EuroDry .(EDRY) - 2025 Q2 - Quarterly Report

SEC Filing Information This section outlines the filing of Form 6-K by EuroDry Ltd. with the SEC, detailing its purpose and incorporation by reference Form 6-K Details EuroDry Ltd. filed Form 6-K with the SEC, reporting Q2 and H1 2025 results, incorporated by reference into registration statements - Filing Type: Form 6-K, Report of Foreign Private Issuer[1][2] - Reports results for the quarter and six-month period ended June 30, 2025[3] - Incorporated by reference into the Company's Registration Statements on Form F-3 (File No. 333-273254 and 333-273258)[4] Signatures The Form 6-K report was officially signed by EuroDry Ltd.'s President, Aristides J. Pittas, on August 12, 2025 - Signatory: Aristides J. Pittas, President[8] - Date: August 12, 2025[8] Earnings Release Overview This section provides a high-level summary of EuroDry Ltd.'s financial performance for Q2 and H1 2025, along with management's market commentary Second Quarter 2025 Highlights EuroDry Ltd. reported Q2 2025 net revenues of $11.3 million and a net loss of $3.1 million, operating 12.0 vessels at a $10,428 per day TCE rate | Metric | Q2 2025 | | :------------------------------------- | :-------------- | | Total Net Revenues | $11.3 million | | Net Loss (attributable to controlling shareholders) | $3.1 million | | Loss Per Share (basic & diluted) | $1.12 | | Adjusted Net Loss (attributable to controlling shareholders) | $3.0 million | | Adjusted Loss Per Share (basic & diluted) | $1.10 | | Adjusted EBITDA | $1.9 million | | Average Vessels Operated | 12.0 | | Average TCE Rate | $10,428 per day | - Approximately $5.3 million has been used to repurchase 334,674 shares under a $10 million plan, approved for continuation in August 2024 and 2025[13] - The Company will publish its 2024 Sustainability/ESG Report on August 12, 2025[13] First Half 2025 Highlights EuroDry Ltd. reported H1 2025 net revenues of $20.5 million and a net loss of $6.8 million, operating 12.4 vessels at a $8,761 per day TCE rate | Metric | H1 2025 | | :------------------------------------- | :-------------- | | Total Net Revenues | $20.5 million | | Net Loss (attributable to controlling shareholders) | $6.8 million | | Loss Per Share (basic & diluted) | $2.47 | | Adjusted Net Loss (attributable to controlling shareholders) | $8.7 million | | Adjusted Loss Per Share (basic & diluted) | $3.17 | | Adjusted EBITDA | $0.9 million | | Average Vessels Operated | 12.4 | | Average TCE Rate | $8,761 per day | Management Commentary Management observed a slight Q2 2025 drybulk market recovery, but not to profitability, with strategic focus on short-term charters amid geopolitical and macroeconomic uncertainties, while noting increased operating expenses - The drybulk market recovered slightly in Q2 2025, with July rates approaching breakeven, but profitability remains elusive due to geopolitical and macroeconomic uncertainties impacting demand[15][16] - The company maintains short-term charters during low rates, considering longer-term options for positive cash flow if markets improve, while exploring fleet expansion and renewal opportunities[17] - Q2 2025 net revenues declined due to a 27.7% decrease in average time charter equivalent rates and fewer vessels operated year-over-year[17] - Daily vessel operating expenses increased to $6,785 from $6,396 in Q2 2025, driven by inflation adjustments in management fees and unfavorable exchange rates, with general and administrative expenses also rising[18] - As of June 30, 2025, outstanding debt was $102.1 million, total cash was $11.4 million, and scheduled debt repayments for the next 12 months totaled approximately $12.7 million[19] Detailed Financial Results This section provides a comprehensive breakdown of EuroDry Ltd.'s financial performance for Q2 and H1 2025, highlighting key revenue and expense changes Second Quarter 2025 Financial Performance EuroDry Ltd. reported a 35.3% decline in Q2 2025 net revenues to $11.3 million and a widened net loss of $3.07 million, primarily due to lower time charter rates and fewer vessels | Metric | Q2 2024 | Q2 2025 | Change (YoY) | | :------------------------------------- | :-------------- | :-------------- | :---------------- | | Total Net Revenues | $17.4 million | $11.3 million | -35.3% | | Average Vessels Operated | 13.0 | 12.0 | -1.0 | | Average TCE Rate | $14,427 per day | $10,428 per day | -27.7% | | Voyage