Euroseas (NASDAQ:ESEA) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Euroseas (NASDAQ:ESEA) released its earnings results on Wednesday. The shipping company reported $4.48 earnings per share for the quarter, topping analysts’ consensus estimates of $4.47 by $0.01, Zacks reports. Euroseas had a return on equity of 28.87% and a net margin of 60.11%.The business had revenue of $57.39 million for the quarter, compared to the consensus estimate of $57.83 million.

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%

NASDAQ ESEA opened at $65.54 on Friday. The stock’s 50 day simple moving average is $55.94 and its 200 day simple moving average is $58.09. Euroseas has a one year low of $26.30 and a one year high of $66.00. The firm has a market cap of $459.44 million, a PE ratio of 3.34 and a beta of 0.81. The company has a debt-to-equity ratio of 0.47, a current ratio of 3.59 and a quick ratio of 3.53.

Euroseas Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 17th. Investors of record on Tuesday, March 10th will be given a dividend of $0.75 per share. This is a boost from Euroseas’s previous quarterly dividend of $0.70. The ex-dividend date is Tuesday, March 10th. This represents a $3.00 dividend on an annualized basis and a yield of 4.6%. Euroseas’s dividend payout ratio is currently 16.17%.

Euroseas News Roundup

Here are the key news stories impacting Euroseas this week:

• Positive Sentiment: Strong Q4 and full‑year financials — Euroseas reported very profitable Q4 and 2025 results (high net income, strong adjusted EPS that beat estimates, and expanded adjusted EBITDA), supporting valuation and investor confidence. Euroseas Ltd. Reports Results for the Year and Quarter Ended December 31, 2025 Earnings Surpass Estimates
• Positive Sentiment: Shareholder returns increased — management raised the quarterly dividend to $0.75 (≈7% increase) and is executing an active buyback (≈480k shares repurchased, ~6.8% of outstanding), which supports yield-focused investors and reduces share count. (Dividend payable ~Mar 17; record/ex‑div dates noted in release.) Euroseas Ltd. Reports Results for the Year and Quarter Ended December 31, 2025
• Positive Sentiment: Strong revenue visibility and charter coverage — management cites >$550M of contracted revenues, ~87% coverage in 2026 and >71% in 2027, and healthy charter rates for the size segments Euroseas operates, which supports near‑term earnings visibility. Aristides Pittas boxship outfit Euroseas eyes growth
• Neutral Sentiment: Earnings call / transcripts available — management discussion (strategy, market outlook, newbuilding options) is in the Q4 earnings call transcripts (useful for modeling guidance but no major new surprises reported). ESEA Q4 2025 Earnings Call Transcript (Yahoo) ESEA Q4 2025 Earnings Call Transcript (Seeking Alpha)
• Negative Sentiment: Market & cost headwinds — management warned about industry risks: high newbuilding orderbooks for large containerships, potential Suez traffic changes, and geopolitical/trade uncertainty that could pressure demand. Operating costs and related‑party management fees rose, and forex exposure impacted costs; these could weigh on margins if charter rates weaken. Euroseas Ltd. Reports Results for the Year and Quarter Ended December 31, 2025
• Negative Sentiment: Mixed operational metrics — revenue was slightly below some analyst revenue estimates while EPS narrowly beat; average fleet size fell vs. prior year which limits scale, and interest/financing costs rose on higher debt levels — items to watch in forward quarters if rates or utilization deteriorate. Earnings Surpass Estimates

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Millennium Management LLC grew its stake in shares of Euroseas by 171.7% during the 4th quarter. Millennium Management LLC now owns 53,386 shares of the shipping company’s stock worth $2,915,000 after acquiring an additional 33,738 shares in the last quarter. Lazard Asset Management LLC lifted its holdings in Euroseas by 3.7% during the 4th quarter. Lazard Asset Management LLC now owns 35,031 shares of the shipping company’s stock valued at $1,913,000 after purchasing an additional 1,262 shares during the last quarter. Citadel Advisors LLC increased its holdings in shares of Euroseas by 144.9% in the third quarter. Citadel Advisors LLC now owns 26,576 shares of the shipping company’s stock valued at $1,584,000 after purchasing an additional 15,724 shares during the last quarter. Walleye Capital LLC lifted its stake in shares of Euroseas by 10.5% during the 4th quarter. Walleye Capital LLC now owns 22,509 shares of the shipping company’s stock worth $1,229,000 after buying an additional 2,139 shares during the last quarter. Finally, Raymond James Financial Inc. boosted its holdings in shares of Euroseas by 1.3% during the 3rd quarter. Raymond James Financial Inc. now owns 19,716 shares of the shipping company’s stock worth $1,175,000 after buying an additional 260 shares during the period. 6.27% of the stock is owned by institutional investors.

Analyst Ratings Changes

Separately, Weiss Ratings reissued 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 stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $62.00.

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.