First Quarter 2026 Financial Highlights:
Total net revenues of $55.8 million. Net income of $32.5 million or $4.67 and $4.65 earnings per share basic and diluted, respectively. Adjusted net income1 for the period was $32.9 million or $4.72 and $4.70 per share basic and diluted, respectively.
Adjusted EBITDA1 was $40.9 million.
An average of 21.0 vessels were owned and operated during the first quarter of 2026 earning an average time charter equivalent rate of $30,354 per day.
Declared a quarterly dividend of $0.80 per share for the first quarter of 2026 payable on or about June 16, 2026 to shareholders of record on June 9, 2026, as part of the Company's common stock dividend plan.
As of May 21, 2026 we had repurchased 480,460 of our common stock in the open market, representing about 6.8% of the outstanding shares, for a total of about $11.36 million, under the share repurchase plan of up to $20 million announced in May 2022. The Board approved the continuation of the share repurchase plan for a further year in May 2026 and will review it again after a period of twelve months
Recent developments:
On May 4, 2026, Euroseas formed a joint venture with a group of investors represented by NRP Project Finance AS ("NRP Investors") in relation to the ownership of the third 4,484 TEU vessel in the series of four 4,484 TEU vessels announced on August 25, 2025. The vessel, M/V Thrylos, is expected to be delivered in the first quarter of 2028 Under the terms of the transaction, the NRP Investors will acquire a 49% ownership interest in the vessel for total consideration of approximately $12.2 million, including certain transaction structuring costs, with the assumption that the vessel will be financed with at least 60% of debt.
________________1 Adjusted EBITDA, Adjusted net income and Adjusted earnings per share are not recognized measurements under US GAAP (GAAP) and should not be used in isolation or as a substitute for Euroseas financial results presented in accordance with GAAP. Refer to a subsequent section of the Press Release for the definitions and reconciliation of these measurements to the most directly comparable financial measures calculated and presented in accordance with GAAP.
Aristides Pittas, Chairman and CEO of Euroseas commented: "We are pleased to report the financial results for one of the most profitable quarters of the last fifteen years. This was the result of our solid contracts at very profitable rates and low drydocking expenses incurred during the period. Throughout the first quarter of 2026 and in April and May 2026 to date, containership charter rates maintain their high levels. Container freight rates also maintained their level during the first quarter of 2026 and, subsequently, increased notably in April and May. Secondhand prices have remained elevated at near record levels since their recent peak in 2022.
"Our latest charter fixtures have confirmed the continuing strength of the market. With the last charters just announced today, we have [$650m] contracted revenues backlog over the next five years. Our coverage is over 90% for the rest of 2026, 88% for 2027 and 48% for 2028 ensuring that our profitability will remain strong regardless of the levels that expiring charters will be renewed at.
"During the first quarter of 2026, the shipping and macroeconomic environment we operate in has become even more uncertain due to the Iran war and the practical closure of the Strait of Hormuz. Although the near-term effect of these developments on shipping are positive due to the inefficiencies introduced in the transport of goods and the necessary vessel rerouting, the medium-term risks of increased inflation and world economic slowdown are negative factors for our industry. Other trade-related matters like the almost forgotten by now US imposed tariffs can only add to the overall uncertainty. In addition to the above, the containership market has to cope with an increasing orderbook across all segments. Still though, feeders and intermediate containerships are to face a much better supply side situation with their segment fleets likely to shrink over the next 2-3 years rather than grow as the great majority of the new orders are for larger vessels.
"We feel that the very high secondhand prices of containerships make the acquisition of secondhand vessels, less attractive. However, we feel that there is an opportunity to invest in building new vessels, the price of which is less volatile. We decided to expand our newbuilding program by adding four new shipbuilding contracts to our existing orderbook of six vessels bringing our total number of vessels on order to ten. This ten-vessel newbuilding program complements the previous nine-vessel newbuilding program we completed in early 2025. When all the ten vessels are delivered, we will have one of the youngest feeder and intermediate containership fleets amongst our peers.
"Finaly, I am also pleased to announce that our balance sheet strength and contracted revenues backlog provide us with sufficient comfort to increase the rewards to our shareholders by increasing our dividend by 6.7% to $0.80 per share providing an annualized yield of between 4.5-5% on the recent range our share price trades."
