Euroseas (ESEA) Q1 2026 earnings summary

Executive summary

• Q1 2026 net revenues were $55.84 million, net income $32.52 million, and adjusted EBITDA $40.9 million, reflecting strong operational performance despite a slight year-over-year revenue decline.

• Declared a quarterly dividend of $0.80 per share, up 6.7% from Q4 2025, with an annualized yield of 4.5-5%.

• Continued share repurchase program, with $11.4 million spent and 480,500 shares (~6.8% of outstanding) bought back since May 2022.

• Entered a joint venture with NRP Project Finance for a new 4,484 TEU vessel, with NRP acquiring a 49% stake for $12.2 million.

• Ordered four new vessels (two 2,800 TEU methanol-ready and two 1,800 TEU reefer containerships) for delivery between 2028 and 2029, expanding the fleet and advancing decarbonization.

Financial highlights

• Net revenues decreased 1% year-over-year to $55.8 million; net income fell to $32.5 million from $36.9 million.

• Adjusted net income rose to $32.87 million, up 25.5% year-over-year; adjusted EBITDA increased to $40.9 million from $37.1 million.

• Basic and diluted EPS for Q1 2026 were $4.65 and $4.67, respectively; adjusted EPS was $4.72 basic and $4.70 diluted.

• Vessel operating expenses per day rose to $6,989; total vessel operating expenses per day were $7,889.

• Average TCE rate in Q1 2026 was $30,354 per day, up from $27,563 in Q1 2025.

Outlook and guidance

• Over 90% of 2026 revenue is contracted, with $650 million backlog over five years and strong forward coverage for 2027 and 2028.

• Market sentiment remains strong for 2026, but 2027 faces challenges from a large influx of newbuild deliveries and potential oversupply.

• Freight and charter rates remain elevated, but medium-term fundamentals suggest potential softening.