C3is Q2 2026 Earnings Report

C3is EPS Results

• Actual EPS: $345.57
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

C3is Revenue Results

• Actual Revenue: $48.09 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

C3is Announcement Details

• Quarter: Q2 2026
• Date: 8/27/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, August 27, 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 Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Strong first-half results: Q2 revenue rose 124% year over year to $24 million, while net income reached nearly $10 million versus a $5.3 million loss a year earlier. First-half adjusted net income increased 562% to $15.3 million and adjusted EBITDA rose 226% to $18.7 million.
• Positive Sentiment: Fleet expansion and diversification: C3is increased fleet capacity 387% since inception through acquisitions spanning Handysize bulkers, an Aframax tanker, and two product tankers. The vessels are employed on short- to medium-term charters and spot voyages, providing exposure to multiple shipping segments.
• Positive Sentiment: Improved liquidity and no bank debt: Cash increased to $33.2 million at June 30 and $48 million by the end of July, while shareholders’ equity reached $114.6 million. Management said the cash balance covers the $39.78 million product-tanker payment due in January 2027.
• Neutral Sentiment: Market conditions remain supportive but uneven: Aframax rates were exceptionally strong, while product-tanker rates slowed from April’s peak of more than $70,000 per day to about $30,000 by July. Management cited geopolitical disruptions, longer trade routes, aging fleets, and strong ton-mile demand as supports, but acknowledged rising supply pressure and a more balanced MR2 market.
• Negative Sentiment: Growth has involved equity issuance and future funding commitments: The company raised $2.7 million through an ATM program and $6 million through a July share offering, which may dilute shareholders. It also reported a $2 million non-cash unrealized warrant loss for the first half.

Presentation

[Operator]

Good day, and thank you for standing by. Welcome to the C3is Q2 2026 financial and operating results webcast and conference call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. 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 second 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.

[Diamantis Andriotis, CEO at C3is]

At this stage, if you 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 the second 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 present the impressive results achieved by C3is for the first six months of the year. Our voyage revenues were $24 million for Q2 2026 compared to $10.7 million for Q2 2025, an increase of 124%.

[Diamantis Andriotis, CEO at C3is]

For the first six months of the year, our revenues were $35.6 million compared to $19 million in 2025, an increase of 84%. Our net revenues were $17 million for the quarter, an increase of 185% compared to Q2 2025. For the first half of the year, our revenues were $27.4 million compared to $11.8 million in 2025, an increase of 132%. Our net income was nearly $10 million for the quarter compared to a loss of $5 million in 2025, a 287% increase.

[Diamantis Andriotis, CEO at C3is]

For the six months, we had a net income of $13 million compared to $2.6 million last year, a whopping increase of 409%. Our adjusted net income was $9.8 million for the quarter compared to $1.1 million in 2025, a massive increase of 755%. For the first six months of 2026, our adjusted net income increased by an impressive 562% to $15.3 million compared to $2.3 million in 2025. By the end of June 2026, our cash balance went up 123%, from year-end 2025 to $33.2 million.

[Diamantis Andriotis, CEO at C3is]

By the end of July 2026, the balance went further up to $48 million, an increase of 222% from year-end 2025. At $12 million, our EBITDA went up a remarkable 426% in Q2 2026 compared to -$3.7 million for Q2 2025. For the six months period, our EBITDA jumped by 176% to $16.7 million compared to $6 million for the six months 2025.

[Diamantis Andriotis, CEO at C3is]

On slide four, we summarize and highlight the company's performance. For the second quarter of 2026, the time charter equivalent rate of our fleet, which is the voyage revenues less voyages expenses divided by the voyage dates, increased by 145% compared to Q2 2025, reaching $40,300. The TCE rate of our Aframax tanker for the same period was $133,500, an increase of 202% compared to Q2 2025.

[Diamantis Andriotis, CEO at C3is]

For the first six months of 2026, the TCE rate of our fleet increased by 125% compared to six months 2025, reaching $36,800. The TCE rate of our Aframax tanker for the same period was $105,700, an increase of 151% compared to six months 2025. Following on the vessel strategy of growth and diversification, C3is has had five vessel acquisitions since inception: an Aframax oil tanker in 2023, a bulk carrier in 2024, and two product tankers in 2026.

[Diamantis Andriotis, CEO at C3is]

We have thus increased our fleet capacity by 387% compared to our fleet when we commenced operations. Our capital expenditure for the two product tankers delivered this year is $39.78 million. This will become due in January 2027. As of July 2026, our cash balance was $48 million, amply meeting our future financial obligations.

