Net income of $33.2m on a fleet one vessel smaller than a year ago. Charter cover runs above 95% for the rest of 2026, and the newbuilding program is now 12 ships.
Euroseas Ltd. (Nasdaq: ESEA) has reported net income attributable to controlling shareholders of $33.2m for Q2, against $29.9m a year earlier, on net revenues of $56.5m. Adjusted EBITDA was $40.1m and basic earnings reached $4.77 per share.
Revenue slipped 1.3%. The fleet averaged 21 vessels against 22, and the rate did the compensating: TCE earnings of $30,306 per day, 3.0% above last year. Utilization was 99.9%.
Two other things helped. No vessel entered drydock in the quarter, which cut those costs to $0.2m from $1.7m, and interest expense fell to $2.7m from $4.0m on lower average debt and softer benchmark rates. Interest income of $1.5m against $0.6m reflects a cash pile earning its keep.
Mr. Aristeidis Pittas, chairman and CEO, put the first two quarters of 2026 among the company’s most profitable consecutive pair in fifteen years.
Solid contracts at highly profitable rates, combined with low drydocking expenses, as in the previous quarter, were the main factors supporting our strong financial results.
Booked well into 2028
The charter book is the reason the result is durable. Cover stands above 95% for the remainder of 2026, 81% for 2027 and 47% for 2028. Six intermediate vessels are fixed at $33,500 to $38,000 per day on charters running to 2028 and 2029, which insulates the company from where rates sit when those contracts roll.
Mr. Pittas described charter market strength continuing through July and into August, with charterers taking older tonnage as well. Red Sea diversions keep adding teu-miles and absorbing vessels.
However, Mr. Pittas was direct about the medium term. The unwinding of those routing inefficiencies, together with an expanded orderbook, presents a challenge for the sector. His counter is segment-specific, the orderbook is concentrated in larger vessels, while feeder and intermediate tonnage carries a smaller orderbook against an older fleet, pointing to minimal growth or contraction in the sizes Euroseas operates.
Twelve on order
The newbuilding program has grown to 12 vessels for delivery from Q3 of 2027 through Q1 of 2029, taking the fleet to 33 ships and 97,396 teu. Four intermediate newbuilds already carry charters at $35,500 per day running to 2031 and 2032, with an option for the charterer to convert to 5 years at $32,500.
One of those, the Thrylos, sits in a partnership 51% owned by Euroseas and 49% by investors represented by NRP Project Finance. Formation costs of $0.6m ran through the quarter.
Cash and payouts
Debt stood at $208.1m at June 30 against cash of $164.3m, with $18.1m of scheduled repayments over the next twelve months. Equity is $523.9m on total assets of $752.9m. Advances for vessels under construction rose to $73.9m.
The board declared a dividend of $0.80 per share, payable on September 16 to holders of record on September 9, which the company puts at an annualized yield of 4.2% to 4.5%. Buybacks have reached 480,460 shares for $11.36m since the plan began in May 2022, roughly 6.8% of the shares outstanding.
About Euroseas Ltd.
Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA. Euroseas operates in the container shipping market. Euroseas’ operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements. The Company has a fleet of 21 vessels, including 15 Feeder containerships and 6 Intermediate containerships. Euroseas 21 containerships have a cargo capacity of 61,144 teu. After the delivery of twelve containership newbuilding containerships gradually from the third quarter of 2027 until the first quarter of 2029, Euroseas’ fleet will consist of 33 vessels with a total carrying capacity of 97,396 teu.
Capital Link Editorial
