Core Viewpoint - The Zacks Transportation - Shipping industry is facing challenges such as inflation, high interest rates, tariffs, and supply chain disruptions, but there are positive factors like a 90-day extension on tariffs against China, low oil prices, and improved demand for goods and commodities post-pandemic [1][4]. Industry Overview - The Zacks Transportation - Shipping industry is cyclical and primarily provides liquefied natural gas and crude oil marine transportation services under long-term contracts with major energy and utility companies. The industry is heavily reliant on the health of the economy, with a recovery from COVID-19 standstill benefiting its prospects [3]. Shipping Industry Trends - The extension of the tariff deadline on Chinese goods is a significant positive for the shipping industry, likely leading to a short-term increase in imports and stabilizing global trade flows [4]. - Elevated compliance costs due to regulations and rising technology-related expenses are expected to impact profits in the short term, but these investments will support long-term margins [5]. - The demand for liquefied natural gas (LNG) is increasing, particularly due to geopolitical factors, which is favorable for shipping stocks [6]. - Low oil prices are beneficial for the industry as they reduce fuel costs, which are a major expense for transportation companies. Oil prices have declined by 6% in the April-June period, benefiting oil tanker companies [7]. Industry Performance - The Zacks Transportation - Shipping industry has underperformed compared to the S&P 500 index, declining by 20.2% over the past year, while the S&P 500 increased by 16% [11]. - The industry currently has a Zacks Industry Rank of 98, placing it in the top 40% of 246 Zacks industries, indicating positive near-term prospects [9]. Valuation - The industry is trading at a forward price-to-earnings (P/E) ratio of 6.82X, significantly lower than the S&P 500's 22.86X and the sector's 14.36X [14]. Stock Recommendations - Dorian LPG has seen a stock increase of 56% over the past six months, driven by rising demand for liquefied petroleum gases [16]. - Euroseas has gained 41% over the past year, benefiting from profitable contracts and a time charter equivalent rate exceeding $30,000 per day [20]. - Ardmore Shipping's stock has increased by 18% over the past six months, with a focus on product and chemical tankers [23].

Core Viewpoint - Euroseas Ltd. has signed a contract for the construction of two additional modern fuel-efficient 4,300 teu container vessels, scheduled for delivery in March and May of 2028, with a total consideration of approximately $59.25 million for each vessel [1][2]. Company Overview - Euroseas Ltd. operates in the container shipping market and was formed on May 5, 2005, under the laws of the Republic of the Marshall Islands, consolidating the ship-owning interests of the Pittas family, which has been in the shipping business for over 150 years [5][6]. - The company trades on the NASDAQ Capital Market under the ticker ESEA [5]. Fleet Profile - Euroseas currently has a fleet of 22 vessels, including 15 feeder containerships and 7 intermediate containerships, with a total cargo capacity of 67,494 teu [7]. - After the sale of M/V Marcos V and the delivery of four intermediate containership newbuildings in 2027 and 2028, the fleet will consist of 25 vessels with a total carrying capacity of 78,344 teu [7]. Strategic Insights - The company is committed to growing and modernizing its fleet by investing in eco intermediate-sized containerships, a segment characterized by a low orderbook and an aging existing fleet, which is viewed as a sound investment strategy [2]. - The current charter arrangements secure revenue for the company in the coming years, positioning it to capitalize on future market opportunities and create long-term value for shareholders [2].

[Corporate Information & Filing Details](index=1&type=section&id=Corporate%20Information%20%26%20Filing%20Details) This section provides details on the SEC filing, company overview, and fleet profile of Euroseas Ltd [SEC Filing Information](index=1&type=section&id=SEC%20Filing%20Information) This section details the SEC filing, identifying the document as a Form 6-K report for August 2025 by Euroseas Ltd., incorporating a press release regarding its Q2 and H1 2025 results - Report is a Form 6-K for August 2025, filed by Euroseas Ltd. (Commission File Number: 001-33283)[1](index=1&type=chunk)[2](index=2&type=chunk) - It includes a press release issued on August 13, 2025, reporting results for the six-month period and quarter ended June 30, 2025[4](index=4&type=chunk)[10](index=10&type=chunk) [Company Overview](index=16&type=section&id=Company%20Overview) Euroseas Ltd. is a Marshall Islands-registered owner and operator of container carrier vessels, trading on NASDAQ under ESEA, managing its fleet through Eurobulk Ltd - Euroseas Ltd. (NASDAQ: ESEA) is a container carrier vessel owner and operator, managed by Eurobulk Ltd[10](index=10&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) Euroseas