C3is Q1 2026 Earnings Report

C3is EPS Results

• Actual EPS: $5.24
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

C3is Revenue Results

• Actual Revenue: $23.15 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

C3is Announcement Details

• Quarter: Q1 2026
• Date: 5/19/2026
• Time: Before Market Opens
• Conference Call Date: Monday, May 18, 2026
• Conference Call Time: 10:00AM ET

C3is (NASDAQ:CISS) offers international seaborne transportation services. It provides its services to dry bulk charterers, including national and private industrial users, commodity producers and traders, oil producers, refineries, and commodities traders and producers. The company owns and operates a fleet of two drybulk carriers, which transport major bulks, such as iron ore, coal and grains, as well as minor bulks comprising bauxite, phosphate, and fertilizers, and one Aframax crude oil tanker that transports crude oil. C3is Inc. was founded in 2021 and is based in Athens, Greece.

C3is Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: C3is reported a strong Q1 2026 performance, with adjusted net income up 358% year over year to $5.5 million and adjusted EBITDA up 130% to $6.9 million.
• Positive Sentiment: Voyage revenues rose 34% to $11.6 million, helped by significantly higher charter rates, including a 99% increase in fleet TCE and a 106% increase in Aframax TCE versus Q1 2025.
• Positive Sentiment: The company ended Q1 2026 with $27 million in cash, up 82% from year-end 2025, and shareholders’ equity increased to $102.2 million.
• Positive Sentiment: C3is expanded its fleet by adding two product tankers, with the Clean Fury delivered in Q2 2026 and the second vessel expected in Q3 2026, bringing total capacity to 311,431 dwt.
• Neutral Sentiment: Management highlighted a supportive tanker and dry bulk market backdrop but also noted geopolitical disruptions in the Middle East and higher bunker costs, which are influencing trade flows and operating conditions.

Presentation

[Operator]

Good day and thank you for standing by. Welcome to the Q1 2026 Financial and Operating Results for C3is Conference call. At this time, all participants are in a listen-only mode. I would now like to hand the conference over to your speaker today, Dr. Diamantis Andriotis. Please go ahead.

[Diamantis Andriotis, CEO at C3is]

Good morning, everyone, and welcome to the C3is first quarter of 2026 earnings conference call and webcast. This is Dr. Diamantis Andriotis, CEO of the company. Joining me on the call today is our CFO, Nina Pyndiah. Before we commence our presentation, I would like to remind you that we will be discussing forward-looking statements, which reflect current views with respect to future events and financial performance and are based on current expectations and assumptions, which by nature are inherently uncertain and outside of the company's control. At this stage, if we could all take a moment to read our disclaimer on slide two of this presentation. I would also like to point out that all amounts quoted, unless otherwise clarified, are implicitly stated in U.S. dollars. We have today released our earnings results for first quarter of 2026.

[Diamantis Andriotis, CEO at C3is]

Let's proceed to discuss these results and update you on the company strategy and the market in general. Please turn to slide three, where we summarize and highlight the company's performance, starting with our financial highlights. For the first quarter of 2026, we reported an adjusted net income of $5.5 million compared to $1 million in 2025, an increase of 358%. Our voyage revenues came in at $11.6 million compared to $8.7 million in 2025, an increase of 34%. Our vessels net book value was $76 million in first quarter 2026 compared to a market value of $75.5 million. These values exclude the two new product tankers, as by the end of Q1 2026, no deliveries had been made yet.

[Diamantis Andriotis, CEO at C3is]

We had a cash balance of $27 million in first quarter 2026 compared to $14.9 million at year-end 2025, an increase of 82%. Our adjusted EBITDA was $6.9 million compared to $3 million for the same period in 2025, an increase of 130%. The TC rate of our Aframax tanker for Q1 2026 increased by 106% from Q1 2025 to $77,500. The TC rate of our fleet increased by 98.6% from first quarter 2025 to $32,000. The first of the two newly acquired product tankers was the Clean Fury delivered to us in Q2 2026, and the second one is expected in Q3 2026. Our fleet capacity has increased by 387% since inception.

