Euroseas Ltd. Ex-Distribution When Issued

For Q2 2026, total net revenues were $56.5 million, down 1.3% from $57.2 million in Q2 2025. Net income attributable to controlling shareholders was $33.2 million, or $4.74 per diluted share, versus $29.9 million a year ago; adjusted net income was $32.9 million, or $4.70 per diluted share. Adjusted EBITDA was $40.1 million versus $39.3 million last year. For the first half of 2026, net revenues were $112.3 million, down 1.1% year over year; net income attributable to controlling shareholders was $65.7 million versus $66.8 million; and adjusted EBITDA was $81 million versus $76.4 million. Fleet utilization was 100% commercial and 99.9% operational in Q2, with average TCE of $30,306 per day and operating expenses of $8,036 per vessel per day. The company declared a quarterly dividend of $0.80 per share. Forward coverage stands at 96% for the remainder of 2026, 81% for 2027, and almost 47% for 2028, at average contracted rates of $30,858, $31,658, and $32,310 per day, respectively.

Aristides Pittas emphasized that market conditions remain unusually favorable, with charter rates at decade highs and limited available tonnage. He said Euroseas is keeping older vessels in service for now because the earnings are attractive and there is no reason to sell in a strong market. His tone was constructive and opportunistic, stressing that the company is well positioned to use its balance sheet for dividends, buybacks, and future investments.

Tasos Aslidis focused on the earnings bridge, noting lower revenues were offset by stronger charter rates, while financing costs fell to $2.7 million in Q2 from $4 million a year ago. He highlighted the company’s debt profile: about $208 million of bank debt, an average interest rate margin around 2%, and total debt cost of a little more than 5.75%. He also pointed to liquidity of about $226 million in cash and other current assets, $74 million of newbuilding advances, and a net asset value estimate of more than $725 million, or about $103 per share.

Analysts pressed management on how much additional equity the newbuild program will require, and Pittas said the overall program costs around $560 million, with roughly 60% debt financing and about $230 million of equity needed, of which $74 million has already been paid. Questions also focused on whether older vessels would be sold as newbuilds arrive; management said no sales are currently planned because the market is strong and the older ships are still generating attractive earnings, though one vessel is being modeled as a possible sale in the future. Analysts also asked about dry dock timing, delivery delays, and newbuild charter structures; management said three dry dockings remain in 2026, no construction delays are currently expected, and contracts are still being discussed on traditional flat-rate terms rather than floors and caps.