- **Revenue growth and profitability**: Q3 net income up 7.6% YoY to $29.7 million, driven by 10.7% higher charter rates.
- **Strategic chartering**: 4 newbuilds secured at $35,500/day for 4 years, with a 5-year option at $22,500/day, locking in $140 million+ revenue.
- **Financial strength**: $126 million cash, 30% discount to NAV, and conservative debt repayments ($5.4M Q4 2025).
- **Market positioning**: 75% of 2026 fleet contracted at $31,300/day, aging feeder fleet (27% >20 years) supports rate resilience.
- **Risk management**: Minimal off-hire days (0 in Q4 2025), and 5-year charter optionality to hedge market volatility.

**【Management Opening Remarks】**
- Q3 2025 net revenues: $56.9 million (5.1% YoY increase), net income: $29.7 million, adjusted EBITDA: $38.8 million.
- Dividend declared: $0.70 per share (annualized yield ~10%).
- Vessel sales: $50 million gain from Marcos V sale; 4 newbuilds chartered at $35,500/day for 4 years, with a 5-year option at $22,500/day.
- Charter extensions: Jonathan P (11-12 months at $25,000/day), Synergy Oakland (36 months at $33,500/day).
- Fleet update: 21 vessels (61,000 TEU), 4 newbuilds (4,484 TEU each) expected in 2027-2028.

**【CFO Financial Commentary】**
- 9M 2025 net revenues: $170.5 million (6.8% YoY), net income: $96.5 million, adjusted EBITDA: $115.2 million.
- Debt: $224 million (5.9% cost), scheduled repayments: $5.4M Q4 2025, $19.5M 2026, $36.8M 2027.
- Cash flow breakeven: $12,000/day, well below current rates ($29,284/day Q3 2025).
- Fleet valuation: $680 million (NAV: $85/share vs. $60 trading price).

**【Q&A Highlights】**
- Off-hire days: Minimal in Q4 2025; next dry docking in Q3 2026.
- Market outlook: 2027-2028 rates expected to decline due to newbuild supply, but 52% of 2027 fleet contracted at $33,500/day.
- Newbuild financing: $200 million remaining for 4 vessels, payments staggered through 2027-2028.
- Leverage target: 50% (current ~40%), balanced between growth and risk management.
- Scrapping strategy: Older vessels (e.g., Jonathan P) may be scrapped if market softens.


Euroseas Ltd.(ESEA)-20251118-2025 Q3 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ESEA

ESEA fundamentals

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