Frontline (NYSE:FRO) Posts Quarterly Earnings Results, Misses Estimates By $0.10 EPS

Frontline (NYSE:FRO) posted its quarterly earnings data on Friday. The shipping company reported $1.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.13 by ($0.10), Zacks reports. Frontline had a return on equity of 8.89% and a net margin of 12.23%.The business had revenue of $424.51 million during the quarter, compared to analysts’ expectations of $456.90 million. During the same period in the previous year, the business posted $0.20 EPS. The business’s quarterly revenue was up 46.7% compared to the same quarter last year.

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

• Frontline reported strong Q4 results with $228 million profit (adjusted $230 million) driven by higher TCE earnings (up to $424.5 million) and lower operating and finance costs.
• The company has high near-term revenue visibility with 92% of VLCC days for early Q1 2026 booked at $107,100/day (83% Suezmax at $76,700/day, 67% LR2/Aframax at $62,400/day).
• Frontline sold eight older VLCCs for $831.5 million (net proceeds ~$477 million) and agreed to buy nine latest-generation scrubber-fitted Eco VLCC newbuilds for $1.224 billion, to be financed ~60% with long-term debt.
• The balance sheet is solid with $705 million in liquidity (including undrawn revolver), no meaningful debt maturities until 2030, and a stated cash-generation potential of $2.8 billion (~$12.51/share) at current rates.
• Management sees a fundamentally tight market (sanctions/dark fleet dynamics, compliant-molecule growth, aging fleet) that supports high freight, but warns of extreme volatility and seasonal/geo‑political risks that could produce sharp moves.

Frontline Stock Up 1.7%

Shares of FRO opened at $37.91 on Friday. Frontline has a 12-month low of $12.40 and a 12-month high of $37.97. The company has a current ratio of 1.37, a quick ratio of 1.37 and a debt-to-equity ratio of 1.27. The company has a market capitalization of $8.44 billion, a PE ratio of 38.68 and a beta of 0.07. The business’s 50 day moving average is $27.38 and its 200 day moving average is $24.40.

Frontline Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 19th. Investors of record on Thursday, March 12th will be given a dividend of $1.03 per share. This is an increase from Frontline’s previous quarterly dividend of $0.19. This represents a $4.12 annualized dividend and a dividend yield of 10.9%. The ex-dividend date is Thursday, March 12th. Frontline’s dividend payout ratio (DPR) is 77.55%.

Key Stories Impacting Frontline

Here are the key news stories impacting Frontline this week:

• Positive Sentiment: Company announced a major VLCC fleet renewal alongside a strong Q4 operational update, signaling reinvestment in younger, more efficient tonnage and potential medium‑term earnings leverage as older ships are replaced. Frontline Delivers Strong Q4 and Launches Major VLCC Fleet Renewal
• Positive Sentiment: BTIG raised its price target to $42 and maintained a Buy rating, providing fresh analyst backing and suggesting upside from current levels — a catalyst for momentum and investor confidence. BTIG Price Target Raise
• Positive Sentiment: Board refresh: Frontline appointed shipping veteran Mikkel Storm Weum and accepted Ørjan Svanevik’s resignation — a governance move that brings operational experience to the board and may support strategic execution. Frontline Refreshes Board
• Neutral Sentiment: Revenue grew ~46.7% year‑over‑year, reflecting stronger freight markets and higher utilization — a clear operational positive, though some of this improvement may already be reflected in the rally. Q4 Earnings Summary
• Neutral Sentiment: Street still expects continued earnings growth (consensus ~1.78 EPS for the year), which supports valuation, but this is forward‑looking and dependent on tanker rates and fleet utilization.
• Negative Sentiment: Reported EPS of $1.03 missed the $1.13 consensus — a near‑term negative that tempers the headline strength and explains some intra‑day volatility. Detailed earnings snapshots are available. Frontline Q4 Earnings Summary & Key Takeaways

Hedge Funds Weigh In On Frontline

Several hedge funds have recently modified their holdings of FRO. University of Texas Texas AM Investment Management Co. purchased a new position in Frontline during the fourth quarter valued at $25,000. Sunbelt Securities Inc. bought a new position in shares of Frontline during the 3rd quarter valued at about $41,000. CIBC Private Wealth Group LLC purchased a new position in shares of Frontline during the third quarter valued at about $80,000. Triumph Capital Management bought a new stake in shares of Frontline in the third quarter worth about $97,000. Finally, State of Wyoming bought a new stake in shares of Frontline in the second quarter worth about $105,000. Hedge funds and other institutional investors own 22.70% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on FRO. Jefferies Financial Group boosted their price objective on shares of Frontline from $28.00 to $30.00 and gave the company a “buy” rating in a research report on Friday, November 21st. BTIG Research boosted their price target on Frontline from $35.00 to $42.00 and gave the company a “buy” rating in a report on Friday. Clarkson Capital raised Frontline from a “neutral” rating to a “buy” rating in a research note on Monday, January 12th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Frontline in a research report on Monday, December 29th. Finally, Evercore reissued an “outperform” rating and issued a $42.00 target price on shares of Frontline in a report on Friday. Four investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $31.62.

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.