C3is (CISS) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income rose 109% year-over-year to $8 million, despite a 32-43% drop in revenues due to lower charter rates and TCEs.

• Adjusted net income fell 73-74% to $1.16-$1.2 million and adjusted EBITDA declined 53-54% to $2.97-$3.0 million, reflecting lower TCE rates.

• Fleet expanded to four vessels (three handy-sized dry bulk, one Aframax tanker), all unencumbered, non-Chinese built, and with total capacity of 213,464 dwt.

• All CapEx obligations totaling $59.2 million were met without bank financing, including $14.6 million for Eco Spitfire in April 2025.

• Operational utilization reached up to 96.8% in Q1 2025; all vessels are employed on short to medium-term charters.

Financial highlights

• Q1 2025 revenues were $8.7 million, down 32% year-over-year; net revenues were $5.6 million, down 43%.

• Daily TCE rate dropped 56% to $16,202; voyage costs flat at $2.8 million; vessel operating expenses rose to $2.1 million.

• G&A expenses were $653,000–$700,000, mainly from stock-based compensation; depreciation increased to $1.6 million.

• Non-cash gain of $6.9 million from warrant revaluation boosted net income; warrant liability at $3.6 million as of March 31, 2025.

• Cash balance increased 25% to $15.7 million by end of Q1 2025.

Outlook and guidance

• The company will continue disciplined growth, focusing on non-Chinese-built vessels and short to medium-term charters.

• Handysize segment expected to remain robust, with 12-month TC rates averaging $12,750/day; Aframax TCE rates forecast to remain below 2024 levels.

• Equity issuances will continue to support selective acquisitions; no bank debt is planned.

• Management expects a cautious but dynamic market in 2025, with opportunities in infrastructure, industrial commodities, and regional growth.

• Focus remains on diversification and sustainable practices to adapt to evolving trade patterns.