ATHENS, Greece, Feb. 20, 2026 (GLOBE NEWSWIRE) -- Euroseas Ltd. (NASDAQ: ESEA), an owner and operator of container carrier vessels and provider of seaborne transportation for containerized cargoes, announced today that it will release its financial results for the fourth quarter ended December 31, 2025, on February 25, 2026, before market opens in New York. On the same day, Wednesday, February 25, 2026, at 10:00 am Eastern Time, the Company's management will host a conference call and webcast to discuss th ...

Core Insights - Euroseas Ltd. is expanding its fleet from 21 to 25 vessels by 2028, with a total capacity of approximately 79,000 TEU [1] - The company has demonstrated strong financial performance, with a market capitalization growth from $50 million to nearly $500 million, attributed to a seasoned management team [1] - Euroseas has a forward charter coverage that supports earnings visibility, with significant portions of open days already fixed at high rates for 2026 and 2027 [3][4] Fleet Strategy - The fleet strategy focuses on renewal and efficiency, with nine new feeder vessels built between 2023 and 2025, and retrofitting of energy-saving devices on existing vessels [2] - The new vessels are LNG ready, although the company expresses skepticism about a rapid industry-wide transition to alternative fuels [2] Financial Performance - For the first nine months of the year, Euroseas reported net revenues of $170 million and net income of $85 million, with adjusted earnings per diluted share at $12.2 [3] - Full-year earnings are expected to exceed $16 per share, with 83% of open days for 2026 already fixed at an average rate of $31,000 per day [3] Profitability and Break-even Analysis - Euroseas would remain profitable even in a conservative scenario where unfixed vessels earn zero, with a break-even cost of $12,000 per vessel per day [4] - Current charters yield a substantial margin of $18,000 per day, contributing directly to net earnings [4]

Core Viewpoint - Euroseas Ltd. has secured a new time charter contract for its feeder containership EM Spetses, which will commence on April 12, 2026, at a gross daily rate of $21,500, reflecting a significant increase from its current rate [1][2]. Group 1: Charter Contract Details - The new charter contract for EM Spetses is for a minimum of 22 months and a maximum of 24 months, depending on the charterer's option [1]. - The daily rate of $21,500 represents an increase of over $3,000 compared to the vessel's current rate [1][2]. - The charter is expected to generate approximately $8.9 million in EBITDA over the minimum contracted period [2]. Group 2: Fleet Profile and Operations - Euroseas operates a fleet of 21 vessels, including 15 feeder containerships and 6 intermediate containerships, with a total cargo capacity of 61,144 TEU [8]. - The company anticipates that after the delivery of four new intermediate containerships in 2027 and 2028, its fleet will expand to 25 vessels with a total capacity of 79,080 TEU [8]. - Euroseas' operations are managed by Eurobulk Ltd., which handles the commercial and technical management of the vessels [7]. Group 3: Market Context - The chartering market for container vessels is currently tight, with limited tonnage availability, leading to strong demand in the feeder segment [2]. - The company has increased its charter coverage for 2026, 2027, and 2028 to approximately 87%, 71%, and 41%, respectively [2].

