Euroholdings Q2 2026 Earnings Report

Euroholdings EPS Results

• Actual EPS: $1.52
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Euroholdings Revenue Results

• Actual Revenue: $8.60 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Euroholdings Announcement Details

• Quarter: Q2 2026
• Date: 8/12/2026
• Time: Before Market Opens
• Conference Call Date: Wednesday, August 12, 2026
• Conference Call Time: 10:30AM ET

Euroholdings (NASDAQ:EHLD) (the "Company"), was incorporated on March 20, 2024 under the laws of the Republic of the Marshall Islands. The Company was incorporated by Euroseas Ltd. (NASDAQ: ESEA, or "Euroseas") to serve as the holding company of three subsidiaries that were spun-off by Euroseas to Euroholdings on March 17, 2025. Euroholdings Ltd. is a provider of worldwide ocean-going transportation services. The Company’s operations are managed by Eurobulk Ltd. an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. The Company has a fleet of 2 feeder containership vessels with a cargo capacity of 40,882 dwt, or 3,171 teu.

Euroholdings Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Second-quarter results improved sharply: Net revenue rose 200% year over year to $8.6 million, while net income increased to $4.3 million, or $1.52 per share, supported by a larger fleet and higher time-charter earnings.
• Positive Sentiment: Euroholdings declared its sixth consecutive quarterly dividend of $0.14 per share, representing an annualized yield of approximately 6.7% based on recent trading levels.
• Positive Sentiment: The company expects to complete its transition toward product tankers with delivery of the Hellas Fighter by September 2026, while maintaining the two containerships under potentially improved one- to two-year charter extensions.
• Positive Sentiment: Management sees constructive medium-term MR tanker fundamentals, citing an aging fleet, a relatively lean 16.5% order book, longer trade routes, geopolitical trade disruptions and potential inventory rebuilding.
• Negative Sentiment: Tanker earnings remain highly volatile: Hellas Avatar rates reportedly moved from about $75,000 per day to much lower levels, and management now uses a normalized projection of roughly $25,000-$30,000 per day; additional fleet growth may also require creative financing because internal equity supports at most about one more vessel.

Presentation

[Operator]

Thank you for standing by, ladies and gentlemen, and welcome to the Euroholdings conference call on the second quarter 2026 financial results. We have with us Mr. Aristides Pittas, Chairman and Chief Executive Officer, and Mr. Tasos Aslidis, Chief Strategy Officer. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question and answer session. At which time, if you wish to ask a question, please press star one on your telephone keypad and wait for the message advising that your line is open. I must advise you that this conference is being recorded today. Please be reminded that the company announced their results with a press release that has been publicly distributed. Before passing the floor to Mr. Pittas, I would like to remind everyone that in today's presentation, Euroholdings will be making forward-looking statements.

[Operator]

These statements are within the meaning of the federal securities laws. Matters discussed may be forward-looking statements, which are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. I kindly draw your attention to slide number two of the webcast presentation, which has the full forward-looking statement, and the same statement was also included in the press release. Please take a moment to go through the whole statement and read it. Now I would like to pass the floor to Mr. Pittas. Please go ahead, sir.

[Aristides Pittas, Chairman and CEO at Euroholdings]

Good morning, ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. Together with me is Tasos Aslidis, our Chief Strategy Officer and Treasurer. The purpose of today's call is to discuss our financial results for the three and six-month period ended June 30, 2026. Let's turn to slide three. We remind our listeners that Euroholdings was spun off from Euroseas on March 17, 2025, and began trading on the Nasdaq under the symbol EHLD the following day. We started off with two debt-free container vessels, the MV Aegean Express and MV Joanna, along with $14 million in cash. Euroseas shareholders received one Euroholdings share for every 2.5 shares they held. Since our listing, performance has been strong.

