EuroDry Q2 2026 Earnings Report

EuroDry EPS Results

• Actual EPS: $2.44
• Consensus EPS: $1.23
• Beat/Miss: Beat by +$1.21
• One Year Ago EPS: N/A

EuroDry Revenue Results

• Actual Revenue: $17.70 million
• Expected Revenue: $17.86 million
• Beat/Miss: Missed by -$153.29 thousand
• YoY Revenue Growth: N/A

EuroDry Announcement Details

• Quarter: Q2 2026
• Date: 8/6/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, August 6, 2026
• Conference Call Time: 9:30AM ET

EuroDry (NASDAQ:EDRY) 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. These vessels are deployed worldwide on both time charter and spot charter markets, carrying essential raw materials such as iron ore, coal and grains. Management emphasizes modern, fuel-efficient designs to meet evolving environmental regulations and customer demand for reliable, cost-effective tonnage.

EuroDry serves a broad international customer base, including steel producers, trading houses and agricultural exporters, with regular voyages across major trade routes in the Atlantic, Pacific and Indian Oceans. The company’s shore organization in Piraeus works closely with technical managers, port agents and chartering brokers to ensure high operating standards, safety compliance and timely cargo deliveries. Led by a seasoned maritime team with deep industry experience, EuroDry continues to pursue disciplined fleet growth and operational excellence in the global drybulk sector.

EuroDry Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: EuroDry reported a sharp year-over-year improvement in Q2 results, with revenue up 57% to $17.7 million, adjusted EBITDA increasing more than fivefold to $11.7 million, and adjusted net income of $6.95 million, or $2.44 per diluted share.
• Positive Sentiment: Fleet utilization reached 100% in the quarter, while average time charter equivalent rates more than doubled to $20,398 per vessel per day; operating expenses remained well controlled and the cash-flow breakeven rate declined year over year.
• Positive Sentiment: The company signed a term sheet to refinance the MV Ekaterini with a $19 million facility, nearly $8 million above the existing balance, which should improve liquidity. Management also extended its share-repurchase authorization and said it would continue buying shares selectively.
• Positive Sentiment: EuroDry is pursuing fleet renewal through four newbuildings scheduled for delivery in 2027–2028, favoring newer, more fuel-efficient vessels over expensive secondhand tonnage; management estimates fleet market value at roughly $240 million versus $160 million in book value.
• Negative Sentiment: Management expects a more balanced and uncertain dry-bulk market in 2027 as fleet growth continues, while demand could be affected by Chinese steel production, coal trade, tariffs, geopolitical developments, and normalization of Middle East shipping flows.

Presentation

[Operator]

Thank you for standing by, ladies and gentlemen, and welcome to the EuroDry Limited conference call on the second quarter 2026 financial results. We have with us today Mr. Anastasios Aslidis, Chief Financial Officer, and Ms. Athina Atalioti, Finance Manager of the company. At this time, all participants are in 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 your name to be announced. I must advise you that this conference is being recorded today. Please be reminded that the company announced its results with a press release that has been publicly distributed. Before passing the floor to Mr. Aslidis, I would like to remind everyone that in today's presentation and conference call, EuroDry 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 that 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. Aslidis. Please go ahead, sir.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

Thank you. Good morning, ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. Together with me is Ms. Athina Atalioti, our Finance Manager. The purpose of today's call is to discuss our financial results for the three and six-month periods ended June 30, 2026. For that, please turn to slide three of the presentation. Our financial highlights are shown here. For the second quarter of 2026, we reported total net revenues of $17.7 million and net income attributable to controlling shareholders of $6.59 million, or $2.32 per diluted share. Adjusted net income attributable to controlling shareholders for the quarter was $6.95 million, or $2.44 per diluted share. Adjusted EBITDA for the quarter was $11.71 million. Please refer to the press release for the reconciliation of adjusted net income and adjusted EBITDA.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

