Euroseas Ltd. reported Q3 2025 financial results that fell short of analyst expectations, with revenue of $56.9 million, down 5.1% year‑over‑year, and net income of $29.7 million, a 7.6% year‑over‑year increase. Adjusted EBITDA rose to $38.8 million, up 7.5% year‑over‑year. The company posted earnings per share of $4.25, missing the consensus estimate of $4.40–$4.49 by $0.15–$0.24.
Revenue missed consensus estimates of $57.61–$58.46 million because chartering activity in the feeder and intermediate segment was lower than in the same period last year, a result of the summer slowdown and a temporary decline in container freight rates. CEO Aristides Pittas noted that while containership rates remained high, chartering activity was somewhat lower due to the summer slowdown and lack of demand, which weighed on revenue.
The EPS miss was driven by the revenue shortfall and a modest increase in operating expenses. CFO Tasos Aslidis highlighted that the company operated an average of 22 vessels in Q3 2025 versus 23 in the prior year, and that the gain of $9.3 million from the sale of the M/V Marcos V helped offset the impact of the revenue miss. Despite the miss, net income margin improved from 51.0% to 52.2% year‑over‑year, reflecting disciplined cost management.
Euroseas also announced new multi‑year forward charters for five intermediate vessels, including the M/V Synergy Oakland and four newbuildings. The charters are expected to generate $183 million of EBITDA over their minimum charter periods, raising charter coverage to 75% for 2026 and more than 50% for 2027 and thereby enhancing earnings visibility and cash‑flow stability.
The company declared a quarterly dividend of $0.70 per share and reported operating a fleet of 22 vessels with an average daily operating expense of $7,246 per vessel. The sale of the M/V Marcos V added a $9.3 million gain to the quarter, further supporting profitability.
Investors reacted negatively to the earnings miss, citing the EPS and revenue shortfalls as primary concerns. Management expressed confidence in the company’s long‑term prospects, citing the strong charter pipeline, ongoing fleet modernization, and a disciplined cost structure as key factors underpinning future growth.
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