Q3 2025 Euroseas Ltd Earnings Call

Ah Studies, Peters, Chairman and Chief Executive Officer, and Mr. Todd says asleep Chief Financial Officer of the company at this time all participants are in a listen only mode.

Speaker #1: Please take a moment to go through.

Speaker #1: the whole statement and read it, and

Speaker #1: now I would like to pass the floor over to net revenues of 56.9

Speaker #1: Mr. Pittas. Please go ahead, million dollars, and the net

Speaker #1: However, the market value of our fleet, the charter adjusted market value of our vessels, is significantly higher than their book value. According to our latest estimates, our fleet is valued at approximately 680 million dollars, which translates into a net asset value for our company of about 595 million, or roughly almost 85 dollars per share.

There will be a presentation followed by a question and answer session at which time if you wish to ask a question. Please press star one on your telephone keypad and wait for your name to be announced I must advise you that this conference is being recorded today. Please be reminded that the company announced their results.

Speaker #2: The purpose of today's call is to 23 cents per diluted discuss our financial results for share. Adjusted EBITDA for the the three and nine-month period ended period was 38.8 September 30th, million.

Yes release that has been publicly distributed.

Before passing the floor over to Mr. P. This I would like to remind everyone that today's presentation.

Speaker #2: For the first quarter of EBITDA. 2025, we reported total Tasos Aslidis will go over our net revenues of 56.9 financial highlights in more detail later million dollars and the net on in the income of 29.7 million presentation.

Speaker #1: With our last closing price and recent trading rates of around $60 per share, our stock trades at almost a 30% discount to its charter-adjusted net asset value.

And conference call, we'll be making forward looking statements.

These statements are within the meaning of the federal Securities laws matters discussed may be forward looking statements, which are based on current management expectations that involves risks and uncertainties and may result in such expectations not being realized.

Speaker #2: Adjusted of 70 cents per share for the net income for the quarter was third quarter of 29.6 million dollars or four dollars and 23 2025, payable on or about cents per diluted December 16th, to share.

Speaker #1: And with that, let me pass the floor back to Aristides to continue our

Speaker #1: And with that, let me pass the floor back to Aristides Pittas to continue our call. Thank you.

Speaker #2: Tarso. Let me open up the floor for any questions we may have.

Speaker #2: period was 38.8 9th. Based on current million. Please refer to Adjusted EBITDA for the share price levels, the the press release for a reconciliation distribution reflects an annualized yield of adjusted net income and adjusted of approximately 5 EBITDA.

Speaker #3: Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Finally draw your attention to slide number two of the webcast presentation, which has the full forward looking statement. The same statement was also included in the press release. Please take a moment to go through the whole statement and read it and now I would like to pass the floor over to Mr. P. That's please go ahead Sir.

Speaker #3: You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker #2: We are pleased to announce that our board of directors has 466,000 shares of our common stock in of 70 cents per share for the third the open market for a total quarter of of approximately 10.5 million 2025, payable on or about dollars.

Maam you may begin.

Ma'am.

Speaker #3: Our first question is from Mark Reitman, with Noble Capital Partners. Please proceed.

Thank you for joining us today for those.

The school Gregor with Goldman Sachs.

Speaker #2: Thank you. There's just really two areas I wanted to focus on. The first is, what are your expectations for the scheduled hire days for the fourth quarter and the remainder of 2026?

Okay.

The purpose of today's call.

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Nine months.

Thank you.

Speaker #2: In addition, appropriate to support and enhance since launching our 20 million share long-term shareholder value. Now, please turn to slide four, where repurchase plan in May 2022, we have repurchased we review our recent developments, 466,000 shares of our common stock in purchase activity, chartering including updates on our sale and the open market for a total progress, and operational of approximately 10.5 million dollars.

Good.

Speaker #2: I mean, if I look at your slide deck, it seems like that you're anticipating very, a very light dry docking schedule, at least over the next 12 months.

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Thank you.

Good.

For the fourth globally.

We reported total net revenues were $56 9 million downloads and the net income of $9 7 million.

Speaker #2: So just a little clarity there would be

Speaker #2: appreciated. I think we're just quiet.

Speaker #4: We have not made, not many dry dockings over the next 12 months. The likelihood of hire for Q4 are asking the previous quarter, almost zero.

All of them.

Sure.

Our GAAP net income for the $9 $6 million for bonus incentive.

Okay.

Speaker #2: Now, please turn to slide four where 9.3 million dollars from the we review our recent developments, including updates on our sale and transaction. On the employment front, purchase activity, chartering we extended the charter for motor progress, and operational vessel Jonathan P for a minimum of highlights.

The record EBITDA for the period to appropriate.

Speaker #4: And for modeling purposes, what I showed you on this new slide 20, we use a 2% all-in of hire just to model it. But typically, we run our fleet at a utilization rate north of 99%.

Yeah.

Please refer to the press release.

Adjusted net income and adjusted EBITDA.

Speaker #2: During the third 11 months and up to the 12th quarter, we completed the sale of the motor vessel Marcos V at a daily rate of $25,000 for a total of $50 million.

Dr <unk>, who will go over our financial highlights in more detail.

Later on in the basin.

We are pleased to announce that our board of directors has declared another quarterly dividend of 74.

Speaker #2: Okay. So if they were at 39 days in the third quarter, do you think that the fourth quarter would be lower than that, if you've got zero?

For the third quarter.

75.

On or about December 16, thoughtfulness of the bank.

Speaker #2: On the employment front, we the current charter extended the charter for motor at 33,500 vessels Jonathan P for a minimum of dollars per day.

Speaker #4: Yeah. In terms of scheduled dry docks, I think we don't have any scheduled dry docks in the fourth quarter to the best of my, on the top of my head.

Some of the mine.

Based on current price level.

Speaker #2: 11 months and up to 12 finally. Also yesterday, our four new buildings: the motor vessel Ellen were chartered upon their delivery under this contract at a daily rate of $25,000. The earliest delivery date for the motor vessel Ellen is October 2026.

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Speaker #4: We have only some in-water surveys.

Thank you.

In addition, since launching our $20 million benefit plan in May 2022.