Athina will go over our financial highlights in more detail later on the presentation. Since initiating our 10 million share repurchase program in August 2022, we have repurchased 358,130 shares of common stock in the open market for a total of $5.8 million. Our board reapproved the program recently and approved and extended finally. The most recent authorization was granted earlier this month and runs for another year. We will continue to execute repurchases in a disciplined, measured manner based on market conditions and other capital allocation priorities. We are also pleased to announce that on July 28, 2026, we signed a term sheet to refinance the MV Ekaterini, one of our Kamsarmax vessels, with a $19 million loan facility, higher by almost $8 million over the existing balance of the loan, further boosting our liquidity.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

This agreement is subject to customary closing documentation. Let's now move to slide four. In that slide, we outline our chartering and operational developments. In the second quarter, we continued to deploy our fleet with flexibility. Four of our vessels are currently operating on index-linked charters tied to the average Baltic Supramax S10TC index, which provides direct exposure to market conditions, while, as I mentioned, maintaining operational flexibility. Our remaining vessels are employed on fixed trade time charters with most having durations of one to three months. The exception is our vessel M/V Christos K, which is fixed on a longer-term charter to November 2026. Further charter details are provided in the following slide. In the second quarter, we entered into four rate agreements.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

On November 19th and on March 30th, we sold two 90-day Kamsarmax 82,500 dwt average contracts for the third quarter 2026 at $17,250 and $17,100 per day respectively, each equivalent to one vessel. These contracts I mentioned are based on the Kamsarmax 82,500 dwt index, which averages five major time charter routes and proves a good hedge on our market exposure. Similar contracts for the second quarter of 2026 were settled very close to the rates agreed in the FFA contract. The final point on this slide is that operationally, we had no idle periods for the quarter, commercial or dry dockings during the second quarter. Let's move to slide five, which provides an overview of our fleet. Today, we operate a fleet of 11 vessels with total carrying capacity of approximately 766,000 deadweight tons and an average age of around 13.8 years.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

In addition, we have four new buildings on order. Two Ultramax vessels are scheduled for delivery in the second and third quarters of 2027, each with capacity of 63,500 deadweight tons. We also have two Kamsarmax vessels on order, scheduled for delivery in the first and second quarters of 2028, each with capacity of 82,000 deadweight tons. Upon delivery of these four vessels, our fleet will grow to 15 vessels with a total carrying capacity of approximately 1.06 million deadweight tons, including a Ultramax segment of eight vessels, a Kamsarmax segment of four vessels, all five of these vessels being eco-friendly ones. We are continuing sailing our three legacy Panamax, which are all three Japanese-built. Next, let's move to slide six, where we show our fleet employment profile.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

Our current fixed rate covers for the remainder of the year stands at approximately a little more than 25%, based on existing charter arrangements. This excludes our four vessels operating on index-linked charter. Let's now move to slide eight to review key market developments for the second quarter and recent trends through late July. Panamax rates averaged $17,969 per day in the second quarter and has moderated slightly to $17,150 as of the end of last week. On the time charter side, one-year time charter rates have also strengthened. Clarksons set the standard Panamax one-year time charter rate is approximately $17,175 per day as of July 31st. Notably, time charter rates are now trading in line with spot market levels, reflecting continued confidence in the underlying market outlook.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

During the second quarter, the Baltic Dry Index and the Baltic Panamax Index recorded year-over-year increases of approximately 78% and 54%, respectively, reflecting the strengthening of the dry bulk trade market compared to the second quarter of last year. If we now turn to slide nine. Here we review the global macroeconomic backdrop and its implications for dry bulk shipping demand. According to IMF July-

[Operator]

Please stand by, everyone. The lines are reconnected. You may continue.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

Thank you, operator. Apologies to everybody for the interruption. I'm going to pick up my presentation. I believe we dropped the line on slide nine. Here, we review the global macroeconomic backdrop and its implication for dry bulk shipping demand. According to IMF July 2026 World Economic Outlook update, global growth is projected to slow to 3% in 2026 before recovering to 3.4% in 2027, broadly unchanged cumulatively from April's forecast. The world is navigating several competing forces. On the one hand, we have elevated energy prices continuing to push inflation and interest rates higher, while AI-driven investment is supporting growth for countries integrated into global technology value chain. Meanwhile, global disinflation has stalled with inflation shock pushing the yield of the 10-year US Treasury to approximately 4.7%.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

