StealthGas Inc ((GASS)) has held its Q2 earnings call. Read on for the main highlights of the call.
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StealthGas Inc’s recent earnings call painted a picture of strong financial performance, despite facing some operational challenges. The overall sentiment was positive, with the company reporting impressive revenue and profit figures, successful debt elimination, and strategic future revenue security. However, issues such as the Eco Wizard incident and reduced income from joint ventures were acknowledged as areas of concern.
Record-Breaking Revenue
StealthGas reported record revenues of $47.2 million for the second quarter of 2025, marking a 13% increase year-on-year. This achievement represents the highest revenue for any quarter in the company’s history, showcasing its robust financial health and effective revenue generation strategies.
Strong Profit Performance
The company achieved an adjusted net income of $21.7 million for Q2 2025, reflecting a 35% increase from the previous quarter. This makes it the second-best quarter in the company’s history, underscoring StealthGas’s ability to enhance profitability despite market challenges.
Successful Debt Elimination
StealthGas successfully completed its deleveraging strategy by repaying $86 million in debt this year, achieving zero debt for the first time. This milestone highlights the company’s commitment to financial stability and long-term growth.
Strategic Fleet Management
The company maintained high period coverage of 70% for 2025 and secured over $150 million in future revenues. This strategic fleet management ensures a steady income stream and positions StealthGas well for future market opportunities.
Share Repurchase Program
Management allocated approximately $1.8 million to buy back shares, viewing it as a prudent use of liquidity. This move reflects confidence in the company’s financial position and commitment to enhancing shareholder value.
Eco Wizard Incident
The LPG carrier Eco Wizard suffered damage from explosions while in port, impacting its revenue generation. Previously contributing 8% of the company’s revenues, its temporary unavailability poses a significant challenge to StealthGas’s operational capacity.
Decrease in Net Income Compared to Last Year
Net income for Q2 2025 was $20.4 million, a 21% decrease from $25.8 million in the same quarter last year. This decline highlights the impact of operational challenges and market conditions on the company’s profitability.
Reduced Earnings from Joint Ventures
Earnings from joint ventures decreased significantly by $10.7 million due to a reduction in fleet size and the absence of large vessel sales that occurred last year. This reduction underscores the challenges faced in maintaining joint venture profitability.
Forward-Looking Guidance
Looking ahead, StealthGas maintains a positive outlook for the LPG shipping market, with expectations of increased chartering activity in the fourth quarter. The company emphasizes its strategic objective of deleveraging, having achieved a debt-free status for its fully owned fleet. Despite the challenges posed by the Eco Wizard incident, StealthGas is optimistic about securing future revenues and enhancing shareholder value.
In conclusion, StealthGas Inc’s earnings call highlighted a strong financial performance with record-breaking revenues and significant profit growth. The successful elimination of debt and strategic fleet management position the company well for future growth. However, challenges such as the Eco Wizard incident and reduced joint venture earnings remain areas to watch. Overall, the sentiment was positive, with a clear focus on strategic objectives and future market opportunities.