Ltd. Fleet Profile (as of August 13, 2025) | Metric | Current Fleet | Future Fleet (by Q4 2027) | | :----- | :------------ | :-------------------------- | | Number of Vessels | 22 | 24 | | Feeder Containerships | 15 | - | | Intermediate Containerships | 7 | - | | Total Cargo Capacity (TEU) | 67,494 | 76,094 | [Financial Highlights](index=3&type=section&id=Financial%20Highlights) This section presents key financial performance metrics for Euroseas Ltd. for the second quarter and first half of 2025 [Second Quarter 2025 Financial Highlights](index=3&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Euroseas Ltd. reported total net revenues of $57.2 million and net income of $29.9 million for Q2 2025, with an Adjusted EBITDA of $39.3 million Second Quarter 2025 Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :---------- | :---------- | :----------- | | Total Net Revenues | $57.2 million | $58.7 million | -2.5% | | Net Income | $29.9 million | $40.7 million | -26.5% | | Basic EPS | $4.32 | $5.89 | -26.7% | | Diluted EPS | $4.29 | $5.84 | -26.5% | | Adjusted Net Income | $29.2 million | $34.3 million | -14.8% | | Adjusted Basic EPS | $4.23 | $4.95 | -14.6% | | Adjusted Diluted EPS | $4.20 | $4.92 | -14.6% | | Adjusted EBITDA | $39.3 million | $42.3 million | -7.1% | | Average Vessels Operated | 22.0 | 21.26 | +3.5% | | Average TCE Rate | $29,420/day | $31,639/day | -7.0% | | Quarterly Dividend per Share | $0.70 | $0.65 (implied from $0.05 increase) | +7.7% | - The company repurchased **463,074 common shares** for approximately **$10.5 million** since May 2022, as part of a **$20 million** share repurchase plan[14](index=14&type=chunk) - Published its 2024 Sustainability/ESG Report[14](index=14&type=chunk) [First Half 2025 Financial Highlights](index=3&type=section&id=First%20Half%202025%20Financial%20Highlights) For the first half of 2025, Euroseas Ltd. reported total net revenues of $113.6 million and net income of $66.8 million, with an Adjusted EBITDA of $76.4 million First Half 2025 Financial Highlights | Metric | H1 2025 | H1 2024 | Change (YoY) | | :-------------------------------- | :---------- | :---------- | :----------- | | Total Net Revenues | $113.6 million | $105.4 million | +7.7% | | Net Income | $66.8 million | $60.8 million | +9.9% | | Basic EPS | $9.63 | $8.77 | +9.8% | | Diluted EPS | $9.60 | $8.71 | +10.2% | | Adjusted Net Income | $55.4 million | $52.8 million | +4.9% | | Adjusted Basic EPS | $7.99 | $7.63 | +4.7% | | Adjusted Diluted EPS | $7.97 | $7.57 | +5.3% | | Adjusted EBITDA | $76.4 million | $66.9 million | +14.2% | | Average Vessels Operated | 22.83 | 20.43 | +11.7% | | Average TCE Rate | $28,468/day | $29,836/day | -4.7% | [Management Commentary](index=4&type=section&id=Management%20Commentary) This section provides insights from the Chairman, CEO, and CFO on market conditions, company performance, and financial position [Chairman and CEO Comments](index=4&type=section&id=Chairman%20and%20CEO%20Comments) The CEO highlighted the strong containership market in Q2 2025, the company's profitability, strategic fleet positioning, and commitment to shareholder returns - Containership market continued upward climb in Q2 2025, exceeding 2024 peak levels, primarily due to lack of vessels[15](index=15&type=chunk) - Company achieved one of its best quarterly results in five years (adjusted EPS) due to highly profitable charter rates and almost **90% charter coverage** for the next 12 months[15](index=15&type=chunk) - Anticipates potential rate pressures in late 2026/2027 due to overall supply growth (**30% orderbook**), but sees an advantage in feeder and intermediate segments (where Euroseas operates) due to low orderbook and aged fleet profile[16](index=16&type=chunk) - Committed to fleet modernization, accretive investments, and shareholder returns; increased quarterly dividend by **$0.05** to **$0.70 per share** and continues share buyback program[17](index=17&type=chunk) [Chief Financial Officer Comments](index=4&type=section&id=Chief%20Financial%20Officer%20Comments) The CFO detailed Q2 2025 revenue and expense changes, attributing shifts to TCE rates, operating costs, and administrative expenses, while outlining debt and cash positions - Q2 2025 revenues slightly lower than Q2 2024 due to a **7.0% decrease** in average TCE rate, despite more vessels[17](index=17&type=chunk) - Daily vessel operating expenses increased to **$6,700/day** (from $6,612/day in Q2 2024) due to falling USD value and inflation adjustment to daily vessel management fee (**810 Euros to 840 Euros**)[18](index=18&type=chunk) - General and administrative expenses increased to **$694/day** (from $581/day in Q2 2024) due to higher professional fees and stock incentive plan costs[19](index=19&type=chunk) Key Financial Metrics (CFO Commentary) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------- | :---------- | :---------- | :----------- | | Net Revenues | $57.3 million | $58.7 million | -2.4% | | Adjusted EBITDA | $39.3 million | $42.3 million | -7.1% | | Outstanding Debt (as of Jun 30, 2025) | $229.4 million | - | - | | Cash (as of Jun 30, 