Geopolitical developments, mainly the Iran conflict and the continuing Ukraine-Russia war, have led to increased and volatile energy prices and created inflationary pressures which, in turn, might lead to higher interest rates. In the overall context, the U.S. economy has remained comparatively resilient. In its July 2026 economic outlook dimension, the IMF maintains its U.S. growth forecast at 2.3% for 2026 and revised its 2027 forecast upward to 2.2%. China is projected to grow 4.6% this year, supported by front-loaded public infrastructure investment and a surge in high-tech manufacturing and in exports. The ASEAN-5 region is projected to slow to 4.1% in 2026, down from 4.5% in 2025, before recovering to 4.3% in 2027, while a level China's growth is now expected to reach.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

As far as global trade goes, world trade volume growth is projected to slow from 5%, the overall trade, in 2025 to 3.5% in 2026, before recovering to 4.3% in 2027. This moderation reflects the unwinding of earlier front-loading effect of tariffs and the continuing impact of tariffs on trade. The recovery in 2027 reflects a gradual adjustment as these dynamics gradually normalize through trade diversion, rerouting, and the continued expansion of technology-related trade flows. Looking specifically at the dry bulk sector, Braemar projects ton-mile growth at 3.8% in 2026 and 1.8% in 2027, reflecting continued expansion in global commodity trade despite the challenging macroeconomic vector. Let's now move to slide 10, as we can review the current state of the dry bulk order book. As of July 2026, the order book stands at 14.4% of the existing fleet.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

Although higher than the 7% order book level recorded in 2021, it remains among the lowest levels in history. For context, the order book accounted for 66% of the fleet in 2008 and around 24% in 2014. Turning to slide 11, we examine the supply fundamentals in a little more detailed fashion. The total dry bulk fleet on the top of the slide currently consists of around 1.1 billion deadweight tons and has grown 3.3% year-on-year. Looking at the age profile of the fleet, roughly 11.8% of the total fleet is over 20 years old, representing vessels that could be considered for scrapping if market conditions moderate or environmental regulations become more stringent. According to Clarksons latest estimates, scheduled newbuilding deliveries as a percent of the existing fleet are projected at 4.5% for both 2026 and 2027 and 6.9% for 2028 and beyond.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

To put it in context, in May, scheduled deliveries for 2028 and beyond were 5.5%. Additional orders placed are to be delivered after that year. Actual fleet growth, of course, is expected to be slightly lower than these numbers, as slippage and demolition activity will offset a portion of the gross number of deliveries. Let's now turn to slide 12, where we share our perspective on where the market stands and what we are monitoring. The market has demonstrated a solid performance in 2026, with rates having recovered meaningfully. Supramax and Panamax time charter rates have recovered to levels last seen in March 2024. This rate recovery reflects sustained demand for tonnages driven by robust commodity flows, particularly iron ore, grain, and bauxite, which have supported healthy fleet utilization. Looking ahead to the second half of 2026, there are several demand-side fundamentals to watch.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

Iron ore exports from Australia and Brazil remain stable, while the Simandou project continues to ramp up production every year. Chinese import demand, despite broader economic headwinds, has remained resilient. Grain and minor bulk trades have proven more durable than might be expected given ongoing geopolitical tensions in the Middle East, indicating underlying strength in agricultural commodity shipments. Has stalled year-to-date due to softer Chinese and Indian demand and Indonesian export limitation. Although recent shifts in Qatar's energy infrastructure have created emerging support for coal from Japan and South Korea. A potential U.S.-Iran agreement could contribute to gradual normalization of vessel traffic in the Gulf, although always implementation risks remain. Such an agreement could improve overall market sentiment and reduce vessel repositioning inefficiencies. However, a normalization of LNG trade flows could moderate coal demand as trapped tonnage is released back into the market.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

On the supply side, ordering activity, as I think I mentioned earlier, has accelerated in recent months. Nevertheless, the overall order book remains relatively modest by historical standards. Looking ahead to 2027, our analysis suggests a balanced but more uncertain market environment. Fleet is expected to continue growing at similar rates as in 2026, while demand growth, as we mentioned earlier, will depend on Chinese steel production, effect on coal trade and production from a possible conclusion of the Iran war. The market outlook will also be influenced by several variables, including geopolitical developments, Red Sea routing dynamics, U.S.-China trade relations, the pace of CMA project execution and ramping up, vessel speeds, and demolition activity. One should anticipate a more balanced market in 2027, though fundamentals should remain supportive relative to historical norms.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