Speaker #2: Oh, okay. And so those surveys, I mean, I think in the third quarter, the number of days came maybe in a little higher than what we were expecting, but we might have just had a special survey built in.

Speaker #2: Motor vessel Synergy expected deliveries in the Auckland was extended second half of 2027 and the first just yesterday for a further half of 2028, for a 36 months, following the end of firm period of four her current charter at years, at a daily rate of 35,500 dollars per per day.

We have repurchased 466000 shares of our common stock in the open market for the Brooklyn, The glove box will be $10 5 million.

Speaker #2: But I mean, do you think it would be great, greater than five or 10 days for the fourth quarter?

This plan was renewed in May right.

Right.

We remain committed to utilizing this program.

Speaker #4: say not, It's hard to say, but I would yeah. Not even, but in the third quarter, we had a manual pivot underwent dry docking.

We can be deploying it when the book to support long.

A long term shareholder value.

Now please turn to slide four where we review our recent development, including updates on those same numbers.

Speaker #4: We have no scheduled dry docks in the fourth quarter, and the next scheduled dry dock would be in the third quarter of next year, to the best of my understanding.

Both of them focus on the operational highlights.

During the third quarter, we completed the sale of motor vessel market.

Speaker #2: Okay. Thank you, Tarsos. And the second area is, so if container ship ordering has accelerated, even in the smaller sector, which could increase supply, you've mentioned that you think that could pressure rates from 2027 on.

Speaker #1: Thank you for standing by, ladies and gentlemen, and welcome to EUROSEAS Conference Call on the Third Quarter 2025 Financial Results. We have with us today Mr. Aristides Pittas.

$50 million.

The vessel was delivered to the new and affiliated owners on October 20th annual report with the estimated gain over $9 3 million downloads from transaction.

Speaker #1: Chairman and Chief Executive Officer and Mr. Tasos Aslidis, Chief Financial Officer of the company. At this time, all participants are in a listen-only mode.

Speaker #2: And you're pretty well covered in 2027 with 52% locked in. I mean, if we look at your slide nine, where you're showing kind of the rates and you can kind of see that the rates are above the average and then if you take into consideration that the rerouting, that kind of settles back, that you're kind of expecting maybe the potential for rates to decline in the 2027, 2028.

And the employment from.

We extended the Taco for motor vessel, Jonathan B for a minimum of 11 months and up to 12 months at the daily rate of 25000.

Speaker #1: presentation followed by a question-and-answer There will be a Thank you for standing by, ladies and session. At which time, if you wish to gentlemen, and welcome to EUROSEAS ask a question, please conference call on the third quarter press star one on your telephone 2025 financial keypad, and wait for your name to be results.

Hey.

Revenue for the deliveries under this contract is look forward, but.

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Multiple doses and new local and was extended.

Yesterday with a further 36 months following the end of the guidance.

Speaker #1: distributed. Before passing the floor At this time, all mode. There will be a over to Mr. Pittas, I would like to presentation followed by a question-and-answer remind everyone that in today's session.

Speaker #2: Now, please turn to years, as well as 15 slide feeder vessels with a combined carrying capacity of 35,000 five. Our current fleet on the water consists of 21 to 200 TEU, and an vessels of total average age of carrying capacity of 8.4 61,000 TEU and an average age of about 12 years.

At $33500 per day.

Speaker #2: But what I was just kind of curious, I wanted to focus on that slide nine, if I could, because I see the averages and the medians and it seems to me median is pretty severe.

Finally, all forget today, our four new building motor vessel and then the $3 <unk>.

The CRC.

CRC.

Speaker #2: years. construction, each with a capacity This includes six intermediate vessels with a combined carrying of In addition, we have capacity of 25,500 4,484 TEU and an average age of around 17 to be delivered in the second half years, as well as 15 of 2027, TEU.

C H.

Speaker #2: I mean, I would probably look at it by taking the standard deviation of the rates and maybe putting a plus one minus one standard deviation around the average.

Our third onboard expected delivery in second half.

During the first half 'twenty eight.

The current period of four years at the daily rate of $35500 per day.

Speaker #2: feeder vessels with a combined carrying while the remaining two in the first half of 2028, adding a Two of these are expected 35,600 TEU and an further 17,000 average age of 8.4 TEU of capacity to our capacity of years.

Speaker #2: But I mean, you're also looking at a couple kind of a time series here. And so if we're looking at different regime shifts, if you were to plan a flag and say 2020, what differences do you see in the market pre-2020 and maybe the last 10 years versus the next 10 years?

A five year period at FERC $2500 per day at the top of the drop through which is deployable by November.

Speaker #1: I kindly draw your attention to slide number two of the webcast presentation, which has the full forward-looking statement. The same statement announced the results of the press release that was also included in the press release.

Sure.

Speaker #1: Please take a moment to go through distributed. Before passing the floor over the whole statement and read it, to Mr. Pittas, I would like to and now I would like to pass the floor over to remind everyone that in today's Mr. Pittas.

Turning now to operate.

The motor vessel amendment be successfully completed scheduled dry dockings, resulting in a multi year period of approximately 39 days.

Speaker #1: Please go ahead, presentation and conference call, EUROSEAS will be sir. making forward-looking

Speaker #2: I mean, I think you're looking at an aging fleet; you're looking at increasing environmental standards. So, obviously, the fleet's going to get replenished. Rates could probably go up based on the newer vessels.

Speaker #2: Good morning, ladies and

Speaker #2: And thank you for joining conference call. Together with me is us today for our scheduled

As part of this report we installed the energy saving devices.

Speaker #2: Tasos

Speaker #2: Aslidis, our Chief Financial

Speaker #2: Efficiencies could go down or could go up. As you've got more fuel efficient vessels, so you're costs could come down. But I was just kind of just kind of flesh that out a little bit in terms of your expectations and are there differences in the overall market?

I would expect deliver fuel savings in excess of 10%.

Speaker #2: Officer. The purpose of today's call is to

Speaker #2: discuss our financial results for

We experienced no widen or commercial off hire time Julien.

Speaker #2: the three and nine-month period

Speaker #2: 2025. Please turn to slide three of

Two for me.

