0001193125-26-183385
SEC filingStealthGas achieved modest revenue growth of 3.5% while transitioning to a debt-free balance sheet, though profitability declined due to increased spot market exposure and the absence of prior-year gains from joint venture vessel sales.
StealthGas grew revenues by 3.5% to $173.2 million in FY 2025, a modest increase driven by a larger average fleet size compared to the prior year. Management noted that improved LPG charter market conditions also contributed to the topline expansion. However, the company faced a headwind from the loss of revenue generated by the Eco Wizard, which has been unable to operate since an incident in July 2025. The revenue growth demonstrates the company's ability to scale its core shipping operations despite specific vessel-level challenges.
Net income declined 13.2% to $60.6 million, with diluted EPS falling to $1.64 from $1.90 in the prior year. The decrease was primarily due to lower equity earnings from joint ventures, as the prior year benefited from the profitable sale of a Medium Gas carrier owned by one of the company's joint ventures. Operating income fell 7.9% to $55.1 million, reflecting margin compression to 31.8%. Management attributed the increase in expenses mainly to higher port expenses and bunker costs resulting from an increase in spot market days for the fleet. This shift toward spot market exposure, while potentially beneficial in a rising rate environment, increased operating costs during the period.
The company faced a significant operational setback when its vessel Eco Wizard was declared a total loss following an explosion in a Russian port. Management also highlighted geopolitical risks, including the impact of conflicts in the Middle East and Ukraine on trade patterns and energy prices. Despite these challenges, management expressed a favorable mid-to-long-term outlook for the small and handysize LPG segments, citing a relatively low order book for new vessels in the coming years as a supportive factor for charter rates. The company noted that demand for LPG transportation is influenced by global economic factors and trade patterns, while supply is determined by fleet growth and vessel demolition activity.