Euroseas Conference Call Summary Company Overview - Euroseas operates in the feeder and intermediate sectors of the container market with a fleet of 21 vessels and four under construction [2][3] - The company has been publicly listed since 2005, with a market capitalization growth from approximately $50 million to about $500 million [4] Fleet and Operations - The fleet includes six intermediate vessels averaging 18 years old and 15 feeder vessels, with nine new vessels built between 2023 and 2025 [5][6] - Future growth is supported by the order of four additional intermediate vessels for delivery in 2027 and 2028 [6] Financial Performance - For the nine-month period, Euroseas reported an average of 22.6 vessels at a charter rate of $28,735 per day, generating total net revenue of $170 million and net income close to $100 million [10] - The company paid a dividend of $0.70 per share for Q3, translating to an annualized yield of about 5% [10][11] - Projected earnings per share for 2026 and 2027 are expected to remain high due to significant charter coverage at rates exceeding $31,000 per day [11][12] Market Position and Outlook - Euroseas has a low break-even cost of $12,000 per day per vessel, providing substantial margins with current charter rates [13] - The company maintains a low bank debt of $224 million, representing about 33.3% of total book value of assets, indicating low leverage [14] - The estimated net asset value (NAV) per share is $85, while the current trading price is $53, reflecting a 38% discount [15] Industry Dynamics - The container shipping market experienced low rates from 2010 to 2020 due to oversupply, but rates surged post-COVID due to increased demand for goods [18] - Current geopolitical tensions, such as the Israeli-Gaza conflict, have led to increased charter rates, but normalization is expected in the coming years [19][20] - The order book for new vessels is at 34%, significantly lower than the historical highs, suggesting a more stable market environment [20][21] Investment Considerations - Euroseas is insulated from short to medium-term market fluctuations due to long-term charters secured at profitable levels [22] - The company has a strong commitment to rewarding shareholders with dividends and has a share repurchase program in place [24] - The feeder and intermediate container market fundamentals are positive, with a shrinking fleet expected in the sector [23] Risks and Challenges - Potential headwinds include geopolitical instability and global economic slowdowns, which could impact transportation demand [27][28] - The company is preparing for future fuel transitions by making new vessels LNG ready, although conventional fuel is expected to remain prevalent for some time [26] Conclusion - Euroseas presents a compelling investment opportunity in the container shipping sector, with strong financial performance, a well-managed fleet, and favorable market conditions, despite potential risks from geopolitical and economic factors [22][24]

Core Insights - The webinar featured key executives from major companies in the dry bulk shipping sector, discussing market dynamics and strategic considerations [1] Group 1: Company Strategies - Wah Kwong Maritime Services employs a strategy that balances spot and time charters based on market views and risk management [2] - EuroDry focuses on mid-sized dry bulk segments, avoiding smaller Handysize and larger Capesize vessels, and emphasizes a balanced fleet post-merger with Eagle Bulk Shipping [3] - Pangaea Logistics Solutions prioritizes customer needs, utilizing voyage charter contracts and long-term COAs while mixing spot market activity with contracted cargoes [4] Group 2: Financial Management - EuroDry advocates for a medium leverage strategy targeting approximately 50% loan-to-value to enhance equity returns while remaining resilient during downturns [5] - Pangaea's debt to fair market value is around 40-45%, indicating a comfortable leverage level, while Star Bulk focuses on using cash flow for stock buybacks rather than increasing leverage [6] Group 3: Market Outlook - The dry bulk shipping market experienced volatility, with a weak first half of the year followed by a stronger second half, leading to cautious optimism among executives [7] - Forecasts suggest a modest market correction, with geopolitical factors becoming increasingly significant in influencing freight rates, which are expected to remain stable with a potential variance of 20%-25% [8] - Optimism remains regarding strong volumes for coal, grain, and minor bulks, despite concerns over coal demand due to warm weather [9][10] Group 4: Fleet and Order Book - The newbuild order book is considered manageable, with Kamsarmax at approximately 14% and Ultramax at 11.5%, well within historical norms [11] - Shifts in Chinese demand, particularly in steel exports and power demand from AI data centers, are creating beneficial long-haul shipping demand for raw materials and finished steel [12]

Company Overview - Euroseas (ESEA) is a containership operator based in Greece and is the only US-listed pureplay feeder operator [1] - Feeder container ships operated by Euroseas are smaller vessels, typically ranging from 700 to 3,500 TEU, which transport cargo to larger long-haul vessels [1] Investment Strategy - The company is focused on building a resilient, income-generating portfolio with a long-term growth mindset [1] - The investment approach is primarily long-only, blending dividend-paying equities, REITs, and other income strategies with selective growth opportunities [1] - The strategy emphasizes disciplined, fundamentals-driven investing, prioritizing capital preservation while compounding returns over time [1]

Core Viewpoint - The analyst maintains a bullish outlook on Euroseas (ESEA), emphasizing robust operations and a significant discount to NAV as key factors supporting this position [1]. Company Analysis - Euroseas is highlighted for its strong operational performance, which is a critical factor in the analyst's positive assessment [1]. - The stock is trading at a notable discount to its net asset value (NAV), suggesting potential for price appreciation [1]. Market Sentiment - The analyst expresses confidence in the future of Bitcoin, indicating a broader interest in emerging investment opportunities [1].

