Euroseas Ltd. Q4 FY2025 earnings call

• Announced 7% increase in quarterly dividend to $0.75 per share for 2025, annualized dividend $3.00 with ~5% yield. - Completed sale and delivery of motor vessel Marcus V, generating $9,200,000 gain on sale. - Secured multiyear employment for several vessels, including motor vessels Gragos, Terrapate, Lawniverse for ~3 years at $30,000/day and Lean Expenses for 22 - 24 months at $21,500/day. - No idle or commercial off - hire days in the period. - Owned fleet details: 21 vessels, 4 under construction. - Market developments: One - year time charter rates firm, Shanghai Containerized Freight Index recovered ~13%, secondhand asset prices stable, newbuilding price index declined 1.5% q - q, idle fleet capacity trended downward, recycling activity muted, global fleet expanded ~7% in 2025.

For 2025, total net revenues were $57,400,000. Net income was $40,500,000 or $5.79 per diluted share. Adjusted net income for the quarter was $1,300,000 or $4.48 per diluted share. Adjusted EBITDA was $40,700,000. Owned fleet consists of 21 vessels with total carrying capacity of 1,000 TEUs and average age of 13.1 years, including 6 intermediate vessels (25,500 TEUs, avg age 18.2 years) and 15 feeder vessels (45,000 TEUs, avg age 9.4 years). 4 intermediate vessels under construction (4,484 TEUs each), 2 to deliver in 2027, 2 in 2028. 2026 forward coverage: 87% of available voyage days fixed at avg daily rate ~$30,700; 2027: 71% at ~$31,900; 2028: 41% at ~$32,400.

• 2026 forward coverage: 87% of available voyage days fixed at avg daily rate ~$30,700; 2027: 71% at ~$31,900; 2028: 41% at ~$32,400. - Intends to continue share repurchase program in disciplined manner. - Expectation to find use for excess capital rather than immediate special dividend but will continue providing decent dividend.

• Geopolitical tensions could escalate, creating uncertainty for global economy. - Ongoing trade frictions and fragmentation. - Possibility of vessels being rerouted again via Red Sea, potentially softening market environment. - Artificial uplift in TEU - mile demand unwinding could put pressure on rates. - Newbuilding deliveries outpacing underlying demand growth if geopolitical disruptions ease rapidly.

Q: Mark Reichman asked about capital allocation priorities between dividends, share repurchases, secondhand acquisitions, and newbuild orders.

A: Will continue strong dividend, focus on newbuilding market, keep moderate leverage and capitalize on investment opportunities.

Q: Mark Reichman asked about containership market transition and scrapping offsetting new deliveries.

A: Scrapping will increase when charter rates fall; market drop expected when world finds equilibrium in trade routes.

Q: Tate Sullivan asked about operating expenses per day increase.

A: Partly due to euro - dollar exchange rate, increases in crew costs and G&A below 5%, also affected by euro - dollar and division of G&A by fewer ships.

Q: Tate Sullivan asked about dividend policy.

A: Do not have steady payout ratio, provide decent dividend, current yield around 5% is likely lowest level.

Q: Poe Fratt asked about prospects of older assets and special dividend.

A: Older assets may be chartered out for another 3 years after passing special survey, not considering special dividend at present.

Q: Climent Molins asked about OpEx guidance and euro - USD exchange rate assumption.

A: Budget for OpEx in 2026 assumes 3% overall increase, assumes euro - USD exchange rate in high teens 1.15 - 1.20 range.

Q: Mark Reichman followed up on feeder vessels.

A: Looking into possibility of ordering feeder vessels but nothing to report yet