Euroseas reports Q2 adjusted EPS $4.23, consensus $3.47

Reports Q2 revenue $57.2M, consensus $54.67M. Aristides Pittas, Chairman and CEO of Euroseas (ESEA), commented: “During the second quarter of 2025, the containership market continued its upward climb exceeding peak levels reached during 2024 in most cases. Although the number of charter transactions reported cooled off during July and early August, this was mostly due to lack of vessels rather than lack of interest. The strength of the market, especially for the feeder sector, was evidenced by long charter commitments by top quality charterers. Our vessels, all being fixed at highly profitable rates, have enabled us to produce one of our best quarterly results of the last five years in terms of adjusted earnings per share. Having charter coverage of almost 90% at similar rates over the next twelve months and assuming conservative rates for any re-charter renewals, we should be able to continue enjoying profitability at similar levels. “As we have discussed in the past, the challenges the overall containership market faces are mainly centered around supply growth as the overall orderbook stands at almost 30% of the fleet. When the bulk of this orderbook is delivered in late 2026 and 2027 there could be rate pressures, in particular, if at the same time certain geopolitical issues -like the situation in the Red Sea- are resolved and, consequently, fewer ships are required to carry the containerized trade. On the flipside, the supply situation for feeder and intermediate segments, where we operate, is opposite to that of the overall fleet, i.e. fleet size will likely shrink, as these segments have still a low orderbook and a rather aged fleet profile, providing an advantage to owners like us. Trade wars and the uncertainty surrounding the new tariff regimes plus the still unfolding effect of the environmental regulations make the overall operating framework volatile in economic terms but, at the same time, potentially, very rewarding. “We are committed to sail through the above environment by focusing on modernizing and upgrading our fleet as has been evidenced by our continuing newbuilding and retrofit programs while at the same time we look for accretive opportunities to invest in and, of course, continue to reward our shareholders. In that context, our Board has decided to increase our quarterly dividend by $0.05 to $0.70 per share maintaining an annualized yield in excess of 5.5% against our recent share price levels. We are also continuing to use our share buyback program, as our shares still trade at a substantial discount to our net asset value, despite the visibility of our revenues and earnings. As always, we remain committed to identifying attractive investment opportunities that enhance shareholder value and drive sustainable returns.”