Let's now turn to slide 13 for a quick review of our position on the dry bulk market cycle, as we have always found it helpful to benchmark the present market against its historical context. As of July 31st, 2026, Panamax one-year time charter rates stood at $17,125 per day, meaningfully above the historical median of $13,450 per day. This strength or similar strength is also reflected in asset values. Values for a 10-year-old Panamax are currently priced at approximately $30.5 million, well above both the historical median of $19.5 million and the 10-year average of about $19.2 million, and are currently near 10-year highs. In this environment, we have made a deliberate decision to pursue investments in newbuild vessels rather than acquire secondhand tonnage at market peak levels. This strategic choice reflects our conviction in both current market fundamentals and our longer-term intended fleet positioning.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

While secondhand prices are elevated, we believe newbuildings represent better value and offer superior operational efficiency, lower emission profiles, and reduced maintenance exposure, factors that we believe are increasingly important. Our fleet renewal program demonstrates a disciplined and measured approach to capital allocation, which involved four newbuildings, two Ultras, and two Kamsarmax vessels at reasonable prices, which staggered deliveries through 2028, which we believe will enhance our earnings power when the market conditions normalize, while simultaneously reduce our exposure to aging tonnage and associated inefficiencies. I will now turn the call over to Athina, our Finance Manager, for a closer look at our second quarter financial performance. Athina.

[Athina Atalioti, Finance Manager at EuroDry]

Thank you very much, Tasos. Good morning from me as well, ladies and gentlemen. Over the next five slides, I will give you an overview of our financial highlights for the second quarter and first half of 2026 and compare those results to the same period of last year. For that, let's turn to slide 15. For the second quarter of 2026, the company reported total net revenues of $17.7 million, representing a 57% increase over total net revenues of $11.3 million during the second quarter of 2025. That's a result of the higher time charter rates our vessels earned during the second quarter of 2026 compared to the same period of 2025. The company reported a net income attributable to controlling shareholders of $6.6 million as compared to a net loss attributable to controlling shareholders of $3.1 million for the same period of 2025.

[Athina Atalioti, Finance Manager at EuroDry]

Interest and other financing costs for the second quarter of 2026 decreased to $1.5 million compared to $1.7 million for the same period of 2025. Interest expense during the second quarter of 2026 was lower, mainly due to the decreased benchmark rates of our loans and the decreased average debt during the second quarter of 2026 as compared to the same period of last year. Adjusted EBITDA for the second quarter of 2026 was $11.7 million compared to $1.9 million achieved during the second quarter of 2025, recording a larger than a fivefold increase over the same period of last year. Basic and diluted earnings per share attributable to controlling shareholders for the second quarter of 2026 was $2.36 and $2.32 respectively, calculated on approximately 2.8 million basic and diluted weighted average number of shares outstanding.

[Athina Atalioti, Finance Manager at EuroDry]

Compared to a basic and diluted loss per share attributable to controlling shareholders of $1.12 per share for the second quarter of 2025, calculated on approximately 2.7 million basic and diluted weighted average number of shares outstanding. Excluding the effect on the net income attributable to controlling shareholders for the quarter of the unrealized loss on derivatives, the adjusted earnings attributable to controlling shareholders for the quarter ended June 30, 2026 would have been $2.49 and $2.44 per share basic and diluted, while for the second quarter of 2025 it would be $1.1 per share basic and diluted. Let's now look at corresponding six-month period ended June 30, 2026 and compared to the same period of 2025.

