At December 31, fixed assets consisted of the following:
| | | | | | | | | | | | | | |
| | | December 31, 2025 | | December 31, 2024 |
| Vessels and vessel upgrades | | $ | 815,751 | | | $ | 830,921 | |
| Capitalized dry docking | | 30,271 | | | 21,547 | |
| | | 846,022 | | | 852,468 | |
| Accumulated depreciation and amortization | | (176,650) | | | (148,915) | |
| Vessels, vessel upgrades and capitalized dry docking, net | | 669,372 | | | 703,553 | |
| | | | |
| Land and building | | 3,236 | | | 3,003 | |
| Computers, equipment and internal use software | | 8,249 | | | 4,308 | |
| Other fixed assets | | 11,484 | | | 7,310 | |
| Accumulated depreciation | | (3,337) | | | (3,037) | |
| Other fixed assets, net | | 8,147 | | | 4,273 | |
| | | | |
| Total fixed assets, net | | $ | 677,518 | | | $ | 707,826 | |
| | | | |
| | | | |
| | | | |
At December 31, vessels under finance leases consisted of the following:
| | | | | | | | | | | | | | |
| | December 31, 2025 | | December 31, 2024 |
| Vessels under finance lease | | $ | 39,544 | | | 39,469 | |
| Accumulated depreciation and amortization | | (12,678) | | | (10,698) | |
| | | | |
| Vessels under finance lease, net | | $ | 26,866 | | | $ | 28,772 | |
About PP&E Disclosures
The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.
Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.