[Diamantis Andriotis, CEO at C3is]

As of June 30, 2026, the average age of the fleet was 16.8 years, including the new additions. None of our fleet are Chinese-built, hence no risk of potential U.S. tariffs. Our EPS for the second quarter of 2026 was $353.87 and $483.39 for the first six months of 2026. Our net asset value per share for the first six months of 2026 was $12.83. Using the share price at closing on August 25 of $2.67, we were trading at a discount of 380%. We had two public offerings this year.

[Diamantis Andriotis, CEO at C3is]

The first one was an ATM agreement in February 2026 with $2.7 million gross proceeds so far. The second one was a share offer in July 2026 with gross proceeds of $6 million. Slide five shows the Handysize demand and the time charter average rates. In January to June 2026, global exports of world dry bulk commodities on Handysize/Supramax tonnages reached 910.7 million tons. The iron ore picture is bearish on price and bullish on distance.

[Diamantis Andriotis, CEO at C3is]

Chinese steel demand remains subdued and benchmark price has eased towards the low 90s per ton, and yet the freight read is positive. The ramp-up of Simandou and continued West African volumes lengthen average hauls so ton-miles can grow even as the headline price softens. Guinea is expected to become one of the world's leading producers of iron ore.

[Diamantis Andriotis, CEO at C3is]

The high-grade Simandou iron ore is suitable for conversion into steel via less carbon-intensive methods. Coal is regionally divided. Chinese seaborne thermal imports have softened on strong domestic output and hydro, while demand across the rest of Asia Pacific has firmed and Gulf-related energy prices have made seaborne coal more competitive for Asian buyers. The Middle East conflict has opened a forward dimension that did not exist at the start of the year.

[Diamantis Andriotis, CEO at C3is]

With a LNG shortfall of around 35 million tons this year after damages to the Gulf export infrastructure, gas-exposed power systems in Japan, South Korea, Taiwan, and Southeast Asia are running coal harder, and dependent estimates point to an additional 70 million-90 million tons of Asia Pacific thermal coal demand in 2026, with China comparatively insulated by its low gas penetration.

[Diamantis Andriotis, CEO at C3is]

Grain and oilseeds are resilient, and soybean trade is forecast at about 189 million tons in 2026/2027, a fresh high, with Brazil alone exporting over 117 million tons and China importing around 114 million. Rice trade is at a record, with India accounting for about 40% of exports. Minor bulks and bauxite remain a quiet structural support. The signal shift in tone from maximizing volume to preserving value marks a change after years of record growth.

[Diamantis Andriotis, CEO at C3is]

Indonesia pulls the other way over the long run. Its 2023 raw bauxite export ban took it out of the seaborne export market, and the domestic refinery build-out is lifting its bauxite requirements from around 15 million tons in 2025 towards 25 million this year, with mine output lagging, so a future seaborne import pool cannot be ruled out. For the rates, several factors weigh beneficially on the dry bulk market.

[Diamantis Andriotis, CEO at C3is]

The stronger Far East demand for coal is a ton-mile support for the segments that carry the trade. Coking coal has been the firmer sub-segment, with Chinese coking coal and coke prices reaching the highest since late 2024 and Indian metallurgical imports up about 32% in 2025. The adoption of China's five-year plan in March 2026 covers 2026 to 2030 and rests on high-quality development, technological self-reliance, stronger domestic demand, and a deeper green transition.

[Diamantis Andriotis, CEO at C3is]

For dry bulk, it matters less as a stimulus signal than as confirmation of where Chinese commodity demand is heading, and reinforces the distance over price thesis. As steel makers urgently seek to reduce their carbon emissions, demand is increasing for higher grade, lower impurity iron ore, the essential feedstock in the production of steel. The Simandou mine is a very large, high-grade iron ore deposit in Guinea.

[Diamantis Andriotis, CEO at C3is]

The mine holds an estimated 2.4 billion tons of ore grading 65% iron, making it one of the largest untapped iron ore resources in the world. At $23 billion, the project is the world's most capital-intensive mining project, with China and Singapore owning 80% of the mining rights.

[Diamantis Andriotis, CEO at C3is]

El Niño impacted the Panama Canal, resulting in a lower level of water, thus forcing shipping through the routes of U.S. Gulf and East Coast grain and coal towards longer voyages, which is ton-mile positive. A notable thread for the next half is India, where weak monsoon concern has already pushed the country to import soybeans, a reminder that the El Niño transmission into agriculture is beginning to register.

