Costamare(CMRE) - 2025 Q2 - Quarterly Report

Financial Report Overview Results of Continuing Operations - Three-Month Period This section details the company's financial performance from continuing operations for the three months ended June 30, 2025, noting increased net income despite a slight decrease in voyage revenue, with dry bulk operations reported as discontinued - Dry bulk operations were divested on May 6, 2025, and are reported as discontinued operations[2] Key Financial Data from Continuing Operations (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :------------------- | :------------- | :------------- | :--- | :--------- | | Voyage Revenue | 211.8 | 210.9 | (0.9) | (0.4%) | | Income from investments in leaseback vessels | 6.2 | 7.0 | 0.8 | 12.9% | | Voyage Expenses | (6.6) | (13.9) | 7.3 | n.m. | | Vessels' Operating Expenses | (40.6) | (40.7) | 0.1 | 0.2% | | Interest and Finance Costs | (28.3) | (22.3) | (6.0) | (21.2%) | | Gain / (Loss) on Derivative Instruments, net | (0.8) | 8.4 | 9.2 | n.m. | | Net Income from Continuing operations | 98.5 | 106.1 | | |[5] Overview of Financial Results and Operational Data Key Operational Data from Continuing Operations (Three Months) | Metric | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :------------------- | :------------- | :------------- | :--- | :--------- | | Average Number of Vessels | 68.0 | 68.0 | - | n.m. | | Vessel Ownership Days | 6,188 | 6,188 | - | n.m. | | Number of Vessels in Dry-Dock and Special Survey | 4 | 3 | (1) | |[6] - As of June 30, 2025, the company has invested $182.2 million in Neptune Maritime Leasing Limited (NML)[4] Voyage Revenue Voyage Revenue (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Voyage Revenue | 211.8 | 210.9 | (0.9) | (0.4%) | | Cash Basis Adjusted Voyage Revenue | 210.5 | 211.2 | 0.7 | 0.3% |[5][9] - The decrease in voyage revenue is primarily due to reduced accounting revenue from two vessels classified as sales-type leases, partially offset by higher charter rates, contractual compensation for EU Emissions Allowances and Fuel EU Maritime penalties, and fewer off-hire and idle days[8] Income from investments in leaseback vessels Income from investments in leaseback vessels (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Income from investments in leaseback vessels | 6.2 | 7.0 | 0.8 | 12.9% |[5] - The increase in income from investments in leaseback vessels is attributable to increased business volume from NML (Neptune Maritime Leasing Limited)[10] Voyage Expenses Voyage Expenses (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Voyage Expenses | (6.6) | (13.9) | 7.3 | n.m. |[5] - The increase in voyage expenses is mainly due to the recognition of liabilities for EU Emissions Allowances, Fuel EU Maritime penalties, and related fees, though most of these costs are contractually compensated by charterers[11] Voyage Expenses – related parties Voyage Expenses – related parties (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Voyage Expenses – related parties | (3.0) | (2.9) | (0.1) | (3.3%) |[5] - Related party voyage expenses include a 1.25% fee on voyage revenue paid to affiliated managers and service providers, as well as chartering commissions paid to two affiliated chartering brokers[12] Vessels' Operating Expenses Vessels' Operating Expenses (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Vessels' Operating Expenses | (40.6) | (40.7) | 0.1 | 0.2% | | Daily Average Vessels' Operating Expenses | 6,554 | 6,581 | | |[5][13] General and Administrative Expenses General and Administrative Expenses (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | General and Administrative Expenses | (4.1) | (3.0) | (1.1) | (26.8%) |[5] Management Fees – related parties Management Fees – related parties (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Management Fees – related parties | (7.1) | (7.1) | - | n.m. |[5] General and Administrative Expenses - non-cash component General and Administrative Expenses - non-cash component (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Non-cash component | (2.5) | (1.4) | (1.1) | (44.0%) |[5] - The non-cash component represents the value of shares issued to affiliated service providers[16] Amortization of Dry-Docking and Special Survey Costs Amortization of Dry-Docking and Special Survey Costs (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Amortization Expense | (4.1) | (4.8) | 0.7 | 17.1% |[5] - Two vessels completed dry-docking and special surveys in the 2025 period, with one ongoing; three vessels completed and one ongoing in the 2024 period[17] Depreciation Depreciation Expense (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Depreciation Expense | (31.5) | (31.9) | 0.4 | 1.3% |[5] Interest Income Interest Income (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Interest Income | 8.7 | 5.5 | (3.2) | (36.8%) |[5] Interest and Finance Costs Interest and Finance Costs (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Interest and Finance Costs | (28.3) | (22.3) | (6.0) | (21.2%) |[5] - The decrease in interest and finance costs is primarily due to lower average loan balances and a reduction in SOFR rates[20] Gain / (Loss) on Derivative Instruments, net Gain / (Loss) on Derivative Instruments, net (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Gain / (Loss) on Derivative Instruments, net | (0.8) | 8.4 | 9.2 | n.m. |[5] - As of June 30, 2025, changes in the fair value of derivative instruments qualifying for hedge accounting resulted in a net loss of $4.6 million (recognized in OCI), while those not qualifying for hedge accounting resulted in a net gain of $8.4 million[22] Net Income from Continuing operations Net Income from Continuing operations (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Net Income from Continuing operations | 98.5 | 106.1 | | |[5] Cash Flows from Continuing Operations - Three-Month Period This section analyzes the company's cash flows from continuing operations for the three months ended June 30, 2025, showing decreased operating cash flow and significantly increased cash outflows from investing and financing activities due to divestitures and debt payments - Following the dry bulk business divestiture, cash flow discussions focus solely on continuing operations[23] Cash Flows from Continuing Operations (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | | :---------------- | :------------- | :------------- | | Net Cash Provided by Operating Activities | 143.4 | 136.0 | | Net Cash Used in Investing Activities | (26.2) | (110.3) | | Net Cash Used in Financing Activities | (138.8) | (373.6) |[24] Net Cash Provided by Operating Activities Net Cash Provided by Operating Activities (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | | :---------------- | :------------- | :------------- | | Net Cash Provided by Operating Activities | 143.4 | 136.0 |[24] - Operating cash flow decreased by $7.4 million, primarily due to unfavorable changes in working capital and reduced operating cash, partially offset by lower interest payments and dry-docking costs[25] Net Cash Used in Investing Activities Net Cash Used in Investing Activities (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | | :---------------- | :------------- | :------------- | | Net Cash Used in Investing Activities | (26.2) | (110.3) |[24] - Cash outflows from investing activities increased, primarily for containership upgrades and net investments in NML[26][27] Net Cash Used in Financing Activities Net Cash Used in Financing Activities (Three Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | | :---------------- | :------------- | :------------- | | Net Cash Used in Financing Activities | (138.8) | (373.6) |[24] - Financing cash outflows significantly increased in 2025, including $260 million in debt financing and lease liability payments, $100 million transferred to divested entities, and common and preferred stock dividend payments[28][29] Results of Continuing Operations - Six-Month Period This section outlines the company's financial performance from continuing operations for the six months ended June 30, 2025, showing increased net income despite a slight decrease in cash-basis voyage revenue and a significant increase in voyage expenses - Dry bulk operations were divested on May 6, 2025, and are reported as discontinued operations[30] Key Financial Data from Continuing Operations (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :------------------- | :------------- | :------------- | :--- | :--------- | | Voyage Revenue | 427.3 | 428.1 | 0.8 | 0.2% | | Income from investments in leaseback vessels | 11.4 | 12.7 | 1.3 | 11.4% | | Voyage Expenses | (12.2) | (23.4) | 11.2 | 91.8% | | Vessels' Operating Expenses | (78.9) | (79.2) | 0.3 | 0.4% | | Interest and Finance Costs | (55.1) | (45.2) | (9.9) | (18.0%) | | Gain / (Loss) on Derivative Instruments, net | (3.2) | 13.7 | 16.9 | n.m. | | Net Income from Continuing operations | 201.7 | 218.0 | | |[33] Overview of Financial Results and Operational Data Key Operational Data from Continuing Operations (Six Months) | Metric | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :------------------- | :------------- | :------------- | :--- | :--------- | | Average Number of Vessels | 68.0 | 68.0 | - | n.m. | | Vessel Ownership Days | 12,376 | 12,308 | (68) | (0.5%) | | Number of Vessels in Dry-Dock and Special Survey | 4 | 5 | 1 | |[33] - As of June 30, 2025, the company has invested $182.2 million in NML[32] Voyage Revenue Voyage Revenue (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Voyage Revenue | 427.3 | 428.1 | 0.8 | 0.2% | | Cash Basis Adjusted Voyage Revenue | 427.5 | 426.3 | (1.2) | (0.3%) |[33][36] - The increase in voyage revenue is primarily due to higher charter rates for some vessels, contractual compensation for EU Emissions Allowances and Fuel EU Maritime penalties, and fewer off-hire days, partially offset by reduced accounting revenue from sales-type lease vessels and the absence of a leap year day[35] Income from investments in leaseback vessels Income from investments in leaseback vessels (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Income from investments in leaseback vessels | 11.4 | 12.7 | 1.3 | 11.4% |[33] - The increase in income from investments in leaseback vessels is attributable to increased business volume from