Euroseas (NASDAQ:ESEA) used its fourth-quarter 2025 earnings call to highlight higher year-over-year revenue, sizable profitability, and a larger shareholder return program, while also outlining multiyear charter coverage and its outlook for container shipping supply and demand.
Quarterly results and dividend increase
Chairman and CEO Aristeides Pittas said the company reported fourth-quarter 2025 total net revenues of $57.4 million and net income of $40.5 million, or $5.79 per diluted share. Adjusted net income was $31.3 million, or $4.48 per diluted share, and adjusted EBITDA was $40.7 million. (Management directed investors to the press release for reconciliations.)
On share repurchases, Pittas said the company has repurchased 480,000 shares since launching its $20 million program in May 2022—about 6.8% of outstanding shares—for an aggregate price of approximately $11.4 million. The program, after two one-year extensions, was renewed for a third time in May 2025, and management said it intends to continue executing repurchases “in a disciplined manner.”
Vessel activity and fleet overview
Euroseas completed the sale and delivery of MV Marcos V to unaffiliated owners on Oct. 20, 2025, generating a $9.2 million gain on sale, management said. The company also emphasized that it had no idle or commercial off-hire days for the period.
As of the call, Euroseas’ fleet consisted of 21 vessels totaling 61,000 TEUs with an average age of 13.1 years:
- 6 intermediate vessels totaling ~25,500 TEUs, average age 18.2 years
- 15 feeder vessels totaling ~35,000 TEUs, average age 9.4 years
The company also has four 4,484-TEU intermediate newbuildings under construction. Two are expected for delivery in the third and fourth quarters of 2027, and the remaining two in the first and second quarters of 2028. On a fully delivered basis, management said the fleet would rise to 25 vessels and approximately 80,000 TEUs.
Chartering: multiyear fixtures and forward coverage
Management highlighted several multiyear charter fixtures secured during the period. Pittas said MV Gregos, Terataki, and Leonidas were each fixed for about three years at $30,000 per day. MV EM Spetses was fixed for a minimum of 22 months to a maximum of 24 months at $21,500 per day.
Euroseas also emphasized its forward contract coverage, which it said provides earnings visibility even if the market corrects. Pittas and CFO Anastasios Aslidis cited coverage levels of 87% of available days for 2026 at an average daily rate of approximately $30,700, 71% for 2027 at around $31,900, and 41% for 2028 at about $32,400.
Full-year financials, costs, and balance sheet commentary
Aslidis said fourth-quarter 2025 revenue of $57.4 million rose 7.7% from $53.3 million in the year-ago quarter, driven mainly by higher charter rates and partly offset by a lower average number of vessels operated. Including the $9.2 million gain on the Marcos V sale, net income was $30.5 million, compared with $24.4 million in the fourth quarter of 2024.
For the full year 2025, the company reported total net revenues of $227.9 million, up 7% from $212.9 million in 2024. Net income for 2025 was $137 million, compared with $112.8 million in 2024. The company recorded $19.4 million in gains on vessel sales during 2025, including a $10 million gain on the sale of MV Diamantis P earlier in the year and the $9.2 million gain on MV Marcos V.
On fleet performance, Aslidis said utilization was near 100%. During the fourth quarter of 2025, Euroseas operated an average of 21.22 vessels with an average TCE rate of $30,268 per day versus 23 vessels at $26,479 per day in the fourth quarter of 2024. Daily operating expenses (including management fees and G&A, excluding drydocking) were $8,284 per day versus $7,720 a year earlier. In Q&A, management attributed much of the year-over-year increase to the euro/dollar exchange rate (with costs such as management fees partly euro-denominated) and to the effect of fixed costs being spread across fewer ships in the quarter.
On leverage and liquidity, Aslidis said that as of Dec. 31, 2025, total outstanding debt stood at about $218.4 million, with an average interest rate margin of about 2%. He also discussed scheduled repayments, including approximately $19.5 million in 2026 and a $20 million balloon payment within the $36.8 million total repayment figure for 2027. Management said it has historically been able to refinance balloon payments and expects it could do so again if it chooses. The company also noted the four newbuildings are expected to require additional financing draws estimated in the range of $140 million to $150 million (not included in the debt table presented).
Aslidis said cash and other current assets totaled $188.7 million at year-end 2025, and the company had already made about $35.9 million in advances for its newbuild program. He also provided an estimate of fleet market value of approximately $664 million, translating to an estimated net asset value of about $660 million, or around $93.7 per share, compared with a recent share price cited of $62.4.
Market outlook and capital allocation priorities
Management discussed market conditions, noting that one-year time charter rates remained firm during the quarter despite a softening freight market, and that secondhand asset prices were stable while newbuilding prices eased modestly. Pittas also pointed to declining idle fleet capacity and muted recycling activity in 2025.
During Q&A, Pittas said Euroseas’ capital allocation priorities include maintaining a “strong dividend,” keeping leverage moderate, and pursuing growth opportunities. He said the company does not currently see attractive opportunities in the secondhand market and is “more focused on the new building market.”
Asked about scrapping, Pittas said scrapping is unlikely to rise unless charter rates fall, since even older ships are still finding employment at “very decent rates.” He added that if markets weaken—for example, if trading routes normalize through the Suez—charter rates could drop, prompting increased scrapping of older ships and potentially creating opportunities to buy secondhand vessels at lower prices.
Regarding older assets such as Corfu and Evridiki G, Pittas said the company had previously modeled them as being scrapped, but current market strength is leading Euroseas to plan to pass special surveys and seek charters for at least one year, potentially two. He suggested that after passing special surveys, those vessels could trade for another three years before requiring another extensive survey, which he said would likely be the point at which they would be scrapped.
Euroseas said it is not currently considering a special dividend, with Pittas stating management hopes to find a better use for excess capital than returning it in that form, while continuing to provide what it views as a “very decent” regular dividend.
About Euroseas (NASDAQ:ESEA)
Euroseas Ltd. (NASDAQ: ESEA) is an international shipping company specializing in seaborne transportation of containerized and drybulk cargoes. Incorporated in Bermuda with its principal operations and management office based in Athens, Greece, the company owns and charters a diversified fleet of containerships, drybulk carriers and multipurpose vessels. Euroseas provides tailored shipping solutions on time-charter and voyage-charter agreements, serving manufacturers, commodity traders and logistics providers across major trade routes.
Euroseas’s fleet comprises both owned and chartered tonnage, enabling the company to adjust capacity to market conditions and customer requirements.