[Diamantis Andriotis, CEO at C3is]

Slide four shows the Handysize demand and the time charter average rates, both of which have been heavily impacted by the Middle East conflict. As the war persists, the Strait of Hormuz enters yet another week of disruption. While a handful of vessels have managed to transit the strait and several nations are actively seeking diplomatic resolution with Iran, the overall impact of the dry bulk market is growing. Ongoing geopolitical tensions are influencing trade flows, input costs, and ton-mile demand, shaping the outlook for the sector. We expect a seasonal boost in iron ore trade. However the downside will be the rise in input costs resulting from the Middle East war. Coal prices remain elevated, a strong incentive for miners to export more. On the consumption side, coal maintains its competitive edge over gas for power generation.

[Diamantis Andriotis, CEO at C3is]

While we expect to see increased volumes for higher grade coal as this trend persists, it remains unclear how quickly producers can ramp up production to meet the demand. We have not seen a vessel carrying grains passing to the Persian Gulf since February 28. This could become a serious issue for Iran if this does not change over the coming weeks. Imports from Russia across the Caspian Sea are increasing. This is unlikely to be enough. The U.S. Department of Agriculture forecast Iran's grain consumption at 42 million tons this year, of which half will be imported, primarily seaborne. The livestock sector is reported to typically hold a few weeks of stocks, so over the coming weeks, we could begin to see disruption in food supply with Iran.

[Diamantis Andriotis, CEO at C3is]

The primary immediate impact from the conflict on the dry bulk market has been surging bunker costs and tightening prompt availability. Bunker suppliers have been advising clients to secure stems at least 10 days in advance across multiple bunkering hubs. A range of factors have helped to drive up the Handysize time charter average, which has increased from $9,400 for the period January to April 2025 to $12,700 for the same period in 2026, an increase of 35%. Various rounds of U.S.-China trade tensions have prompted China to buy more grains from Brazil.

[Diamantis Andriotis, CEO at C3is]

Russia's invasion of Ukraine saw significant Russia-Europe trade being replaced by long-haul Russian trade to Asia. More recently, the Houthis attacks in the Red Sea, leading ships to reroute the long way around the Cape of Good Hope and the conflict in the Middle East with the closure of the Strait of Hormuz, have had a direct impact on ton-mile growth rather than volume growth. Slide five shows the Handysize fleet values and age. Newbuilding activity declined in first quarter 2026 compared to fourth quarter 2025. The total number of vessels ordered in the previous quarter amounted to 185 vessels compared to 110 vessels this quarter.

[Diamantis Andriotis, CEO at C3is]

This in part could be explained by the U.S. Trade Representative plan to impose heavy port call fees on Chinese-built or Chinese-operated vessels, which caused global ship owners to pull back sharply on ordering new dry bulk ships from Chinese yards through much of the year. Moreover, uncertainty swirling around President Trump's tariffs and foreign policy also deterred owners from heading to the shipyards. After a strong backlash from the shipping industry and retaliatory measures from China by November 2025, the port fees had been effectively suspended. Yet the temporary policy, brief but significant, disrupted vessels ordering decisions mid-year, while high nominal newbuilding prices also had an impact. Long lead times for delivery of vessels due to shipyards being at full capacity has also discouraged newbuilding activity. On the fleet size, 33% of the fleet is above 15 years of age.

[Diamantis Andriotis, CEO at C3is]

The average age of the C3is Handy fleet is 15.13 years as at the end of first quarter 2026. The orderbook of the Handysize category stands at 265 vessels until 2028. This represents an orderbook-to-fleet ratio of 8.8%. On slide six, we present the Aframax LR2 spot rates and age. Aframax rates strengthened across the quarter. In the Atlantic, U.S. Gulf routes continued to rise and push to higher levels, while the Mediterranean also firmed on steady activity and the short position list. The segment exhibited strong upward momentum across key routes. The highest average rate was in the North Sea continent route at almost $120,000.

[Diamantis Andriotis, CEO at C3is]

The highest percentage increase in average rate was on the Caribbean-USG route, surging by 209% to an average of almost $110,000 per day. The highest daily rate recorded was on the Caribbean-USG route at $325,000 per day. With the market remaining tight in both basins, owners were supported throughout the period with the rate development reflecting tighter positioning and steady cargo flow. The Aframax LR2 global fleet stood at 1,220 vessels by the end of first quarter 2026. Of these, 292 vessels are over 20 years, accounting for 24% of the total number of vessels. The highest number of vessels was in the 15, 20 years category, accounting for 28% of the total.

