Core Insights - Euroseas Limited (ESEA) and Tsakos Energy Navigation Limited (TEN) are prominent companies in the Zacks Transportation - Shipping industry, both based in Greece [1][2] Group 1: Euroseas Limited (ESEA) - ESEA focuses on ocean transportation of containers and has secured long-term charter contracts at higher rates, boosting revenues and profitability [3][4] - The company maintains a time charter equivalent rate exceeding $25,000 per day, with an average of $26,479 for 2024 [3] - ESEA has expanded its fleet and secured contracts that ensure stable revenue streams, including a three-year charter extension for M/V Rena P and a one-year extension for M/V Jonathan P, expected to contribute $5.65 million in EBITDA [4] - ESEA completed a spin-off of three subsidiaries, enhancing its financial strength and maintaining a high dividend yield, appealing to income-seeking investors [5] - The company has repurchased 463,000 shares for approximately $10.5 million as part of a $20 million buyback plan initiated in May 2022 [6] - ESEA shares have surged over 72% year-to-date, outperforming TEN's 32% increase [9][11] Group 2: Tsakos Energy Navigation Limited (TEN) - TEN operates a fleet of 82 vessels with a fleet utilization rate of 96.9% in the first half of 2025, supported by more vessels under term contracts [7] - The company's balance sheet is strong, with a fleet market value of $3.8 billion against $1.8 billion in debt [7] - However, TEN faces challenges from declining spot rates, which fell by 27% in the first half of 2025, impacting revenue [8] - Gross revenues for TEN decreased to $390.4 million in the first half of 2025 from $415.6 million in the same period in 2024 [8] - TEN shares have gained 32.2% year-to-date, but this is significantly lower than ESEA's performance [11] Group 3: Comparative Analysis - ESEA's earnings estimates for 2025 imply a year-over-year improvement of 9% in sales and 12% in EPS, with positive revisions over the past 60 days [14][17] - TEN's earnings estimates suggest a 3.2% increase in sales and an 8% increase in EPS, with stable estimates over the same period [14] - ESEA currently holds a Zacks Rank 1 (Strong Buy), while TEN has a Zacks Rank 3 (Hold), indicating a preference for ESEA as a more favorable investment opportunity [18]

Company Overview - Euroseas Ltd. (NASDAQ: ESEA) is an owner and lessor of small- to medium-sized containerships [1] Investment Thesis - The initial coverage of Euroseas Ltd. indicated a strong bullish outlook, suggesting that the investment thesis has been positively received [1] Investor Focus - The company is appealing to young investors who are focused on long-term investing in stocks that are trading at or below fair value [1]

Company Overview - Euroseas Ltd. is an owner and operator of container carrier vessels, providing seaborne transportation for containerized cargoes [4] - The company was formed on May 5, 2005, under the laws of the Republic of the Marshall Islands and trades on NASDAQ under the ticker ESEA [4] Recent Developments - Euroseas announced a new time charter contract for its 2006-built 1,740 teu feeder containership, M/V Jonathan P, for a minimum of 11 to a maximum of 12 months at a gross daily rate of $25,000, which is a $5,000 increase over the current rate [1] - The new charter period will commence on November 17, 2025, and is expected to contribute approximately $5.65 million of EBITDA over the minimum contracted period [1] - This charter will increase the charter coverage of the company's fleet to 100% for the remainder of 2025 and about 70% for 2026 [1] Fleet Profile - 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] - After the sale of M/V Marcos V and the delivery of four new intermediate containerships in 2027 and 2028, the fleet will consist of 25 vessels with a total carrying capacity of 78,344 teu [6] Management and Operations - Euroseas' operations are managed by Eurobulk Ltd., which is responsible for the day-to-day commercial and technical management of the vessels [5] - The company employs its vessels on spot and period charters and through pool arrangements [5]

Stock Performance & Recommendation - Euroseas (ESA) stock has soared nearly 70% in the last 3 months, reaching a new 52-week peak of $65 per share [2] - Zacks ranks Euroseas as a number one strong buy, suggesting potential upside due to its cheap PE valuation and positive EPS revisions [10] - While taking profits is reasonable, Euroseas' shareholder-friendly approach, particularly its generous dividend, makes it desirable to keep in a portfolio [10] Operational Excellence & Charter Rates - Euroseas' stock performance is attributed to operational excellence, capitalizing on high charter rates, earning $29,420 per day per vessel during Q2 [3] - 90% of Euroseas' fleet operates under profitable long-term charters, with feeder and intermediate container ships in high demand and short supply [4] - Euroseas focuses on fleet efficiency, timely investments, and cyclical market opportunities, differentiating itself from peers [4] Earnings & Estimates - Euroseas exceeded Q2 EPS expectations, reporting $420 compared to estimates of $387 [5] - Fiscal year 2025 EPS estimates have risen 7% in the last 30 days, from $1547 per share to $1661 [5] - Annual earnings are expected to increase roughly 12% in fiscal year 2025 and are projected to rise another 7% in fiscal year 2026 to $1774 per share [6] - In the last year, EPS revisions have skyrocketed more than 112% [6] Dividend & Valuation - Euroseas increased its quarterly dividend by 7%, from 65 cents a share to 70 cents [7] - Euroseas' dividend yield is currently at 419%, topping the Transportation shipping industry average of 374% and the S&P 500's 115% average [8] - Euroseas stock trades at just 37 times forward earnings, beneath its industry average of 74 times and the S&P 500's 246 times [9] - Euroseas also trades under the preferred level of less than two times for sales [9]

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in auditing and trading, having navigated significant market events such as the dotcom bubble and the subprime crisis [2] - The research provided aims to maintain high quality despite language barriers [2]

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]