EuroDry (EDRY) Q2 2025 earnings summary

Executive summary

• Q2 2025 net revenues were $11.3 million, with a net loss attributable to controlling shareholders of $3.1 million ($1.12 per share); adjusted net loss was $3.0 million ($1.10 per share), and adjusted EBITDA was $1.9 million, reflecting a challenging market.

• First half 2025 net revenues totaled $20.5 million, with a net loss attributable to controlling shareholders of $6.8 million ($2.47 per share); adjusted net loss was $8.7 million ($3.17 per share).

• Share repurchase program continued, with $5.3 million spent to repurchase 334,674 shares since August 2022; program extended for another year.

• Fleet consists of 12 vessels (average age 13.6 years), with two Ultramax newbuilds scheduled for delivery in 2027, expanding the fleet to 14 vessels.

• 2024 ESG/Sustainability Report completed and set for release in August 2025, marking the fifth annual report.

Financial highlights

• Q2 2025 net revenues decreased 35.3% year-over-year to $11.3 million; H1 2025 net revenues down 35.7% to $20.5 million.

• Adjusted EBITDA for Q2 2025 was $1.9 million, down from $5 million in Q2 2024; H1 2025 adjusted EBITDA was $0.9 million, down from $7.1 million in H1 2024.

• Adjusted net loss per share for Q2 2025 was $1.10, compared to $0.17 in Q2 2024; H1 2025 adjusted loss per share was $3.17, compared to $1.35 in H1 2024.

• Operating expenses in Q2 2025 included $6.3 million vessel operating expenses, $0.8 million voyage expenses, $3.2 million depreciation, and $1.1 million management fees.

• Interest and other financing costs for Q2 2025 were $1.7 million, down from $2.0 million in Q2 2024.

Outlook and guidance

• Fixed rate coverage for the remainder of 2025 is about 25%, with several vessels on index-linked or short-term charters; management may consider longer-term charters if rates improve.

• Market visibility remains limited due to macroeconomic and geopolitical headwinds, including US tariffs and Red Sea disruptions.

• 2025 expected to remain softer than 2024, with 2026 outlook suggesting another year of soft earnings as new vessel supply may outpace demand growth.

• Breakeven cash flow level for the next 12 months is projected at $11,850 per vessel per day; gross TCE rate of $13,000 needed for breakeven.

• Management expects potential improvement in Q3 2025 if current rate levels are maintained or improve.