NML[37] Voyage Expenses Voyage Expenses (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Voyage Expenses | (12.2) | (23.4) | 11.2 | 91.8% |[33] - The increase in voyage expenses is mainly due to the recognition of liabilities for EU Emissions Allowances, Fuel EU Maritime penalties, and related fees, though most of these costs are contractually compensated by charterers[38] Voyage Expenses – related parties Voyage Expenses – related parties (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Voyage Expenses – related parties | (6.1) | (5.8) | (0.3) | (4.9%) |[33] Vessels' Operating Expenses Vessels' Operating Expenses (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Vessels' Operating Expenses | (78.9) | (79.2) | 0.3 | 0.4% | | Daily Average Vessels' Operating Expenses | 6,375 | 6,432 | | |[33][40] General and Administrative Expenses General and Administrative Expenses (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | General and Administrative Expenses | (7.0) | (7.2) | 0.2 | 2.9% |[33] Management Fees – related parties Management Fees – related parties (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Management Fees – related parties | (14.2) | (14.2) | - | n.m. |[33] General and Administrative Expenses - non-cash component General and Administrative Expenses - non-cash component (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Non-cash component | (4.2) | (2.8) | (1.4) | (33.3%) |[33] - The non-cash component represents the value of shares issued to affiliated service providers[43] Amortization of Dry-Docking and Special Survey Costs Amortization of Dry-Docking and Special Survey Costs (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Amortization Expense | (8.3) | (9.5) | 1.2 | 14.5% |[33] - Four vessels completed dry-docking and special surveys in the 2025 period, with one ongoing; three vessels completed and one ongoing in the 2024 period[44] Depreciation Depreciation Expense (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Depreciation Expense | (63.0) | (63.5) | 0.5 | 0.8% |[33] Interest Income Interest Income (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Interest Income | 16.6 | 11.8 | (4.8) | (28.9%) |[33] Interest and Finance Costs Interest and Finance Costs (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Interest and Finance Costs | (55.1) | (45.2) | (9.9) | (18.0%) |[33] - The decrease in interest and finance costs is primarily due to lower average loan balances and a reduction in SOFR rates[47] Gain / (Loss) on Derivative Instruments, net Gain / (Loss) on Derivative Instruments, net (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Gain / (Loss) on Derivative Instruments, net | (3.2) | 13.7 | 16.9 | n.m. |[33] - As of June 30, 2025, changes in the fair value of derivative instruments qualifying for hedge accounting resulted in a net loss of $12.1 million (recognized in OCI), while those not qualifying for hedge accounting resulted in a net gain of $13.7 million[49] Net Income from Continuing operations Net Income from Continuing operations (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | Change | Percentage Change | | :---------------- | :------------- | :------------- | :--- | :--------- | | Net Income from Continuing operations | 201.7 | 218.0 | | |[33] Cash Flows from Continuing Operations - Six-Month Period This section analyzes the company's cash flows from continuing operations for the six months ended June 30, 2025, showing a slight decrease in operating cash flow and significantly increased cash outflows from investing and financing activities due to divestitures and debt payments - Following the dry bulk business divestiture, cash flow discussions focus solely on continuing operations[50] Cash Flows from Continuing Operations (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | | :---------------- | :------------- | :------------- | | Net Cash Provided by Operating Activities | 289.3 | 283.2 | | Net Cash Used in Investing Activities | (39.9) | (107.8) | | Net Cash Used in Financing Activities | (106.8) | (389.8) |[51] Net Cash Provided by Operating Activities Net Cash Provided by Operating Activities (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | | :---------------- | :------------- | :------------- | | Net Cash Provided by Operating Activities | 289.3 | 283.2 |[51] - Operating cash flow decreased by $6.1 million, primarily due to unfavorable changes in working capital and reduced operating cash, partially offset by lower interest payments and dry-docking costs[52] Net Cash Used in Investing Activities Net Cash Used in Investing Activities (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | | :---------------- | :------------- | :------------- | | Net Cash Used in Investing Activities | (39.9) | (107.8) |[51] - Cash outflows from investing activities increased, primarily for containership upgrades and net investments in NML[53][54] Net Cash Used in Financing Activities Net Cash Used in Financing Activities (Six Months) | Metric (million USD) | June 30, 2024 | June 30, 2025 | | :---------------- | :------------- | :------------- | | Net Cash Used in Financing Activities | (106.8) | (389.8) |[51] - Financing cash