STAINLESS TANKERS (STST) Q2 2025 earnings summary

Executive summary

• Net asset value (NAV) at quarter end was $73.4 million, or $5.44 per share, after cumulative dividends of $2.09 per share, resulting in a total return since inception of 49%.

• EBITDA for the quarter was $6.9 million on net revenues of $8.9 million, with pool earnings rising to $17,800 per day, up from $17,000 in Q1.

• Net income for Q2 2025 was $2.8 million, down from $4.4 million in the previous quarter.

• Fleet reduced from nine to seven vessels following the sale of Monax and Marmotas; Gwen sale expected to close by end of August.

• Dividend of $0.275 per share declared for Q2, representing a 22% annualized yield; over 45% of IPO proceeds returned to shareholders.

Financial highlights

• Net revenue for Q2 2025 was $8.9 million, down from $11.9 million in Q1, mainly due to lower vessel utilization.

• Operating expenses decreased to $4.81 million from $6.2 million, reflecting the smaller fleet.

• Free cash at quarter end was $7.5 million, boosted by the release of certain cash restrictions.

• Interest-bearing debt reduced to $49.2 million at June 30, 2025, from $74.9 million at year-end 2024.

• Gains on vessel disposals in H1 2025 totaled $6.1 million.

Outlook and guidance

• Rates expected to increase through Q3 and Q4, with Womar pool forecasting $19,000 per day by year-end.

• Near-term demand growth challenged by geopolitics and tariffs, but optimism remains for H2 2025.

• Gwen vessel sale expected to close by end of August 2025, further reducing debt and increasing liquidity.

• Board intends a special dividend following Gwen's sale.

• Three additional vessels scheduled for dry docking in November and December, with proactive management of associated costs.