EuroDry (NasdaqCM:EDRY) Q4 2025 Earnings call February 20, 2026 08:00 AM ET Company ParticipantsAristides Pittas - CEOTasos Aslidis - CFOConference Call ParticipantsHans Baldauf - AnalystPoe Fratt - Equity research AnalystTate Sullivan - MD and Senior Research AnalystOperatorThank you for standing by, ladies and gentlemen, and welcome to EuroDry Limited conference call for the fourth quarter 2025 financial results. We have with us today Mr. Aristides Pittas, Chairman and Chief Executive Officer, and Mr. Tas ...

Summary of Scorpio Tankers Conference Call Company Overview - **Company**: Scorpio Tankers (NYSE: STNG) - **Industry**: Marine transportation of petroleum products - **Fleet**: 93 product tankers with an average age of 9.8 years - **Market Capitalization**: $2.9 billion - **Daily Trading Liquidity**: $50 million - **Net Cash Position**: $383 million - **Trailing 12-Month EBITDA**: $520 million - **Debt Repayment**: $2.5 billion in the last few years - **Shareholder Returns**: Over $1 billion in share repurchases and dividends [6][7][15] Market Conditions - **Current Market Sentiment**: Transition from "quietly optimistic" to "bullish" in the product market over the past 30 days [4] - **Rate Trends**: Continuous strengthening of rates; spot rates for MRs at $32,000 per day and LR2s at $47,000 per day [10] - **Demand Growth**: Anticipated increase in demand for refined products by 1.2% this year, equating to nearly 1 million barrels per day [11] - **Seaborne Exports**: Averaged 21 million barrels per day last year, expected to continue [11] - **Ton-Mile Demand**: Increased by approximately 20% since 2019 due to structural shifts in global refining capacity [11] Fleet and Operational Strategy - **Fleet Composition**: 93 vessels including 14 Handymax, 42 MRs, and 37 LR2 tankers [7] - **Operating Strategy**: Focus on maintaining a high-quality fleet and strong balance sheet to generate attractive returns and return capital to shareholders [7] - **Age Profile of Fleet**: 21% of the product tanker fleet is older than 20 years; expected to rise to 31% by 2028 [13][14] Geopolitical and Market Dynamics - **Geopolitical Events**: Ongoing impacts from geopolitical events, including disruptions in Russian refined product exports and changes in Venezuelan crude exports [11][36] - **Venezuelan Exports**: Averaged 700,000 barrels per day last year, with potential demand for 23 additional Aframax LR2 vessels if exports increase [12] - **Sanctioned Vessels**: Approximately 26% of the Aframax LR2 fleet and 9% of the Handymax MR fleet are sanctioned, with an average age of 20-21 years [14] Financial Position and Capital Allocation - **Liquidity Position**: Total liquidity of approximately $1.7 billion, including $992 million in cash and $784 million in undrawn revolving credit [16] - **Cash Break-Even**: Reduced to $11,000 per day, allowing for positive cash flow across historical periods [17] - **Dividend Policy**: Regular dividend policy aimed at increasing over time, with no plans for extraordinary dividends [32] Future Outlook - **Market Fundamentals**: Strong fundamentals driven by structural shifts in global refining, longer trade routes, and an aging fleet [15] - **Investment Strategy**: Focus on maintaining a conservative balance sheet and sustainable dividend growth through market cycles [48] - **New Builds**: Ordered eight new vessels last year, with a strategy to continue fleet renewal selectively [29] Key Takeaways - The company is well-positioned in a strengthening market with a robust financial position and a strategic focus on fleet quality and shareholder returns - Demand for refined products and seaborne exports is expected to grow, supported by geopolitical dynamics and structural changes in refining capacity - The aging fleet and high proportion of sanctioned vessels may limit effective supply growth, potentially leading to higher rates in the future [14][15]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $36.1 million, down from $41.3 million in Q3 2024, indicating a decrease of approximately 12.5% [15] - Adjusted earnings per share for Q3 2025 was $0.12, compared to $0.16 in the same period last year, reflecting a decline of 25% [15] - Average time charter equivalent (TCE) decreased to $15,507 in Q3 2025 from $17,108 in Q3 2024 [16] - Daily vessel running expenses decreased by 4% to $5,104 in Q3 2025 from $5,311 in Q3 2024 [16] Business Line Data and Key Metrics Changes - The company sold two of its oldest vessels as part of its fleet renewal strategy, which is ongoing [3] - The fleet now includes 12 phased new vessels delivered from 2022 onwards, with 24 vessels having been environmentally upgraded [5] Market Data and Key Metrics Changes - The dry bulk fleet is projected to grow by about 3% on average in 2025 and 2026, with the order book now below 11% of the current fleet [4] - Global dry bulk demand growth is forecasted at 2% in 2026 and 1.5% in 2027, with grains and minor bulks being the best-performing sectors [8] Company Strategy and Development Direction - The company maintains a strong capital structure, providing flexibility in capital allocation, and has declared a dividend of $0.05 per share [3] - Focus on fleet energy efficiency and leveraging the majority Japanese-built fleet advantage [12] Management's Comments on Operating Environment and Future Outlook - Management noted a weaker charter market environment compared to the same period in 2024, with decreased revenues due to lower charter highs [14] - The company anticipates an improving trade market rate due to a trade truce between the US and China [7] Other Important Information - The company has a market cap of $496 million and maintains significant liquidity with $390 million in capital resources [12] - The company achieved zero vessels rated D and E in carbon intensity for 2024, reflecting its commitment to sustainability [11] Q&A Session Summary - No questions were raised during the Q&A session, and the management concluded the call without further comments [19][20]

Financial Data and Key Metrics Changes - The company generated adjusted net income of approximately $82 million in Q4 2024 [3] - Total liquidity stands at around $940 million after repaying a fixed-rate bond of $100 million and redeeming Series EBITDA stock of $115 million [3][9] - Annual net income was above $290 million, with adjusted net income around $330 million [5][6] Business Line Data and Key Metrics Changes - In the container ship sector, the company charted 12 containerships with an average time charter duration of about 2.5 years, resulting in estimated contracted revenues of close to $330 million [4][6] - The contingency fleet employment stands at 96% for 2025 and 69% for 2026, with total contracted revenues amounting to $2.4 billion and a remaining time charter duration of about 3.4 years [4][6] - Charter rates in the dry bulk market dropped to their lowest levels in 2024 during the last quarter, continuing into 2025 [4][11] Market Data and Key Metrics Changes - The idle fleet remains low at around 0.6%, while the order book starts at approximately 11% of the total fleet [10][11] - The easing of congestion and pressures in the China steel market have resulted in tonnage oversupply in the dry bulk sector [4] Company Strategy and Development Direction - The company aims to renew its owned fleet and increase its average size, having acquired one Capesize and two Ultramax vessels while disposing of one Handysize and agreeing to sell one Panamax vessel [4][5] - The company views vessel owning and trading as complementary activities and maintains a long-term commitment to the sector [5] Management's Comments on Operating Environment and Future Outlook - Management noted that the current dry bulk market is weak, with expectations for a better market in the future based on the forward curve [14][15] - The company plans to maintain a balanced book in its CBI operations, taking long or short positions based on market conditions [16][20] Other Important Information - The company has secured financing of approximately $340 million for 36 of the 38 dry bulk vessels it currently owns, improving funding costs and extending maturities [8] - The Neptune maritime leasing platform continues to grow, with total investments and commitments exceeding $500 million [5][9] Q&A Session Summary Question: Contribution from CBI in Q4 and future profit expectations - Management indicated that the contribution from CBI would be detailed in upcoming segmental reporting, and the dry bulk market's current softness may affect future contributions [13][17][18] Question: Chartering discussions on container ships and effects on rates - Management stated that discussions for the 12 chartering agreements occurred before recent announcements, and currently, there is no pressure on charter rates [23][24][25] Question: Pipeline and future investments in Neptune maritime leasing - Management confirmed a healthy pipeline for Neptune, with future investments dependent on the leverage received and the attractiveness of potential transactions [26][28]