outflows significantly increased in 2025, primarily including $255.7 million in debt financing and lease liability payments, $100 million transferred to divested entities, and common and preferred stock dividend payments[55][56] Liquidity and Unencumbered Vessels This section outlines the company's liquidity position as of June 30, 2025, including cash and cash equivalents, and lists unencumbered vessels as of July 30, 2025 Liquidity Position (as of June 30, 2025) | Metric (million USD) | Amount | | :---------------- | :--- | | Cash and Cash Equivalents | 505.6 | | Short-term U.S. Treasury Bills | 18.9 |[57] - As of July 30, 2025, the company owns five debt-free vessels: KURE, MAERSK KOWLOON, ETOILE, MICHIGAN, and ARKADIA[58][60] Company Information This section provides company background, including its long history in international shipping, fleet size, business scope, investor communication channels, and forward-looking statements - Costamare Inc. is a leading owner and provider of containerships, with 51 years of history in international shipping, operating a fleet of 68 containerships with a total capacity of approximately 513,000 TEU, and four newbuild containerships under construction[63] - The company's common and preferred shares are traded on the New York Stock Exchange under the symbols "CMRE", "CMRE PR B", "CMRE PR C", and "CMRE PR D"[63] - The company will host a conference call on July 31, 2025, to discuss financial results, with a webcast available[61][62] Containership Fleet List This section provides detailed information on the containership fleet as of July 30, 2025, including existing vessels, charter contract details, and newbuilds with estimated delivery and employment status - The fleet list provides containership information as of July 30, 2025, including vessel name, charterer, year built, capacity, current daily charter rate, and charter expiration date[65][66][67] Newbuild Containerships | Vessel Name | Capacity (TEU) | Estimated Delivery | Employment Status | | :---------- | :--------- | :------- | :----------------------------- | | Newbuilding 1 | 3,100 | Q2 2027 | Long-term charter upon delivery | | Newbuilding 2 | 3,100 | Q3 2027 | Long-term charter upon delivery | | Newbuilding 3 | 3,100 | Q4 2027 | Long-term charter upon delivery | | Newbuilding 4 | 3,100 | Q4 2027 | Long-term charter upon delivery |[68] - Several vessels will commence new long-term charters upon the expiration of their current charters, with some charter rates and terms remaining confidential[69][70][71] Consolidated Financial Statements This section presents the company's consolidated statements of income and consolidated balance sheets as of June 30, 2025, and December 31, 2024, reflecting the financial position of both continuing and discontinued operations Consolidated Statements of Income (as of June 30, 2025) | Metric (thousand USD) | Six Months (2024) | Six Months (2025) | Three Months (2024) | Three Months (2025) | | :-------------- | :------------ | :------------ | :------------ | :------------ | | Total Revenue | 438,742 | 440,760 | 217,928 | 217,895 | | Operating Income from Continuing Operations | 242,143 | 237,683 | 118,037 | 114,607 | | Net Income from Continuing Operations | 201,671 | 218,046 | 98,491 | 106,122 | | Net Income from Discontinued Operations | 3,876 | (27,547) | 4,384 | (16,466) | | Net Income | 205,547 | 190,499 | 102,875 | 89,656 | | Earnings Per Common Share (Continuing Operations) | 1.53 | 1.71 | 0.73 | 0.83 |[73] Consolidated Balance Sheets (as of June 30, 2025) | Metric (thousand USD) | December 31, 2024 | June 30, 2025 | | :-------------- | :------------- | :------------- | | Total Current Assets | 1,040,216 | 618,925 | | Vessels, Net | 2,715,168 | 2,696,520 | | Total Assets | 5,148,687 | 3,739,101 | | Total Current Liabilities | 745,560 | 369,179 | | Long-term Debt, Net | 1,410,480 | 1,306,520 | | Total Stockholders' Equity | 2,571,059 | 2,019,120 |[75][76] Financial Summary and Non-GAAP Measures This section provides a financial summary of continuing operations and explains non-GAAP financial measures, such as cash basis adjusted voyage revenue, adjusted net income from continuing operations, and adjusted earnings per share from continuing operations, along with their reconciliation to GAAP metrics Financial Summary of Continuing Operations (as of June 30, 2025) | Metric (thousand USD) | Six Months (2024) | Six Months (2025) | Three Months (2024) | Three Months (2025) | | :-------------- | :------------ | :------------ | :------------ | :------------ | | Cash Basis Adjusted Voyage Revenue | 427,509 | 426,348 | 210,459 | 211,286 | | Adjusted Net Income from Continuing Operations (available to common stockholders) | 191,683 | 192,814 | 90,064 | 92,510 | | Adjusted Earnings Per Share from Continuing Operations | 1.61 | 1.61 | 0.76 | 0.77 |[78] - The company uses non-GAAP financial measures, such as cash basis adjusted voyage revenue, adjusted net income from continuing operations, and adjusted earnings per share from continuing operations, to provide additional meaningful comparisons of underlying business trends and for financial, operational, and planning decisions[82][83]