EuroDry (EDRY) Q4 2024 earnings summary

Executive summary

• Q4 2024 net revenues were $14.5 million, with a net loss of $3.3 million ($1.20 per share); adjusted net loss was $0.7 million ($0.25 per share), excluding a $2.8 million vessel impairment.

• Adjusted EBITDA for Q4 2024 was $4.8 million, down 27.5% year-over-year; full-year adjusted EBITDA was $12.4 million, down 15.2%.

• Full-year 2024 net revenues rose 28.3% to $61.1 million, but net loss widened to $9.7 million ($3.54 per share); adjusted net loss was $8.2 million ($3.02 per share).

• Share repurchase program continued, with $5.3 million spent to date on 334,674 shares under a $10 million buyback plan.

• Ordered two 63,500 DWT Ultramax newbuilds for delivery in 2027 at ~$36 million each.

Financial highlights

• Q4 2024 revenues fell 8.7% year-over-year due to lower time charter rates; TCE was $12,201/day, down from $14,570/day in Q4 2023.

• Q4 adjusted EBITDA dropped to $4.8 million from $6.6 million a year ago; full-year adjusted EBITDA was $12.4 million, down from $14.6 million in 2023.

• Q4 2024 adjusted net loss per share was $0.25; full-year adjusted net loss per share was $3.02.

• Vessel operating expenses in Q4 2024 were $6.6 million, up from $6.1 million in Q4 2023; full-year vessel opex was $25.7 million, up from $20.8 million.

• Utilization rates remained high at 99.4% operational and 100% commercial in Q4 2024.

Outlook and guidance

• Management remains cautious on the dry bulk sector due to macroeconomic and geopolitical risks, but expects market recovery in Q2 2025, driven by Chinese stimulus and seasonal factors.

• 2025 break-even cash flow expected to be $11,600 per vessel per day; EBITDA break-even at $7,526.

• Q1 2025 charter rates are below $10,000 per day, but Q2 is expected to improve seasonally.

• Will consider longer charters if rates for modern ships reach $15,000–$16,000 per day.

• New emissions regulations may constrain supply through increased scrapping or slower speeds.