Euroseas (ESEA) Q4 2024 earnings summary

Executive summary

• Q4 2024 net revenues reached $53.3 million, up 8.7% year-over-year, with net income of $24.4 million and adjusted EBITDA of $32.8 million.

• Full-year 2024 net revenues were $212.9 million, a 12.4% increase over 2023, with net income of $112.8 million and adjusted EBITDA of $135.8 million.

• Quarterly dividend increased to $0.65 per share, with an ongoing share repurchase program totaling $9.24 million since May 2022.

• Announced spin-off of Euro Holdings Ltd. (three older vessels, ~5% of NAV) to shareholders, with shares to be distributed in March 2025.

• Average fleet size increased to 23.0 vessels in Q4 2024 and 21.73 for the year, supporting revenue growth.

Financial highlights

• Q4 2024 adjusted net income was $23.3 million ($3.33 per diluted share); adjusted EBITDA $32.8 million.

• Full-year 2024 adjusted earnings per share were $14.87 diluted, compared to $14.98 in 2023.

• Operating expenses per vessel per day improved to $6,693 in Q4 2024 and $6,777 for the year.

• Utilization rate was 99.6% in Q4 and 99.7% for the year.

• Q4 2024 TCE rate was $26,479/day; full year 2024 TCE $28,054/day.

Outlook and guidance

• About 85% of fleet fixed for 2025 and 49% for 2026, providing strong cash flow visibility.

• Projected cash flow break-even for 2025 is $12,600 per vessel per day, well below current charter rates.

• Management expects continued strong earnings and cash reserves, supported by a robust charterbook and modernizing fleet.

• Two new 4,300 TEU vessels ordered for delivery in 2027; focus remains on accretive investments and shareholder returns.

• Minimal dry dockings expected in 2025, with 70-75 days projected.