Tasos Aslidis, Chief Financial Officer of Euroseas commented: "Our revenues for the first quarter of 2026 are slightly decreased by approximately 1% compared to the same period of 2025. The Company operated an average of 21.0 vessels, versus 23.68 vessels during the same period last year. At the same time the average time charter rates our vessels earned in the first quarter of 2026 increased by 10.1% compared to the same period of last year. Net revenues amounted to $55.8 million for the first quarter of 2026 compared to $56.3 million for the first quarter of 2025.
"Total daily vessel operating expenses, including management fees, general and administrative expenses, but excluding drydocking costs, increased by approximately 5.0%, during the first quarter of 2026 compared to the same quarter of last year. This increase is mainly attributable to the softening of the USD which increases the dollar costs of our euro denominated costs. "Adjusted EBITDA1 during the first quarter of 2026 was $40.9 million compared to $37.1 million achieved in the first quarter of last year.
"As of March 31, 2026, our outstanding bank debt (before deducting the unamortized loan fees) was $213.3 million, versus restricted and unrestricted cash of approximately $161.4 million. As of the same date, our scheduled debt repayments over the next 12 months amounted to about $18.7 million (excluding the unamortized loan fees)."
First Quarter 2026 Results:For the first quarter of 2026, the Company reported total net revenues of $55.8 million representing a 1% decrease over total net revenues of $56.3 million during the first quarter of 2025. On average, 21.0 vessels were owned and operated during the first quarter of 2026 earning an average time charter equivalent rate of $30,354 per day compared to 23.68 vessels in the same period of 2025 earning on average $27,563 per day. The Company reported net income for the period of $32.5 million, as compared to net income of $36.9 million for the first quarter of 2025.
Voyage expenses for the first quarter of 2026 amounted to $0.2 million remaining at the same levels compared to the same period of 2025 and related to owners' expenses incurred in various ports.
Vessel operating expenses for the first quarter of 2026 amounted to $11.2 million as compared to $12.3 million for the same period of 2025. The decreased amount is due to the lower number of vessels owned and operated in the first quarter of 2026 compared to the corresponding period of 2025.
Vessel depreciation expense for the first quarter of 2026 amounted to $6.7 million compared to $8.0 million for the same period of 2025 due to the decreased number of vessels in the Company's fleet.
Despite the decreased numbers of vessels owned and operated, related party management fees for the first quarter of 2026 were $2.0 million, at the same level compared to the first quarter of 2025. This was the result of the adjustment for inflation in the daily vessel management fee, effective from January 1, 2026, increasing it from 840 Euros to 875 Euros, and the softening of the euro/dollar exchange rate during the period.
In the first quarter of 2025, we recorded a $10.23 million gain on the sale of M/V "Diamantis" that was completed in January 2025. No such case existed in the first quarter of 2026.
In the first quarter of 2026 none of our vessels was drydocked. The total cost of $0.05 million for the quarter relates to supplies performed for upcoming drydocks. In the first quarter of 2025 two of our vessels completed extensive repairs afloat for a total cost of $1.8 million.
General and administrative expenses slightly decreased to $1.7 million in the first quarter of 2026, as compared to $1.8 million in the first quarter of 2025 due to decreased professional fees.
Other operating income of $0.16 million recognized in the first quarter of 2026 refers to a settlement and closure of a claim with a charterer. No such case existed in the respective period of 2025.
Interest and other financing costs for the first quarter of 2026 amounted to $3.0 million. For the same period of 2025 interest and other financing costs amounted $3.9 million and the capitalized interest charged on the cost of our newbuilding program was $0.1 million. This decrease is due to the decreased benchmark rates of our loans and the decreased amount of debt in the current period compared to the same period of 2025.
For the three months ended March 31, 2026, the Company recognized a $0.3 million unrealized loss on its investments in equity securities. This was the result of an investment in equity securities with an initial cost of $20.0 million acquired in the first quarter of 2026 and fair valued at $19.7 million as of the end of the reporting period. This investment was made as part of the Company's short-term cash and liquidity management strategy, in the context of which the Company also acquired debt securities of initial cost of $20.0 million and fair valued at $19.2 million as of March 31, 2026, classified as available-for-sale under US GAAP, for which an unrealized loss of $0.8 million was recorded in "Other comprehensive loss".