[Aristides Pittas, Chairman and CEO at Euroholdings]

While our share price averaged below $7 during our first year of trading, it has traded consistently above $8 since mid-April 2026, frequently reaching approximately $8.50 throughout this last quarter. We've returned capital to shareholders through all five quarters with dividends of $0.14 per share, and we've now declared our sixth consecutive dividend at the same level. On June 23, 2025, Marla Investments Inc., affiliated with the Latsis family, acquired a 51% stake from the Pittas family, becoming our major shareholder. My family retains approximately 8% ownership. In August 2025, we announced our strategic decision to focus on the tanker sector. We successfully acquired our first medium-range product tanker, the Hellas Avatar, in November 2025. We also agreed to acquire a sister vessel, the Hellas Fighter, which is expected to be delivered by September 2026.

[Aristides Pittas, Chairman and CEO at Euroholdings]

Going forward, we will continue operating our two legacy feeder container ships throughout their useful commercial life, while we gradually transition to a tanker-focused operating model. Please turn to slide four of the presentation, which presents our main financial highlights during the second quarter of 2026. Tasos will go through these in more detail in the second half of the presentation. For the second quarter of 2026, we reported total net revenues of $8.6 million and a net income of $4.29 million, or $1.52 earnings per basic and diluted share. Adjusted EBITDA for the quarter amounted to $5.04 million. Please refer to the press release for a reconciliation between net income and adjusted EBITDA. As mentioned earlier, our board declared the sixth consecutive quarterly dividend, which represents an annualized yield of approximately 6.7% based on recent trading levels. Please turn to slide five for an overview of our fleet.

[Aristides Pittas, Chairman and CEO at Euroholdings]

After the delivery of the Hellas Fighter, our fleet will comprise of two containers and two product tankers with a combined carrying capacity of about 141,000 deadweight tons. Our containership segment consists of our two feeder containerships with a combined carrying capacity of 3,171 TEU and an average age of approximately 28 years. Our product tanker segment will be represented by the two MR tankers, which are built in 2016, with a carrying capacity of about 100,000 deadweight tons and average age of approximately 11 years. Let's turn to slide six. Our two feeder containerships remain fully employed under profitable time charters, generating stable cash flows that support our growth initiatives. Both vessels are employed through November 2026, but we are already discussing possibly chartering them for an additional one to two years at an improved rate.

[Aristides Pittas, Chairman and CEO at Euroholdings]

Turning to our tanker fleet, mototanker Hellas Avatar is employed in the spot market, giving us the flexibility to capitalize on current market conditions. We are actively pursuing follow-on employment for the vessel and remain confident we can secure attractive charter rates. While the MR tanker rates have moderated from early this year, they still remain above long-term averages. Similarly, we plan to employ the Hellas Fighter on the spot market too, once we get delivery of her. Please turn to slide seven, which displays 6-12 month time charter rates for 1,700 TEU geared feeder container ships over the past decade. As of August 7, the prevailing market rate stands at approximately $31,750 per day, well above the 10-year average of approximately $18,500 per day, and nearly three times the 10-year median of $11,720 per day. This underscores the exceptional strength of the current charter market.

[Aristides Pittas, Chairman and CEO at Euroholdings]

Our strategy to charter these vessels rather than sell them or scrap them is well supported by this market dynamic. Despite the age of our containerships, we are confident that we will secure profitable employment at levels well above historical norms. I will now continue with an overview of the product tanker market. Please turn to slide nine, which illustrates MR tanker time charter rates for both one and three-year terms. On the one-year side, current rates stand at $29,000 per day, above the five-year average of about $26,000, and the five-year median of $27,500. For three-year charters, rates are at $23,500 per day, above the five-year average of $22,000 per day, and in line with the five-year median of $23,260 per day. Moving on to slide 10, we can see the development of new building and secondhand values.

[Aristides Pittas, Chairman and CEO at Euroholdings]

Secondhand asset values have historically, obviously, responded more directly to changes in freight market conditions, as it depends primarily on ships in demand supply conditions. On the other hand, new building prices depend significantly also on other structural factors as ship capacity, input cost inflation, and labor availability and cost. With shipbuilding costs rising significantly over the last few years, secondhand prices are finding a higher level as well. As of August 7, MR new building prices stood at $52 million per day compared to five-year secondhand values of $48 million per day. $48 million, sorry, and 10-year secondhand values of $38 million. These valuations reflect the current strength of the market and provide confidence in our asset base. Let's now move into slide 11, which examines the MR tanker fleet age profile and order book.

