Shares in Clarkson PLC (LSE:CKN), the world's largest shipbroker, have continued to sail higher after the company reported full-year results broadly in line with expectations and flagged a strong start to the new year.
While the Middle East conflict adds complexity to the story, it is also generating a surge in tanker and gas carrier rates that plays to the company's strengths.
Deutsche Bank analyst James Beard noted that the fighting had led to sea vessel traffic through the key Strait of Hormuz plummeting around 90%, with unknown demand impacts if the conflict persists, "but as it has demonstrated over recent years, we think Clarkson is well-placed to navigate an uncertain environment".
Revenue in 2025 fell 5% to £631 million and pre-tax profit dropped 21% to £90.6 million, in line with the most recent guidance from management, as weak spot and asset broking markets in the first half of 2025 weighed on the full-year numbers. The dividend was raised 3% to 112p.
The more compelling read-through for investors was the outlook, felt Beard, with the Clarksea Index, a broad measure of shipping rates, averaging $32,200 per day in the year to date, up 20% on the 2025 average, while the value of secondhand ship transactions had more than doubled year on year in the first two months of 2026.
The one-year forward order book stood at $244 million, up 6%, and Clarkson said momentum from the fourth quarter had continued into the new year with positive market sentiment.
Beard raised his target price from 4,350p to 4,850p and kept his 'buy' rating on the basis that Clarkson's diversified model and track record of navigating volatile markets meant it is well positioned to turn the current chaos to its advantage.
The shares were up another 3.2% to 4,660p on Tuesday, up over 6% since the results were released.