Speaker #2: Please day. Looking ahead, in turn to slide six for a further update on our fleet 2026, we have already employment. We continue to voyage days, at an average benefit from strong forward rate of around coverage as you can 31,300 dollars per see.

Speaker #2: the presentation for our quarterly

Now please turn to slide five.

Speaker #2: financial

Speaker #2: results. For the third quarter of

Our current fleet on the water consists of 21 vessels.

Speaker #2: I mean, is it too simplistic to kind of look at this slide from 2015 to 2025 and draw a conclusion, or are there some other factors that may have a bearing on rates going

Speaker #2: 2025, we reported total

Total carrying capacity of 61000, Teu and the level of days of about 12 years.

Speaker #2: 2025, 100% of day. our available days have already 52%, at an even been secured, and at an higher average rate of around In average rate of approximately 33,500 dollars per 30,000 345 day, and even 2027, this coverage stands at dollars per in day.

Speaker #2: income of 29.7

Speaker #2: million dollars, or 4 dollars and Good morning, ladies and sir. gentlemen. And thank you for joining 25 cents per us today for our scheduled diluted share.

This includes fixed intermediate vessels with a combined carrying capacity.

Speaker #2: forward? The

Speaker #2: Adjusted conference call. Together with me is net income for the quarter was Tasos 29.6 million dollars, Aslidis, our Chief Financial or 4 dollars and Officer.

And the 5000 Teu in the neighborhood of around 17 years.

Speaker #4: The main reason why year 2015 to 2020, the markets were very low, as you can see, if we're looking at this decade, is that there was a huge order book nearly 100% back in 2007 and 2008 that got delivered.

Speaker #2: Looking ahead to 2028, it stands at 30%. In 2026, we have already covered 75% of our average rate of around voyage days, at an average of $35,500 per rate of around day.

As run of 15 feeder vessels with a combined carrying capacity of 35000 tons with.

Speaker #2: Please refer to 2025. Please turn to slide three of the press release for a reconciliation of our quarterly financials for adjusted net income and adjusted results.

And remember the dates of eight four years.

In addition, we have for intermediate vessels under construction through the capacity for.

Speaker #4: So we had a huge order supply of vessels, which was the reason why charter rates between 2015 and 2020 were extremely low. And then, of course, we had the pandemic, with the consequent significant increase in ton-miles for vessels, which resulted in this huge boom that we witnessed during the pandemic.

184.

Speaker #2: We are pleased to announce dollars or four dollars and that our board of directors has 25 cents per declared another quarterly dividend diluted share.

Speaker #2: And even market was to correct in heavily. Moving on to slide eight, let's review 2028, it stands the market highlights for the third quarter of average rate of around 35,500 dollars per 2025.

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Two of these are expected to be delivered in the second half 2027, while the remaining during the first half of 2020.

I think with further 17000 teu of capacity growth.

On a fully delivered basis of fleet will now grow to five vessels carrying capacity of approximately 78000 Teu.

Speaker #2: cents. In addition, Tasos Aslidis will go over our since launching our 20 million share financial highlights in more detail later repurchase plan in May on in the 2022, we have repurchased presentation.

Speaker #4: And then the market started to correct after the pandemic. And rates dropped again to much more reasonable levels. And then we had the war between Palestine and Israel, which closed the Suez Canal and resulted in the increase in the market that we have seen.

Please turn to slide six for a further update on our fleet employment.

We continue to benefit from strong forward cargo.

<unk> for the fourth quarter of 2025% to 100% of available days has already been secured.

Speaker #2: levels, supported by tight vessel However, towards the end of the quarter, the freight market softened as by strong uptick stabilization and even a concerns over over-supply and 30%.

Speaker #2: This plan December 16th to was renewed in May shareholders of record as of December 2025. We remain committed 9th. Based on current to utilizing this program share price levels, the distribution thoughtfully and reflects an annualized yield of approximately strategically, deploying it when 5%.

The matter of the rate of approximately 30000 becomes even $45 per day.

Speaker #4: These are the three main factors. Of course, there's so many other things that play around that, but these are the three main factors why we are where we are.

Looking ahead in 2020, we have 175% above where you're at today.

The level of Exhilarate earned 41, thousands becomes a dollars per day.

Speaker #4: I don't think that we can see rates again as low as what we've seen between 2015 and 2020. But with shipping, you never know.

Speaker #2: During the third quarter, we completed the sale of the motor vessel Marcos V. This plan was renewed in May 2025. We remain committed to utilizing this program for $50 million thoughtfully.

In 2027 discovery.

52%.

And even higher levels of around 43 in the present.

Speaker #2: However, during October and early Q4, new building prices remained stable quarter over quarter, with a strong uptick in Korean and Japanese yards gradually increasing prices by 30%.

Speaker #4: But I don't think you can see that. Also, for one additional reason, that there has been quite significant inflation resulting in prices of new building ships increasing substantially over the last five or six years.

Speaker #2: The vessel was delivered to a new and strategically deploying it when appropriate affiliated owner for over to support and enhance 20 years, and we recorded long-term shareholder an estimated gain of value.

Dave.

And even in 2028.

And the third.

50% at the level of the rate of around 35000.

Speaker #2: The average second-hand relative to Chinese price index rose by about yards. Idle capacity 4.4% in the third continued to be practically quarter, versus the second non-existent.

Great.

Our disciplined philosophy provides us with high visibility of future cash flows.

Speaker #4: So, if new building ships cannot become much cheaper because the shipyards will be losing money, they place a kind of floor for second-hand values as well.

In support of profitability within the next couple of years.

Speaker #2: day. The earliest for The vessel was delivered to her new and delivery under this contract is affiliated donors on October October 2022. Motor vessel Synergy 20th, and we recorded an estimated gain of Auckland was extended 9.3 million dollars from the just yesterday for a further 36 months, following the end of transaction.

Even if the market was too correct.

Moving to slide eight let's review the market highlights for the third quarter of 2025.

Speaker #4: So it's a very difficult equation and it's extremely difficult to predict. So that's

Throughout the fourth quarter of one year time charter.

