Safe Bulkers, Inc. (SB): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how a modern dry bulk operator like Safe Bulkers, Inc. actually makes money in late 2025, right? Honestly, after years analyzing these asset plays, it boils down to owning the right ships-and they've clearly focused on quality, boasting 80% Japanese-built vessels and 12 IMO GHG Phase 3 compliant ships-while balancing that massive fixed cost structure against their Q3 $73.1 million in net revenues. If you want the precise breakdown of their key resources, revenue streams, and the charter strategy that keeps their total debt around $535.9 million in check, you need to check out the full nine-block analysis right below.

Safe Bulkers, Inc. (SB) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Safe Bulkers, Inc. moving cargo and meeting its green commitments. These aren't just names on a contract; they are the enablers for fleet renewal and financing flexibility. Honestly, in this sector, who you partner with on the shipyard and finance side defines your near-term resilience.

Japanese shipyards for high-quality, eco-friendly newbuilds

Safe Bulkers, Inc. heavily relies on its Japanese shipbuilding partners to execute its fleet renewal strategy. As of September 2025, a significant 85% of the Safe Bulkers, Inc. fleet was built in Japanese shipyards, highlighting this key relationship. The focus is on advanced, eco-friendly vessels, with an orderbook of 6 newbuilds as of Q3 2025. These newbuilds are primarily Kamsarmax class, designed to meet IMO GHG Phase 3 - NOx Tier III standards. The aggregate capital expenditure for this orderbook stood at approximately $252.4 million as of July 18, 2025, with $175.9 million remaining outstanding. One Japanese-built Kamsarmax, the Efrossini, was delivered in April 2025.

Financial institutions for secured and sustainability-linked credit facilities

Access to capital, especially green-linked capital, is a critical partnership. In July 2025, Safe Bulkers, Inc. secured a five-year senior secured revolving credit facility totaling $75 million with a financial institution. This facility is secured by six vessels and refinances an existing credit facility that was due in December 2026. The structure is key: the interest margin adjusts based on independently verified performance related to the fleet carbon intensity index, directly tying financing costs to sustainability targets. As of Q3 2025, Safe Bulkers, Inc. maintained $123.9 million in Total Cash and $266.5 million in Undrawn revolving credit facilities.

Classification societies for vessel certification and compliance

While specific society names aren't always front-and-center in earnings reports, the partnership with classification societies is non-negotiable for global operation and regulatory adherence. These bodies provide the necessary certification for compliance with international standards, such as the IMO GHG Phase 3 and NOx-Tier III requirements for the newbuilds. As of November 21, 2025, 12 vessels in the fleet met the IMO GHG Phase 3 - NOx Tier III standard. This partnership ensures the fleet maintains its competitive environmental standing, as 0 vessels were rated in the bottom CII categories of D & E.

Bunker suppliers for global fuel and low-sulfur fuel oil

The relationship with bunker suppliers directly impacts operating expenses and the profitability of scrubber-fitted vessels. Safe Bulkers, Inc. has 21 vessels equipped with exhaust gas cleaning devices ("Scrubbers") as of late 2025. These partnerships facilitate the supply of fuel, where the spread between High Sulfur Fuel Oil (HSO) and low-sulfur alternatives drives the variable earnings from scrubber use. The company's operational data reflects this dependency; daily vessel operating expenses for Q3 2025 were $5,104.

Independent auditors, like Deloitte, for fiscal year 2025 reporting

Stockholders ratified the appointment of Deloitte, Certified Public Accountants S.A., as the independent auditors for the fiscal year ending December 31, 2025. This partnership ensures the fiscal reporting, including the Q3 2025 Net Income of $17.8 million, is verified for transparency and regulatory compliance.

Here's a quick look at the scale of the operations tied to these key partners as of late 2025:

The reliance on Japanese yards is quantified by the fleet composition:

• 85% of the existing fleet built in Japanese shipyards.
• 12 vessels are IMO GHG Phase 3 - NOx Tier III compliant.
• Average fleet age is 10.3 years.

