EuroDry, a dry bulk shipping company, returned to profitability in the first quarter of 2026, driven by a sharp increase in charter rates.
The company reported net income attributable to controlling shareholders of $0.26 million, or $0.09 per diluted share, a significant turnaround from the net loss of $3.7 million in the same period last year.
>>> Vanguard VXUS vs Schwab SCHE: Comparing International ETF Strategies
Total net revenues for the three months ended March 31, 2026, reached $12.8 million, a 38.9% increase from $9.71 million in Q1 2025.
The revenue growth was fueled by higher time charter rates, which offset a reduction in the average number of vessels operated.
EuroDry managed an average of 11 vessels during the quarter, down from 12.8 ships in the prior-year period.
However, the average time charter equivalent (TCE) rate more than doubled to $14,416 per vessel per day, compared to $7,167 in Q1 2025.
>>> Keefe Bruyette Lowers Granite Point Mortgage Trust Price Target to $1.50
Operational Efficiency and Fleet Utilization
The company achieved near-perfect fleet utilization, with commercial utilization at 100% and operational utilization at 99.7%, resulting in an overall utilization rate of 99.7%.
This marked an improvement from 97.4% in the first quarter of 2025.
Adjusted net income for the quarter stood at $0.33 million, or $0.12 per diluted share, while adjusted EBITDA reached $4.9 million.
Fleet Expansion and Share Buyback
EuroDry is expanding its fleet through a newbuilding program.
>>> Shell Launches $3 Billion Share Buyback, Raises Dividend After Strong Q1
The company has ordered two additional 82,000-dwt eco Kamsarmax bulk carriers from Hengli Shipbuilding, bringing its total newbuilding queue to four vessels.
Once all deliveries are completed, the fleet will grow from 11 to 15 ships, increasing total carrying capacity to approximately 1.05 million deadweight tons.
Management remains optimistic about the dry bulk market, citing firm Panamax and Supramax rates and low global vessel supply.
In addition, the company continues its share buyback program, having repurchased 348,000 shares for $5.6 million.
>>> Nu Holdings Stock Rebounds After Coatue Management Boosts Stake
Internal estimates place net asset value above $52.77 per share.
