Flex LNG Ltd. (NYSE: FLNG) delivered a robust second-quarter 2026 performance, reporting adjusted earnings per share (EPS) of $0.79, which significantly exceeded the analyst consensus estimate of $0.61. This result represents a 29.51% upside to expectations and a 71.74% increase from the $0.46 per share recorded in the same period last year.

The company’s quarterly sales totaled $106.8 million, surpassing the estimated $93.633 million by 14.06%. This revenue figure marks a 24.21% year-on-year growth from $85.983 million in Q2 2025. Following the results, Flex LNG reaffirmed its full-year 2026 sales guidance of $345 million to $370 million (excluding EU Allowances), a range that encompasses the current market estimate of $356 million.

Financial Performance

The top-line strength translated into substantial profitability improvements. Net income rose to $44.9 million from $19.5 million in the first quarter, a 130% quarter-on-quarter increase. Vessel operating revenues stood at $106.8 million, up from $80.5 million in Q1 2026. Excluding EU Allowances, revenue was $102.7 million, the highest quarterly figure since Q4 2021.

Fleet-wide Time Charter Equivalent (TCE) earnings averaged $86,119 per day, compared to $65,729 per day in the preceding quarter. Adjusted EBITDA increased to $79.0 million from $53.2 million, while adjusted net income rose to $42.5 million from $16.9 million.

What the Numbers Show

The divergence between the reported net income ($44.9 million) and adjusted net income ($42.5 million) indicates that non-recurring items contributed positively to the bottom line in Q2 2026. Specifically, exceptional items or adjustments added approximately $2.4 million to the final profit figure. While operational performance drove the bulk of the growth—evidenced by the significant beat on both revenue and EPS estimates—one-off gains also played a supportive role in the quarter's results.

Operational Highlights

Management attributed the revenue growth to attractive opportunities in the spot market, particularly for vessels Flex Volunteer and Flex Artemis, which benefited from volatility caused by hostilities in the Middle East. Both vessels secured employment covering the second and third quarters. Additionally, Flex Aurora contributed a full quarter of earnings under its two-year firm charter with a supermajor, while Flex Constellation completed its first full quarter under a new 15-year charter.

Approximately 89% of the fleet has firm contract coverage for the remainder of 2026. The remaining capacity is being marketed for spot and term employment starting from the end of the third quarter.

Outlook and Dividend

Flex LNG maintained its full-year 2026 guidance, expecting revenues between $345 million and $370 million (excluding EU Allowances). Fleet-wide TCE earnings are projected at $73,000 to $78,000 per day, with adjusted EBITDA guidance set at $255 million to $280 million.

The Board declared a quarterly dividend of $0.75 per share, payable on or about September 17, 2026, to shareholders on record as of September 3, 2026. This marks the twentieth consecutive ordinary quarterly dividend at this rate. The company holds $397 million in cash with no debt maturities before 2029.

Investor Presentation Details

The company released its second-quarter 2026 presentation on August 19, 2026, accompanied by a live video webcast held at 15:00 CEST (09:00 a.m. EST). A Q&A session followed the presentation, allowing investors to submit questions. The presentation materials are available on the company’s website for further review.

FLEX LNG Ltd reported first-quarter revenues of $80.5 million, with a net income of $9.5 million and adjusted net income of $16.9 million. The company raised its full-year 2026 guidance, citing new charter agreements and a firmer spot market. The Board declared a quarterly dividend of $0.75 per share, marking the 19th consecutive dividend.

Financial Performance

The fleet average Time Charter Equivalent (TCE) during the quarter was $65,700 per day. Net income per share was $0.36, while adjusted earnings per share stood at $0.31. Revenues excluding EUAs related to the Euro Emission Trading System were $78 million.

Operational Updates

The company announced new charter agreements, including two-year extensions for Flex Dissolute and Flex Correatious, securing employment until 2032. A new contract for Flex Aurora was fixed with a supermajor. Dry dockings for Flex Volunteer and Flex Freedom were completed ahead of schedule, while Flex Vigilant is scheduled for dry dock later in May. The total contract coverage for the remaining available days in 2026 is 91%.

Revised Guidance

Full-year 2026 guidance has been updated upwards. Revenues are now expected to be between $345 million and $370 million, an increase of approximately 10% from previous guidance. Adjusted EBITDA is projected to be $255 million to $280 million, up 11%. The TCE is expected to range between $73,000 and $78,000 per day.

Dividend Declaration

The Board declared a quarterly dividend of $0.75 per share, payable on June 11 to shareholders of record as of May 29. The company has distributed approximately $810 million in dividends since 2021, with a dividend yield of 9.2% over the last 12 months.