Costamare (NYSE: CMRE) revenue slips 1.8% on lower charter rates and off-hire days

What happened

Costamare Inc. (NYSE: CMRE) reported adjusted third-quarter net income of $89.4 million, or $0.74 per share, to common stockholders. Profit held up while voyage revenue and operating cash flow, the two measures closest to charter income, both fell from a year earlier.

The figure covers continuing operations. Net income from continuing operations available to common stockholders was $88.5 million, or $0.73 per share. The release describes third-quarter net income as approximately $88 million.

The results table shows a different measure, net income from continuing operations of $95.0 million, down from $99.4 million a year earlier. These earnings definitions differ, so they should not be compared directly. The dry bulk business, spun off on May 6, 2025, is reported as discontinued operations.

Key numbers

Metric	Latest	Change	Source
Q3 adjusted net income from continuing operations to common stockholders	$89.4 million		SEC 6-K, Exhibit 99.1
Q3 voyage revenue	$212.1 million	from $215.9 million, -1.8%	SEC 6-K, Exhibit 99.2
Q3 voyage revenue adjusted on a cash basis	$208.8 million	from $219.1 million, -4.7%	SEC 6-K, Exhibit 99.2
Q3 net income from continuing operations (results table)	$95.0 million	from $99.4 million, -$4.4 million	Calculated from SEC 6-K, Exhibit 99.2
Q3 net cash provided by operating activities	$113.9 million	from $135.6 million, -$21.7 million	SEC 6-K, Exhibit 99.2
Cash and cash equivalents including restricted cash, Sept. 30, 2026	$713.3 million		SEC 6-K, Exhibit 99.2

Read more: Costamare (CMRE) company research

Where revenue and costs moved

Voyage revenue fell 1.8%, or $3.8 million, to $212.1 million in the third quarter, from $215.9 million a year earlier. The filing blames mainly lower net charter rates on certain vessels and more off-hire days, mostly from scheduled dry-dockings.

Contractual reimbursements from charterers for EU Emissions Allowances and Fuel EU Maritime penalties partly offset the decline. So did revenue from one vessel acquired in the third quarter of 2025.

The fleet was slightly larger, with ownership days of 6,348 against 6,278. On a cash basis, which strips out non-cash revenue items, revenue fell 4.7% to $208.8 million from $219.1 million. Over nine months, voyage revenue fell 4.6% to $614.4 million from $644.0 million. The cash-basis figure fell 6.4% to $604.3 million from $645.5 million.

Costs rose too. Vessels operating expenses were $44.9 million against $40.9 million, with daily costs of $7,075 against $6,520. General and administrative expenses were $6.8 million against $2.2 million, mainly from non-recurring expenses in the quarter, the filing says.

Voyage expenses rose to $18.1 million from $14.4 million, mainly on higher costs tied to EU allowances. The filing says charterers contractually reimburse a significant portion of those costs.

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What cushioned the profit

Two lines below revenue helped. Derivatives that do not qualify for hedge accounting produced a net gain of $11.3 million, against a $1.2 million loss a year earlier. Interest and finance costs fell to $18.8 million from $21.6 million, mainly on lower SOFR rates and capitalized interest on the newbuilding program, the filing says.

The derivative gain reflects changes in fair value plus realized components. It is not income from chartering ships. Net income from continuing operations still came in below the year-earlier level, so the gain did not lift profit above last year. Over nine months, that measure was $260.8 million against $317.4 million.

Cash flow, debt and the newbuilding program

Operating cash flow fell $21.7 million to $113.9 million from $135.6 million. The filing cites lower net cash from operations, higher special survey costs and an unfavorable working-capital change, partly offset by lower interest payments. For nine months, operating cash flow was $328.0 million, down $90.8 million from $418.8 million.

Financing added more cash than operations did. Financing activities provided $278.9 million in the quarter, including $306.0 million of net receipts under debt agreements and proceeds of $1.25 billion from eight debt financing agreements. Investing activities used $82.8 million, mainly advance payments on five newbuild container vessels, net investments by Neptune Maritime Leasing Limited (NML) and vessel upgrades. Costamare paid $15.0 million in common dividends for the second quarter of 2026.

At Sept. 30, Costamare held $713.3 million of cash and cash equivalents including restricted cash, plus $19.8 million in short-dated U.S. Treasury Bills. As of Oct. 27, 23 vessels were free of debt.

The company has 22 newbuild containerships under construction and has agreed to buy two secondhand ships. It has invested $182.2 million in NML, which owns vessels and bareboat charters them out. Leaseback income was $8.3 million against $9.3 million.

Why it matters

OptimistFi has argued that Costamare's value rests on charter rates, with its cash and operating cash flow giving it room to return capital or buy ships. This quarter supports the cash half and tests the rate half. Revenue and operating cash flow both fell from a year earlier. Operating cash flow fell by more in dollars than revenue did, in the quarter and over nine months.

The filing blames lower charter rates and more off-hire days, not a smaller fleet. Against that, the cash balance, the debt-free vessels and the derivative gain show the business can absorb a soft quarter. One quarter does not show whether the rate backdrop has worsened for good. The newbuild program is still drawing advance payments. OptimistFi's view of the filing is mixed.

What's next

Costamare's next quarterly report is the test. Do voyage revenue and operating cash flow stop falling against the year-earlier levels set in this one? A second straight decline would weaken the case. A rebound would strengthen it.

The fleet list shows the earliest newbuildings it names, three 3,100 TEU vessels, due in the second quarter of 2027. The Maersk Puelo charter is listed as expiring in January 2027. Charters on Porto Kagio and Porto Germeno, the two vessels held for sale, are listed as expiring in November 2026 and December 2026.

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