EuroDry (NASDAQ:EDRY) reported a return to profitability in the first quarter of 2026, supported by stronger charter rates despite operating a smaller average fleet than a year earlier, while management said it is expanding its newbuilding program with two additional Kamsarmax bulk carriers.
Chairman and Chief Executive Officer Aristides Pittas said the dry bulk owner generated total net revenues of $12.8 million for the three months ended March 31, 2026. Net income attributable to controlling shareholders was $0.26 million, or $0.09 per diluted share. Adjusted net income attributable to controlling shareholders was $0.33 million, or $0.12 per diluted share, and adjusted EBITDA was $4.9 million.
Finance and Investment Manager Athina Talioti said net revenues rose 38.9% from $9.71 million in the first quarter of 2025, primarily because of higher time charter rates, partly offset by a lower average number of vessels owned and operated. The company reported a net loss attributable to controlling shareholders of $3.7 million in the prior-year quarter.
Higher Charter Rates Drive Improved Results
Talioti said EuroDry operated an average of 11 vessels during the first quarter, compared with 12.8 vessels in the same period of 2025. The fleet earned an average time charter equivalent rate of $14,416 per vessel per day, more than double the $7,167 per vessel per day recorded a year earlier.
Commercial utilization was 100% during the quarter, while operational utilization was 99.7%, resulting in overall utilization of 99.7%. That compared with commercial utilization of 98.4%, operational utilization of 99% and overall utilization of 97.4% in the first quarter of 2025.
Total operating expenses, including management fees and general and administrative expenses but excluding dry docking costs, were $7,479 per vessel per day, up modestly from $7,304 per vessel per day a year earlier. Talioti said the daily cash loan breakeven rate was $12,514 in the first quarter, while the achieved TCE rate “comfortably” exceeded that level.
Interest and other financing costs fell to $1.5 million from $1.8 million in the prior-year period, which Talioti attributed mainly to a lower benchmark rate and lower average debt. The 2025 quarter also included a $2.1 million gain from the sale of the vessel Tasos, while there were no vessel sales in the 2026 quarter.
Company Adds Two Kamsarmax Newbuildings
Pittas said EuroDry has decided to expand its newbuilding program by ordering two 82,000-deadweight-ton eco Kamsarmax bulk carriers from Hengli Shipbuilding. The vessels are expected to be built to EEDI Phase 3 standards and delivered in the first and second quarters of 2028.
The total contract value is approximately $74 million and will be financed through a combination of debt and equity, Pittas said. The contracts are conditional on EuroDry receiving a refund guarantee from a bank acceptable to the company.
The new Kamsarmax orders add to two 63,500-deadweight-ton Ultramax vessels already under construction, scheduled for delivery in the second and third quarters of 2027. EuroDry’s current fleet consists of 11 vessels with an average age of about 13.8 years and total carrying capacity of approximately 707,000 deadweight tons. After all four newbuildings are delivered, Pittas said the fleet will grow to 15 vessels with total carrying capacity of approximately 1.05 million deadweight tons.
“Once all 4 vessels are delivered, our fleet will be composed almost entirely of modern ships, the majority of which have been built for us directly,” Pittas said.
Chartering Strategy Keeps Exposure to Market
EuroDry’s chartering activity in the first quarter was predominantly short term, Pittas said. Four vessels are employed on index-linked charters at 115% of the average Baltic Supramax Time Charter Index, while seven vessels are on trip-time charters ranging from roughly one month to just over three months. The Christos K is on a longer time charter through December.
The company had no idle or commercial off-hire periods during the quarter. The vessel Xenia underwent dry docking for about 28 days from Dec. 18, 2025, to Jan. 15, 2026.
Pittas said EuroDry had hedged “a very small part” of its exposure using forward freight agreements, but those hedges were not in the money because the market proved stronger than management had forecast. The company sold 90 days of the Kamsarmax index for the second quarter at $19,240 per day and additional third-quarter exposure at $17,250 and $17,100 per day, each equivalent to one vessel.
Talioti said fixed-rate contract coverage for the remainder of 2026 was about 23%, including approximately 50% in the second quarter, 15% in the third quarter and very little in the fourth quarter. She said the approach reflected management’s expectation for a positive market, consistent with forward freight markets. At current FFA rates as of the company’s presentation, Talioti said EuroDry’s annualized EBITDA would be expected to be $34 million, with each $1,000-per-day change in average open-day earnings affecting 2026 EBITDA by about $2.2 million.
Management Sees Stronger Near-Term Dry Bulk Market
Pittas said Panamax spot rates improved from an average of about $13,290 per day during the first quarter to approximately $14,750 per day by the end of March, and then strengthened to about $22,300 per day by the week before the call. Clarksons assessed the standard Panamax one-year time charter rate at about $18,000 per day as of May 15.
Management described the start of 2026 as stronger than expected for dry bulk markets, with Supramax and Panamax time charter rates rising about 8% from the fourth quarter of 2025 and reaching their strongest levels in two years. Pittas cited stronger iron ore, grain and bauxite export volumes as supporting demand, while also noting uncertainty around Chinese iron ore demand and steel output.
Clarksons projects dry bulk trade growth of approximately 2.5% in 2026 and 1.3% in 2027, according to Pittas. On the supply side, the dry bulk orderbook stood at about 13.2% of the existing fleet as of May 2026, which Pittas said remains low by historical standards despite rising from the 2021 cyclical low.
Pittas said EuroDry’s base case assumes a moderately softer market environment in 2027, with fleet growth likely to outpace trade growth. However, he said factors including Middle East conflict dynamics, the Simandou iron ore project, Chinese demand, coal policy, vessel speeds and demolition activity could influence the balance.
Buybacks, NAV Discount and Balance Sheet Discussed
EuroDry has repurchased 348,000 shares for $5.6 million under a share repurchase plan of up to $10 million that was originally announced in August 2022 and extended through August 2026. Pittas said repurchases are executed in a “disciplined and measured manner” at management’s discretion.
Talioti said cash and other assets were approximately $31.6 million as of March 31, 2026, while advances for newbuildings were approximately $14.4 million and the book value of vessels was approximately $163.1 million. Shareholders’ equity on a book-value basis was approximately $93.8 million, or $32.45 per share. Based on internal estimates and external valuations, the company estimated its fleet market value at approximately $226.9 million, implying an estimated net asset value above $52.77 per share.
During the question-and-answer session, Pittas said EuroDry does not intend to use pre-delivery financing for the new Kamsarmax vessels and expects delivery financing of about 60%, citing ample bank financing availability. Asked about balancing buybacks and fleet expansion, he said the company is continuing repurchases because the share price is low, but is also mindful of maintaining and improving stock liquidity.
Pittas also said older Panamax vessels in the fleet could become sale candidates, though they are currently earning significant time charter equivalents near $20,000 per day. He said management may decide toward the third quarter whether to dispose of one of them.
In closing, Pittas said management expects the second quarter to be “a pretty good quarter” based on current market conditions.
About EuroDry (NASDAQ:EDRY)
EuroDry Limited is a Marshall Islands–incorporated shipping company, formed in 2005 and headquartered in Piraeus, Greece. The company is publicly traded on the NASDAQ under the symbol EDRY. Since its inception, EuroDry has focused exclusively on the marine transportation of drybulk commodities and has grown its fleet through a combination of newbuilding contracts and second-hand acquisitions.
As of mid-2024, EuroDry's operating fleet comprises Capesize, Panamax and Supramax drybulk carriers, collectively providing over one million deadweight tons (dwt) of capacity.
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