[Diamantis Andriotis, CEO at C3is]

The major Middle East conflicts and disruption around the Strait of Hormuz have reshaped the shipping market, yet dry bulk has stayed relatively insulated and has in places benefited from longer routings. Slide six shows the Aframax LR2 rates and ages. The spot rates for Aframax tankers are currently experiencing fluctuations based on current market conditions.

[Diamantis Andriotis, CEO at C3is]

North Sea to Continent, June 2026 average rates recorded was $116,749 per day, the highest percentage increase compared to the average rate over the last five years. With an average daily spot rate of $34,727 over the last five years, this was an increase of 236% from the last five years' average. The highest average spot rate from the last five years was on the MEG route at $37,316. The conflict in the Middle East has stranded tankers and throttled global trade.

[Diamantis Andriotis, CEO at C3is]

China and Russia have been gearing up for what could be a record season along the North Sea Route. Disruptions to trade due to fighting around the Red Sea and the Strait of Hormuz may push the shifting dynamics along the Northern Sea Route as the safest and most reliable and efficient route.

[Diamantis Andriotis, CEO at C3is]

Due to the deepening economic and geopolitical ties between Russia and China, transits along the Northern Sea Route hit a record high last year, hinting at a new transit milestone. On the Aframax fleet, by the end of the second quarter of the year, there was a 3.51% increase in the total fleet. The global Aframax fleet now stands at 1,239 vessels, of which 291 vessels are over 20 years of age, accounting for 24% of the total number of vessels.

[Diamantis Andriotis, CEO at C3is]

With a starting tally of 1,197 vessels, the current fleet represent a change of 3.51% in vessels number and around 3.65% in deadweight over the year so far. Over the last quarter, the fleet has increased by 17 vessels. The age of our Aframax tanker was 15.94 years by the end of Q2 2026. The highest number of Aframax tankers are in this category of 15-20 years, which is around 28%. Slide seven shows the product tanker fleet structure and average rates.

[Diamantis Andriotis, CEO at C3is]

The coated product tanker fleet in the size range 30,000 to 119,000 deadweight currently numbers 3,685 trading units for a total of 216.5 million deadweight. The MR2 segment is the largest numerically, 54% of the total fleet, with about 1,986 units. The general outlook for MR2 tankers is structurally firm, driven by strong ton-mile demand, aging global fleets, and geopolitical trade disruptions. Ton-mile demand.

[Diamantis Andriotis, CEO at C3is]

Geopolitical sanctions and shifting refining hubs continue to alter trade routes, increasing voyage lengths and favoring flexible MR2 tonnage. Fleet aging and replacement. Roughly 33% of the existing MR2 fleet is 16 years or older, which supports long-term recycling and new-build demand. Product tanker rates had another strong quarter. April started spectacularly with MR2s briefly averaging over $70,000 per day globally, thanks to $100,000 per day rates in the Atlantic.

[Diamantis Andriotis, CEO at C3is]

There was, however, a significant slowdown after April, with MR2s falling to $30,000 per day by July. Still healthy, but unspectacular. Rates on routes out of the MEG were largely redundant given the lack of liquidity. Product tanker rates remain well-supported, although momentum has become more uneven across vessel classes and regions. MR2s are seeing a more balanced setup, with rates lower but still firm versus historical levels. The near-term outlook is still shaped by Hormuz.

[Diamantis Andriotis, CEO at C3is]

Reopening of the Strait of Hormuz should support volumes and utilization, but this is more a recovery of lost activity than a new ton-mile impulse. Overall, product tanker fundamentals remain supported, with MRs face a more balanced market with rise in supply pressure. Slide eight shows the fleet of C3is. At the end of Q2 2026, C3is owned and operated a fleet of three Handysize dry bulk carriers, one Aframax oil tanker, and one product tanker.

[Diamantis Andriotis, CEO at C3is]

As previously announced, the company has acquired two product tankers, one of which, the Clean Fury, was delivered at the beginning of Q2 2026. The second product tanker, the Clean Reaper, was delivered to the company in Q3 2026. With these additions, the fleet has increased its capacity to 311,431 deadweight, an increase of 387% from inception.

[Diamantis Andriotis, CEO at C3is]

All vessels have had their ballast water systems already installed, and 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. Slide nine shows a sample of the international charters with whom the management company has developed strategic relationships and has experienced repeat business.

