Euroseas (ESEA) Q1 2025 earnings summary

Executive summary

• Q1 2025 net revenues reached $56.3 million, up 20.6% year-over-year, with net income of $36.9 million and adjusted net income of $26.2 million; adjusted EBITDA was $37.1 million.

• Declared a $0.65 per share quarterly dividend and repurchased 463,074 shares for $10.5 million under the ongoing buyback program.

• Completed the spin-off of Euroholdings Ltd., distributing shares to shareholders and listing the new entity on NASDAQ.

• Announced the sale of M/V Marcos V for $50 million, with an expected gain of over $8.5 million to be recognized in Q4 2025.

Financial highlights

• Net revenues increased 20.6% to $56.3 million in Q1 2025; net income rose to $36.9 million from $20 million year-over-year.

• Adjusted EBITDA improved to $37.1 million from $24.6 million in Q1 2024; adjusted net income was $26.2 million.

• Basic and diluted EPS were $5.31 and $5.29, up from $2.89 and $2.87 in Q1 2024; adjusted EPS was $3.76.

• Cash and cash equivalents at March 31, 2025: $88.3 million; total cash including restricted: $95.5 million.

Outlook and guidance

• Nearly 100% of 2025 vessel days secured at ~$28,250/day; over 65% of 2026 days covered at ~$31,600/day.

• Management expects continued market strength in feeder and intermediate segments due to low orderbooks and aging fleets.

• Plans to retrofit vessels with energy-saving devices and pursue further fleet modernization, with two newbuilds (4,300 TEU each) due in Q4 2027.

• Charter rates may face downward pressure in 2026, with uncertainty from geopolitical and trade factors.