[Athina Atalioti, Finance Manager at EuroDry]

For the first half of 2026, the company reported total net revenues of $30.5 million, representing a 49% increase over total net revenues of $20.5 million during the first half of 2025, which was a result of the higher time charter rates our vessels earned during the first half of 2026 compared to the same period of 2025. The company reported a net income attributable to controlling shareholders of $6.8 million as compared to a net loss attributable to controlling shareholders of $6.8 million for the first half of 2025. Interest and other financing costs for the first half of 2026 amounted to $3 million compared to $3.5 million for the same period of 2025. This decrease is mainly due to the decreased benchmark rates of our loans and the decreased average debt during the first half of 2026 as compared to the same period of last year.

[Athina Atalioti, Finance Manager at EuroDry]

In the first half of 2025, the company signed an agreement to sell motor vessel Tasos for demolition for approximately $5 million. The vessel was delivered to the buyers in March 2025, resulting in a gain of $2.1 million. There were no vessel sales in the first half of 2026. Adjusted EBITDA for the first half of 2026 was $16.6 million compared to $0.85 million achieved during the first half of 2025, an 18-fold increase compared to the same period of 2025. Basic and diluted earnings per share attributable to controlling shareholders for the first half of 2026 was $2.45 and $2.41 respectively, calculated on approximately 2.8 million basic and diluted weighted average number of shares outstanding. Compared to a loss per share of $2.47, calculated on approximately 2.7 million basic and diluted weighted average number of shares outstanding.

[Athina Atalioti, Finance Manager at EuroDry]

Excluding the effect on the net income attributable to controlling shareholders for the first half of the year of the unrealized loss on derivatives, the adjusted earnings attributable to controlling shareholders for the six-month period ending June 30th, 2026 would have been $2.61 and $2.57 per basic and diluted share, respectively. For the first half of 2025, excluding the effect on the loss attributable to controlling shareholders of the unrealized loss on derivatives and the net gain on sale of vessel, the adjusted net loss attributable to controlling shareholders would have been $3.17 per share basic and diluted. Let's now move to slide 16 to review our fleet performance for the second quarter of 2026 with a comparison to the same period of 2025.

[Athina Atalioti, Finance Manager at EuroDry]

During the second quarter of 2026, both our commercial and operational utilization rates reached 100%, compared with commercial utilization of 100% and operational utilization of 99.3% in the second quarter of 2025. On average, 11 vessels were owned and operated during the second quarter of 2026, earning an average time charter equivalent rate of $20,398 per day, compared to 12 vessels in the same period of 2025, earning on average $10,428 per day. This reflects a more than doubling of daily charter rates on a per-vessel basis year-over-year for the respective periods. Turning to operating costs, total operating expenses, including management fees, G&A expenses, but excluding dry docking costs, were $7,444 per vessel per day during the second quarter of this year, compared to $7,539 per vessel per day for the second quarter of 2025, reflecting a slight decrease.

[Athina Atalioti, Finance Manager at EuroDry]

If we move further down, we can see our daily cash flow break-even rate, which takes into account the operating expenses, dry docking costs, interest expense, and scheduled loan repayments but excludes balloon payments. This stood at $11,858 per vessel per day, compared to $12,222 per vessel per day for the second quarter of last year. Let's now turn to the right-hand side of the table and review the same metrics for the first six months of 2026 compared with the corresponding period of 2025. During the first six months of 2026, our commercial and operational utilization rates were 100% and 99.9%, respectively, compared with 99.2% for both commercial and operational utilization during the first six months of 2025.

[Athina Atalioti, Finance Manager at EuroDry]

On average, 11 vessels were owned and operated during the first half of 2026, earning an average time charter equivalent rate of $17,452 per day, compared to 12.4 vessels in the same period of 2025, earning on average $8,761 per day. Our operating expenses, including management fees and G&A expenses, averaged $7,462 per vessel per day in the first half of this year, compared to $7,419 per vessel per day for the same period of last year. Including interest expense, dry docking, and loan repayments without balloon repayments, the cash break-even rate amounted to $12,198 per vessel per day for the first six months of 2026, compared to $11,869 per vessel per day for the same period of 2025. Please turn to slide 17.