Finance partnerships are also evidenced by the total debt structure:

• Secured debt was $399.7 million in Q3 2025.
• Unsecured debt was $116.6 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

Safe Bulkers, Inc. (SB) - Canvas Business Model: Key Activities

Fleet renewal and strategic vessel sales

Aggregate gross sale proceeds from these two sales totaled $24.0 million. Safe Bulkers, Inc. had an orderbook of six IMO GHG Phase 3 - NOx Tier III Kamsarmax class newbuilds as of November 21, 2025.

Commercial management: securing period time charters and spot employment

During the third quarter of 2025, Safe Bulkers, Inc. operated an average of 46.51 vessels. The average Time Charter Equivalent (TCE) rate achieved in Q3 2025 was $15,507. The revenue backlog from Capesize charters was reported at $124 million, with an average charter rate of $24,800 daily.

Environmental upgrades and maintenance

As of November 21, 2025, 24 existing vessels had been upgraded as part of the environmental upgrade program targeting increased energy efficiency. The fleet as of November 21, 2025, consisted of 45 vessels with a total carrying capacity of 4.6 million dwt. This fleet included 12 IMO GHG Phase 3 - NOx Tier III ships and 21 vessels equipped with exhaust gas cleaning devices (Scrubbers).

Capital allocation: maintaining liquidity and consistent dividend distribution of $0.05 per share

The Board of Directors declared a cash dividend on the common stock of $0.05 per share on November 25, 2025, payable on December 19, 2025. This marked the 16th consecutive quarterly common dividend for Safe Bulkers, Inc. As of November 21, 2025, the company had 102,328,395 shares of common stock issued and outstanding. Capital resources were reported at $390 million.

• Contracted revenue (excluding scrubber benefits) as of November 21, 2025: $153.5 million.
• EBITDA for Q3 2025: $40.1 million.
• Adjusted EBITDA for Q3 2025: $36.1 million.
• Net income for Q3 2025: $17.8 million.

Safe Bulkers, Inc. (SB) - Canvas Business Model: Key Resources

You're looking at the core assets that let Safe Bulkers, Inc. operate and compete in the dry bulk sector as of late 2025. These aren't just ships; they are the foundation of their earning power and regulatory compliance strategy.

The physical assets are central. Safe Bulkers, Inc. maintains a fleet of between 45-47 dry bulk vessels. This fleet is strategically balanced across major size classes to service different cargo needs, like iron ore, coal, and grain.

A significant part of the technological advantage comes from where these ships are built. Honestly, the focus on quality shipbuilding is clear; 80% of the Safe Bulkers, Inc. fleet comprises Japanese-built vessels, which is double the global average, giving them an edge in efficiency and reliability.

Financially, the company shows strong liquidity, which is crucial for weathering market dips and funding fleet renewal. As of November 2025, they report approximately $124 million in cash on hand and another $267 million available in undrawn Revolving Credit Facilities (RCFs).

The environmental profile of the fleet is a key resource for future-proofing operations. Safe Bulkers, Inc. has a distinct eco-fleet advantage, evidenced by 12 vessels already delivered that meet the stringent IMO GHG Phase 3 - NOx Tier III standards.

Here's a quick look at the fleet composition as of November 21, 2025, based on the 45-vessel count:

Also, you should note the environmental upgrades across the entire fleet, which supports their ability to secure favorable charter terms and maintain compliance.

• 12 IMO GHG Phase 3 - NOx Tier III ships (built 2022 or later)
• 24 existing vessels have been environmentally upgraded
• 11 eco-ships built in 2014 or later
• 21 vessels equipped with exhaust gas cleaning devices (Scrubbers)

The orderbook also represents a future resource, with six IMO GHG Phase 3 - NOx Tier III Kamsarmax class newbuilds on order as of November 21, 2025, including two that are methanol dual-fueled.

Finance: review the covenant compliance schedule against the current cash position by next Tuesday.