[Aristides Pittas, Chairman and CEO at Euroholdings]

The global MR fleet exhibits a relatively old age profile, with approximately 47% of the fleet over 15 years of age, while only about 15% of the fleet is less than five years old. This aging fleet will require increasing replacement over the medium term, as more vessels are approaching special surveys and facing higher maintenance and regulatory compliance costs. These dynamics underscore the need for continued fleet renewal across the sector. Looking at the scheduled deliveries for 2026, these are projected to be lower than in 2025, indicating a moderating pace of fleet additions. At the same time, the MR order book currently stands at approximately 16.5% of the existing fleet, well below historical cyclical peaks. The combination of an aging fleet, measured new supply, and the historically lean order book creates a constructive medium-term supply backdrop for the MR product tanker market.

[Aristides Pittas, Chairman and CEO at Euroholdings]

Let's now turn to slide 12, which highlights the trade demand outlook for product tankers. Seaborne trade in refined petroleum products has expanded significantly over the past decade or so, growing from 19.4 million barrels per day in 2010 to around 23 million barrels per day in 2025. More importantly, ton-mile demand has grown even faster, from approximately 2.6 trillion ton-miles in 2010 to nearly 3.7 trillion ton-miles in 2025. This reflects a structural shift towards longer voyage distances, which supports product tanker demand beyond simple volume growth.

[Aristides Pittas, Chairman and CEO at Euroholdings]

Global oil consumption has demonstrated remarkable resilience, growing from 79 million barrels per day in 2003 to more than 110 million barrels per day during the first half of 2026, despite the temporary disruption experienced during the pandemic. This sustained demand provides a stable foundation for refiner throughput. Finally, global refining capacity has broadly kept apace, expanding from 92 million barrels per day in 2010 to around 103 million barrels per day today, and is projected to reach approximately 105 million barrels per day by 2028. Together, these fundamentals also provide support to a constructive outlook for product tanker demand. Let's move now to slide 13 to summarize the current product tanker outlook. MR tanker fundamentals remain constructive despite a weaker macroeconomic backdrop.

[Aristides Pittas, Chairman and CEO at Euroholdings]

While global clean petroleum product trade is expected to contract by about 5.9% in 2026 by Clarksons, trade demand is supported by structurally longer haul trading patterns rather than volume growth. The Middle East supply shock has fundamentally reshaped trade flows. Reduced Middle East Gulf exports have increased reliance on Atlantic basin suppliers, the U.S. Gulf, Northwest Europe, creating longer voyages and stronger MR utilization. The Russian sanctions have reinforced this dynamic further, redirecting demand towards Atlantic suppliers. Diesel and gasoline account for over 70% of MR cargo volumes. While refining activity has softened, these headwinds have largely been offset by historical inefficiencies across global supply chains. Freight rates have normalized from their peaks but remain well above long-term averages. Historically, low global inventories represent a meaningful upside catalyst. The 2027 and 2028 global inventories rebuild cycle could generate transportation demand in excess of normal consumption levels.

[Aristides Pittas, Chairman and CEO at Euroholdings]

On the supply side, as discussed earlier, fleet fundamentals are healthier than the headline order book suggests. While the MR order book is around 16.5% of the existing fleet, more than 27% of today's fleet will be over 20 years old by 2028. As a result, scheduled deliveries will largely replace aging tonnage. Collectively, we expect freight markets to remain structurally firmer but considerably more volatile. While the extraordinary freight earnings experienced during the initial phase of the COVID-19 disruption are unlikely to be repeated, geopolitical fragmentation, Atlantic basin growth, inventory rebuilding, and longer voyage distances should keep rates above historical norms. I will now pass the call over to Tasos, who will go over the financial highlights in more detail.

