Costamare Q1 2025 Earnings Report

Costamare EPS Results

• Actual EPS: $0.61
• Consensus EPS: $0.52
• Beat/Miss: Beat by +$0.09
• One Year Ago EPS: N/A

Costamare Revenue Results

• Actual Revenue: $440.54 million
• Expected Revenue: $330.14 million
• Beat/Miss: Beat by +$110.40 million
• YoY Revenue Growth: N/A

Costamare Announcement Details

• Quarter: Q1 2025
• Date: 5/8/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, May 8, 2025
• Conference Call Time: 8:30AM ET

Costamare (NYSE:CMRE) owns and operates containerships and dry bulk vessels that are chartered to liner companies providing transportation of cargoes worldwide. As of March 19, 2024, it had a fleet of fleet of 68 containerships and 37 dry bulk vessels. The company was founded in 1974 and is based in Monaco.

Costamare Q1 2025 Earnings Call Transcript

Key Takeaways

• First-quarter net income was €95 million (€0.79/share) with adjusted net income of €73 million (€0.61/share).
• Successfully completed the spin-off of Costamare Bulkers, distributing one share of the new drybulk company for every five Costamare shares to unlock hidden value.
• Container shipping business has 100% fixed revenue days for 2025 and 73% for 2026, with €2.3 billion of contracted revenues and an average remaining charter duration of 3.3 years.
• Drybulk sector faced a challenging start, but Capesize rates rebounded strongly in March and Panamax activity recovered post-Chinese New Year on improved shipments and tighter vessel availability.
• Maintained strong liquidity of over €1 billion, refinanced vessels without increasing leverage, and has no significant debt maturities until 2027.

Presentation

[Operator]

Thank you for standing by, ladies and gentlemen, and welcome to the Costamare Inc. Conference Call on the First Quarter twenty twenty five Financial Results. We have with us Mr. Gregory Zikos, Chief Financial Officer of the company. At this time, all participants are in a listen only mode.

[Operator]

There will be a presentation followed by a question and answer session. I must advise you that this conference is being recorded today, Thursday, 05/08/2025. We would like to remind you that this conference call contains forward looking statements. Please take a moment to read Slide number two of the presentation, which contains the forward looking statements. And I will now pass the floor to your speaker today, Mr. Zikos. Please go ahead, sir.

[Gregory Zikos, CFO & Director at Costamare]

Thank you, and good morning, ladies and gentlemen. During the first quarter of the year, the company generated net income of about €95,000,000 As announced on May 7, we have successfully completed the spin off of Costamare Bulkers, which encompasses the 37 owned dry bulk vessels as well as the CBI operating platform. Costa Amare Inc. Remains the same re sole shareholder of the six ks container ships as well as the controlling shareholder of Neptune Maritime Blazing. This business separation unlocks hidden value and better positions the two separate listed companies to pursue distinct operating and strategic initiatives in the containership and the drybulk sectors.

[Gregory Zikos, CFO & Director at Costamare]

Regarding the containership market, while geopolitical challenges economic uncertainties impact global trade, demand for containership vessels has had to now maintain momentum. The commercially idle fleet remains below 1%, indicating a fully employed market. Regarding the proposed USTR fees, fleet redeployments and network reorganizations may initially result in inefficiencies boosting furnace demand. Our eco tenancy fleet employment stands at 73% for 2025 and 2026, respectively. Total contracted revenues amount to €2,300,000,000 with the remaining time charter duration of three point three years.

[Gregory Zikos, CFO & Director at Costamare]

For the drybulk sector, both Capesize and Panamax markets experienced a challenging start of the year. The Cape market rebounded strongly in March, supported by improved Australian and Brazil iron ore shipments and tighter vessel availability. The Panamax activity picked up as expected post Chinese New Year, supported by recovering grain flows. Finally, with regards to Neptune Multi Time Leasing, the leasing platform, total investments and commitments are exceeding $530,000,000 with a healthy pipeline. Moving now to the slides presentation.

[Gregory Zikos, CFO & Director at Costamare]

On Slide three, you can see our first quarter results. Net income for the quarter was $95,000,000 or $0.79 per share. Adjusted net income was €73,000,000 or $0.61 per share. Our liquidity stands at above $1,000,000,000 Slide four. We have concluded successfully the spin off of our drybulk business.

[Gregory Zikos, CFO & Director at Costamare]

Every Costa Amari Inc. Shareholder will be receiving as dividend one share of Costa Amari Parkers for every five shares of Costa Amari Inc. Turning to the Container Ship side. Our revenues days are fixed, as already mentioned, 100% for 2025 and seventy three percent for 2026, while our contracted revenues are €2,300,000,000 with a TEU weighted remaining time charter duration of about three point three years. Slide five.

[Gregory Zikos, CFO & Director at Costamare]

Regarding our SAP activity for the Span of Dry business, we have concluded the sale of one Panamax ship and agreed to sell one handysize vessel. Vessel proceeds are expected to be used for the acquisition of larger vessels subject to market conditions. Slide six. Regarding our financing arrangements, we have refinanced our contingency vessel with no increased leverage, but with a maturity extension. The remaining company has no major maturities until 2027.

[Gregory Zikos, CFO & Director at Costamare]

On the drybulk side, we have repurchased $150,000,000 of bank debt, and we have entered into a new hunting license facility of up to $100,000,000 for financing of future acquisitions. Moving to Slide seven. Regarding the CBI fleet, we have chartered in 48 period ships with the majority of the fleet being on index linked agreements. On our leasing platform, we have invested around 123,000,000 NML is financing 41 assets for a total amount of $513,000,000 Moving to Slide eight. Charter rates in the contingency market remain at firm levels.

[Gregory Zikos, CFO & Director at Costamare]

Possible large scale fleet deployments due to the proposed USTR fees may create inefficiencies favorable to the current strong market dynamics. The early fleet remains at low levels at around 0.5%, indicating a fully employed market. And finally, on Slide nine, you can see the recent drybulk market trends in the spot and forward markets. Charter rates have recovered from their lows in February. The order book is at around 10% of the total fleet.

[Gregory Zikos, CFO & Director at Costamare]

With that, we conclude our presentation and we can now take questions. Thank you. Operator, we can take questions now.

[Operator]

Thank Seeing no questions at this time, I would like to pass the call back to Mr. Zikos for closing remarks.

[Gregory Zikos, CFO & Director at Costamare]

Thank you for dialing in today and for your interest We are looking forward to speaking with you again in the next quarterly results call. Thank you. Operator, I think we have concluded. Thank you.

[Operator]

Thank you. That does conclude our conference for today. Thank you all for participating. You may now disconnect your lines.

Participants

Executives

• Gregory Zikos, CFO & Director