Euroseas (ESEA) investor relations material

Company overview and fleet strategy

• Operates 22 container ships, focusing on feeder and intermediate segments, with four newbuilds scheduled for delivery between late 2027 and early 2028, bringing the fleet to 25 vessels.

• Recent sale of a vessel will generate a $10 million capital gain; ongoing strategy is to modernize and expand the fleet while reducing environmental impact.

• Retrofit program on mid-aged ships achieves 25% fuel savings and enhances commercial attractiveness.

• Vertically integrated management through Eurobulk Ltd. supports strong industry relationships.

• Focus on commercially desired vessel sizes (1,800, 2,800, 4,200 TEU) to align with market demand.

Industry analysis and market positioning

• Feeder vessels serve as critical links between major shipping hubs and final destinations, with distinct supply-demand dynamics from larger ships.

• Container shipping rates surged during COVID and the Red Sea crisis, enabling long-term, lucrative contracts.

• Feeder segment has a low order book and a high proportion of aging vessels, supporting favorable supply conditions.

• Liner companies actively seek feeder vessels for long-term contracts, reinforcing demand stability.

• Anticipates supply support for feeder sizes, with some protection from larger vessel competition due to market segmentation.

Financial highlights and outlook

• 100% of 2025 and 70% of 2026 fleet days are already chartered, with average rates exceeding $30,000/day.

• Operating expenses, including G&A and maintenance, are below $8,000/day, resulting in strong cash flow margins.

• First half of the year saw $114 million net revenue and $76 million EBITDA; dividend recently increased to $0.70/quarter (5% yield).

• Net asset value per share estimated at $80, with shares trading at a 30% discount, providing upside potential.

• Low leverage, significant cash reserves, and a share repurchase program support financial flexibility.