[Athina Atalioti, Finance Manager at EuroDry]

This slide serves as a calculation tool, which enables our shareholders and investors to assess the earnings potential in the remainder of 2026 in the current environment. The table shown in this slide has two components. The top chart refers to our fixed rate contract. Starting with our fixed rate contracts, coverage is approximately 28% for the remainder of 2026. This is about 50% in the third quarter and about 6% in the fourth quarter of 2026. The table also shows the average contracted daily charter rate and the resulting EBITDA contribution for the contracted days. The second section of the table estimates the EBITDA contribution from our remaining open and in the clearing days. For this purpose, we use the current forward freight market rates for the Supramax and Panamax, Kamsarmax, and Baltic forward rates as of July 30, 2026.

[Athina Atalioti, Finance Manager at EuroDry]

These forward market assumptions are then translated into an indicative blended earning rate for our open days, which you can see across the Supramax, Panamax, and Kamsarmax forward rates. Based on these assumptions and by further assuming a $7,500 per day per vessel OpEx and G&A cost and a 5% commission rate, one can calculate the EBITDA contribution. The final result is additionally adjusted for our preliminary dry docking expenses expected during the year. This calculation results in an annualized EBITDA contribution of $38.4 million during 2026. Naturally, investors can adjust the forward freight rate assumptions to evaluate different market scenarios and their potential impact on the company's earnings. In the rest of 2026, we can also easily estimate our EBITDA dependence to the average rate earned by our open days.

[Athina Atalioti, Finance Manager at EuroDry]

A change of $1,000 per day in the average rate earned would result in a $1.4 million change in our 2026 EBITDA and have a $0.5 change on the earnings per share. Let's now move to slide 18, review our debt profile and cash flow breakeven estimates. As of June 30, 2026, our outstanding debt stood at $98.1 million, with an average margin of about 1.99%. Assuming a three-month SOFR rate of 3.75% as of June 30, 2026, the all-in cost of our senior debt averages at 5.74%. The upper chart illustrates our debt amortization schedule. Scheduled debt repayments total approximately $12.2 million during 2026, $21 million in 2027, $17 million in 2028, and $28.8 million in 2029, inclusive of balloon payments of approximately $1.2 million, $10.2 million, $6.7 million, and $19 million, respectively.

[Athina Atalioti, Finance Manager at EuroDry]

We have routinely been able to refinance balloon payments in the past, and we are confident that we would be able to do the same if we choose so in the future. Please note that although we have arranged the debt financing of our two Ultramax newbuildings, our current debt figure that I quoted includes only the portion of one of the two loans drawn to date, representing the pre-delivery payments made thus far. The 2027 and 2028 repayment figures include scheduled repayments under both newbuilding loan facilities to finance our Ultramax newbuildings, which are scheduled for delivery during the second and third quarter of 2027. Our debt figures do not include any debt that we would draw to finance the Panamax newbuildings or the refinancing of MV Ekaterini.

[Athina Atalioti, Finance Manager at EuroDry]

Turning to the bottom of the slide, we present our cash flow breakeven estimates for the next 12 months, broken down by major components. Our EBITDA breakeven level is at $8,458 per day, while our all-in cash flow breakeven, incorporating operating expenses, dry docking cost, interest expense, and loan repayments, is estimated at $12,872 per day. Let's move now to my final slide 19. Review some highlights from our balance sheet as of June 30, 2026. This slide offers a snapshot of our assets and liabilities and provides a concise picture of our financial position. Cash and other assets stood at approximately $37.5 million. Advances for newbuildings amounted to approximately $14.4 million, and the book value of our vessels was approximately $160.2 million, bringing our total assets to approximately $212.5 million.

[Athina Atalioti, Finance Manager at EuroDry]

On the liability side, total debt stood at approximately $98.1 million, while other short-term liabilities amounted to $5 million, for combined liabilities of approximately $103.1 million, representing approximately 48.5% of total assets. After excluding the equity attributable to minority interest in the amount of $9.4 million, the shareholders' equity of common shareholders on a book value basis stood at approximately $100 million or $34.92 per share. However, based on our internal estimates and external valuations, the market value of our fleet is meaningfully above its book value. We estimate the current market value of our vessels at approximately $240 million, compared to a book value of approximately $160 million, implying an excess value of approximately $80 million. Adjusting for this difference yields an estimated net asset value in excess of $60.81 per share.

