Frontline (NYSE:FRO) Announces Earnings Results, Beats Expectations By $0.07 EPS

Frontline (NYSE:FRO) released its quarterly earnings data on Friday. The shipping company reported $2.51 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.44 by $0.07, Briefing.com reports. The firm had revenue of $714.24 million during the quarter, compared to analysts’ expectations of $579.59 million. Frontline had a return on equity of 16.51% and a net margin of 19.31%.The business’s revenue for the quarter was up 66.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.18 earnings per share.

Here are the key takeaways from Frontline’s conference call:

• Frontline posted a very strong Q1 2026 result with profit of $559 million ($2.51/share) and adjusted profit of $344.9 million ($1.55/share), driven largely by higher time charter earnings.
• Near-term charter rates are exceptional: the company said 82% of VLCC days, 79% of Suezmax days, and 68% of LR2/Aframax days are already booked for Q2 at very high rates, with “six digits across the board” commentary on the outlook.
• Liquidity remains solid, with $945 million of cash and available liquidity and no meaningful debt maturities until 2030; remaining newbuilding commitments are $925 million, partially offset by up to $737 million of financing secured.
• Management believes tanker market fundamentals remain tight despite the Strait of Hormuz disruption, pointing to longer trade routes, reduced effective fleet availability, and continued demand for compliant tonnage as supportive of freight rates.
• Frontline is adding some protection against downside risk by increasing short-term time-charter coverage, particularly in VLCCs, covering close to 30% of voyage days over the next 12 months while still maintaining meaningful spot exposure.

Frontline Price Performance

Shares of NYSE:FRO opened at $37.14 on Friday. The business has a 50 day moving average price of $35.49 and a 200 day moving average price of $29.80. Frontline has a twelve month low of $16.25 and a twelve month high of $39.89. The company has a market cap of $8.27 billion, a price-to-earnings ratio of 21.85 and a beta of 0.04. The company has a quick ratio of 1.19, a current ratio of 1.43 and a debt-to-equity ratio of 1.09.

Frontline Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 23rd. Investors of record on Friday, June 12th will be given a dividend of $1.55 per share. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.20 annualized dividend and a dividend yield of 16.7%. This is a boost from Frontline’s previous quarterly dividend of $1.03. Frontline’s payout ratio is presently 242.35%.

Institutional Trading of Frontline

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FRO. Royal Bank of Canada grew its holdings in Frontline by 32.3% in the 1st quarter. Royal Bank of Canada now owns 26,342 shares of the shipping company’s stock valued at $392,000 after buying an additional 6,424 shares during the last quarter. Millennium Management LLC acquired a new stake in Frontline in the 1st quarter valued at approximately $7,587,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Frontline by 12.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 185,226 shares of the shipping company’s stock valued at $2,751,000 after buying an additional 20,370 shares during the last quarter. American Century Companies Inc. grew its holdings in Frontline by 93.6% in the 2nd quarter. American Century Companies Inc. now owns 72,539 shares of the shipping company’s stock valued at $1,190,000 after buying an additional 35,078 shares during the last quarter. Finally, Invesco Ltd. grew its holdings in Frontline by 215.8% in the 2nd quarter. Invesco Ltd. now owns 91,039 shares of the shipping company’s stock valued at $1,494,000 after buying an additional 62,210 shares during the last quarter. Institutional investors and hedge funds own 22.70% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on FRO. Weiss Ratings reissued a “hold (c)” rating on shares of Frontline in a research report on Friday, March 27th. BTIG Research lifted their price objective on Frontline from $42.00 to $45.00 and gave the company a “buy” rating in a research report on Wednesday, April 22nd. Piper Sandler cut Frontline to a “neutral” rating in a research report on Friday, February 27th. Evercore cut Frontline from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, April 21st. Finally, Dnb Carnegie cut Frontline from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 2nd. Three analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, Frontline currently has a consensus rating of “Hold” and an average target price of $39.00.

Frontline Company Profile

Frontline Ltd. (NYSE:FRO) is a leading global shipping company specializing in the seaborne transportation of crude oil and petroleum products. The company’s core business activities encompass the ownership and operation of very large crude carriers (VLCCs), Suezmax tankers and Aframax vessels. Through long-term charters, spot market operations and time charters, Frontline provides flexible shipping solutions that cater to a diverse set of energy producers, refiners and trading houses worldwide.

Frontline’s fleet is geared toward high-capacity, ocean-going tankers capable of carrying large volumes of crude oil over intercontinental distances.