2025) | $112.7 million | - | - | | Scheduled Debt Repayments (next 12 months) | $21.2 million | - | - | [Detailed Financial Results](index=5&type=section&id=Detailed%20Financial%20Results) This section provides a comprehensive breakdown of Euroseas Ltd.'s financial performance for the second quarter and first half of 2025 [Second Quarter 2025 Detailed Results](index=5&type=section&id=Second%20Quarter%202025%20Detailed%20Results) Q2 2025 results show decreased net revenues and net income, influenced by lower time charter rates and the absence of a vessel sale gain, alongside increased operating and interest expenses [Revenue and Net Income](index=5&type=section&id=Revenue%20and%20Net%20Income_Q2) This subsection details the revenue and net income performance for Q2 2025, including average vessels operated and TCE rates Q2 2025 Revenue and Net Income | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------- | :---------- | :---------- | :----------- | | Total Net Revenues | $57.2 million | $58.7 million | -2.5% | | Net Income | $29.9 million | $40.7 million | -26.5% | | Average Vessels Operated | 22.0 | 21.26 | +3.5% | | Average TCE Rate | $29,420/day | $31,639/day | -7.0% | [Operating Expenses](index=5&type=section&id=Operating%20Expenses_Q2) This subsection outlines the various operating expenses incurred during Q2 2025, including voyage, vessel operating, depreciation, and administrative costs Q2 2025 Operating Expenses | Expense Category | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :---------- | :---------- | :----------- | | Voyage Expenses, net | $0.3 million | -$0.3 million (gain) | N/A | | Vessel Operating Expenses | $11.5 million | $11.1 million | +3.6% | | Depreciation Expense | $7.3 million | $6.8 million | +7.4% | | Related Party Management Fees | $1.9 million | $1.7 million | +11.8% | | General & Administrative Expenses | $1.4 million | $1.1 million | +27.3% | | Drydocking Costs | $1.7 million | $1.6 million | +6.3% | [Other Expenses and Income](index=5&type=section&id=Other%20Expenses%20and%20Income_Q2) This subsection presents other financial items for Q2 2025, including interest costs, capitalized interest, derivative gains/losses, and vessel sale gains Q2 2025 Other Expenses and Income | Category | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :---------- | :---------- | :----------- | | Interest & Other Financing Costs | $4.0 million | $2.1 million | +90.5% | | Capitalized Interest (newbuilding) | Nil | $1.4 million | -100% | | Net Gain/(Loss) on Derivative | -$0.06 million (loss) | $0.12 million (gain) | N/A | | Gain on Sale of Vessel | Nil | $5.7 million | -100% | [Earnings Per Share](index=5&type=section&id=Earnings%20Per%20Share_Q2) This subsection provides basic, diluted, and adjusted earnings per share figures for Q2 2025 Q2 2025 Earnings Per Share | EPS Type | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------- | :---------- | :---------- | :----------- | | Basic EPS | $4.32 | $5.89 | -26.7% | | Diluted EPS | $4.29 | $5.84 | -26.5% | | Adjusted Basic EPS | $4.23 | $4.95 | -14.6% | | Adjusted Diluted EPS | $4.20 | $4.92 | -14.6% | [First Half 2025 Detailed Results](index=5&type=section&id=First%20Half%202025%20Detailed%20Results) H1 2025 results show increased net revenues and net income, driven by fleet expansion and a vessel sale gain, with varied changes in operating and interest expenses [Revenue and Net Income](index=5&type=section&id=Revenue%20and%20Net%20Income_H1) This subsection details the revenue and net income performance for H1 2025, including average vessels operated and TCE rates H1 2025 Revenue and Net Income | Metric | H1 2025 | H1 2024 | Change (YoY) | | :-------------------- | :---------- | :---------- | :----------- | | Total Net Revenues | $113.6 million | $105.4 million | +7.7% | | Net Income | $66.8 million | $60.8 million | +9.9% | | Average Vessels Operated | 22.83 | 20.43 | +11.7% | | Average TCE Rate | $28,468/day | $29,836/day | -4.7% | [Operating Expenses](index=6&type=section&id=Operating%20Expenses_H1) This subsection outlines the various operating expenses incurred during H1 2025, including voyage, vessel operating, depreciation, and administrative costs H1 2025 Operating Expenses | Expense Category | H1 2025 | H1 2024 | Change (YoY) | | :-------------------------- | :---------- | :---------- | :----------- | | Voyage Expenses, net | $0.5 million | $0.8 million | -37.5% | | Vessel Operating Expenses | $23.7 million | $22.5 million | +5.3% | | Depreciation Expense | $15.3 million | $12.3 million | +24.4% | | Related Party Management Fees | $3.9 million | $3.3 million | +18.2% | | General & Administrative Expenses | $3.2 million | $2.4 million | +33.3% | | Drydocking Costs | $3.5 million | $7.2 million | -51.4% | | Gain on Sale of Vessel | $10.2 million | $5.7 million | +78.9% | [Other Expenses and Income](index=6&type=section&id=Other%20Expenses%20and%20Income_H1) This subsection presents other financial items for H1 2025, including interest costs, capitalized interest, derivative gains/losses, and Adjusted EBITDA H1 2025 Other Expenses and Income | Category | H1 2025 | H1 2024 | Change (YoY) | | :-------------------------- | :---------- | :---------- | :----------- | | Interest & Other Financing Costs | $7.9 million | $3.9 million | +102.6% | | Capitalized Interest (newbuilding) | $0.1 million | $2.7 million | -96.3% | | Net Gain/(Loss) on Derivative | -$0.2 million (loss) | $1.0 million (gain) | N/A | | Adjusted EBITDA | $76.4 million | $66.9 million | +14.2% | [Earnings Per Share](index=6&type=section&id=Earnings%20Per%20Share_H1) This subsection provides basic, diluted, and adjusted earnings per share figures for H1 2025 H1 2025 Earnings Per Share | EPS Type | H1 2025 | H1 2024 | Change (YoY) | | :-------------------- | :---------- | :---------- | :----------- | | Basic EPS | $9.63 | $8.77 | +9.8% | | Diluted EPS | $9.60 | $8.71 | +10.2% | | Adjusted Basic EPS | $7.99 | $7.63 | +4.7% | | Adjusted Diluted EPS | $7.97 | $7.57 | +5.3% | [Fleet Information](index=7&type=section&id=Fleet%20Information) This section provides a detailed overview of Euroseas Ltd.'s current and future fleet, including operational data and key performance indicator definitions [Fleet Profile](index=7&type=section&id=Fleet%20Profile) As of August 13, 2025, Euroseas Ltd. operates 22 container carriers with plans to expand to 24 by Q4 2027, with most vessels under time charter agreements Euroseas Ltd. Fleet Profile (as of August 13, 2025) | Category | Number of Vessels | Dwt | TEU | | :------------------------ | :---------------- | :-------- | :-------- | | Container Carriers (on water) | 22 | 859,330 | 67,494 | | Intermediate | 7 | - | - | | Feeder | 15 | - | - | | Vessels under construction | 2 | 110,400 | 8,600 | | Total (current + under construction) | 24 | 969,730 | 76,094 | - Vessels under construction (ELENA, NIKITAS G) are Intermediate type, **55,200 Dwt**, **4,300 TEU** each, to be delivered in Q4 2027[42](index=42&type=chunk) - Most vessels are under time charter (TC) agreements, with rates ranging from **$15,000 to $48,000 per day**[42](index=42&type=chunk) [Summary Fleet Data & Definitions](index=8&type=section&id=Summary%20Fleet%20Data%20%26%20Definitions) This section presents detailed fleet operational data for Q2 and H1 2025, along with definitions for key performance indicators like TCE rate and fleet utilization Summary Fleet Data | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | | Average number of vessels | 22.00 | 21.26 | 22.83 | 20.43 | | Calendar days for fleet | 2,002.0 | 1,936.0 | 4,133.0 | 3,720.0 | | Scheduled off-hire days | 10.0 | 20.7 | 29.8 | 99.3 | | Available days for fleet | 1,992.0 | 1,915.3 | 4,103.2 | 3,620.7 | | Voyage days for fleet | 1,990.1 | 1,913.6 | 4,085.3 | 3,613.1 | | Fleet utilization | 99.9% | 99.9% | 99.6% | 99.8% | | Time charter equivalent rate ($/day) | 29,420 | 31,639 | 28,468 | 29,836 | | Vessel operating expenses excl. drydocking ($/day) | 6,700 | 6,612 | 6,688 | 6,926 | | General and administrative expenses ($/day) | 694 | 581 | 766 | 637 | | Drydocking expenses ($/day) | 826 | 819 | 838 | 1,943 | - TCE (Time Charter Equivalent) rate is a non-GAAP measure of average daily net revenue performance, calculated by dividing net time/voyage charter revenue by voyage days[53](index=53&type=chunk) - Fleet utilization measures efficiency in finding employment and minimizing off-hire days, calculated as voyage days divided by available days[50](index=50&type=chunk) [Financial Statements](index=11&type=section&id=Financial%20Statements) This section presents the unaudited consolidated condensed statements of operations, balance sheets, and cash flows for Euroseas Ltd [Unaudited Consolidated Condensed Statements of Operations](index=11&type=section&id=Unaudited%20Consolidated%20Condensed%20Statements%20of%20Operations) The statements show Q2 2025 net income decreased to $29.9 million, while H1 2025 net income increased to $66.8 million, reflecting varied revenue and expense trends Consolidated Condensed Statements of Operations Summary | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :---------- | :---------- | :---------- | :---------- | | Net Revenues | $57,233,719 | $58,724,586 | $113,579,814 | $105,442,960 | | Operating Income | $33,378,481 | $42,337,326 | $73,862,684 | $62,727,262 | | Net Income | $29,861,518 | $40,748,559 | $66,776,511 | $60,750,732 | | Basic EPS | $4.32 | $5.89 | $9.63 | $8.77 | | Diluted EPS | $4.29 | $5.84 | $9.60 | $8.71 | - Q2 2025 operating income decreased to **$33.4 million** from **$42.3 million** in Q2 2024, while H1 2025 operating income increased to **$73.9 million** from **$62.7 million** in H1 2024[63](index=63&type=chunk) [Unaudited Consolidated Condensed Balance Sheets](index=12&type=section&id=Unaudited%20Consolidated%20Condensed%20Balance%20Sheets) As of June 30, 2025, total assets increased to $662.1 million, driven by higher cash and vessels, with corresponding increases in total liabilities and shareholders' equity Consolidated Condensed Balance Sheets Summary | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------- | :-------------- | :---------------- | :------- | | Total Current Assets | $160,431,358 | $84,706,760 | +89.4% | | Cash and cash equivalents | $100,506,369 | $73,739,504 | +36.3% | | Vessels, net | $477,285,311 | $443,386,898 | +7.6% | | Total Assets | $662,108,899 | $591,218,957 | +11.9% | | Total Current Liabilities | $50,020,482 | $57,169,609 | -12.5% | | Long-term debt, current portion | $20,848,844 | $36,930,532 | -43.6% | | Total Long-term Liabilities | $209,108,379 | $171,099,516 | +22.2% | | Total Liabilities | $259,128,861 | $228,269,125 | +13.5% | | Total Shareholders' Equity | $402,980,038 | $362,949,832 | +11.0% | [Unaudited Consolidated Condensed Statements of Cash Flows](index=13&type=section&id=Unaudited%20Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) H1 2025 saw increased cash from operations, significantly reduced cash used in investing, and decreased cash from financing, leading to a substantial increase in cash and equivalents Consolidated Condensed Statements of Cash Flows Summary | Cash Flow Category | H1 2025 | H1 2024 | Change | | :-------------------------------- | :---------- | :---------- | :------- | | Net cash provided by operating activities | $68,458,904 | $59,396,331 | +15.3% | | Net cash used in investing activities | ($39,176,562) | ($114,922,837) | -65.9% | | Net cash provided by financing activities | $2,732,906 | $67,523,299 | -95.9% | | Net increase in cash, cash equivalents and restricted cash | $32,015,248 | $11,996,793 | +166.9% | | Cash, cash equivalents and restricted cash at end of period | $112,681,575 | $76,313,091 | +47.6% | - Cash paid for vessels under construction decreased from **$122.0 million** in H1 2024 to **$56.6 million** in H1 2025[65](index=65&type=chunk) - Proceeds from long-term debt decreased from **$94.0 million** in H1 2024 to **$52.0 million** in H1 2025[65](index=65&type=chunk) [Non-GAAP Reconciliations](index=14&type=section&id=Non-GAAP%20Reconciliations) This section provides reconciliations for non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS, to their GAAP equivalents [Adjusted EBITDA Reconciliation](index=14&type=section&id=Adjusted%20EBITDA%20Reconciliation) This section reconciles Adjusted EBITDA to Net Income, detailing adjustments for interest, depreciation, derivative gains/losses, vessel sales, and amortization of time charters Adjusted EBITDA Reconciliation | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :---------- | :---------- | :---------- | :---------- | | Net Income | $29,861,518 | $40,748,559 | $66,776,511 | $60,750,732 | | Interest & other financing costs, net | $3,374,826 | $1,722,793 | $6,772,677 | $2,975,554 | | Vessel depreciation | $7,258,954 | $6,820,674 | $15,304,021 | $12,262,011 | | Gain on sale of vessel | - | ($5,690,794) | ($10,230,210) | ($5,690,794) | | Net (Gain)/Loss on derivative | $56,548 | ($117,701) | $229,934 | ($980,707) | | Amortization of below market time charters acquired | ($1,231,776) | ($1,231,776) | ($2,450,015) | ($2,463,552) | | **Adjusted EBITDA** | **$39,320,070** | **$42,251,755** | **$76,402,918** | **$66,853,244** | - Adjusted EBITDA is a non-GAAP measure used to assess financial performance by excluding financial costs, derivative gains/losses, vessel sale gains, depreciation, and amortization of below market time charters[68](index=68&type=chunk) [Adjusted Net Income and EPS Reconciliation](index=15&type=section&id=Adjusted%20Net%20Income%20and%20EPS%20Reconciliation) This section reconciles Adjusted Net Income and Adjusted EPS to their GAAP equivalents. Adjusted Net Income for Q2 2025 was $29.2 million (vs. $34.3 million in Q2 2024), and for H1 2025 it was $55.4 million (vs. $52.8 million in H1 2024) Adjusted Net Income and EPS Reconciliation | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :---------- | :---------- | :---------- | :---------- | | Net Income | $29,861,518 | $40,748,559 | $66,776,511 | $60,750,732 | | Unrealized (gain)/loss on derivative | $103,653 | ($19,679) | $342,084 | ($783,029) | | Amortization of below market time charters acquired | ($1,231,776) | ($1,231,776) | ($2,450,015) | ($2,463,552) | | Gain on sale of vessel | - | ($5,690,794) | ($10,230,210) | ($5,690,794) | | Vessel depreciation on portion of consideration of vessels acquired with attached time charters allocated to below market time charters | $497,062 | $497,062 | $994,124 | $994,124 | | **Adjusted Net Income** | **$29,230,457** | **$34,303,372** | **$55,432,494** | **$52,807,481** | | Adjusted Basic EPS | $4.23 | $4.95 | $7.99 | $7.63 | | Adjusted Diluted EPS | $4.20 | $4.92 | $7.97 | $7.57 | - Adjusted Net Income and Adjusted EPS are non-GAAP measures that exclude unrealized derivative gains/losses, vessel sale gains, amortization of below market time charters, and specific vessel depreciation to enhance comparability of fundamental performance[70](index=70&type=chunk)[71](index=71&type=chunk) [Additional Information](index=10&type=section&id=Additional%20Information) This section includes details on the conference call, forward-looking statements disclaimer, and company contact information [Conference Call and Webcast](index=10&type=section&id=Conference%20Call%20and%20Webcast) Euroseas Ltd. hosted