Speaker #1: Say your average , you know , this this average . You know , going forward , you know , never still day in the shipping market .

Those remain firm at elevated levels supported by tight vessel supply and limited availability.

Speaker #1: So there's probably bound to be some volatility . But but looking ahead and you're break even rate is actually pretty . You have a good pretty cost structure .

This environment included.

To secure forward early in the season.

Speaker #2: Bangladesh scrap years. The slide prices have dropped slightly, illustrates the charter rates across to around 425 all major container dollars per lightweight subsegments, remain significantly elevated compared to their global fleet has expanded ten-year median level.

However towards the end of the cost of the freight market softened as concerns over global supply and increased competition. Among Kathy has begun to weigh on sentiment.

Speaker #1: So so I don't know I just I just you know extending this back to 2015 . And anyway that's very helpful gives it .

Speaker #2: By a significant overall demand and support, the strong demand and support have increased by 6% year to date. Please turn to slide nine for a broader market overview, focusing on feeder and intermediate vessels in particular.

Speaker #1: provides a little It perspective , you know on the , on the forward numbers . Thank you .

By late September.

Speaker #2: day, or a five-year Finally, also yesterday, 33,500 dollars period at our four new buildings: 32,500 dollars per day, at motor vessels Ellen the charter as option, which is Aslidis, Nikita G., and Socrates CH were chartered upon their expected deliveries in 2026.

Hi, Containerized freight index has declined to its lowest level in nearly two years.

Speaker #2: It gives you a little bit of color on what has happened. But to predict what will happen is so much more difficult.

However, during October and November.

We witnessed the stabilization and even a strong uptick by 40%.

Speaker #2: Yes .

Speaker #1: Right .

Speaker #2: Yes . Another indication , another indication Mark of what the market thinks is the charters , will just concluded . Obviously in this war levels we've seen in the market .

Speaker #2: Turning onto second half 2027 and first operations, the motor vessel Emmanuel P successfully half 2028 for a firm period of four years, completed scheduled dry at a daily rate of docking, resulting in an off-high period 35,500 dollars per of approximately 39 day, or a five-year days.

The average second hand price index alone by about four 4% in the third quarter versus the second quarter supported by limited vessel availability geopolitical tensions and strong buyer interest.

Speaker #2: The market believes that the $35,000 per day , that we booked roughly our ships for the the 4400 EU class , is a level that would be okay to lock yourself in for four years .

Speaker #2: As part of this period at repair, we installed 32,500 dollars per day, at the energy-saving devices that are charter resorption which is declarable by November expected to deliver fuel savings in excess of 20%.

Meanwhile, numerous new building prices remained stable quarter over quarter, with Korean and Japanese yards gradually introducing prices.

Speaker #2: We experienced no idle or commercial 2026. Turning on to off-high time during operations, the motor vessel the Emmanuel P successfully Q3. Now, please turn to completed its scheduled dry slide docking, resulting in an off-high period five.

Speaker #2: Two years out from now . So that might be an indication that the 54 might be . I mean , this is a market opinion .

Relative to Chinese yards.

IGN capacity continued to be practically non existent.

Speaker #2: I guess the counterpart opinion willing buyer , willing seller type of thing that might provide some other insights . I guess .

Speaker #2: Our current fleet on of approximately 39 the water consists of 21 days. As part of this vessels, of total repair, we installed carrying capacity of energy-saving devices that are 61,000 TEU, and an average age expected to deliver fuel savings of about 12 in excess of years.

Also our recycling activity remains subdued with only 11 vessels totaling 6000 teu scrapped year to date.

Speaker #1: Right. No, that's a very good point. Thank you very much.

Bangladesh scrap prices have dropped slightly.

Speaker #2: You're welcome . Thank .

Speaker #2: This includes six intermediate vessels with a combined carrying capacity of 20%. We experienced no idle or commercial capacity of 25,500 TEU and an off-high time during the average age of around 17 in Q3.

Speaker #3: You .

Speaker #4: Our next question is from Tate Sullivan with Maxim Group. Please proceed.

$1425 per lightweight ton.

Overall, the global fleet has expanded by a significant 6% year to date.

Speaker #5: Hi . Hi . Thanks . I mean , you gave a lot of good descriptions on why you're willing to book new builds your .

Speaker #5: forward . I mean , Well , at a longer time delivery than than most almost all your other new builds , I think .

Please turn to slide nine for our broader market. Both of you focusing on the development of six to 12 month time charter rates over the past 10 years.

Speaker #5: But can you talk the charterers willingness to book the ships that far forward , have you ? I mean , is it to avoid sudden spikes in the market like they , they had post Covid ?

This slide illustrates the charter rates across all major container segment.

Speaker #2: US growth is 3.75%, projected at 2% in 2025 and 2.1% in 2026. An additional rate cut has been ruled out at the December meeting, but there was a modest upward revision from earlier forecasts. This has emphasized that the share power has not guaranteed reflecting smaller than expected.

<unk> significantly elevated compared to the 10 year median level.

Speaker #5: We'd love to hear your thoughts on that . Please .

Speaker #2: We said that the fleet of ships below 6,000 TEU is a very old fleet. Twenty-five percent is older than 20 years, and 50% is older than 15 years.

This emphasizes the ongoing strong demand and support for feed didn't have needed vessels.

The market's ability to maintain it.

Speaker #2: fleet. On a fully delivered In addition, we have four basis, our fleet will now grow intermediate vessels under to 25 vessels with a carrying construction, each with a capacity capacity of approximately 78,000 to 300 TEU.

<unk> is a testimony over the continuing imbalance between the effective supply.

Speaker #2: They are seeing this this aging fleet in the smaller sizes . And the charterers are competing amongst them to have those ships , because they know that these ships are needed to , you know , trades increasing continuously .

Please turn to slide 10.

According to the IMF for October 2025 injections.

Speaker #2: Please of TEU. Two of these are expected turn to slide six for a to be delivered in the second half further update on our fleet of 2027, employment.

Global growth is expected to be slightly from three 3% to 2024 to 34, 2% in 2025 and three 1%.

