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    The Bull Case For Danaos (DAC) Could Change Following A $4.3B Backlog And LNG Expansion - Learn Why

    Simply Wall St·02/13/2026 06:33:48
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    • Danaos Corporation recently reported its fourth-quarter and full-year 2025 results, with Q4 revenue rising to US$266.27 million and net income to US$117.91 million, alongside a declared Q4 2025 dividend of US$0.90 per share payable on March 4, 2026.
    • The company also expanded its contracted revenue backlog to US$4.30 billion, reinforced liquidity with a €500 million seven-year unsecured bond, and moved into LNG-related shipping through a stake in the Alaska LNG project, signaling a broader earnings base beyond traditional containership operations.
    • We’ll now examine how this expanded US$4.30 billion contracted revenue backlog could reshape Danaos’s existing investment narrative around earnings stability.

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    Danaos Investment Narrative Recap

    To own Danaos, you need to believe in its ability to translate a large, contracted charter book into resilient cash flows while managing shipping cyclicality and capital allocation prudently. The latest results and expanded US$4.30 billion backlog appear to reinforce, rather than change, the near term catalyst around earnings visibility, while the key risk remains how the company handles future rate resets and vessel redeployments once today’s contracts roll off.

    The most relevant update is Danaos lifting its contracted revenue backlog to US$4.30 billion, with full contract coverage for 2026 and high coverage into 2027 and 2028. This directly underpins the near term story around earnings stability, but it also heightens the importance of how the company balances long term charters, newbuild commitments and returns to shareholders as shipping markets evolve.

    Yet even with this enlarged backlog, one risk investors should be aware of is how exposed Danaos eventually remains to...

    Read the full narrative on Danaos (it's free!)

    Danaos’ narrative projects $915.2 million revenue and $381.3 million earnings by 2028.

    Uncover how Danaos' forecasts yield a $104.00 fair value, in line with its current price.

    Exploring Other Perspectives

    DAC 1-Year Stock Price Chart
    DAC 1-Year Stock Price Chart

    Two Simply Wall St Community fair value estimates for Danaos span from US$104 to about US$173 per share, underlining how far apart individual views can be. You should weigh that spread against the company’s US$4.30 billion contracted backlog and the reliance on long term charters, and consider how different earnings outcomes could affect your own expectations.

    Explore 2 other fair value estimates on Danaos - why the stock might be worth just $104.00!

    Build Your Own Danaos Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.