Expenses, net | $2.2 million | $0.8 million | -63.6% | | Vessel Operating Expenses | $6.6 million | $6.3 million | -4.5% | | Depreciation Expense | $3.5 million | $3.2 million | -8.6% | | Related Party Management Fees | $1.0 million | $1.1 million | +10.0% | | General and Administrative Expenses | $0.8 million | $0.8 million | 0% | | Drydocking Costs | $1.9 million | $0.4 million | -78.9% | | Interest and Other Financing Costs | $2.0 million | $1.7 million | -15.0% | | Net Loss (attributable to controlling shareholders) | $0.4 million | $3.07 million | >+600% (worsened) | | Basic & Diluted Loss Per Share | $0.15 | $1.12 | >+600% (worsened) | | Adjusted EBITDA | $5.0 million | $1.9 million | -62.0% | - The 35.3% decrease in total net revenues was primarily driven by lower time charter rates and a reduced average number of vessels operated[19] - Voyage expenses decreased due to less repositioning, vessel operating expenses decreased due to fewer vessels, while related party management fees increased due to inflation and unfavorable exchange rates, and interest costs decreased despite increased average debt[21][23][26] First Half 2025 Financial Performance EuroDry Ltd. reported a 35.7% decrease in H1 2025 net revenues to $20.5 million and a net loss of $6.8 million, including a gain from a vessel sale | Metric | H1 2024 | H1 2025 | Change (YoY) | | :------------------------------------- | :-------------- | :-------------- | :---------------- | | Total Net Revenues | $31.9 million | $20.5 million | -35.7% | | Average Vessels Operated | 13.0 | 12.4 | -0.6 | | Average TCE Rate | $13,452 per day | $8,761 per day | -34.8% | | Voyage Expenses, net | $3.7 million | $2.5 million | -32.4% | | Vessel Operating Expenses | $12.8 million | $12.8 million | 0% | | Depreciation Expense | $6.9 million | $6.4 million | -7.2% | | Related Party Management Fees | $2.1 million | $2.2 million | +4.8% | | General and Administrative Expenses | $1.6 million | $1.6 million | 0% | | Drydocking Costs | $3.7 million | $0.4 million | -89.2% | | Interest and Other Financing Costs | $4.1 million | $3.5 million | -14.6% | | Net Loss (attributable to controlling shareholders) | $2.2 million | $6.8 million | >+200% (worsened) | | Basic & Diluted Loss Per Share | $0.81 | $2.47 | >+200% (worsened) | | Adjusted EBITDA | $7.1 million | $0.9 million | -87.3% | - The sale of M/V Tasos, a 75,100 dwt drybulk vessel, for approximately $5 million resulted in a $2.1 million gain on sale[37] - The 35.7% decrease in total net revenues was attributed to lower time charter rates and a reduced average number of vessels operated[31] - Vessel operating expenses remained stable, related party management fees increased due to inflation and unfavorable exchange rates, and interest costs decreased despite increased average debt[32][34][37] Fleet Information This section details EuroDry Ltd.'s current fleet composition, vessels under construction, and key operational metrics for Q2 and H1 2025 Fleet Profile EuroDry Ltd. operates a current fleet of 12 drybulk vessels with 842,886 dwt capacity, with two Ultramax vessels under construction for 2027 delivery, expanding the fleet to 14 vessels and 969,886 dwt - The current fleet consists of 12 drybulk vessels (4 Panamax, 5 Ultramax, 2 Kamsarmax, 1 Supramax) with a total cargo capacity of 842,886 dwt[75] | Name | Type | Dwt | Year Built | Employment() | TCE Rate ($/day) | | --- | --- | --- | --- | --- | --- | | EKATERINI | Kamsarmax | 82,006 | 2018 | TC until Oct-25 | $17,000 plus a GBB() of $700,000 | | XENIA | Kamsarmax | 82,019 | 2016 | TC until Sep-25 | $17,250 plus a GBB() of $725,000 | | ALEXANDROS P. | Ultramax | 63,127 | 2017 | TC until Aug-25 | $29,000 | | CHRISTOS K | Ultramax | 63,197 | 2015 | TC until Aug-25 | $15,300 | | YANNIS PITTAS | Ultramax | 63,243 | 2014 | TC until Oct-25 | Hire 115% of the Average Baltic Supramax S10TC index() | | MARIA* | Ultramax | 63,153 | 2015 | TC until Mar-26 | Hire 115% of the Average Baltic Supramax S10TC index() | | GOOD HEART | Ultramax | 62,996 | 2014 | TC until Mar-26 | Hire 115% of the Average Baltic Supramax S10TC index() | | MOLYVOS LUCK | Supramax | 57,924 | 2014 | TC until May-26 | Hire 101% of the Average Baltic Supramax S10TC index(**) | | EIRINI P | Panamax | 76,466 | 2004 | TC until Sep-25 | $14,650 | | SANTA CRUZ | Panamax | 76,440 | 2005 | TC until Sep-25 | $12,000 | | STARLIGHT | Panamax | 75,611 | 2004 | TC until Aug-25 | $10,500 | | BLESSED LUCK | Panamax | 76,704 | 2004 | TC until Aug-25 | $12,000 | | Total Dry Bulk Vessels | 12 | 842,886 | | | | | Vessels under construction | Type | Dwt | To be delivered | | | | SBC XY164 | Ultramax | 63,500 | Q2 2027 | | | | SBC XY166 | Ultramax | 63,500 | Q3 2027 | | | | Total under construction | 2 | 127,000 | | | | - Upon delivery of two Ultramax vessels in 2027, the fleet will expand to 14 vessels with a total carrying capacity of 969,886 dwt[75] Fleet Operational Data and Daily Results Fleet operational data for Q2 and H1 2025 indicates a decrease in average vessels and a significant decline in average TCE rates, alongside increased daily operating and general and administrative expenses | Metric | Q2 2024 | Q2 2025 | H1 2024 | H1 2025 | | :------------------------------------- | :------ | :------ | :------ | :------ | | Average number of vessels | 13.0 | 12.0 | 13.0 | 12.4 | | Calendar days for fleet | 1,183.0 | 1,092.0 | 2,366.0 | 2,247.0 | | Available days for fleet | 1,144.5 | 1,083.9 | 2,275.0 | 2,238.9 | | Voyage days for fleet | 1,132.6 | 1,076.6 | 2,241.7 | 2,202.0 | | Fleet utilization | 99.0% | 99.3% | 98.5% | 98.4% | | Average TCE rate ($/day) | 14,427 | 10,428 | 13,452 | 8,761 | | Vessel operating expenses excl. drydocking expenses ($/day) | 6,396 | 6,785 | 6,289 | 6,685 | | General and administrative expenses ($/day) | 666 | 754 | 675 | 734 | | Total vessel operating expenses ($/day) | 7,062 | 7,539 | 6,964 | 7,419 | | Drydocking expenses ($/day) | 1,617 | 322 | 1,555 | 187 | - The average time charter equivalent rate declined by 27.7% in Q2 2025 and 34.8% in H1 2025 year-over-year[44] - Daily vessel operating expenses (excluding drydocking) increased by 6.1% in Q2 2025 and 6.3% in H1 2025 year-over-year, while daily general and administrative expenses rose by 13.2% and 8.7% respectively[44] Financial Statements (Unaudited Consolidated Condensed) This section presents the unaudited consolidated condensed statements of operations, balance sheets, and cash flows for EuroDry Ltd Statements of Operations Statements of operations reveal a significant decline in net revenues and a widening net loss for Q2 and H1 2025, with net loss attributable to controlling shareholders increasing substantially | Metric | Q2 2024 | Q2 2025 | H1 2024 | H1 2025 | | :------------------------------------- | :-------------- | :-------------- | :-------------- | :-------------- | | Time charter revenue | $18,497,005 | $12,014,917 | $33,818,790 | $21,801,044 | | Net revenues | $17,437,831 | $11,278,023 | $31,862,476 | $20,487,024 | | Total Operating expenses | $15,881,361 | $12,588,053 | $30,719,877 | $23,945,306 | | Operating income / (loss) | $1,556,470 | $(1,310,030) | $1,142,599 | $(3,458,282) | | Net loss | $(333,479) | $(3,106,597) | $(2,242,918) | $(7,112,768) | | Net loss attributable to controlling shareholders | $(411,337) | $(3,071,176) | $(2,192,839) | $(6,774,193) | | Loss per share attributable to controlling shareholders, basic and diluted | $(0.15) | $(1.12) | $(0.81) | $(2.47) | - The statements reflect a net gain of $2,083,596 from the sale of a vessel for the six months ended June 30, 2025[62] Balance Sheets As of June 30, 2025, EuroDry Ltd. reported decreased total assets and liabilities, with current assets significantly reduced due to lower receivables and a vessel sale | Metric | Dec 31, 2024 | Jun 30, 2025 | Change | | :------------------------------------- | :-------------- | :-------------- | :-------------- | | Total current assets | $23,326,488 | $16,767,066 | $(6,559,422) | | Vessels, net | $185,465,570 | $179,124,232 | $(6,341,338) | | Total assets | $219,735,195 | $206,631,415 | $(13,103,780) | | Total current liabilities | $18,761,215 | $18,378,183 | $(383,032) | | Long term bank loans, net of current portion | $95,381,535 | $88,878,196 | $(6,503,339) | | Total liabilities | $114,142,750 | $107,267,488 | $(6,875,262) | | Total shareholders' equity | $105,592,445 | $99,363,927 | $(6,228,518) | - The 'Asset held for sale' category decreased from $2,789,715 to $0, reflecting the sale of a vessel by June 30, 2025[65] Statements of Cash Flows H1 2025 saw a significant decrease in net cash from operating activities, with investing activities providing cash from vessel sales and financing activities using cash for loan repayments | Metric | H1 2024 | H1 2025 | Change | | :------------------------------------- | :-------------- | :-------------- | :-------------- | | Net