Speaker #2: We continue to see the remaining two in the first half benefit from strong forward 2028, adding a coverage, as you can further see 17,000 TEU.

Speaker #2: Share uncertainty, potential power has not ruled out an potential, and ongoing additional rate cut labor market. Among emerging markets, India is forecast to expand at.

Speaker #2: For the first quarter of 2025, 100% of our fleet capacity will be fully delivered. On a fully delivered basis, our available days have already been secured, at an average rate of approximately $300 per TEU. Our fleet will now grow to 25 vessels with a carrying capacity of approximately 78,000 TEU.

Speaker #2: The big ships get fooled , but then build . But then you need the smaller ships to do the regional trade . So I think I think we are seeing this potential lack of ships and rushing to , to , you know , to secure tonnage .

Speaker #2: Interest rates may remain on hold as inflation is at 6%, which remains too high, while expected to be 6.2% in 2026. The labor market is supported by strong domestic cooling.

Okay.

Advanced economies are forecast to grow by roughly one 5%, while the emerging markets and developing economies are projected to grow just above 4%.

Speaker #2: It continues to show mixed investment, resilient signals. The broader technical output, and a outlook remains fragile, with vibrant service downside risks stemming sector. The ASEAN5 from persistent uncertainty, economies are also expected to potential protectionist measures, pose solid growth of and ongoing labor market around 4.2% in constraints.

Global inflation is expected to moderate worldwide owned by albeit unevenly across regions.

Speaker #5: Do you get any market indications if they're willing to book such long term contracts that they have dormant vessels that are sitting in ports waiting for for voyages at all , and the current market , you .

Mainly were above target in the United States royalties.

To the upside.

And more from Q elsewhere.

<unk> growth is projected at 2% interest in.

Speaker #2: No .

Speaker #5: You continue to get paid.

521% in 2006.

Speaker #2: Yeah . No . The current market is the full market of employment . Okay . They might be some delays and some waiting times .

The modest outflows the condition for more than your forecast.

Correct.

Speaker #2: sector. The Challenges include a widening gap ASEAN-5 economies between industrial supply are also expected to post and weak domestic demand, as well solid growth of around as ongoing trade tensions with the 4.2% in United States, including new 2025 and 4.1% in tariffs on Chinese goods.

Smaller than expected effects from advisors and more favorable financing conditions.

Speaker #2: Small waiting times, occasionally due to the various reroutings that are happening. But no, the market is full.

Speaker #2: Our 31,300 dollars per discipline chartering strategy day. In provides us with high 2027, this coverage stands at visibility of future cash 52%, at an even flows, and will support our higher average rate of around profitability within the next couple of 33,500 dollars per years if, even if the day.

Late October the Pennsylvania.

Use the targeted range for the fed.

Speaker #2: In 2026, export controls and restrictions are underpinned by healthy regional demand and high-tech goods. As a result, China's industrial activity is expected to moderate, with growth projected at 4.8% in 2025 and 4.4% in 2026, reflecting a decelerating pace. China's economic outlook is expected to remain positive.

The funds rate by 25 basis points, bringing it to 375.

Speaker #5: Okay , thanks . Yeah . You're I mean , your news and commentary echoes some recent news in the sector too . And those remaining new build commitments for the new ships for new ships .

Up two 4%.

Power has not ruled out an additional rate cut at the December meeting, but has emphasized that this is by no means guaranteed.

Speaker #5: I think you gave your what have already you funded . So is your remaining commitment . About 200 million . Is that fair ?

Speaker #2: Challenges of a gradual slowdown include a widening gap between following front-loaded exports and industrial supply, and weak waning fiscal domestic demand, as well as support.

Speaker #2: Throughout the third day. Our at 30%, at an discipline starter and strategy remained firm at elevated provides us with high levels, supported by tight vessel visibility of future cash supply and limited flows, and will support our availability.

Speaker #5: New

Speaker #5: on the .

The fed has hinted that integrate into.

Speaker #2: Well , yes .

Speaker #2: I think the I think contract , the contracted price is in total are approximately 240 million . And as I mentioned , we have made payments amounting to about 36 million or so .

Interest rates may remain on hold.

Inflation remains too high and while the labor market is cooling.

Speaker #2: This profitability within the next couple of environment encouraged charters to years if the secure forward cover early in the market was to correct season.

It continues to show mixed signals.

Speaker #2: As a Asia and the EU, result, China's growth is projected to moderate to 4.8% in 2025 and 4.4% in along with a still resilient 2026, reflecting a gradual manufacturing sector.

On the broader outlook remains fragile.

Speaker #2: So, roughly $200 million remains to be paid.

Speaker #2: However, towards the end of the quarter, the freight market softened. Moving on to slide eight, let's review the market highlights for the third quarter. Increased competition among one-year time charters remained a concern, alongside tensions over over-supply.

On slide today's earnings.

Turning from persistent uncertainty potentially protectionist measures in the ongoing labor market constraints.

Speaker #5: And then maybe one installment payments every an installment payment every year or two every year . Well .

Speaker #2: We analyze global growth data carefully, front-loaded exports, and waning fiscal as it affects directly trade volumes as a support. Despite these domestic whole.

Speaker #2: I think the next payment is when there is the steel cutting, which should be about 12 months, roughly before the delivery of the ship.

Speaker #2: By late 2025, firm supply remained elevated, with its lowest level in nearly a season. Throughout the third quarter, we encouraged charters to secure forward cover early in November. However, during October, we witnessed an early shift.

Among emerging markets, India is forecast to expand by six 6% from 2025 and six 2% in 2026 supported by strong domestic investment resilient agriculture rollout and the vibrant services sector.

Speaker #2: So, in the middle of next year, we will start making additional 10% payments. That would be, I think, three more 10% payments before the final payment.

Zuma five economy.

Speaker #6: Okay , great .

Speaker #2: We analyze global correlation with expected GDP growth data carefully as it growth. Current affects directly trade forecasts, though, point to a volumes as a whole.

Speaker #2: The average second-hand price index rose by about 4.4% in the third quarter. By late September, versus the second quarter, the Shanghai containerized freight index had declined to its lowest level in nearly two years, supported by limited vessel availability and strong buyer sentiment, which began to weigh on competition among carriers.

