Euroseas (NASDAQ:ESEA) Releases Earnings Results, Beats Expectations By $0.03 EPS

Euroseas (NASDAQ:ESEA) posted its quarterly earnings data on Wednesday. The shipping company reported $4.50 earnings per share for the quarter, topping the consensus estimate of $4.47 by $0.03, FiscalAI reports. The business had revenue of $57.39 million during the quarter, compared to the consensus estimate of $57.83 million. Euroseas had a net margin of 54.01% and a return on equity of 27.56%.

Here are the key takeaways from Euroseas’ conference call:

• Solid financial performance: Q4 2025 net revenues were $57.4M (up 7.7% YoY) and FY2025 net income was $137M with adjusted EBITDA of $155.9M and adjusted EPS near $16.75 for the year, reflecting stronger charter rates and vessel utilization.
• Shareholder returns increased: Board raised the quarterly dividend 7% to $0.75/share (annualized $3, ~5% yield) and renewed the share repurchase program after buying 480,000 shares (~$11.4M) since 2022.
• High forward revenue visibility: Contract coverage stands at ~87% of available days in 2026 (≈$30.7k/day), ~71% in 2027 (≈$31.9k/day) and ~41% in 2028 (≈$32.4k/day), supporting near‑term cash flow stability.
• Fleet growth and profile: Operates 21 vessels (61,000 TEU, average age 13.1 years) with four 4,484‑TEU newbuilds due in 2027–2028 that will expand capacity to ~80,000 TEU on a fully delivered basis.
• Market and financing risks: global fleet grew ~7% in 2025 and large‑vessel orderbook could pressure rates (notably in 2027), while the company carries ~$218M of bond debt, upcoming balloon maturities and ~$140–150M of expected newbuild financing that may require refinancing.

Euroseas Stock Up 4.0%

Shares of ESEA traded up $2.55 during trading hours on Thursday, hitting $65.54. 128,872 shares of the company were exchanged, compared to its average volume of 39,257. The company has a debt-to-equity ratio of 0.47, a quick ratio of 3.53 and a current ratio of 3.59. The company has a market cap of $459.44 million, a PE ratio of 3.78 and a beta of 0.81. The firm’s 50 day moving average is $55.71 and its 200-day moving average is $58.04. Euroseas has a 52 week low of $26.30 and a 52 week high of $66.00.

Euroseas Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 17th. Shareholders of record on Tuesday, March 10th will be given a dividend of $0.75 per share. The ex-dividend date of this dividend is Tuesday, March 10th. This is a positive change from Euroseas’s previous quarterly dividend of $0.70. This represents a $3.00 annualized dividend and a yield of 4.6%. Euroseas’s dividend payout ratio (DPR) is currently 16.17%.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings restated a “buy (b-)” rating on shares of Euroseas in a report on Monday, December 29th. Two research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $62.00.

Institutional Investors Weigh In On Euroseas

A number of large investors have recently added to or reduced their stakes in ESEA. Russell Investments Group Ltd. acquired a new position in Euroseas during the fourth quarter valued at approximately $34,000. Bank of America Corp DE grew its stake in Euroseas by 387.8% in the 2nd quarter. Bank of America Corp DE now owns 1,117 shares of the shipping company’s stock valued at $50,000 after buying an additional 888 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its holdings in Euroseas by 540.0% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,280 shares of the shipping company’s stock worth $76,000 after acquiring an additional 1,080 shares during the period. Quarry LP bought a new stake in Euroseas during the third quarter valued at about $89,000. Finally, Magnetar Financial LLC acquired a new position in shares of Euroseas during the 4th quarter worth about $204,000. Institutional investors own 6.27% of the company’s stock.

Key Headlines Impacting Euroseas

Here are the key news stories impacting Euroseas this week:

• Positive Sentiment: Q4 and full‑year results beat expectations — adjusted Q4 EPS roughly $4.50 (beat), strong net income and margins, and year EBITDA/earnings materially improved versus 2024, underpinning the rally. GlobeNewswire Release
• Positive Sentiment: Dividend increase and buybacks — board raised the quarterly dividend to $0.75 (≈7% hike) and the company has repurchased ~6.8% of shares under its program, returning cash and supporting per‑share metrics. Dividend / Buyback Details
• Positive Sentiment: Strong revenue visibility — management cites ~87% charter coverage for 2026, >71% for 2027 and >$550M contracted revenues over five years, which reduces near‑term spot exposure. TradeWinds Article
• Neutral Sentiment: Earnings call transcripts and slides posted — management commentary and the full call transcript are available for investors to review guidance, fleet employment detail and Q&A. Yahoo Finance Transcript
• Neutral Sentiment: Fleet and newbuild profile disclosed — 21 vessels today with four intermediate newbuilds scheduled for 2027–2028; investors should watch delivery timing and charter terms for those ships. Fleet Breakdown
• Negative Sentiment: Market risk for larger containership segment — management warns high orderbooks for large ships and potential Suez Canal traffic normalization could weigh on demand; feeder/intermediate segments (Euroseas’ focus) look healthier but macro risks remain. TradeWinds Market Commentary
• Negative Sentiment: Rising operating costs and fleet mix/headcount effects — vessel operating and G&A expenses rose (stock incentives, FX effects), and average number of vessels operated dipped versus prior year; keep an eye on margins if costs continue to increase. Cost / Expense Note

Euroseas Company Profile

Euroseas Ltd. (NASDAQ: ESEA) is an international shipping company specializing in seaborne transportation of containerized and drybulk cargoes. Incorporated in Bermuda with its principal operations and management office based in Athens, Greece, the company owns and charters a diversified fleet of containerships, drybulk carriers and multipurpose vessels. Euroseas provides tailored shipping solutions on time-charter and voyage-charter agreements, serving manufacturers, commodity traders and logistics providers across major trade routes.

Euroseas’s fleet comprises both owned and chartered tonnage, enabling the company to adjust capacity to market conditions and customer requirements.