EDRY · EuroDry Ltd.

EuroDry Ltd. (EDRY) reported a solid rebound in its first quarter 2026 results, driven by a sharp rise in drybulk vessel charter rates. Net revenues surged 38.9% year-over-year to $12.8 million, reflecting a 101.1% increase in average time charter equivalent (TCE) rates to $14,416 per day. This improvement was partly offset by a smaller average fleet size (11.0 vessels vs. 12.8 a year earlier), following the sale of the older vessel M/V Tasos in Q1 2025. Voyage expenses turned into a net gain of $0.3 million due to bunkers, contrasting with $1.7 million in expenses in Q1 2025 from repositioning. Vessel operating expenses declined to $5.5 million from $6.6 million, mainly due to the reduced fleet. Higher drydocking costs ($0.7 million) partly offset these savings. As a result, the Company swung from a net loss attributable to controlling shareholders of $3.7 million in Q1 2025 to a profit of $0.26 million, or $0.09 per share. Adjusted EBITDA improved dramatically to $4.9 million from a negative $1.0 million. Management noted improving market conditions in April and May 2026, with one-year time charter rates approaching $20,000 per day for Ultramaxes and Kamsarmaxes, suggesting further gains in Q2. In a strategic fleet renewal move, EuroDry contracted two eco Kamsarmax newbuildings at Hengli Shipbuilding for $74 million total, with deliveries in 2028. This expands its total newbuilding program to four vessels, aiming to modernize the fleet as secondhand vessel prices rise. The order will be financed with debt and equity, with contracts conditional on refund guarantees. The Company also continued its share repurchase program, with $5.6 million spent to date, and extended the plan through August 2026. Liquidity remained adequate, with $24.9 million in total cash against $100.9 million in debt. Overall, EuroDry is capitalizing on a strengthening drybulk market while investing in fleet growth, positioning for future earnings expansion.