Speaker #5: Thank you both .

Also expected to post solid growth of around four 2% and five and four 1% in 2026 underpinned by healthy regional demand and continued industrial activity.

Speaker #6: You're welcome .

Speaker #4: Our next question is from Clement Mullins with Value Investors Edge . Please proceed .

Speaker #6: Hi . Good afternoon and thank you for taking my questions . Most has already been covered , but I wanted to delve a bit into your fleet positioning .

Speaker #2: trade, clocks on estimates These expected declines largely reflect the demand growth for unwinding of extraordinary 2025 to expand by routing patterns and 3.2%, temporary distortions that boosted signaling a strong correlation with volumes in prior expected GDP years.

Diamond's economic outlook is expected to remain positive, but at a decelerating pace.

Speaker #6: You have a clearly bifurcated fleet between legacy and modern tonnage . Considering recently fixed the A4 new order at solid rates , is there any appetite to order additional tonnage alongside long term contracts , or are you comfortable with your current positioning

Challenges include a widening gap between industrial supply.

The weak domestic demand as well as ongoing trade tensions with the United States, including New <unk> newsgroups expert component and restrictions on high textbooks.

Speaker #2: Also, quarter, supported by limited vessel recycling activity remained availability, geopolitical subdued, with only 11 interest. vessels totaling 6,000 TEU scrapped Meanwhile, new building prices year-to-date.

Speaker #2: Well ,

Speaker #2: there is ? always the possibility to order something . We are looking at a various possibilities . I don't know if something will develop or not , but obviously having secured this last position gives us .

As a result, China's growth objected to moderate to $4 data center side.

Speaker #2: is expected decline routes. Turning on slide largely reflects the unwinding It of extraordinary routing profile and container patterns and temporary support. The top left distortions that boosted volumes part depicts container fleets in prior years.

Speaker #2: Bangladesh scrap remained stable, quarter prices have dropped slightly, tensions, and strong buyer over quarter, with Korean and Japanese yards gradually dollars for lightweight tons.

And four 4% in 2026.

Selecting a gradual slowdown following frontloaded exports and Wayne and system support.

Speaker #2: Overall, the increasing prices relative to Chinese global fleet has expanded yards. Idle capacity to around 425 continued to be practically 6% by a significant year-to-date.

Despite these headwinds the Chinese economy still being supported by strong <unk> performance to regions.

Speaker #2: Please turn to non-existent. recycling activity remained Also, slide nine for a broader subdued, with only 11 market overview, focusing on the vessels totaling 6,000 development of six to twelve-month time TEU scrapped year to charter rates over the past ten date.

Speaker #2: To look at .

Speaker #6: Makes sense . Thanks for the call and final question from me . Proforma for the sale of the Marcus five . And even when including the CapEx on the Newbuilds , you are sitting in a solid financial position .

At this stage of the EU.

Along with expanded resilience of infections.

We analyze the global growth data.

Absolutely as it affects directly traded volumes as a whole.

Speaker #6: Is there a medium term leverage target you plan to meet going forward , or is it , let's say , a moving target ?

Specific factors affecting freight, giving a slight fluctuations around to GDP growth.

Speaker #2: I would say that target , but generally strategy is to to have leverage around 50% . And we move , you know , ten , 15% above or ten , 15% below the pending on circumstances .

Speaker #2: The market's ability to maintain these ties is a testimony charter rates over the past 10 development of 6 to 12-month time years. The slide between effective vessel supply and illustrates the charter rates across all major container demand.

On a containerized trade.

Clarksons estimates demand growth with 25 to expand by three 2% signaling a strong correlation with expected GDP growth.

Speaker #2: Please turn to slide subsegments. It ten. According to the remains significantly elevated IMF's October compared to their 10-year median 2025 report, global levels. growth is expected to ease slightly from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026.

Speaker #2: 5.1% for Turning on slide 12, we go 2026, and 8.3% over the fleet age profile and order book only for ships in the for 2027.

Current forecast to a deep two 7% growth in 2026, and the further decline of 6% in containerboard.

Speaker #2: With actual fleet growth expected 1,000 to 3,000 EU to be slightly lower range, which is quite a due to slippage on future different from the overall demolition activity.

Speaker #2: And timing in the market . We believe that a decent leverage , you know , in a business that is making more than 6% , which is our cost of capital of that service , it makes sense to to have some leverage .

Yes.

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And as expected declined largely reflects the underwriting of extraordinary voting patterns and temporary distortions that boosted volumes in prior year.

Speaker #2: Advanced economies are forecast to grow by roughly one and a half percent, while emerging markets and developing economies are projected to grow just above 4%.

Speaker #2: If you can earn more than 66% , which is what we believe . That historically we do . On the other hand , we never want to be too exposed because we know what happens bad in a market .

The influx of capacity recently.

Speaker #2: Global inflation is expected to moderate worldwide, albeit unevenly across regions, remaining above target in the United States, where risks are tilted to the upside.

We'll probably at some point outpace demand growth, especially geopolitical disruptions were to suddenly resolve.

Speaker #2: And we've lived through bad markets , through our career . So we don't want to over leverage . So I think that gives you a guidance about general our leverage strategy .

Speaker #2: As of November 2027, the order book for vessels in 2028 below 3,000 TEU stands at a modest 2.7%. About half of the fleet is over 8.1% of the fleet.

Speaker #2: And more subdued elsewhere. US 2025 and growth is projected at 2% in 2.1% in 2026, a modest upward revision from earlier forecasts, reflecting smaller-than-expected effects from tariffs and more favorable financial conditions.

Turning on slide 11.

Total fleet age profile on container support.

The top left chart depicts the containership fleet is relatively done with most vessels under 10 years old and only 12% of the fleet over 20 years old.

Speaker #6: Yeah . That's helpful . I'll turn it over . Thank you for taking my questions . Thank you .

Speaker #2: additions projected at only Let's move to slide 13 2.1% of the now to see the supply fleet in 2025, output for the three to 8,000 followed by 2% in EU 2026, 3.4% in 2027, and sectors in which we currently 2.7% in operate.

