Dry bulk operator Western Bulk reported a marked earnings recovery in the second half of 2025, driven by a broad-based rebound in freight markets. The company generated a net profit after tax of USD 7.4 million in 2H 2025, compared to a net loss of USD 5.2 million in the same period a year earlier. This marked a significant turnaround from the previous year, with Western Bulk reversing a USD 2.7 million loss in 2024. The company's improved financial performance was largely attributed to the recovery in dry bulk markets.
The recovery in freight markets was driven by strengthening rates across the Supramax and Panamax segments. Robust Atlantic grain flows from East Coast South America, improved Chinese coal demand, and sustained Asian steel exports all contributed to the growth in demand for dry bulk services. As a result, Western Bulk's net time charter (TC) result for the second half reached USD 20.1 million, up from USD 9.3 million in 2H 2024.
The company's improved results also reflected higher net TC margin per ship day, which climbed to USD 984 in 2H 2025. This represents a more than doubling of the year-on-year increase, highlighting the significant growth in demand for dry bulk services during this period.
Western Bulk operated an average of 111 vessels in 2H 2025, down from 125 in the prior-year period. However, the company's fleet strategy remained focused on its core trading model, with a diversified cargo mix and no single customer accounting for more than 10.3% of revenue in 2025.
The company's decision to re-enter ship ownership through a co-investment structure in December 2025 marked a selective expansion beyond its traditional asset-light trading model. The acquisition of the eco-design Kamsarmax MV Western Egda (built 2020) signaled a shift towards more active involvement in the dry bulk market.
Looking ahead, Western Bulk described the first half of 2026 as 'more constructive' than the weak start to 2025. Supportive factors include tighter effective supply and improved cargo visibility, which are expected to underpin a stronger earnings environment versus early 2025.
While fleet growth in the Ultramax segment may cap upside, Western Bulk's expectations for a stronger earnings environment are driven by the company's ability to capitalize on these trends. The strong recovery in dry bulk markets is expected to continue, with tighter effective vessel supply and improved cargo visibility supporting a stronger earnings environment.
The company's improved financial performance reflects the growing demand for dry bulk services, driven by robust Atlantic grain flows, improved Chinese coal demand, and sustained Asian steel exports. Western Bulk's results demonstrate the resilience of the dry bulk market during this period.
Western Bulk's turnaround in earnings is a positive development for the dry bulk industry, highlighting the potential for growth in this sector. The company's ability to adapt its fleet strategy and capitalize on trends in demand will be key to its continued success.
The strong recovery in dry bulk markets is expected to continue, with tighter effective vessel supply and improved cargo visibility supporting a stronger earnings environment.