Core Viewpoint - Euroseas Ltd. has secured new charter contracts for three modern fuel-efficient container vessels, indicating strong demand in the feeder container segment and enhancing revenue visibility through 2029 [1][2]. Charter Contracts - The new charters are for a minimum of 35 months and a maximum of 37 months, with a gross daily rate of $30,000 [1]. - The charters are expected to generate approximately $75 million in EBITDA over the minimum contracted period [2]. Revenue and Earnings Visibility - The new contracts will increase charter coverage for 2026, 2027, and 2028 to approximately 82.5%, 66.5%, and 42% respectively [2]. - The contracts are set to commence after the redelivery of current charters in the first three quarters of 2026 [1]. Fleet Profile - Euroseas operates a fleet of 21 vessels, including 15 feeder containerships and 6 intermediate containerships, with a total cargo capacity of 61,144 TEU [8]. - After the delivery of four new intermediate containerships in 2027 and 2028, the fleet will expand to 25 vessels with a total capacity of 79,080 TEU [8]. Company Background - Euroseas Ltd. was established in 2005 and is listed on NASDAQ under the ticker ESEA, focusing on container shipping and managed by Eurobulk Ltd. [6][7].

Financial Performance - Total net revenues for Q3 2025 were $56.9 million, a 5.1% increase from $54.1 million in Q3 2024[26] - Net income for Q3 2025 was $29.7 million, compared to $27.6 million in Q3 2024, resulting in earnings per share of $4.27 and $4.25 for basic and diluted shares, respectively[14][36] - Adjusted EBITDA for Q3 2025 was $38.8 million, up from $36.1 million in Q3 2024[24][35] - For the first nine months of 2025, the Company reported total net revenues of $170.5 million, a 6.8% increase from $159.6 million in the same period of 2024[39] - Net income for the first nine months of 2025 was $96.5 million, compared to $88.4 million for the same period in 2024[39] - Adjusted EBITDA for the first nine months of 2025 was $115.2 million, compared to $102.9 million for the same period in 2024[50] - Net income for the nine months ended September 30, 2025, was $96.47 million, up from $88.38 million in the same period of 2024, reflecting a year-over-year increase of 9.4%[81] - Adjusted net income for the nine months ended September 30, 2025, was $84.99 million, an increase from $80.24 million in 2024, which is a rise of 5.5%[83] Revenue and Earnings - Time charter revenue for Q3 2025 was $58,547,672, an increase of 3.2% compared to $55,375,268 in Q3 2024[74] - Average time charter equivalent rate for the first nine months of 2025 was $28,735 per day, up from $28,624 per day in the same period of 2024[39] - Basic and diluted earnings per share for the first nine months of 2025 were $13.90 and $13.84, respectively, compared to $12.75 and $12.66 for the same period in 2024[51] - Earnings per share (basic) for Q3 2025 was $4.27, compared to $3.97 in Q3 2024, indicating a 7.6% increase[76] - Adjusted earnings per share (basic) increased from $11.57 in the nine months ended September 30, 2024, to $12.25 in 2025, reflecting a growth of 5.9%[83] Expenses and Costs - Vessel operating expenses for the nine-month period of 2025 amounted to $35.2 million, an increase from $34.3 million in the same period of 2024[41] - Total interest and other financing costs for the first nine months of 2025 were $11.7 million, compared to $10.7 million for the same period in 2024[48] - The company reported interest and other financing costs of $9.54 million for the nine months ended September 30, 2025, compared to $5.53 million in the same period of 2024, indicating a significant increase of 72.5%[81] - General and administrative expenses increased to $4.4 million for the nine-month period ended September 30, 2025, compared to $3.7 million for the same period in 2024[44] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.70 per share, representing a yield of about 5%[20] - The company paid dividends totaling $14,000,695 in the nine months ended September 30, 2025, up from $12,533,010 in the same period of 2024[78] Assets and Liabilities - As of September 30, 2025, the company had outstanding debt of $224.0 million against cash reserves of $112.4 million[25] - Total current assets increased significantly from $84,706,760 as of December 31, 2024, to $160,029,953 as of September 30, 2025[77] - Cash and cash equivalents rose from $73,739,504 at the end of 2024 to $100,210,876 by September 30, 2025, marking a growth of 35.8%[77] - Total liabilities increased from $228,269,125 at the end of 2024 to $246,691,048 by September 30, 2025[77] Fleet and Operations - The average