EuroDry Ltd. Q2 FY2025 earnings call

• Share repurchase: Repurchased 334,000 shares for $5.3 million under a $10 million plan, with the board extending the program for another year.
• ESG report: The 2024 environmental, social, and governance report became available, outlining ongoing ESG initiatives.
• Chartering: Recent fixtures are short-term or index-linked; Houthi attacks briefly boosted rates, but seasonality remains; vessels not committed to longer-term contracts yet.
• Operational highlights: Santa Cruz underwent scheduled dry docking; fleet consists of 12 vessels, with 2 Ultramax under construction for delivery in 2027, growing fleet to 14 vessels.

For the second quarter of 2025, EuroDry reported total net revenues of $11.3 million, a net loss attributable to controlling shareholders of $3.1 million, and adjusted EBITDA of $1.9 million. For the first half of 2025, total net revenues were $20.5 million, a net loss of $7.11 million, and adjusted EBITDA of $0.9 million. The revenue contribution is from the dry bulk shipping segment, with key financial metrics reflecting the impact of market conditions.

• Hopes for a better fall season in dry bulk rates.
• Will fix vessels on longer-term contracts when rates return to profitable levels.
• Projected fleet growth with 2 newbuilds scheduled for delivery in 2027, increasing carrying capacity to nearly 1 million DWT.
• Market outlook: Clarkson's Research revised trade growth projections for 2025 and 2026 to slight positive growth.

• Geopolitical risks: Houthi attacks in the Red Sea impact rates but seasonality remains a factor.
• Macroeconomic headwinds: Uncertain global economic conditions and trade tariffs affect demand.
• Fleet dynamics: Low order book levels but potential constraints from slow steaming, scrapping, and environmental regulations.

Q: Talk about the improvement in June and July BDI/BPI and expectations for the remainder of the year.

A: Houthi attacks and tariff announcements briefly boosted rates, but seasonality is a factor; hoping for a better fall with improved market conditions.

Q: About EuroDry's liquidity and plans for debt repayment, and reasons for decline in voyage expenses from Q1 to Q2.

A: Liquidity is tight with restricted cash, but plans include refinancing vessels and addressing newbuilding progress payments; voyage expenses vary based on charter type (time charter vs. voyage charter with ballast bonuses).

Q: Questions about the newbuild program progress payments and financing.

A: Made a payment last year, with payments due in 2026 and 2027; banks are willing to finance predelivery payments, and the company will continue with dry bulk newbuilds as market conditions allow.