[Tasos Aslidis, CSO at Euroholdings]

Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. For a view of financials, let's turn to slide 15 to look at the second quarter and first half of 2026 figures. Starting first with the second quarter of 2026, the company reported total net revenues of $8.6 million, representing an enormous 200% increase over total net revenues of $2.9 million during the second quarter of last year. This was really the result of the increased average number of vessels we operated in the second quarter compared to last year, and of course, the increased average time charter equivalent earnings our vessels earned in this period. We reported net income for the second quarter of 2026 of $4.3 million as compared to net income of $0.8 million for the second quarter of 2025.

[Tasos Aslidis, CSO at Euroholdings]

Interest and other financing costs for the second quarter of 2026 amounted to $0.3 million as a result of the loan drawn to finance the acquisition of motor vessel Hellas Avatar in the fourth quarter of last year. Interest expense during the second quarter of last year was nil. Adjusted EBITDA for the second quarter of 2026 was $5 million, compared to $4.8 million during the second quarter of 2025. Basic and diluted earnings per share for the second quarter of 2026 was $1.52, calculated on 2.8 million shares basic and diluted, compared to $0.3 per share for the second quarter of 2025, calculated again on approximately 2.8 million basic and diluted weighted average number of shares outstanding. The adjusted earnings per share for both quarters remained unchanged as no adjustments were required.

[Tasos Aslidis, CSO at Euroholdings]

$1.52 per share for the second quarter of 2026 and $0.3 per share for the same quarter of last year. Let's now look at the corresponding six-month period ended June 30, 2026, and compare it to the same period of last year. For the first half of 2026, the company reported total net revenues of $16.2 million, representing 101% increase over total net revenues of $5.8 million during the first half of 2025. That again was the result of the higher average number of vessels we operated and the increased average time charter equivalent rates our vessels earned. We reported total net income for the period of $6.7 million, as compared to net income of $11 million for the first half of 2025.

[Tasos Aslidis, CSO at Euroholdings]

Interest and other financing costs for the first half of 2026 amounted to $0.5 million as a result of the loan drawn to finance Hellas Avatar. Interest for the first half of 2025 was also zero. Adjusted EBITDA for the first half of 2026 was $8.2 million, compared to $1.7 million for the first half of last year. Basic and diluted earnings per share for the first half of 2026 was $2.37, again, calculated on about 2.8 million shares, compared to $4.28 for the first half of 2025, calculated again on about 2.8 million basic and diluted weighted average number of shares outstanding. The adjusted earnings per share for the six-month period ended June 30, 2026, remain unchanged at $2.37 per share.

[Tasos Aslidis, CSO at Euroholdings]

But for the previous period, we had a gain on sale of a vessel, and if we adjust for that, the earnings per share for the first six months of 2025 would have been $0.6 per share basic and diluted. Let's turn now to slide 16, where we review our fleet operating metrics for the second quarter of 2026. During the second quarter of 2026, we maintained 100% utilization rate across the fleet, consistent with our corresponding period in 2025. On average, we owned and operated three vessels during the second quarter of this year, earning another time charter equivalent rate of $28,039 per day, compared to two vessels we operated in the same period of last year, earning an average of $16,528 per day.

[Tasos Aslidis, CSO at Euroholdings]

Our total operating expenses were $8,042 per vessel per day during the second quarter of 2026, compared to $11,296 per vessel per day for the second quarter of 2025. Our break-even rate for the second quarter of this year was $10,440 per vessel per day, as compared to $11,363 for the second quarter of 2025. In the second quarter of this year, we also paid dividends equivalent to $1,444 per vessel per day versus declared dividends of $2,167 per vessel per day for the second quarter of 2025. Really, the difference between this is that in 2025, we had two vessels, and this year we have three.

[Tasos Aslidis, CSO at Euroholdings]

Let's look at the first half figures starting in 2026, where again, we own and operated three vessels and earned an average time charter equivalent rate of $28,204 per vessel per day, compared to 2.1 vessels in the same period of 2025, earning an average of $16,158 per day. Our total operating expenses for the first half of this year were $8,605 per day per vessel, compared to $9,858 per vessel per day in the first half of 2025. Our break-even rate for the first half of 2026 was about $12,600 per day, compared to $10,762 per day in the first half of 2025. Again, we paid dividends here that translate to $1,452 per vessel per day in the first half of 2026 versus $1,083 per vessel per day declared in the first half of 2025.