For the three months ended March 31, 2025, the Company recognized a $0.17 million loss on its interest rate swap contract, comprising a $0.07 million realized gain and a $0.24 million unrealized loss. The specific contract was closed within the year 2025 and no such case existed in the first quarter of 2026.
Adjusted EBITDA1 for the first quarter of 2026 was $40.9 million, compared to $37.1 million achieved for the first quarter of 2025.
Basic and diluted earnings per share for the first quarter of 2026 was $4.67 and $4.65, respectively, calculated on 6,962,481 basic and 6,990,935 diluted weighted average number of shares outstanding compared to basic and diluted earnings per share of $5.31 and $5.29, respectively for the first quarter of 2025, calculated on 6,958,137 basic and 6,974,994 diluted weighted average number of shares outstanding.
The adjusted earnings per share for the quarter ended March 31, 2026, would have been $4.72 and $4.70 per share basic and diluted, respectively, compared to adjusted earnings of $3.76 per share basic and diluted for the first quarter of 2025. Usually, security analysts include Adjusted Net Income in their determination of published estimates of earnings per share.
Fleet Profile: The Euroseas Ltd. fleet profile as of May 21, 2026 is as follows:
Name
Type
Dwt
TEU
Year Built
Employment(*)
TCE Rate ($/day)
Container Carriers
SYNERGY BUSAN (*)
Intermediate
50,727
4,253
2009
TC until Dec-27
$35,500
SYNERGY ANTWERP (*)
Intermediate
50,727
4,253
2008
TC until May-28
$35,500
SYNERGY OAKLAND (*)
Intermediate
50,788
4,253
2009
TC until May-26 then until Mar-29
$42,000$33,500
SYNERGY KEELUNG (*)
Intermediate
50,697
4,253
2009
TC until Jun-28
$35,500
EMMANUEL P (*)
Intermediate
50,796
4,250
2005
TC until Sep-28
$38,000
RENA P (*)
Intermediate
50,765
4,250
2007
TC until Jul-28
$35,500
EM KEA (*)
Feeder
42,165
3,100
2007
TC until Jul-26then until Jul-29
$19,000$30,000
GREGOS (*)
Feeder
38,733
2,800
2024
TC until Mar-29
$30,000
TERATAKI (*)
Feeder
38,733
2,800
2024
TC until Jul-26Then until Jun-29
$48,000$30,000
TENDER SOUL (*)
Feeder
38,733
2,800
2024
TC until Oct-27
$32,000
LEONIDAS Z (*)
Feeder
38,733
2,800
2024
TC until May-26Then until Apr-29
$20,000$30,000
DEAR PANEL(*)
Feeder
38,733
2,800
2025
TC until Nov-27
$32,000
SYMEON P(*)
Feeder
38,733
2,800
2025
TC until Nov-27
$32,000
PEPI STAR(*)
Feeder
22,563
1,800
2024
TC until Jun-26
$24,250
EVRIDIKI G (+)
Feeder
34,654
2,556
2001
TC until Jun-26
$29,500
EM CORFU (*)
Feeder
34,649
2,556
2001
TC until Aug-26
$28,000
MONICA (*)
Feeder
22,563
1,800
2024
TC until May-27
$23,500
STEPHANIA(*)
Feeder
22,563
1,800
2024
TC until May-26
$22,000
EM SPETSES (*)
Feeder
23,224
1,740
2007
TC until Feb-28
$21,500
JONATHAN P (*)
Feeder
23,732
1,740
2006
TC until Oct-26
$25,000
EM HYDRA (*)
Feeder
23,351
1,740
2005
TC until May-27
$19,000
Total Container Carriers
21
786,362
61,144
Note: (*) TC denotes time charter. All dates listed are the earliest redelivery dates under each TC unless the contract rate is lower than the current market rate in which cases the latest redelivery date is assumed; vessels with the latest redelivery date shown are marked by (+).
Vessels under construction
Type
Dwt
TEU
To be delivered
Employment
TCE Rate ($/day)
ELENA (H1711)(**)