Safe Bulkers, Inc. (SB) - Canvas Business Model: Value Propositions

Reliable, global transport of major dry bulk commodities, such as iron ore, coal, and grain, along worldwide shipping routes for some of the world's largest users of marine drybulk transportation services.

Modern, fuel-efficient fleet with 21 scrubber-fitted vessels. As of November 21, 2025, the fleet stood at 45 vessels, with an aggregate carrying capacity of 4.6 million dwt and an average age of 10.3 years.

Contractual flexibility through a mix of period and spot charters. This approach provides visible and relatively stable cash flows from period charters while maintaining flexibility for upside in improving market conditions via the spot market.

The charter employment profile as of November 21, 2025, shows the following distribution:

• Vessels in the spot time charter market (up to three months' original duration): 8
• Vessels in the period time charter market (original duration in excess of three months): 40
• Contracted revenue, net of commissions and excluding the Scrubber benefit: approximately $153.5 million

Lower CO2 taxation risk due to a young fleet and high CII rating compliance. The company aims to set the standard for compliance with forthcoming international regulations.

• The company achieved 0 vessels on the bottom IMO Carbon Intensity Indicator (CII) ratings of D & E as of late 2025.
• Safe Bulkers average annual CII is maintained below the IMO required average CII for the 6th consecutive year since the IMO Data Collecting System came into force in 2019.
• The fleet has achieved full compliance with the IMO DCS and the EU MRV regulations.

Safe Bulkers, Inc. (SB) - Canvas Business Model: Customer Relationships

You're looking at how Safe Bulkers, Inc. (SB) keeps its fleet busy and its cash flow visible in the often-choppy drybulk market. The customer relationship strategy hinges on balancing the stability of fixed contracts with the upside potential of the spot market, all managed through their dedicated internal structure.

Long-term contractual relationships via period time charters

The core of revenue stability for Safe Bulkers, Inc. comes from period time charters. These agreements, with original durations exceeding three months, lock in cash flows and provide a degree of predictability, which is crucial when managing debt and capital expenditures like the outstanding $166.7 million for the six-vessel newbuild orderbook as of late 2025. This strategy is designed to smooth out the volatility inherent in the freight markets.

As of November 21, 2025, the company had 29 vessels employed in the period time charter market. Of these, 5 vessels had an original duration of more than two years, indicating some longer-term commitments were in place. The total contracted revenue backlog from all non-cancellable spot and period time charter contracts, excluding any Scrubber-related compensation, stood at approximately $153.5 million.

The Capesize class vessels show a strong commitment to this segment, with all 8 of them chartered under period time charters as of that date. For this specific, high-value class, the average daily charter hire was $24,780, and the average remaining charter duration was 1.7 years, contributing a contracted revenue backlog of approximately $124.4 million from the Capesize fleet alone.

Here's a quick look at the employment mix as of November 21, 2025:

Transactional relationships for short-term spot market employment

To capture potential upside when charter rates improve, Safe Bulkers, Inc. maintains a flexible portion of its fleet in the spot market. This allows the company to quickly reposition vessels to capitalize on favorable market conditions, such as the rebound noted at the start of the third quarter of 2025. The transactional relationship is inherently shorter-term, offering less revenue visibility but greater operational agility.

As of November 21, 2025, 17 vessels were employed in the spot time charter market, generally defined as having an original duration of up to three months. This deployment choice reflects management's assessment of market conditions, balancing the need for stable cash flows against the desire for rate upside. The average Time Charter Equivalent (TCE) rate for the entire fleet during Q3 2025 was $15,507, down from $17,108 in Q3 2024, illustrating the impact of the weaker charter market on spot-exposed earnings.

Direct engagement with charterers through internal/affiliated managers

The operational interface with customers is handled internally. The chartering of Safe Bulkers, Inc.'s vessels is arranged by their Managers. This structure means the direct relationship with the charterers-who are described as some of the world's largest consumers of marine drybulk transportation services-is managed through this dedicated team. It's important to note that this arrangement comes without any management commission charged back to the company for arranging the charters.