Speaker #3: Thank you .

The top right chart.

Speaker #2: In late October, the Federal Reserve reduced the target range for the federal funds rate by 25 basis points, bringing it to more subdued levels elsewhere.

Speaker #4: Our final question is from Paul Frat with Alliance Global Partners. Please proceed.

The new deliveries as a percentage of the existing fleet, which are projected to six 9%.

Speaker #7: Hi , Steve . Hi , Tassos . Just do math on the the delivery . Payments . I'm calculating the second half of 2027 .

Hi.

Five 1%.

At eight 3% footprint consultant.

With axon fleet growth expected to be slightly lower due to slippage for demolition activity.

Speaker #7: You're going to owe about $65 million on the first two new builds. And then in the first half of 2028, you're going to owe about half or to pay about $65 million for the last two new builds.

Speaker #2: Let's move to slide 13 now to see the supply outlook for the three to 8,000 TEU segment. The other sector in which we currently compared to the larger mainland class.

Speaker #2: The Fed has hinted that interest rates may remain on hold, as conditions are favorable. Late in October, the Federal Reserve reduced the target range for interest rates while the labor market is cooling and inflation remains too high, considering the effects from tariffs.

The bottom chart shows that the order book continues.

Continues to increase rapidly.

Approximately 42% of the fleet.

Speaker #2: operate. As of November Meanwhile, the age profile of this segment 2025, the order book is notably advanced, stands at 12% of the with 27% of vessels over 20 years old, fleet, a modest level compared to another the larger mainland 38% between 15 and 19 classes.

Speaker #7: Is that correct?

Speaker #2: It continues to federal funds rate by show mixed signals. The 25 basis points, bringing it broader outlook remains to fragile, with downside 3.75 up to risks stemming from persistent 4%.

November.

Yeah.

Speaker #2: That's probably right . think you I should . You should think of something like 55% of the contract price to be paid in the year of the delivery in the , in the , in the half year of the So delivery .

Turning on Slide 12, we go over the fleet age profile of the North of the book only four six and the 1000 to 3000 Teu range, which is quite different from the overall picture.

Speaker #2: Meanwhile, the years. 8 profile of this segment is With a limited new building notably advanced, with pipeline, net 27% of vessels over fleet growth in this segment is 20 years old, expected to remain sustained, another 38% if not to become negative over the between 15 and 19 next two years.

As of November 2035, the order book for vessels below 3000 Teu stands at a modest eight 1% of the fleet.

Speaker #2: something like 65 million for the first pair and 65 million for the second pair . Sounds right .

Speaker #2: With a years. Moving on slide limited new building 14, this part places those pipeline, net fleet growth dynamics and perspectives across the in this segment is expected to entire container remain contained, if not sector.

According to Clarksons deliveries in this size range remain limited with new building additions projected to four 1% over the fleet.

Speaker #7: Yeah . That's what I mean . And then just a nitpicky one , you know on how did you how did you decide to offer the charterer .

Speaker #2: become negative over the next few What stands out is the concentration of new building activity in the years. Moving on slide 14, larger vessel class.

Speaker #7: You know , the one year option after the you know , if you look fourth year , at the , the way that the time charters are structured on the for new builds , you know , four years at 35 , then five and five years at 32 , five , it seems like you're giving up a lot on that last year of extra coverage .

Followed by 2%.

Speaker #2: this chart NeoPanamax and PostPanamax places those dynamics and vessels show order books representing 40% to perspectives across the nearly 80% of their existing entire container ship fleets.

Speaker #2: 2025, and 4.1%. Among emerging markets, India in 2026 is forecast to expand by 6.6% in 2025 demand and continued industrial activity, underpinned by healthy regional and 6.2%.

Three 4%.

And two 7% in 2028.

About half of the fleet is over 15 years old.

Speaker #2: China's economic outlook is expected 2026, supported by strong domestic investment, to remain positive, resilient agricultural but at a decelerating output, and a vibrant services pace.

Likely candidates for scrapping roomba market correct.

Speaker #7: Can you just talk about that ?

Let's move to slide 15, now to see the supply outlook for the fleet to 8000 Teu segment.

Speaker #2: Yeah , I think there were we were discussing with charter various options of chartering our ships from three years to five years , and there were different rates and combinations of durations .

But the other factor in which we currently operate.

Speaker #2: By years old. contrast, the feeder and intermediate segments have significantly activity in the larger vessel This widening gap between new building smaller order books, ranging from sector and the limited just 4% to replacement in smaller sectors 12%, depending on highlights why our core fleet size, even though a substantial remains structurally portion of these fleets between well-positioned with minimal risk of 20 and 40% are over-supply.

On November 25, Euro book stands at 12% of the fleet.

Speaker #2: And we ended up agreeing that will focus on the four year duration of 35 500 . But they asked to have the option to extend or the the other .

This level compared to the allowed to make loan classes.

Meanwhile, the age profile of the segment is notably advanced with 27% of vessels over 20 years old and another and another 38% between 2015 more months.

Speaker #2: The five year deal . So they have a year to decide about that . That implies a rate of around of the of low 20s for the fifth year .

Speaker #2: Despite these ongoing trade tensions with the United domestic headwinds, the Chinese States, including new tariffs on Chinese economy is still being supported goods, export by strong export performance to recent South controls, and restrictions on high-tech goods.

Speaker #2: smaller segments Time chart arrays continue to hold highlights why our core fleet remains firm, supported in part structurally by red feeder routing, even as well-positioned with minimal risk of the Shanghai container ship rate index has steadily declined.

With a limited new building pipeline.

Speaker #2: If you compare four years , 35 , and five years and 32.5 , they implied rate for the fifth year . If you keep the first four years at 35.5 , it's around in the low 20s .

Net fleet growth in this segment is expected to remain contained.

Speaker #2: Oversupply. Now, please turn to slide overall. Chart arrays remain near historic highs due to limited near-term supply and steady demand outlook. Turning to the container sector, conditions across the container shipping sector remain steady across most vessel sizes.

We want to become negative over the next few years.

Moving on Slide 14, This chart places.