a conference call and webcast on August 13, 2025, to discuss Q2 and H1 2025 results, with participation details provided - Conference call and webcast held on August 13, 2025, at **9:00 a.m. ET** to discuss results[58](index=58&type=chunk) - Participants could dial in or use a "call me" option; slides were available in PDF format on the company's website[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) [Forward-Looking Statements](index=16&type=section&id=Forward-Looking%20Statements) This section contains a standard disclaimer regarding forward-looking statements, emphasizing inherent risks and the company's non-obligation to update them - Press release contains forward-looking statements about future events, growth strategy, vessel acquisitions, and time charters[75](index=75&type=chunk) - Statements involve known and unknown risks, uncertainties, and contingencies, many beyond company control, and actual results may differ materially[75](index=75&type=chunk) - Company disclaims any obligation to publicly update or revise forward-looking statements[75](index=75&type=chunk) [Contact Information](index=16&type=section&id=Contact%20Information) This section provides contact details for Euroseas Ltd.'s CFO and for investor relations through Capital Link, Inc - Contact information for Tasos Aslidis (CFO, Euroseas Ltd.) and Nicolas Bornozis / Markella Kara (Capital Link, Inc. for Investor Relations)[76](index=76&type=chunk)

Core Insights - Euroseas Ltd. (ESEA) reported quarterly earnings of $4.2 per share, exceeding the Zacks Consensus Estimate of $3.87 per share, but down from $4.92 per share a year ago, resulting in an earnings surprise of +8.53% [1] - The company achieved revenues of $58.81 million for the quarter, surpassing the Zacks Consensus Estimate by 0.62%, although this is a decrease from $60.29 million year-over-year [2] - Euroseas shares have increased by approximately 41.8% year-to-date, significantly outperforming the S&P 500's gain of 9.6% [3] Earnings Outlook - The future performance of Euroseas stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $3.93, with expected revenues of $59.71 million, and for the current fiscal year, the EPS estimate is $15.47 on revenues of $235.3 million [7] Industry Context - The Transportation - Shipping industry, to which Euroseas belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges ahead [8] - ZIM Integrated Shipping Services, a competitor in the same industry, is expected to report a significant year-over-year earnings decline of -51.3% for the quarter ended June 2025 [9]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported total net revenues of $57.2 million, a decrease of 2.5% from $58.7 million in Q2 2024 [36] - Net income for Q2 2025 was $29.9 million, significantly higher than $4.75 million in Q2 2024, primarily due to a gain on the sale of a vessel recorded in the previous year [36] - Adjusted EBITDA for Q2 2025 was $39.3 million, down from $42.3 million in Q2 2024 [38] - The company declared a quarterly dividend of $0.70 per share, reflecting a 7.7% increase from $0.65 in Q1 2025 [7] Business Line Data and Key Metrics Changes - The fleet consists of 22 vessels, including 15 feeder container ships and 7 intermediate container ships, with an average age below 13 years [11] - The average time charter equivalent rate for the fleet was approximately $29,420 per day in Q2 2025, compared to $31,639 per day in Q2 2024 [41] - Fleet utilization rate remained at 100% for commercial utilization in both Q2 2025 and Q2 2024 [41] Market Data and Key Metrics Changes - One-year time charter rates for containerships strengthened during Q2 2025, with feeder segment rates rising by 8% compared to Q1 2025 [13] - The idle fleet shrank to 150,000 TEU, representing just 0.5% of the global fleet, a significant decline from 850,000 TEU in February 2023 [16] - The average secondhand price index rose by about 4% in Q2 2025 compared to Q1 2025, driven by limited vessel supply [14] Company Strategy and Development Direction - The company plans to use proceeds from the sale of the motor vessel Maktos V to renew the fleet with younger vessels [9] - The management is focused on maintaining a disciplined approach to share repurchase and dividend distribution, reflecting confidence in cash flow generation [7][8] - The company is considering various options for the proceeds from the vessel sale, including potential special dividends or debt prepayment [63][64] Management Comments on Operating Environment and Future Outlook - The operating environment remains complex and volatile due to geopolitical tensions and ongoing conflicts disrupting trade patterns [14] - The company anticipates time charter rates to remain strong for the remainder of 2025, despite uncertainties in the market [30] - Global GDP growth is projected at 3% for 2025, with emerging markets being the primary drivers of growth [22][18] Other Important Information - The company has repurchased 463,000 shares for approximately $10.5 million as of August 13, 2025, under its share repurchase plan [7] - The overall book value of the