Euroseas Ltd.

Second-quarter 2026 total net revenues were $56.5 million, down 1.3% from $57.2 million a year ago. Net income attributable to controlling shareholders was $33.2 million, or $4.74 per diluted share, versus $29.9 million last year; adjusted net income was $32.9 million, or $4.70 per diluted share, and adjusted EBITDA was $40.1 million versus $39.3 million. For the first half of 2026, net revenues were $112.3 million, net income attributable to controlling shareholders was $65.7 million, and adjusted EBITDA was $81 million. Forward-looking commentary pointed to 96% charter coverage for the remainder of 2026, 81% for 2027, and almost 47% for 2028, with average contracted rates of $30,858, $31,658, and $32,310 per day, respectively.

Aristides Pittas framed the quarter as strong and emphasized that the market remains favorable for Euroseas’ smaller vessel segments. He highlighted tight supply, high charter rates, and the benefit of having long-duration coverage while maintaining optionality on older ships. His tone was constructive but measured, noting that 2027 could become more challenging if deliveries rise and trade patterns normalize.

Anastasios Aslidis said Q2 revenue declined slightly because the company owned and operated fewer vessels, partly offset by higher charter rates. He pointed to lower interest and financing costs of $2.7 million in Q2 versus $4 million last year, and said adjusted EBITDA rose to $40.1 million from $39.3 million. He also laid out balance-sheet detail: about $208 million of bank debt, approximately $226 million of cash and other current assets, $74 million of newbuilding advances, and estimated fleet value of about $660 million, implying NAV of more than $725 million or about $103 per share.

Analysts focused on how much more equity is needed for the newbuilding program, and management said the total program is about $560 million, with roughly 60% debt financing planned and about $230 million of equity needed in total, of which $74 million has already been contributed. Questions also centered on whether older vessels might be sold, dry-docking needs, and financing priorities; management said it is not thinking of selling vessels now because the market is strong, and that capital allocation remains a board-level balancing act among newbuilds, acquisitions, dividends, and buybacks. On the newbuilds, management said it does not foresee delivery delays and has not seen a change in contract structures such as floors/caps, while on dry docks it said there are 3 remaining in 2026.