[Athina Atalioti, Finance Manager at EuroDry]

When compared to the recent trading range of our shares, which has moved up to around $28 recently, it becomes evident that still there is a substantial discount to our estimated net asset value, and by extension, a significant upside potential for both shareholders and potential investors. With that, I will hand the call back to Tasos to continue.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

Thank you very much, Athina. We would like to open the floor now for questions if there are any.

[Operator]

Thank you. First question comes from Tate Sullivan with Maxim Group. Please go ahead.

[Tate Sullivan, Analyst at Maxim Group]

Hi. Thank you. Good day. Thanks for having the update call. Just a couple for me. The first on the debt margin of 1.99%, I think that was your average margin in June. Do you think that will change going forward if you do decide to add any debt with your new builds, or do you have more recent indications of a lower spread so far?

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

Most likely, if it changes, it will go down. I think we are getting quotes from our banks well below 2%, closer to 1.5% lately. I think, in fact, the latest loan that refinanced what we did was much closer to 1.5%. The average, if anything, will come down. We hope.

[Tate Sullivan, Analyst at Maxim Group]

Okay, thank you. It's great you, for the last couple of quarters, including the slide on the forward EBITDA sensitivities, and then I just noticed that the dry docking days estimates for the second half, you now have 17, and I think in the first quarter presentation, you had two. I'm sorry if I missed something, but did you move forward some dry dock days from 2027?

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

We might have. I think that involves our vessel Alexandros, which its dry docking falls right on the turn of the fourth quarter. Now we have of the budgeted 20 something, 22, 23 days. Now we have 16 on Q4 and the remaining on Q1 2027. That changes as based on operational planning.

[Tate Sullivan, Analyst at Maxim Group]

Okay. It's impressive with the fleet renewal and adding the new builds, your off-hire days decrease from, I have 97 in 2025 now to what? Maybe 36. This year, in 2027, will probably the off-hire days increase a little bit just based on timing or is that probably not necessarily the case?

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

That's why we make a distinction between commercial and operational off-hire, of course. We have off-hire days due to the dry dockings, which we don't count in these figures, but we hope that we're going to keep to minimum the operational commercial. Obviously, we have in 2027, a dry docking, an additional dry docking schedule. I think it's the vessel Starlight that is coming due for the dry dock and some in-water surveys. There would be some off-hire days on the basis of the dry dockings and the in-water surveys.

[Tate Sullivan, Analyst at Maxim Group]

Okay, thank you. Last for me, I noticed you put Indonesia in the market commentary slide and hearing from some other companies on more export restrictions or changes thereof from Indonesia. Do you think that's a more important consideration for your fleet going forward than anything going on in the Middle East in terms of exports, et cetera?

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

I think by far, not only for us, for the whole market, anything going on in the Middle East is the overwhelming consideration because it has so many side effects, either in the form of direct effect on trade or on inefficiencies introduced in the various routes.

[Tate Sullivan, Analyst at Maxim Group]

Okay, great. Thank you. Have a great rest of the day.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

Thank you, Tate. Thanks for the call, for the questions.

[Tate Sullivan, Analyst at Maxim Group]

Thanks.

[Operator]

Thank you, ladies and gentlemen. As a reminder, should you have any questions, please press star one. Next question from Mark Reichman with Noble Capital Markets. Please go ahead.

[Mark Reichman, Analyst at Noble Capital Markets]

Thank you. I've got several questions here. The first is on the voyage expenses. During the quarter, voyage expenses had a positive impact of $1.5 million on your operating expenses, and I understand that's related to the bunker fuel. What would your expectations be if you could just provide a little more color on that number and maybe expectations for the second half of the year.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

Yeah. As you have insinuated, this number typically has to be a small negative number because our vessels are chartered on a time charter basis. The fuel costs are paid generally by the charterer, so a little bit of voyage expenses is left for us, for certain situations. However, we deliver our vessels with fuel in their tanks, and we buy back fuel when the vessels are delivered to us. In an environment with increasing oil prices, you tend to make money on the fuel. What you take back at the pre-agreed price, if the price has increased in between while the charter was being performed and you resell to the next charter, you record a gain. During the second quarter, the oil price was increasing, and we benefited from that trend.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

Obviously, if the oil price is stable, you would expect that number to be near zero, the gains. If the oil price is dropping, you would probably have to give back some of those gains.

