Euroseas (NASDAQ:ESEA) Announces Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Euroseas (NASDAQ:ESEA) released its quarterly earnings data on Wednesday. The shipping company reported $4.50 earnings per share for the quarter, beating analysts’ consensus estimates of $4.47 by $0.03, FiscalAI reports. Euroseas had a return on equity of 27.56% and a net margin of 54.01%.The firm had revenue of $57.39 million during the quarter, compared to analyst estimates of $57.83 million.

Here are the key takeaways from Euroseas’ conference call:

• Solid financial performance: Q4 2025 net revenues were $57.4M (up 7.7% YoY) and FY2025 net income was $137M with adjusted EBITDA of $155.9M and adjusted EPS near $16.75 for the year, reflecting stronger charter rates and vessel utilization.
• Shareholder returns increased: Board raised the quarterly dividend 7% to $0.75/share (annualized $3, ~5% yield) and renewed the share repurchase program after buying 480,000 shares (~$11.4M) since 2022.
• High forward revenue visibility: Contract coverage stands at ~87% of available days in 2026 (≈$30.7k/day), ~71% in 2027 (≈$31.9k/day) and ~41% in 2028 (≈$32.4k/day), supporting near‑term cash flow stability.
• Fleet growth and profile: Operates 21 vessels (61,000 TEU, average age 13.1 years) with four 4,484‑TEU newbuilds due in 2027–2028 that will expand capacity to ~80,000 TEU on a fully delivered basis.
• Market and financing risks: global fleet grew ~7% in 2025 and large‑vessel orderbook could pressure rates (notably in 2027), while the company carries ~$218M of bond debt, upcoming balloon maturities and ~$140–150M of expected newbuild financing that may require refinancing.

Euroseas Trading Up 4.0%

Shares of NASDAQ ESEA traded up $2.55 during midday trading on Thursday, hitting $65.54. 128,872 shares of the company traded hands, compared to its average volume of 39,257. Euroseas has a 12-month low of $26.30 and a 12-month high of $66.00. The firm has a market cap of $459.44 million, a P/E ratio of 3.78 and a beta of 0.81. The stock has a 50-day moving average price of $55.71 and a 200 day moving average price of $58.04. The company has a debt-to-equity ratio of 0.47, a quick ratio of 3.53 and a current ratio of 3.59.

Euroseas Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 17th. Investors of record on Tuesday, March 10th will be given a dividend of $0.75 per share. This is an increase from Euroseas’s previous quarterly dividend of $0.70. This represents a $3.00 annualized dividend and a dividend yield of 4.6%. The ex-dividend date is Tuesday, March 10th. Euroseas’s dividend payout ratio is presently 16.17%.

Analysts Set New Price Targets

Separately, Weiss Ratings reissued a “buy (b-)” rating on shares of Euroseas in a research note on Monday, December 29th. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, Euroseas currently has a consensus rating of “Moderate Buy” and a consensus target price of $62.00.

Euroseas News Roundup

Here are the key news stories impacting Euroseas this week:

• Positive Sentiment: Q4 and full‑year results beat expectations — adjusted Q4 EPS roughly $4.50 (beat), strong net income and margins, and year EBITDA/earnings materially improved versus 2024, underpinning the rally. GlobeNewswire Release
• Positive Sentiment: Dividend increase and buybacks — board raised the quarterly dividend to $0.75 (≈7% hike) and the company has repurchased ~6.8% of shares under its program, returning cash and supporting per‑share metrics. Dividend / Buyback Details
• Positive Sentiment: Strong revenue visibility — management cites ~87% charter coverage for 2026, >71% for 2027 and >$550M contracted revenues over five years, which reduces near‑term spot exposure. TradeWinds Article
• Neutral Sentiment: Earnings call transcripts and slides posted — management commentary and the full call transcript are available for investors to review guidance, fleet employment detail and Q&A. Yahoo Finance Transcript
• Neutral Sentiment: Fleet and newbuild profile disclosed — 21 vessels today with four intermediate newbuilds scheduled for 2027–2028; investors should watch delivery timing and charter terms for those ships. Fleet Breakdown
• Negative Sentiment: Market risk for larger containership segment — management warns high orderbooks for large ships and potential Suez Canal traffic normalization could weigh on demand; feeder/intermediate segments (Euroseas’ focus) look healthier but macro risks remain. TradeWinds Market Commentary
• Negative Sentiment: Rising operating costs and fleet mix/headcount effects — vessel operating and G&A expenses rose (stock incentives, FX effects), and average number of vessels operated dipped versus prior year; keep an eye on margins if costs continue to increase. Cost / Expense Note

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in ESEA. State of Tennessee Department of Treasury bought a new stake in shares of Euroseas during the fourth quarter valued at approximately $404,000. Millennium Management LLC lifted its position in Euroseas by 171.7% during the fourth quarter. Millennium Management LLC now owns 53,386 shares of the shipping company’s stock valued at $2,915,000 after buying an additional 33,738 shares during the period. Engineers Gate Manager LP bought a new stake in shares of Euroseas during the 4th quarter valued at $311,000. Lazard Asset Management LLC grew its position in shares of Euroseas by 3.7% in the 4th quarter. Lazard Asset Management LLC now owns 35,031 shares of the shipping company’s stock worth $1,913,000 after buying an additional 1,262 shares during the period. Finally, Jump Financial LLC grew its position in shares of Euroseas by 39.3% in the 4th quarter. Jump Financial LLC now owns 10,692 shares of the shipping company’s stock worth $584,000 after buying an additional 3,019 shares during the period. Institutional investors own 6.27% of the company’s stock.

About Euroseas

Euroseas Ltd. (NASDAQ: ESEA) is an international shipping company specializing in seaborne transportation of containerized and drybulk cargoes. Incorporated in Bermuda with its principal operations and management office based in Athens, Greece, the company owns and charters a diversified fleet of containerships, drybulk carriers and multipurpose vessels. Euroseas provides tailored shipping solutions on time-charter and voyage-charter agreements, serving manufacturers, commodity traders and logistics providers across major trade routes.

Euroseas’s fleet comprises both owned and chartered tonnage, enabling the company to adjust capacity to market conditions and customer requirements.