EuroDry Ltd. Conference Call Summary Company Overview - EuroDry Ltd. operates ocean-going vessels that transport dry bulk commodities, including major bulks like iron ore, coal, and grains, as well as minor bulks such as steel products and fertilizers [3][4] - The company focuses on mid-sized dry bulk carriers, specifically Supramax to Kamsarmax vessels, ranging from 50,000 to 85,000 deadweight tons [3] - Currently, EuroDry owns 12 vessels, with plans to reduce this to 11 due to the sale of one vessel [4] Fleet and Growth Strategy - The fleet consists of two clusters: a modern/new building cluster and an older Panamax cluster, with a focus on renewing the fleet by replacing older vessels with more fuel-efficient new builds [6][7] - Two new vessels are under construction, expected to be delivered in 2027, with a total cost of approximately $70 million [23] - The company aims to fund growth through a combination of operational cash flow, debt, and equity, while avoiding dilutive share issuances [8][9] Market Insights - The dry bulk market has experienced significant fluctuations, with historical rates exceeding $70,000 for Panamax vessels, followed by a decline post-financial crisis and a recent recovery [10][11] - The fleet under construction has remained low, hovering around 10%, indicating limited supply growth, which could lead to increased charter rates if demand rises [10][12] - China plays a crucial role in the dry bulk market, with its imports of iron ore and grains significantly impacting demand [13][14] Financial Performance and Outlook - EuroDry's current cash flow break-even level is approximately $12,000, with positive cash flow generated when market rates exceed $13,000 [18][21] - The company has about $98 million in debt, with a leverage ratio of roughly 50% [18] - The estimated net asset value (NAV) of the fleet is around $35 to $36 per share, while shares currently trade at $12.5, indicating a significant discount [19][20] Risks and Considerations - The outlook for 2026 is cautiously optimistic, with potential demand growth linked to global reconstruction efforts, particularly in China [29][30] - Risks include geopolitical tensions, environmental regulations, and the potential for increased vessel scrapping due to new regulations [30][31] - The company is actively monitoring market conditions and may consider selling older vessels to enhance liquidity if necessary [27][28] Conclusion - EuroDry Ltd. presents a potential investment opportunity given its current trading discount relative to NAV and the expected recovery in the dry bulk market [20][31]

Financial Data and Key Metrics Changes - In Q2 2025, the company achieved net revenues of $12.5 million, EBITDA of $5.9 million, and net income of approximately $1 million, marking a significant improvement from Q1 2025 [4][16] - The net daily time charter equivalent increased to $15,400, reflecting a rebound in the dry bulk market [4] - For the first half of 2025, net revenue totaled $20.2 million, which is $2.8 million lower than the same period last year, indicating softer time charter equivalent rates [16] Business Line Data and Key Metrics Changes - The strategic consolidation of offshore new building investments contributed significantly to net income this quarter [4] - The company sold two older Capesize vessels, generating approximately $17.9 million in net liquidity after debt repayments, with an anticipated book profit of about $1.5 million from one sale in Q3 [6][16] Market Data and Key Metrics Changes - The Baltic Camsamax Index averaged about 11,800 in Q2 2025, up from 9,600 in Q1 2025, while the Baltic Capesize Index averaged about 18,600, up from 13,000 in Q1 2025, indicating a significant recovery in charter rates [9] - The Panamax market faced challenges due to a 7% decline in seaborne coal volume, but recent government actions in China have led to a rebound in coal prices and increased seaborne imports [10] Company Strategy and Development Direction - The company is focused on fleet renewal and has increased its stake in a newbuilding energy construction vessel project, reflecting confidence in the commercial prospects of this investment [7][13] - The company aims to optimize fleet composition and enhance liquidity through strategic divestments and capital returns to shareholders [5][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the dry bulk market and the company's ability to capitalize on favorable market conditions, with expectations for higher charter rates due to low vessel supply growth [13] - The company anticipates a significant cash inflow in Q3 2025 from the sale of a tradership, which is part of its strategy to optimize fleet composition [18] Other Important Information - The company declared a $0.03 per share cash dividend for Q2 2025, consistent with its capital return policy, and has maintained a record of over $1.6 per share in cash dividend payments since 2023 [5] - The total assets at the end of 2025 amounted to €161 million, with stockholders' equity at €60 million and outstanding debt totaling €86 million [18] Q&A Session Summary Question: What is the current capital commitment for the offshore vessels? - The company increased its commitment to approximately $10.5 million, with one last payment of $2 million due in November [24] Question: Are the lending terms for the offshore vessel financing similar to previous terms? - The company expects similar terms to previous financings, with advances between 65% to 75% of the contract price [26]

Financial Data and Key Metrics Changes - Net revenue for Q4 2024 was $10.8 million, down from $11.6 million in Q4 2023, with adjusted EBITDA increasing by 11% to $5.1 million [10][26] - Full year net revenue reached $45.4 million, significantly higher than the previous year, while adjusted EBITDA grew to $20.3 million compared to $18.9 million in 2023 [27] - The company recorded a net loss of $3.4 million for the year, compared to a net profit of $200,000 in 2023, largely due to a decrease in profits from vessel sales [27][28] Business Line Data and Key Metrics Changes - The company sold the Oasea and reinvested in the Nisea, which has been employed on a profitable fixed-rate charter [11] - The Gloriuship, the oldest vessel in the fleet, is scheduled for sale, expected to enhance cash position by approximately $7 million [29][50] Market Data and Key Metrics Changes - The dry bulk market experienced a temporary slowdown in coal and iron ore exports, impacting revenue [9] - Capesize and Panamax charter rates softened due to seasonal factors and high inventory levels in China [17][18] - The Capesize order book remains at historical low levels, indicating potential demand for new vessels in the future [21] Company Strategy and Development Direction - The company is focused on building a high-quality dry bulk fleet and has successfully completed its second investment cycle without diluting shareholders [6][36] - United Maritime is optimistic about the long-term fundamentals of the dry bulk market and is exploring opportunities in the offshore sector [15][24] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the company's ability to generate shareholder value despite current market volatility [9] - The company anticipates a rebound in the dry bulk market and expects higher time charter equivalent rates in the following quarters [14][24] Other Important Information - The company declared a total dividend of $0.235 per share for 2024, with a reduced dividend of $0.01 per share for Q4 2024 due to market conditions [7][10] - The company has extended its share repurchase program by 12 months, with $1.9 million remaining available for repurchases [8] Q&A Session Summary Question: What is the scheduled delivery of the offshore vessel and remaining capital commitments? - The scheduled delivery is in Q1 2027, with $3.5 million already paid and another $4.5 million committed to be called in two tranches within 2025 [42] Question: Can you review comments on the US missile strikes and their potential link to the dry bulk market? - The Red Sea remains closed, which disrupts trade routes, but a ceasefire in Ukraine could positively impact the Panamax/Kamsarmax segment [45][46] Question: Regarding the Capesize sale, does the $50 million sales price imply a gain of $7 million? - The net amount after the sale will be around $7 million, considering the outstanding loan and management agreements [50]