[Tasos Aslidis, CSO at Euroholdings]

Let's now turn to slide 17, and let's review our cash flow break-even profile for the next 12 months across each of our operating segments, broken down by their key components. Starting with our containership fleet, the cash break-even stands at approximately $8,300 per vessel per day, with vessels earning $16,700 and $9,500 per day respectively, the two containerships. On average, that is about $13,000 per day. This is well above the rechartering threshold, as we mentioned at the bottom of the table, of $9,200 per day, which is really the break-even rate grossed up for commissions and some assumed off-hire days. Our product tanker, the one vessel, provides an EBITDA break-even rate of $9,700 per day. If we raise interest and schedule debt repayments, the total cash break-even becomes approximately $16,600 per day.

[Tasos Aslidis, CSO at Euroholdings]

Grossing up this figure for the charter commissions and assumed off-hire days, we get an $18,450 per day rate required to generate positive cash flow for the vessel. Overall, these figures demonstrate the flexibility of the Euroholdings business model as we pivot towards the product tanker market, with the containership vessel generating a meaningful cash flow cushion above our break-even levels, and the tanker vessel and assumed vessels, as Aristides mentioned, providing the upside to our results. We are exposed to the product market. Let's now move to slide 18 to conclude our brief review of our financial presentation and review some highlights from our balance sheet as of June 30th, 2026. As of that day, total assets stood at $47.9 million, comprising of $13.7 million of cash and cash equivalents and a book value of our vessels of $34.2 million. Very similar asset side.

[Tasos Aslidis, CSO at Euroholdings]

On the liability side, we had bank debt inclusive of deferred charges totaling $19.2 million or about 40% of the total book value of our assets. Various other liabilities account for about 5.6% of the book value of our assets, resulting in book shareholders' equity in excess of $26 million. However, here it is important to highlight that the market value of our fleet is substantially higher than its book value. Based on our own estimates as of June 30th, the charter-adjusted market value for our vessels is estimated at around $54, $55 million, implying a net asset value of around $46, $47 million or about $16.65 per share, significantly above even the elevated recent trading rates of our stock, thus providing appreciation opportunities for our shareholders and investors. With that, I'd like to pass the floor back to Aristides to run the Q&A session of our presentation.

[Aristides Pittas, Chairman and CEO at Euroholdings]

Thank you, Tasos. I am opening up the floor for any questions that you may have.

[Operator]

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Thank you. Our first question comes from the line of Poe Fratt with Alliance Global Partners. Please proceed with your question.

[Poe Fratt, Analyst at Alliance Global Partners]

Hello. I'd like to focus on the fleet employment, if you will. First of all, could you highlight the factors that pushed the Hellas Avatar rate down from $75,000? Also, what do you think the rates look like looking into the fourth quarter, Aristides?

[Aristides Pittas, Chairman and CEO at Euroholdings]

Yes. The market has been extremely volatile due to the developments in Hormuz. You've seen charter rates jumping to close to $100,000 and then dropping to $10,000, depending on your position and the timing. This is the situation which still prevails. I mean, the extremely high levels, we can't see them anymore, but there is this huge volatility which makes prediction extremely difficult. I would say, if you try to normalize your prediction, a number around $25,000-$30,000 would be what I would currently use in my projections.

[Poe Fratt, Analyst at Alliance Global Partners]

Okay. I see the Aegean Express, January had a dry dock. Was that a special survey or was that an intermediate survey? Could you highlight the next intermediate or special survey on the Joanna?

[Aristides Pittas, Chairman and CEO at Euroholdings]

Sure.

[Tasos Aslidis, CSO at Euroholdings]

The Aegean Express last month did not have a dry dock. It had some preventive repairs before it commenced the charter extension. The next dry dock of it is in two years, I think.