number of vessels operated in Q3 2025 was 22.0, compared to 23.0 in the same period last year[23] - The company operates a fleet of 21 vessels, with plans to expand to 25 vessels by 2028, increasing total carrying capacity from 61,144 TEU to 79,080 TEU[88] - The company has secured multi-year forward charters for five vessels, expected to generate a minimum of $183 million in EBITDA during the charter period[17] - The company anticipates further vessel acquisitions and entering into additional time charters as part of its growth strategy[89] Gains and Losses - The company recorded a gain of approximately $9.3 million from the sale of M/V Marcos V, which was sold for about $50.0 million[15] - The Company recognized a $10.2 million gain on the sale of M/V "Diamantis" in January 2025, compared to a $5.7 million gain on the sale of M/V "EM Astoria" in June 2024[47] - The unrealized loss on derivatives for the nine months ended September 30, 2025, was $380,832, compared to a gain of $247,867 in the same period of 2024[83] Non-GAAP Measures - The company emphasizes that Adjusted EBITDA and Adjusted net income are non-GAAP measures that provide insight into financial performance and liquidity[82]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported total net revenues of $56.9 million, a 5.1% increase from $54.1 million in Q3 2024 [24] - Net income for Q3 2025 was $29.7 million, compared to $27.6 million in Q3 2024 [24] - Adjusted EBITDA for Q3 2025 increased to $38.8 million from $36.1 million in Q3 2024 [25] - Basic and diluted earnings per share for Q3 2025 were $4.27 and $4.25, respectively, compared to $3.97 and $3.95 for the same period last year [26] Business Line Data and Key Metrics Changes - The average charter rate per vessel per day increased by 10.7% in Q3 2025 compared to Q3 2024 [24] - The company operated an average of 22 vessels in Q3 2025, earning an average time charter equivalent rate of $29,284 per day, compared to 23 vessels earning $26,446 per day in Q3 2024 [30] Market Data and Key Metrics Changes - The Shanghai Containerized Freight Index declined to its lowest level in nearly two years by late September 2025, but stabilized and increased by 30% in October and early November [10] - The average second-hand price index rose by about 4.4% in Q3 2025 compared to Q2 2025, supported by limited vessel availability and strong buyer interest [10] - The global fleet expanded by 6% year-to-date, with recycling activity remaining subdued [11] Company Strategy and Development Direction - The company remains committed to a $20 million share repurchase plan, having repurchased 466,000 shares for approximately $10.5 million [4] - The company has secured charters for four new vessels at rates of $35,500 per day for four years, indicating a strategic focus on long-term contracts [7][21] - The company aims to maintain leverage around 50%, adjusting based on market conditions [74] Management's Comments on Operating Environment and Future Outlook - Management noted that the market remains mixed, with time charter rates holding firm despite a decline in the Shanghai Containerized Freight Index [18] - Concerns over oversupply and increased competition among carriers may pressure rates from 2027 onwards [19] - The company anticipates a conservative approach to fleet management, potentially scrapping older vessels if market conditions worsen [83] Other Important Information - The company declared a quarterly dividend of $0.70 per share for Q3 2025, reflecting an annualized yield of approximately 5% [4] - The total outstanding bank debt as of September 30, 2025, was about $224 million, with a cost of debt around 5.9% [21] Q&A Session Summary Question: Expectations for scheduled off-hire days for Q4 and 2026 - Management indicated minimal dry docking scheduled for the next 12 months, with likely off-hire for Q4 being almost zero [44][45] Question: Impact of container ship ordering on supply and rates - Management acknowledged that increased ordering could pressure rates from 2027, but noted strong coverage for 2027 with 52% locked in [48][49] Question: Willingness to book long-term contracts - Management explained that the aging fleet in smaller vessels is driving demand for long-term contracts as charters seek to secure tonnage [62] Question: Remaining commitments for new builds - Management confirmed that approximately $200 million remains to be paid for the new builds, with payments structured around delivery timelines [67] Question: Strategy on selling older assets - Management stated a conservative approach, considering scrapping older vessels if market conditions decline significantly [83][84]