The customers typically require transportation for bulk cargoes like:

• Grain
• Iron ore
• Coal
• Minor bulks including bauxite, fertilizers, and steel products

This direct, in-house management of chartering relationships helps maintain a tight feedback loop between operations, market intelligence, and the decision-making process for fleet deployment, which is key when deciding between the 29 period-chartered vessels and the 17 spot-market vessels.

Finance: draft 13-week cash view by Friday.

Safe Bulkers, Inc. (SB) - Canvas Business Model: Channels

Direct chartering to end-users (major commodity consumers)

• Safe Bulkers, Inc. transports bulk cargoes, specifically coal, grain, and iron ore, along worldwide shipping routes.
• Customers are some of the world's largest users of marine drybulk transportation services.
• As of May 9, 2025, the company employed, or had contracted to employ, 40 vessels in the period time charter market (original duration in excess of three months).
• All 8 of the Capesize class vessels were chartered in period time charters as of May 9, 2025.
• As of May 9, 2025, 8 vessels were employed in the spot time charter market (up to three months' original duration).

Broker networks for securing spot and period charter contracts

The chartering of vessels is arranged by Safe Bulkers, Inc.'s Managers without any management commission. The strategy involves employing vessels under both period time charters and spot time charters based on market condition assessments.

As of May 9, 2025, Safe Bulkers, Inc. had contracted revenue of approximately $178.7 million, net of commissions, from its non-cancellable spot and period time charter contracts, excluding the Scrubber benefit.

Investor Relations (IR) for capital market access and communication

Safe Bulkers, Inc. maintains capital market access through its listing on the NYSE under the symbol SB, along with Series C and Series D preferred stocks.

• As of November 21, 2025, management highlighted liquidity with roughly $187M cash and about $210M undrawn RCFs (Revolving Credit Facilities).
• The Board declared a quarterly cash dividend of $0.05 per share of common stock, marking the 16th consecutive payment.
• On December 1, 2025, Safe Bulkers, Inc. authorized a share repurchase program for up to 10,000,000 shares.
• This buyback represents approximately 9.8% of the Company's outstanding shares and 20.0% of its public float.
• The Company's total shares outstanding was reported as 102.33 million.
• As of December 1, 2025, the Market Capitalization was $535.18 million.

Communication channels include investor/media contact via Capital Link, Inc. in New York, NY.

Safe Bulkers, Inc. (SB) - Canvas Business Model: Customer Segments

Safe Bulkers, Inc. serves customers who require the seaborne transportation of major bulks across worldwide shipping routes. You see these customers as some of the world's largest consumers of marine drybulk transportation services.

The core of the business involves moving specific commodities, which directly ties into the needs of global commodity traders and producers.

• Transporting bulk cargoes, particularly coal, grain and iron ore.
• Transporting minor bulks, including bauxite, fertilizers and steel products.
• The demand for these services is correlated to global GDP, which the IMF projected to grow 2.9% in 2025 and 3% in 2026.

The industrial users are segmented by the specific vessel class capacity Safe Bulkers, Inc. provides. As of November 21, 2025, Safe Bulkers, Inc. operated a fleet of 45 vessels, with a total carrying capacity of 4.6 million dwt.

Here's the breakdown of the fleet capacity offered to these industrial users:

Overall employment as of November 21, 2025, shows a preference for contracted revenue visibility, with 29 vessels employed in the period time charter market (original duration exceeding three months) and 17 vessels in the spot time charter market (original duration up to three months).

Safe Bulkers, Inc. (SB) - Canvas Business Model: Cost Structure

The cost structure for Safe Bulkers, Inc. is heavily weighted toward capital-intensive, fixed obligations inherent to owning and operating a large drybulk fleet. You see high fixed costs driven by vessel depreciation and interest expense on outstanding borrowings. As of July 18, 2025, the total debt stood at $535.9 million. For the third quarter of 2025, the reported depreciation expense was $15.1 million, an increase from $14.7 million in Q3 2024. Interest expense for Q3 2025 was $7.6 million, slightly down from $7.7 million in the prior year period, despite an increased weighted average loan outstanding of $539.7 million in Q3 2025.