cash provided by operating activities | $3,753,868 | $387,689 | $(3,366,179) | | Net cash (used in) / provided by investing activities | $(672,716) | $4,730,469 | $5,403,185 | | Net cash used in financing activities | $(7,724,070) | $(5,655,000) | $2,069,070 | | Net decrease in cash, cash equivalents and restricted cash | $(4,642,918) | $(536,842) | $4,106,076 | | Cash, cash equivalents and restricted cash at end of period | $9,456,675 | $11,371,753 | $1,915,078 | - Investing activities benefited from net proceeds of $4,819,195 from a vessel sale in H1 2025[66] - Financing activities included $6,045,000 in repayments of long-term bank loans[66] Non-GAAP Financial Measures Reconciliation This section provides reconciliations for non-GAAP financial measures, including Adjusted EBITDA and Adjusted Net Loss, to their most directly comparable GAAP measures Adjusted EBITDA Reconciliation Adjusted EBITDA significantly decreased to $1.9 million in Q2 2025 and $0.9 million in H1 2025, with this non-GAAP measure excluding specific non-operating items for clearer operational insight | Metric | Q2 2024 | Q2 2025 | H1 2024 | H1 2025 | | :------------------------------------- | :-------------- | :-------------- | :-------------- | :-------------- | | Net loss | $(333,479) | $(3,106,597) | $(2,242,918) | $(7,112,768) | | Adjusted EBITDA | $5,021,836 | $1,869,400 | $7,096,782 | $853,931 | - Adjusted EBITDA represents net loss before interest, income taxes, depreciation, unrealized gain on Forward Freight Agreement derivatives ("FFAs"), gain/(loss) on interest rate swap derivatives, and net gain on vessel sale[69] Adjusted Net Loss and EPS Reconciliation Adjusted net loss attributable to controlling shareholders worsened to $3.01 million ($1.10 per share) in Q2 2025 and $8.68 million ($3.17 per share) in H1 2025, excluding unrealized derivative gains/losses and vessel sale gains | Metric | Q2 2024 | Q2 2025 | H1 2024 | H1 2025 | | :------------------------------------- | :-------------- | :-------------- | :-------------- | :-------------- | | Net loss attributable to controlling shareholders | $(411,337) | $(3,071,176) | $(2,192,839) | $(6,774,193) | | Adjusted net loss attributable to controlling shareholders | $(447,361) | $(3,013,774) | $(3,671,855) | $(8,675,164) | | Adjusted loss per share attributable to controlling shareholders, basic and diluted | $(0.17) | $(1.10) | $(1.35) | $(3.17) | - Adjusted net loss attributable to controlling shareholders excludes net gain on vessel sale and unrealized gains/losses on derivatives, including FFAs and interest rate swaps[71] Company Information & Additional Disclosures This section provides background on EuroDry Ltd., details on its conference call, and important forward-looking statement disclaimers and contact information About EuroDry Ltd. EuroDry Ltd. is a NASDAQ-listed drybulk vessel owner and operator, spun off from Euroseas Ltd. in 2018, managing its fleet through affiliated companies on various charter agreements - Formed on January 8, 2018, in the Republic of the Marshall Islands, and spun-off from Euroseas Ltd. on May 30, 2018[73] - Trades on the NASDAQ Capital Market under the ticker EDRY[73] - Operates in the dry cargo, drybulk shipping market, with management by affiliated companies Eurobulk Ltd. and Eurobulk (Far East) Ltd. Inc., employing vessels on spot, period charters, and pool agreements[74] Conference Call and Webcast EuroDry Ltd. hosted a conference call and webcast on August 11, 2025, to discuss Q2 and H1 2025 results, with access details for live and archived materials - Event Date: August 11, 2025, at 10:00 a.m. Eastern Time[57] - Access was available via dial-in or 'call me' option, with a live and archived webcast including slides on the Company's website[58][59][60][61] Forward-Looking Statements & Contact Information This section includes a disclaimer for forward-looking statements, highlighting inherent risks and uncertainties, and provides contact information for investor relations - Forward-looking statements involve known and unknown risks, significant uncertainties, and contingencies, with actual results potentially differing materially from expectations, and the Company disclaims any obligation to release updates[76] - Contact information is provided for Tasos Aslidis (Chief Financial Officer) and Nicolas Bornozis / Markella Kara of Capital Link, Inc. for investor relations/financial media[77]