Costamare(CMRE) - 2025 Q4 - Annual Report

Revenue and Income - Voyage revenue decreased by 2.1%, or $17.8 million, to $846.7 million for the year ended December 31, 2025, compared to $864.5 million in 2024[432] - Income from investments in leaseback vessels increased by 30.5%, from $23.9 million in 2024 to $31.2 million in 2025[434] - Voyage revenue for the Container vessels segment decreased by 2.1%, or $17.8 million, to $846.7 million for the year ended December 31, 2025, compared to $864.5 million for 2024[454] - Segment profit for the Container vessels segment was $391.8 million in 2025, down from $425.0 million in 2024, reflecting a decrease of 7.8%[454] - Income from investments in leaseback vessels for the NML segment increased to $31.2 million in 2025 from $23.9 million in 2024, representing a year-over-year increase of 30.4%[461] Expenses - Voyage expenses increased by 101.6%, from $25.8 million in 2024 to $52.0 million in 2025, primarily due to costs associated with EUAs and Fuel EU Maritime penalties[435] - Vessels' operating expenses rose to $162.5 million in 2025 from $157.9 million in 2024, with daily operating expenses increasing from $6,345 to $6,516[438] - General and administrative expenses decreased by 20.2%, from $16.3 million in 2024 to $13.0 million in 2025[439] - Daily operating expenses for the Container vessels segment increased to $6,516 in 2025 from $6,345 in 2024, reflecting a rise of 2.7%[457] - Depreciation expense for the Container vessels segment was $129.5 million in 2025, up from $126.8 million in 2024, indicating a slight increase of 2.1%[459] - Amortization of dry-docking and special survey costs for the Container vessels segment rose to $19.8 million in 2025 from $17.3 million in 2024, an increase of 14.5%[460] Financial Performance - Interest income decreased by 39.1%, from $31.7 million in 2024 to $19.3 million in 2025[444] - Interest and finance costs decreased by 16.6%, from $109.6 million in 2024 to $91.4 million in 2025, attributed to a lower average loan balance and reduced SOFR rates[445] - Interest and finance costs for the Container vessels segment decreased to $79.8 million in 2025 from $99.5 million in 2024, a reduction of 19.8% attributed to lower average loan balances and reduced SOFR rates[458] - Net cash provided by operating activities decreased by $50.0 million to $536.9 million for the year ended December 31, 2025, compared to $586.9 million for the year ended December 31, 2024[523] - Net cash used in investing activities was $179.0 million for the year ended December 31, 2025, primarily for advance payments for the construction of six newbuild container vessels and the acquisition of a secondhand container vessel[524] Debt and Liquidity - As of December 31, 2025, the company had total cash liquidity of $570.3 million, consisting of cash, cash equivalents, and restricted cash[512] - The company had an aggregate of $1.5 billion of indebtedness outstanding under various credit agreements and other financing arrangements as of December 31, 2025[514] - Working capital of continuing operations was positive $292.1 million at December 31, 2025, compared to positive $391.7 million at December 31, 2024[518] - The company completed the full redemption of all 4,574,100 outstanding shares of Series E Preferred Stock on July 15, 2024[510] - The company anticipates that internally generated cash flow will be sufficient to fund the operations of its fleet, including working capital requirements[520] Market Conditions - Total seaborne container trade demand increased by 4.5% in 2025, with TEU-mile demand rising by approximately 4.7%[558] - Total containership supply grew by around 6.7% in 2025, while demolition activity remained low[559] - The company anticipates that if containership demand does not improve, there may be negative pressure on charter rates across the industry[560] Asset Valuation - The carrying value of the Triton vessel as of December 31, 2025, is $92.5 million, down from $96.6 million in 2024, reflecting a decrease of approximately 4.3%[575] - The company believes that as of December 31, 2025, all container vessels had fair values exceeding their carrying values[576] - The total carrying value of vessels as of December 31, 2024, is $2,825.2 million, which is projected to decrease to $2,754.7 million by December 31, 2025[577] - The company uses third-party valuations to estimate market values, which are highly volatile and may not reflect current or future selling prices[574] Impairment and Depreciation - The company’s assessment concluded that no impairment loss should be recorded for its vessels as of December 31, 2023, and 2024[568] - The company is subject to potential higher depreciation charges or impairment losses due to unforeseen events affecting vessel economic lives[579] - Vessels are depreciated on a straight-line basis over an estimated economic life of 30 years, with depreciation based on the cost less an estimated residual value of $300 per lightweight ton[579]