billion long-term).
- Dividend: The Board declared a quarterly cash dividend of $0.20 per share, marking the 88th consecutive quarterly dividend.
Material Changes and Operational Highlights
- Asset Sales: The Company sold two 2015-built Suezmax tankers (SFL Ottawa and SFL Thelon). SFL Ottawa was delivered in Q4, generating an $11.3 million gain. SFL Thelon was delivered in February 2026, with an expected $11.5 million gain to be recorded in Q1 2026. Net proceeds from the sales are estimated at $52 million.
- Charter Releases: Charters for two 2020-built Suezmax tankers (SFL Albany and SFL Fraser) were released for a compensation of $11.5 million per vessel ($23 million total fee expensed in Q4). These vessels are now exposed to the spot market.
- Utilization: Fleet utilization remained high, with Container vessels at 99%, Car Carriers at 100%, and Tankers at 99%. Energy segment utilization was 50%.
- Backlog: Fixed-rate charter backlog stood at approximately $3.7 billion with a weighted remaining term of 6.5 years. Approximately 66% of this backlog is with investment-grade customers.
Outlook, Risks, and Management Commentary
- Capital Expenditures: The Company has five 16,800 TEU container vessels under construction for delivery in 2028, with remaining capital expenditures of approximately $850 million. These vessels are chartered on 10-year fixed-rate time charters.
- Share Repurchase: The Board authorized a share repurchase program of up to $100 million, valid until June 2026, with approximately $80 million remaining.
- Risks: Forward-looking statements highlight risks including global economic strength, inflation, interest rates, cyclical volatility in shipping rates, climate change transition impacts on oil demand, and geopolitical instability affecting trade routes.
- Sustainability: The Company continues a retrofit and upgrade program, with nearly $110 million invested since 2023 to enhance vessel performance and reduce environmental impact.
Investor Verification Checklist
- Verify the timing and accounting treatment of the $11.5 million gain on the sale of SFL Thelon, expected in Q1 2026.
- Confirm the impact of the $23 million charter release fee on future earnings as the two Suezmax tankers transition to spot market employment.
- Monitor the $850 million remaining capital expenditure requirement for the 2028 container vessel deliveries and the status of financing arrangements.
- Assess the sustainability of the 88th consecutive dividend given the net loss and high debt service costs ($42.9 million interest expense in Q4).
- Review the composition of the $3.7 billion charter backlog to ensure credit quality remains stable amidst global economic fluctuations.