[Aristides Pittas, Chairman and CEO at Euroholdings]

Yes.

[Poe Fratt, Analyst at Alliance Global Partners]

Sorry, Tasos, was that on the Aegean Express or the Joanna?

[Tasos Aslidis, CSO at Euroholdings]

That was on the Aegean Express.

[Aristides Pittas, Chairman and CEO at Euroholdings]

The Aegean Express is in about two years, and the Joanna is two and a half years.

[Poe Fratt, Analyst at Alliance Global Partners]

Okay.

[Aristides Pittas, Chairman and CEO at Euroholdings]

Can you tell?

[Poe Fratt, Analyst at Alliance Global Partners]

Sorry. As you look at both. Sorry.

[Aristides Pittas, Chairman and CEO at Euroholdings]

Go ahead.

[Poe Fratt, Analyst at Alliance Global Partners]

I'm sorry. As you look to pivot and build up the tanker fleet, can you just talk about the prospects for the Joanna and the Aegean Express as far as either a sale or potentially a scrapping situation? When might the timing of those events happen?

[Aristides Pittas, Chairman and CEO at Euroholdings]

On the container sector, the initial idea was indeed that the market would have corrected and that the vessels would be sold or scrapped. But the market continues to be strong, and both ships will be recharted for a period of minimum one year. We might be able to do two years or more. We will see, but the market is still strong, and we expect that within the next month or two months, we will have fixed them for a further period of minimum one year each.

[Poe Fratt, Analyst at Alliance Global Partners]

Okay. If you can talk about the prospects for adding MRs or tankers beyond the Fighter, which is going to join the fleet, I guess, in September. Can you just talk about the tone of the market, looking at acquisition possibilities in the tanker market?

[Aristides Pittas, Chairman and CEO at Euroholdings]

Well, mostly we should talk about the prospects of Euroholdings being able to grow. This is what is the thing that we are always thinking about and is challenging us. We have the expertise through the Latsis family to run these vessels. We are committed to building the product tanker fleet. We are looking at various ways that we can affect that. Obviously, our own equity currently is not sufficient to grow maybe more than one additional ship. We need to find ways of growing further, and we will.

[Poe Fratt, Analyst at Alliance Global Partners]

Great. That's helpful. Thank you so much.

[Aristides Pittas, Chairman and CEO at Euroholdings]

Thanks, Poe.

[Operator]

As a reminder, if you would like to ask a question, press star one on your telephone keypad. Our next question comes from the line of Alex Daraf, a private investor. Please proceed with your question.

[Alex Daraf, Shareholder at Private Investor]

Hi. Thank you, and thanks for the call. My question follows on the last question you mentioned about growth. There is obviously a big discount to the NAV that you have just put forward, and that discount is growing. What ways do you think might help to close it, so that you can grow? How do you all think about equity raising, which of course, as a shareholder, I would be worried about at these low levels. Thank you.

[Aristides Pittas, Chairman and CEO at Euroholdings]

We would also be worried at these low levels, Alex. We are shareholders ourselves. My family is a shareholder as well. We want and we need to find the creative ways of growing. It is not easy for a small company, but I think it will come. I do believe that our share price should continue rising. We will continue with the dividend. All our shareholders could feel quite comfortable that they are getting a very decent dividend yield. It is up to us to be able to find ways of growing the company creatively.

[Alex Daraf, Shareholder at Private Investor]

Thank you.

[Aristides Pittas, Chairman and CEO at Euroholdings]

Thanks.

[Operator]

We have no further questions at this time. Mr. Pittas, I would like to turn the floor back over to you for closing comments.

[Aristides Pittas, Chairman and CEO at Euroholdings]

Well, thank you all for listening to our quarterly results. We will be back to you in three months' time.

[Tasos Aslidis, CSO at Euroholdings]

Thank you, everybody, for attending.

[Operator]

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.

Participants

Executives

• Aristides Pittas, Chairman and CEO
• Tasos Aslidis, CSO

Analysts

• Poe Fratt, Analyst at Alliance Global Partners
• Alex Daraf, Shareholder at Private Investor