EuroDry (NASDAQ:EDRY) reported higher second-quarter revenue and a return to profitability as time charter rates more than doubled from the prior-year period, while the dry bulk shipowner outlined plans to expand its fleet and refinance debt tied to one of its Kamsarmax vessels.
For the three months ended June 30, 2026, EuroDry reported total net revenues of $17.7 million, up 57% from $11.3 million a year earlier. Net income attributable to controlling shareholders was $6.59 million, or $2.32 per diluted share, compared with a $3.1 million loss in the second quarter of 2025. Adjusted net income was $6.95 million, or $2.44 per diluted share, and adjusted EBITDA was $11.71 million.
Charter Rates Drive Earnings Improvement
EuroDry operated an average of 11 vessels in the second quarter, compared with 12 vessels in the year-earlier period. Its average time-charter-equivalent rate rose to $20,398 per vessel per day from $10,428 per day a year earlier. Both commercial and operational utilization reached 100% during the quarter.
Operating expenses, including management fees and general and administrative costs but excluding dry-docking expenses, declined slightly to $7,444 per vessel per day from $7,539. The company’s daily cash flow break-even rate was $11,858 per vessel per day, compared with $12,222 in the prior-year quarter.
For the first half of 2026, revenue increased 49% to $30.5 million. Net income attributable to controlling shareholders was $6.8 million, compared with a $6.8 million loss in the first half of 2025. First-half adjusted EBITDA rose to $16.6 million from $850,000 a year earlier.
Atalioti said second-quarter financing costs declined to $1.5 million from $1.7 million, reflecting lower benchmark rates on the company’s loans and lower average debt. First-half financing costs declined to $3 million from $3.5 million.
Fleet Employment, Newbuildings and Refinancing
Chief Financial Officer and Treasurer Anastasios Aslidis said four of EuroDry’s vessels are currently on index-linked charters tied to the Baltic Supramax S10TC index. The remaining vessels are largely employed on fixed-rate time charters of one to three months, except for the M/V Christos K, which is fixed through November 2026.
Fixed-rate coverage for the remainder of 2026 stood at roughly 28%, including about 50% coverage in the third quarter and 6% in the fourth quarter, according to Atalioti. The company estimated that a $1,000-per-day change in rates earned on open days would alter 2026 EBITDA by approximately $1.4 million and earnings per share by $0.50.
EuroDry currently operates 11 vessels with aggregate carrying capacity of approximately 766,000 deadweight tons and an average age of about 13.8 years. It also has four newbuildings on order: two Ultramax vessels scheduled for delivery in the second and third quarters of 2027 and two Kamsarmax vessels scheduled for delivery in the first and second quarters of 2028.
Upon delivery, the fleet is expected to expand to 15 vessels with total carrying capacity of approximately 1.06 million deadweight tons. Aslidis said the company has chosen to invest in newbuildings rather than buy secondhand vessels at what he described as elevated asset values.
On July 28, EuroDry signed a term sheet to refinance the M/V Ekaterini with a $19 million loan facility. Aslidis said the proposed financing is nearly $8 million higher than the vessel’s existing loan balance and would boost liquidity, subject to customary closing documentation.
The company’s debt outstanding was $98.1 million as of June 30, with an average margin of about 1.99%. Aslidis told analysts that more recent bank quotes have been below 2% and closer to 1.5%, meaning the company’s average margin could decline if financing changes are completed.
Market Outlook and Capital Allocation
Aslidis said Panamax rates averaged $17,969 per day during the second quarter and stood at $17,150 per day at the end of the prior week. One-year Panamax time-charter rates were approximately $17,175 per day as of July 31, according to Clarksons data cited by the company.
The Baltic Dry Index and Baltic Panamax Index rose about 78% and 54%, respectively, year over year in the second quarter, reflecting improved dry bulk trade conditions, he said. EuroDry cited stable iron ore exports from Australia and Brazil, resilient Chinese imports, and durable grain and minor-bulk trades as demand supports.
Management also pointed to geopolitical risks, including the Iran conflict, the Russia-Ukraine war, Red Sea routing patterns and U.S.-China trade relations. In response to an analyst question, Aslidis said developments in the Middle East were the “overwhelming consideration” for the broader market because of their potential effects on trade and vessel-routing inefficiencies.
The dry bulk order book stood at 14.4% of the existing fleet as of July, according to the company. While above 2021 levels, Aslidis said it remained low by historical standards. He said EuroDry expects 2027 to be a more balanced and uncertain market, though fundamentals should remain supportive relative to historical norms.
EuroDry has repurchased 358,130 common shares for $5.8 million since launching its repurchase program in August 2022. The board recently reapproved and extended the program for another year, and Aslidis said repurchases would continue in a disciplined manner based on market conditions and other capital-allocation priorities.
About EuroDry (NASDAQ:EDRY)
EuroDry 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.
