SFL (SFL) Is Up 7.7% After Strong Earnings Beat, Share Buyback and Dividend Announcement

• SFL Corporation Ltd. recently completed a buyback of 2,347,752 shares for US$20.2 million and reported third-quarter 2025 earnings that surpassed analyst expectations, with revenue of US$178.21 million and net income of US$8.63 million.
• Alongside announcing its 87th consecutive dividend and securing new five-year charters, SFL continues to emphasize operational upgrades and fleet renewal to improve efficiency and support recurring shareholder returns.
• We will explore how SFL's stronger-than-expected earnings and dividend affirmation influence its investment outlook and long-term growth prospects.

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SFL Investment Narrative Recap

To be a shareholder in SFL, you need to believe that the company’s commitment to fleet modernization, long-term charters, and recurring dividends will offset risks tied to market volatility and demand for fossil fuel shipping. The recent share buyback and stronger third-quarter earnings signal a focus on shareholder returns but do not materially alter the biggest near-term catalyst, redeployment of idle assets like the Hercules rig, or the central risk of tightening environmental regulations.

The completion of a US$20.2 million share buyback is particularly relevant, as it underscores management’s emphasis on shareholder value during periods of challenged earnings. This action, set against stable but pressured margins, reinforces the importance of cash flow preservation and prudent capital allocation as SFL continues to face sizable capital expenditure and regulatory challenges.

However, in contrast to these recent positives, investors should be aware that the company’s significant exposure to the global energy transition raises...

Read the full narrative on SFL (it's free!)

SFL's outlook anticipates $742.1 million in revenue and $132.0 million in earnings by 2028. This implies a 4.5% annual revenue decline and a $97.7 million increase in earnings from $34.3 million today.

Uncover how SFL's forecasts yield a $10.18 fair value, a 24% upside to its current price.

Exploring Other Perspectives

Four private investors in the Simply Wall St Community estimate SFL’s fair value from as low as US$2.59 to over US$12.18 per share. With regulatory risks putting pressure on shipping margins, you’ll find a wide range of viewpoints worth considering.

Explore 4 other fair value estimates on SFL - why the stock might be worth less than half the current price!

Build Your Own SFL Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SFL research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free SFL research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SFL's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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