Day-to-day running costs are managed with a focus on efficiency, though they still represent a significant operational outlay. The daily vessel operating expenses (OpEx) for Q3 2025 were reported at $5,104 per vessel. This figure specifically excludes dry-docking and pre-delivery expenses. Also contributing to daily overhead are general and administrative expenses, which averaged $1,762 per day in Q3 2025.

Here is a quick look at some of the key recurring cost components from the third quarter of 2025:

A major component of the capital outlay is the ongoing fleet renewal program, which requires significant future spending. As of mid-2025, the total remaining capital expenditure for the newbuild program was $175.9 million. This investment is directed toward securing a younger, more environmentally compliant fleet, including dual-fueled newbuilds.

Fleet upkeep and upgrades necessitate costs that can be lumpy and period-dependent, separate from the standard daily OpEx. Dry-docking and maintenance expenses are expensed as incurred and vary based on the schedule. For instance, repair and maintenance expenses for Q3 2025 totaled $2.5 million, a decrease from $3.3 million in Q3 2024, partly due to the timing of dry-dockings completed in the respective periods.

• Fleet size as of November 21, 2025: 45 vessels.
• Total fleet carrying capacity: 4.6 million dwt.
• Number of IMO GHG Phase 3 - NOx Tier III ships: 12.
• Remaining newbuild orderbook: 6 Kamsarmax class vessels.
• Total Debt as of July 18, 2025: $535.9 million.

Safe Bulkers, Inc. (SB) - Canvas Business Model: Revenue Streams

You're looking at how Safe Bulkers, Inc. (SB) converts its asset base-the fleet-into cash flow, which is all about chartering out those vessels. The core of this is the Time Charter Equivalent (TCE) revenue generated from deploying vessels on both period and spot charters, depending on what management sees in the market.

For the third quarter of 2025, the top-line revenue number was $73.1 million in Net revenues. That's the total money earned from shipping services for that three-month period. This revenue is directly tied to how much you can charge per day, which is measured by the TCE rate.

The average TCE rate achieved in Q3 2025 was $15,507 per day. This figure reflects the blended daily earnings across the entire operational fleet for that quarter. To give you a sense of the operational scale, Safe Bulkers, Inc. operated an average of 46.51 vessels during Q3 2025.

The mix between charter types is key for cash flow stability. While the Q3 2025 average TCE reflects the current market, the contracted backlog gives you visibility into future earnings. As of the latest reports, the contracted revenue backlog from Capesize charters alone stands at approximately $124 million. This is a significant chunk of guaranteed income.

To provide a fuller picture of that revenue visibility, the total contracted revenue backlog, which includes other vessel classes, was reported around $164 million. This backlog helps buffer against the volatility you see in the spot market.

Here's a quick look at the Q3 2025 performance metrics:

Also, you can't ignore the environmental upgrades when looking at revenue potential. Safe Bulkers, Inc. has been investing heavily in an eco-friendly fleet, which positions them to benefit from fuel efficiency and potentially lower regulatory costs. For instance, based on end-of-2024 estimates, there was an estimated $20 million in additional scrubber revenue capacity based on specific assumptions about fuel consumption and price spreads. This is an area where operational efficiency translates directly into a revenue advantage, especially when bunker consumption savings are realized.

The revenue generation is structured around these main sources:

• Time Charter Equivalent (TCE) revenue from period charters.
• TCE revenue from the spot market.
• Earnings derived from fuel savings on scrubber-fitted vessels.

For context on charter positioning from an earlier point in the year (July 18, 2025), the fleet deployment showed:

• Vessels under period charters: 37
• Vessels in the spot market: 11

The Capesize segment, in particular, is a major revenue driver, with its average daily hire for contracted vessels reported at $24,800 per day in a recent update, underpinning that $124 million backlog. Finance: draft 13-week cash view by Friday.