[Diamantis Andriotis, CEO at C3is]

The age of our Aframax tanker as of March 31st, 2026, was 15.7 years. The fleet increased by 23 vessels during first quarter 2026, reflecting a change of 2%. Deliveries totaled 24 vessels, representing 2% of the starting fleet, all of which were delivered in the first quarter. Demolition remained limited, with one vessel scrapped, equivalent to 0.1% of the fleet. The current orderbook comprises 215 vessels, accounting for 17.6% of the existing fleet. Of these, 61 vessels or 5% of the fleet are scheduled for delivery later in 2026. Slide seven shows the MR2 product tanker rate profile and fleet growth. Demolition activity is expected to remain strong in the MR2 category. More vessels were built in the year, in the early 2000s compared to 1990s.

[Diamantis Andriotis, CEO at C3is]

90% of the trading fleet is over 20 years. 27% is between 15 and 19 years old. 21% is between 10 and 14 years old. 18% is five to nine years old, while 14% was less than five years. The orderbook to trading ratio is 15.7% in deadweight terms. Net MR2 fleet growth in 2025 was 4.7% year-on-year. The net fleet growth is expected to continue at around 6.5% in 2026 and then around 4.7% in 2027. The fleet growth forecast for 2026 to 2028 is based on the current orderbook after assuming slippage and expected demolition. Slide eight shows the fleet of C3is.

[Diamantis Andriotis, CEO at C3is]

At the end of first quarter 2026, C3is owned and operated a fleet of three Handysize dry bulk carriers and one Aframax oil tanker. As previously announced, the company has acquired two product tankers, one of which, the Clean Fury, was delivered at the beginning of second quarter 2026, and the second one is due in the third quarter 2026. With these additions, the fleet will increase its capacity to 311,431 deadweight, an increase of 387% from inception. All vessels have had their ballast water systems already installed. All the vessels are unencumbered and currently employed on short to medium-term period charters and spot voyages. None of the vessels were Chinese-built, hence not affected by the ongoing threat on tariffs and are of superior quality.

[Diamantis Andriotis, CEO at C3is]

Slide nine shows a sample of the international charters with whom the management company has developed strategic relationships and has experienced repeat business. Repeat business highlights the confidence our customers have for our operations and the satisfaction of the service we provide. The key to maintaining our relationships with these companies are high standards of safety and reliability of service. I will now turn over the call to Nina Pyndiah for our financial performance.

[Nina Pyndiah, CFO at C3is]

Thank you, Diamantis, and good morning to everyone. Please turn to slide 10, and I will go through our financial performance for the first three months of 2026. We reported voyage revenues of $11.6 million for the first quarter of 2026, compared to $8.7 million in Q1 2025, an increase of 34%. Our net revenues were $10.4 million compared to $5.8 million in 2025, an increase of 78%. The Time Charter Equivalent rates of our vessels were also positively impacted with an increase of 99% for the fleet and 106% for our Aframax tanker compared to Q1 2025. Voyage costs decreased by 57% from last year and was due to the decrease in bunker costs and port expenses.

[Nina Pyndiah, CFO at C3is]

The bunker cost decrease was a result of more time and spot charters where the charterer pays the fuel cost. Voyage expenses for the three months ended March 31, 2026 included bunker cost and port expenses of $0.5 million and $0.3 million respectively, corresponding to 42% and 25% of total voyage expenses since the vessel, Afrapearl II, operated in the spot market. Operating expenses for the three months ended March 31, 2026 mainly included crew expenses of $1.2 million, corresponding to 48% of total operating expenses, spares and consumable costs of $0.6 million, corresponding to 24% of total vessel operating expenses, and maintenance expenses of $0.3 million, representing works on, and repairs on the vessel, corresponding to 12% of total vessel operating expenses.