company's assets stood at $662.1 million as of June 30, 2025, with a net asset value per share estimated to be around $80 [48] Q&A Session Summary Question: Do any of your containership contracts have different rates based on the voyage? - All contracts are fixed rate contracts [52] Question: Are there any trends in terms of potential buyers for your ships? - The buyer of the ship is MSC, the largest buyer of older ships in recent years [53] Question: How is the company thinking about fleet growth in terms of intermediates versus feeders? - The company is not interested in secondhand vessels unless suitable charters can be secured [57] Question: Do you think the supply-demand characteristics provide durability to the rate outlook? - Supply-demand fundamentals offer some protection against severe drops in rates [59] Question: Will drydocking activity be light over the next twelve months? - Yes, the schedule for drydocking is lighter for the next six to twelve months [60] Question: What are the plans for the proceeds from the sale of the Maktos V? - The company is considering various options for the proceeds, with a decision expected in November [63][64]

Financial Performance - The company's net revenues for Q2 2025 were $5723 million, a decrease of 25% compared to $5872 million in Q2 2024[9, 63] - Net income for Q2 2025 was $2986 million, a decrease of 267% compared to $4075 million in Q2 2024[9, 63] - Adjusted EBITDA for Q2 2025 was $3932 million, a decrease of 69% compared to $4225 million in Q2 2024[9, 63] - For the first six months of 2025, net revenues were $11358 million, an increase of 77% compared to $10544 million in the first six months of 2024[63] - The company declared a quarterly dividend of $070 per share for Q2 2025[10] Fleet and Operations - The current fleet consists of 22 vessels with an average age of 128 years and a carrying capacity of 675k TEU[17] - The company has repurchased 463,074 shares of its common stock for approximately $105 million under a $20 million share repurchase plan[13] - For 2025, 9660% of available days have been secured at an average rate of ~$28,242/day[23] - For 2026, approximately 666% of available days are already covered at an average rate of $31,610/day[23] - The company signed an agreement to sell M/V Marcos V for $50 million, with delivery scheduled for October 2025[15]

Market Overview - U.S. stock markets have continued to rise in early August despite trade uncertainties and the Federal Reserve's indecision regarding interest rate cuts in 2025 [1][2] - The outcome of the Fed's annual Jackson Hole Symposium, scheduled for August 21-23, is anticipated to be significant [2] Stock Performance - Few stocks have demonstrated price strength, with a focus on those recently experiencing a bull run [3] - Five highlighted stocks include Modine Manufacturing Co. (MOD), Tutor Perini Corp. (TPC), Kiniksa Pharmaceuticals International plc (KNSA), Life360 Inc. (LIF), and Euroseas Ltd. (ESEA) [3] Stock Screening Criteria - Stocks must show a percentage change in price greater than zero over the last four weeks and greater than 10% over the last twelve weeks [5] - Zacks Rank 1 (Strong Buy) and an average broker rating of 1 are also key indicators of potential performance [6] - Stocks must be trading at a minimum price of $5 and be near their 52-week highs, with a current price/52-week high-low range greater than 85% [7] Individual Stock Highlights - **Modine Manufacturing (MOD)**: Stock price increased by 46.1% in four weeks, with an expected earnings growth rate of 14.3% for the current year [8][10] - **Tutor Perini (TPC)**: Stock price surged 14.3% in four weeks, with an expected earnings growth rate exceeding 100% for the current year [14] - **Kiniksa Pharmaceuticals (KNSA)**: Stock price climbed 13.7% in four weeks, with expected earnings growth over 100% for the current year [15] - **Life360 (LIF)**: Stock price advanced 8.3% in four weeks, with expected earnings growth over 100% for the current year [17] - **Euroseas (ESEA)**: Stock price gained 2.8% in four weeks, with an expected earnings growth rate of 4% for the current year [19]

Core Insights - Euroseas Ltd. reported strong financial results for the second quarter and first half of 2025, with adjusted earnings per share reaching $4.23 and $7.99 respectively, despite a slight decrease in net revenues compared to the previous year [5][7][22][30]. Financial Highlights - **Second Quarter 2025**: Total net revenues were $57.2 million, a 2.5% decrease from $58.7 million in Q2 2024. Net income was $29.9 million, down from $40.7 million in the same period last year. The average time charter equivalent rate was $29,420 per day, down 7.0% from $31,639 per day in Q2 2024 [7][11][20]. - **First Half 2025**: Total net revenues increased by 7.7% to $113.6 million from $105.4 million in the first half of 2024. Net income rose to $66.8 million from $60.8 million in the same period last year. The average time charter equivalent rate was $28,468 per day, down from $29,836 per day in the first half of 2024 [22][30]. Operational Performance - The company operated