[Mark Reichman, Analyst at Noble Capital Markets]

Okay. Just looking at the forward curve on crude oil, you might expect that maybe the second half you'll have a little bit of an expense or stay relatively flat. Is that a good way to think about it?

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

A small negative number is expected because of the nature of the chartering we do. We do time charters, we don't have major voyage expenses, but we do have some, and those should always be recorded as a negative number. If the number is positive, it's the situations that I mentioned.

[Mark Reichman, Analyst at Noble Capital Markets]

Okay. The second question is just, vessel operating expenses have remained well-controlled despite inflation. Would you expect daily operating expenses to remain near current levels, or are there any cost pressures from labor, maintenance, or regulatory compliance?

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

I think we expect it to remain near our budget levels. I think we are doing well versus our budget. Our budget was slightly higher compared to last year. I think less than 3% overall, we recently, we're comparing the results to our budget. We are just on budget or maybe a little less. I have no reason to feel that the second half would result in higher operating expenses. We cannot exclude that possibility, we have taken into account when we did our budget, the new levels of all the costs and inflationary pressures.

[Mark Reichman, Analyst at Noble Capital Markets]

Okay. Just on the chartering strategy, several vessels roll-off charter between August and November while others remain index-linked. Are you inclined to lock in longer-term fixed rates or retain greater exposure to the spot market? I'm assuming kind of the latter based on the commentary.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

When we discussed in our last board meeting, the chartering strategy, the support was to put a few more vessels on one-year charters, let's say, if certain levels in the high teens or if we can find charters that start with a two for one year, we might put a few more of our vessels on longer-term charters. That's the approach. If we are in the mid-teens and below, we try to be on the spot market. If we're approaching the high teens and beyond that, we try to secure some of our tonnages on longer-term charters.

[Mark Reichman, Analyst at Noble Capital Markets]

My last question is just more of a macro question, and that is, with the earnings improvement, there's always the argument, structural versus cyclical. Maybe it was a couple of weeks ago, the management of a Capesize vessel operator had made the comment that vessel supply rather than demand represented the critical driver of future market conditions, and they had cited their historically low Capesize order book, together with the aging fleet as an important structural support that might outweigh any economic or macroeconomic uncertainty. You've got a structural support there. Would you say the same is true for the vessel classes that you operate, or do you think you're a little more exposed to cyclical? Maybe just that discussion on kind of the cyclical versus structural in terms of the market outlook.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

Cyclical comes both from demand and supply. For our sizes, the middle range of sizes, the Ultramax and Panamax, the order book is a little higher than the Capesize order book, the age profile of the segments is older. The average age is higher. That counterbalances the lower order book, I guess, of the Capesize in some sense.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

If anything, if regulations become stricter, it would have more of an effect in an older vessel than on a newer one. I believe that, in our case too, the order book is still a supporting factor, it has been a supportive factor for the last three or four years. The market did not do well in 2025, especially in late 2024. Demand was really the determining factor then, I believe that's why we talk about the supply-demand balance. Both sides of the equation are equally important. Demand during these years has improved for all the reasons that we discussed, and it was supported by a good supply story. We feel that that will continue in 2026, we are hopeful that it will continue in 2027.

[Mark Reichman, Analyst at Noble Capital Markets]

Well, that was a very concise answer. I really appreciate that. Very helpful.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

Thank you for your question, Mark.

[Operator]

Thank you. That concludes today's Q&A session, and I'll turn the call back over to the CFO for any closing comments.

[Anastasios Aslidis, CFO and Treasurer at EuroDry]

I would like to thank everybody for attending our call. Wish you have a nice remaining summer and look forward to welcoming you to our November call. Thanks all.

[Operator]

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and we ask that you please disconnect your lines.

Participants

Executives

• Anastasios Aslidis, CFO and Treasurer
• Athina Atalioti, Finance Manager

Analysts

• Tate Sullivan, Analyst at Maxim Group
• Mark Reichman, Analyst at Noble Capital Markets