[Nina Pyndiah, CFO at C3is]

We reported $211,000 as interest income, an increase of 41% from last year due to a higher balance of funds placed under time deposit. Loss on warrants for the three months ended March 31, 2026 was $2.3 million, whereas there was a gain on the warrants for the three months ended March 31, 2025 of $6.9 million. This change related to the net fair value losses on our warrants and were classified as liabilities. This is a non-cash item and does not reflect our operational performance. Our adjusted EBITDA came in at $6.9 million for Q1 2026 compared to $2.9 million for Q1 2025, an increase of 130%. We reported a net income of $3.2 million and an adjusted net income of $5.5 million.

[Nina Pyndiah, CFO at C3is]

The latter represents an increase of 358% from Q1 2025. We achieved a fleet operational utilization of 85% in Q1 2026. Turning to slide 11 for the balance sheet, we had a cash balance of $27 million, an increase of 82% from year-end 2025, in spite of the full payment of the 90% of the purchase price of the Eco Spitfire of $15.1 million in Q2 2025. Other current assets consisted mainly of receivables of $2.6 million and inventories of $900,000. The vessel's net value of $76 million are for the four vessels, less depreciation. Vessels market values were $75.5 million. Trade accounts payable of $1.9 million are balances due to suppliers and brokers. $1.2 million from this balance has currently been paid off.

[Nina Pyndiah, CFO at C3is]

Payable to related party of $790,000 represents the balance due to the management company, Brave Maritime. The warrant liability of $1.7 million relates to the net fair value difference on non-exercised warrants as of March 31, 2026. This is a non-cash item. Our shareholders' equity is at a robust $102.2 million as of Q1 2026, compared to $95.1 million as of year-end 2025. Concluding the presentation on slide 12, we outline the key variables that will assist us progress with our company's growth. Owning a high quality fleet reduces operating costs, improves safety, and provides a competitive advantage in securing favorable charters. We maintain the quality of the vessel by carrying out regular inspections, both while in port and at sea, and adopting a comprehensive maintenance program for each vessel.

[Nina Pyndiah, CFO at C3is]

None of our vessels were built from Chinese shipyards, therefore, any potential U.S. tariffs on Chinese-built ships are not expected to have any impact on our fleet. The company's strategy is to follow a disciplined growth with in-depth technical and condition assessment review. Equity issuances will continue as management is continuously seeking a timely and selective acquisition of quality non-Chinese built vessels with current focus on short to medium charters and spot voyages. Following on with this strategy, the company has added two product tankers to the fleet, one of which was delivered at the start of Q2 2026, and the second one expected in Q3 2026. We always charter to high quality charterers such as commodity traders, industrial companies, and oil producers and refineries. Despite having increased our fleet by 387% since inception, the company has no bank debt.

[Nina Pyndiah, CFO at C3is]

No interest were charged by the affiliated sellers on the purchase prices of the Afrapearl II, the Eco Spitfire, and the two recently acquired product tankers. Our upcoming CapEx obligations will be $39.7 million due on the two product tankers payable in January 2027. At this stage, our CEO, Dr. Diamantis Andriotis, will summarize the concluding remarks for the period examined.

[Diamantis Andriotis, CEO at C3is]

For the first three months of 2026, we reported an adjusted net income of $5.5 million, an increase of 358% from 2025, an adjusted EBITDA of $6.9 million, an increase of 130%, and a cash balance of $27 million, an increase of 82% from year-end 2025, despite paying off the remaining balance of $15.1 million that was due on the Eco Spitfire in Q2 2025. At the start of Q2 2026, we took delivery of the first of the two product tankers recently acquired, with the second one expected in Q3 2026. We are fully delevered, thus significantly enhancing our financial flexibility. C3is's financial landscape is seeing dynamic shifts following its current expansion efforts.

[Diamantis Andriotis, CEO at C3is]

This will be critical for building future competitive resilience as adding product tankers to the fleet enhances operational diversity, thus exposing the company to the growing tanker market, a sector ripe with potential. This will allow the company to capitalize on booming charter rates, leading to a possible surge in revenues. We would like to thank you for joining us today and look forward to having you with us again at our next call for the results of the second quarter of 2026.

[Operator]

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

Participants

Executives

• Diamantis Andriotis, CEO
• Nina Pyndiah, CFO