an average of 22.0 vessels in Q2 2025, compared to 21.26 vessels in Q2 2024. For the first half of 2025, the average was 22.83 vessels, up from 20.43 vessels in the same period of 2024 [11][22][35]. - Daily vessel operating expenses averaged $6,700 per vessel per day in Q2 2025, slightly higher than $6,612 in Q2 2024. General and administrative expenses also increased to $694 per vessel per day from $581 in the same quarter last year [9][10][35]. Market Outlook - The containership market is experiencing upward momentum, with long charter commitments from high-quality charterers. The company has nearly 90% charter coverage at profitable rates for the next twelve months [5][6]. - Challenges remain due to supply growth, with the orderbook representing almost 30% of the fleet. However, the feeder and intermediate segments, where Euroseas operates, are expected to see a shrinking fleet size, providing a competitive advantage [6][8]. Shareholder Returns - The company declared a quarterly dividend of $0.70 per share for Q2 2025, maintaining an annualized yield above 5.5%. The board also approved a share repurchase program, having repurchased 463,074 shares for approximately $10.5 million since May 2022 [7][8][30].

Core Viewpoint - Euroholdings Ltd reported its financial results for the second quarter and first half of 2025, highlighting a strategic shift towards the tanker sector and announcing a quarterly dividend with an annualized yield of approximately 7.5% [4][5]. Financial Highlights Second Quarter 2025 Financial Highlights - Total net revenues were $2.9 million, a decrease of 27.8% from $4.0 million in the same period of 2024, attributed to a reduced average number of vessels operating [10]. - Net income for the quarter was $0.8 million, down from $2.3 million in the second quarter of 2024, with earnings per share of $0.30 compared to $0.81 in the prior year [13][14]. - Average time charter equivalent rate increased to $16,528 per day, a 7.1% rise from $15,435 in the same period of 2024 [8]. First Half 2025 Financial Highlights - Total net revenues for the first half were $5.8 million, a 26.4% decrease from $7.9 million in the first half of 2024, primarily due to fewer vessels operated [16]. - Net income for the first half was $11.9 million, significantly higher than $3.8 million in the same period of 2024, with earnings per share of $4.28 compared to $1.36 [22][23]. - Adjusted EBITDA for the first half was $1.7 million, down from $3.9 million in the first half of 2024 [22]. Recent Developments - The Board of Directors decided to focus on the tanker sector, specifically targeting modern medium-range product tankers for growth [4][6]. - Marla Investments Inc. acquired 51.04% of Euroholdings shares, strengthening the shareholder base alongside the Pittas family [5]. Operational Metrics - An average of 2.0 vessels were owned and operated during the second quarter of 2025, compared to 3.0 vessels in the same period of 2024 [10]. - Total daily vessel operating expenses averaged $11,296 per vessel per day, up from $6,349 in the same quarter of 2024, mainly due to increased general and administrative expenses [9]. Fleet Profile - Euroholdings operates a fleet of 2 feeder container carriers with a total carrying capacity of 3,171 TEU [58]. - The average time charter equivalent rate for the first half of 2025 was $16,158 per day, compared to $15,084 in the same period of 2024 [16].

Company Overview - Euroseas Ltd. is an owner and operator of container carrier vessels, providing seaborne transportation for containerized cargoes [6] - The company was formed on May 5, 2005, under the laws of the Republic of the Marshall Islands, consolidating the ship owning interests of the Pittas family, which has been in the shipping business for over 140 years [6] - Euroseas trades on the NASDAQ Capital Market under the ticker ESEA and operates in the container shipping market [6] Fleet and Operations - Euroseas operates a fleet of 22 vessels, including 15 Feeder containerships and 7 Intermediate containerships, with a total cargo capacity of 67,494 TEU [6] - The company employs its vessels on spot and period charters and through pool arrangements [6] - After the delivery of two intermediate containership newbuildings in the fourth quarter of 2027, the fleet will consist of 24 vessels with a total carrying capacity of 76,094 TEU [6] Financial Results Announcement - Euroseas will release its financial results for the second quarter ended June 30, 2025, on August 13, 2025, before market opens in New York [1] - A conference call and webcast will be hosted by the company's management on the same day at 9:00 a.m. Eastern Time to discuss the results [1] Conference Call Details - Participants should dial into the call 10 minutes before the scheduled time using specific numbers provided for US Toll-Free and International Dial In [2] - An option to register for the call using a "call me" feature is available for faster connection [3] - A live and archived webcast of the conference call, along with accompanying slides, will be available on the company's website [4][5]