[Diamantis Andriotis, CEO at C3is]

Repeat business highlights the confidence our customers have for our operations and the satisfaction of the services 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 second quarter and the first half of the year 2026. We achieved revenues of $24 million in Q2 2026, compared with $10.7 million for Q2 2025. This was an increase of 124% quarter-on-quarter. For the first six months of 2026, revenues were $35.6 million, compared with $19.4 million for six months 2025, representing an increase of 84%.

[Nina Pyndiah, CFO at C3is]

Net revenues was $17 million for Q2 2026, compared with $6 million for Q2 2025, up 185%. For the first six months of 2025, net revenues were $27.4 million, compared with $11.8 million for the six months of 2025. This was an increase of 132%. Our income from operations was $9.7 million for Q2 2026, compared with $1 million for Q2 2025, up 820%.

[Nina Pyndiah, CFO at C3is]

For six months 2026, our income from operations was $15 million, compared with $2.3 million for the same period of 2025, representing an increase of 554%. Our net income was $10 million for Q2 2026, compared to a loss of $5.3 million for Q2 2025, an increase of 287%. For six months 2026, our net income was $13.2 million, compared with $2.6 million for six months 2025, up 409%.

[Nina Pyndiah, CFO at C3is]

Our EBITDA was $12 million for Q2 2026, compared to -$3.7 million for Q2 2025, up 426%. For six months 2026, our EBITDA was $16.6 million, compared with $6 million for six months 2025, up 176%. We recorded an unrealized loss on warrants of $2 million for the first half of the year. This is a non-cash item and does not reflect our operational performance.

[Nina Pyndiah, CFO at C3is]

Our adjusted EBITDA was therefore $11.8 million for the quarter, compared with $2.8 million in 2025, an increase of 325%. For the six months of 2026, the adjusted EBITDA was $18.7 million, compared with $5.8 million in 2025, an increase of 226%. Our adjusted net income was $9.8 million for the quarter, compared with $1.1 million in 2025, up 755%.

[Nina Pyndiah, CFO at C3is]

For the six months, the adjusted net income was $15.3 million, compared with $2.3 million in 2025, up 562%. Turning to slide 11 for the balance sheet, we had a cash balance of $33.2 million, an increase of 123% from year-end 2025. Our cash balance by the end of July 2026 was $48 million, up 222% from year-end 2025. Our CapEx on the two newly acquired product tankers is $39.78 million and is due in January 2027.

[Nina Pyndiah, CFO at C3is]

Halfway through the year, we already have ample cash to cover for this payable during January next year. Other current assets consisted mainly of receivables of $11.7 million, of which $9 million has already been received to date, and inventories of $3.2 million, which consist of bunkers and lubricants on board the vessels at the end of Q2 2026.

[Nina Pyndiah, CFO at C3is]

The vessels' net value of $96 million are for the five vessels, less depreciation. Vessels' market values were $123 million. Payable to related party of $24.5 million mainly represents the balance due on the product tanker, Clean Fury, that was delivered to the company in Q2 2026. The warrant liability of $1.3 million relates to the net fair value difference on non-exercised warrants as of June 30, 2026. This is a non-cash item.

[Nina Pyndiah, CFO at C3is]

Our shareholders' equity is at a robust $114.6 million as of Q2 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.

[Nina Pyndiah, CFO at C3is]

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. 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.

[Nina Pyndiah, CFO at C3is]

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-term 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 in Q3 2026.

[Nina Pyndiah, CFO at C3is]

The expansion and diversification of our fleet has positioned the company to capitalize on strong charter market conditions. 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. 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.

[Nina Pyndiah, CFO at C3is]

Our upcoming CapEx obligation of $39.78 million due on the two product tankers and payable in January 2027 is already covered by our cash balance. 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 six months of 2026, we reported a net income of $13.18 million, an increase of 409% from 2025. An adjusted net income of $15.28 million, an increase of 562% from 2025. An EBITDA of $16.6 million, representing an increase of 176% from 2025. An adjusted EBITDA of $18.7 million, an increase of 226% from 2025.

[Diamantis Andriotis, CEO at C3is]

These numbers speak for themselves as to the remarkable results achieved by our company. They prove that the strategy of expansion and diversification was a lucrative one, and we have built a debt-free fleet that showed the tangible path to rapid growth, exploited the current market conditions, and accomplished such a performance.

[Diamantis Andriotis, CEO at C3is]

We are confident that the second half of the year will mirror the first half as our expansion efforts are projected to boost profitability, fortify financial strength, and introduce flexibility vital for C3is's future operational strategies. 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 third 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