Speaker #2: So we felt that was an appropriate tradeoff to make .

Those dynamics and perspectives across the entire condensate container ship sector.

Speaker #2: Specific factors headwinds, the Chinese economy is still affecting trade create being supported by slight fluctuations around strong export performance to GDP growth. On regions such as Southeast Asia and the containerized trade, EU, along with Clarkson's estimates demand growth for 2025 to expand by 3.2%, signaling a strong sector.

Speaker #7: I Yeah , calculated 20,500 and then on your slide 20 , it it seems like you're implying that the fleet will even with the new builds come into the fleet , will decline in 26 and 27 and 28 .

What stands out is the concentration of new building activity in the larger vessel classes.

Speaker #2: container ship rate index has Recent tariff agreements raising from steadily declined. 10% have provided some Overall, chart rates remain short-term near historic highs due stability.

Panamax and post Panamax vessels.

Books, and presenting 40% to 98% of the existing fleet.

Selecting the significant capacity being added to the mainland.

Speaker #2: deep 2.7% Specific factors affecting growth in 2026 trade create slight and a further decline of fluctuations around GDP 6% in containerized trade growth. On containerized growth in 2027.

Speaker #7: Can you just talk about , you know , your strategy on selling some of the older assets , mainly the don't have as much contract cover ?

By contrast, the seasonal intermediate segments have significantly smaller all of those things.

Same with Linzess, 4% to 12% depending on size, even wellness substantial portion of these fleets between 20 and 40%.

Speaker #2: I think we have two vessels that . We can take that . are We taking a very conservative approach that the market may decline significantly .

Speaker #2: But Xi in China at the end of uncertainty around U.S.-China relations persists. Additionally, the recent ceasefire in Q3 2025 between Israel and Hamas was an epitome of this, suggesting a potential easing of uncertainty.

Eliminating more than 20 years old.

This widening gap between new building activity in the large vessel segment.

Speaker #2: The influx of growth. Current forecasts, capacity recently ordered will probably at some point 2.7% growth in outpace demand growth, 2026 and a further especially if geopolitical disruptions were to suddenly resolve and containerized trade growth in decline of 6% in 2027.

Speaker #2: The interruptions in the Red US imposed port fees on Sea. The shipping companies Chinese-owned controlled or built are adopting a forced ships, only for China to wait-and-see stance, with no reciprocate, and then immediate routing within days, both with.

Limited replacement and smaller segment.

Speaker #2: And we will need to instead of passing the special survey of our two vessels , we will decide to scrap .

Nice rollout coal fleet remains structurally well positioned with minimal risk of oversupply.

Speaker #3: Them .

Now please turn to slide 15.

Speaker #2: This , of course , is the , you know , the the lowest possible scenario . But we are indeed being very conservative in our projections .

Revenue for the container sector outlook conditions across the container shipping sector remained mix.

Speaker #2: Additionally, the tons or ton miles doesn't surprise on recent ceasefire between Israel and the upside, the market Hamas suggests a may enter into a more potentially easing of disruptions in the Red Sea.

Speaker #2: at relatively young, with The influx of capacity most vessels under 15 years recently ordered will probably old, and only at some point outpace 12% of the fleet over 20 years demand growth, especially if old.

Time charter rates continue to hold firm support.

Speaker #7: And just to get granular, it's like the looks of Hydra and the Jonathan P would be the two scrapping. If the market candidates do what you think it is going to do, no.

Speaker #2: But shipping phase. Regarding energy, challenging companies are adopting transition, while it continues a cautious wait-and-see to be an important factor in the stance, with no immediate balance of container routing witnessed in trade, yet.

Positive impact by that in terms of losing even as the Shanghai Containerized freight index steadily decline.

Speaker #2: The top geopolitical disruptions were to right part shows the new suddenly resolve and allow deliveries as a percentage ships to turn to shorter, more efficient of the existing fleet, which routes.

Overall charter rates remain near historic highs due to limited near term supply and steady demand across most business cycles.

Speaker #2: In recent IMO's net zero 2027, and on the back of the framework, this has inevitably increased container ship ordering and slowed the process, even for smaller vessels, substantially.

Speaker #2: are projected at Turning on slide 11, where you can see the total fleet age profile on 6.9%, container ship order 5.1%, and books. The top left chart depicts a container ship fleet that is 8.3%.

Speaker #2: It's because we agree with .

Speaker #3: You .

Speaker #7: Okay .

In 2026.

Speaker #2: It's the, yeah, our.

Speaker #2: vessels in

<unk> policy in broader geopolitical developments will be key drivers of trade volumes in the food festivals.

Speaker #3: Fleet

Speaker #2: With actual fleet relatively young, with most vessels growth expected to be slightly under 15 years old and lower, due to slippage and only 12% of the future demolition fleet over 20 years activity.

Speaker #3: .

Speaker #7: Okay . Perfect . Thank you so much .

Speaker #2: Thank you Paul .

Speaker #3: Okay .

Recent progress with <unk> com.

Speaker #2: The bottom old. The top right chart shows that the order books continue chart shows the new to increase deliveries as a percentage of the existing rapidly, reaching approximately fleet, which are 32% of the fleet as projected at 6.9% for of November 2025, 2025.

Speaker #4: With no further like to questions , I would turn the conference back over to management for closing remarks .

3%.

Provided some short term stability with uncertainty around U S. China relations proceeds.

Speaker #2: Thank you very much, everybody, for listening in. We will be back with you at the beginning of the year with the full year results.

For these 2025 was a map at all of this uncertainty.

The U S.

Speaker #3: Thank you .

Speaker #4: Thank you .

<unk> recent Chinese owned controlled or bid sheets only for China to reciprocate.

Speaker #2: Thanks , everybody .

Speaker #3: you Thank .

Then within days both of these fees will put a nice following discussions between Mr. Trump and Mr. <unk> settlement at the end of October.

Speaker #2: As of November 2025, the order book for vessels below 3,000 EU stands at a modest 8.1% of the fleet. The bottom chart shows that the order book continues to increase rapidly, reaching approximately 32% of the fleet as of Q3.

Additionally, the recent ceasefire between these 100 per month.

Speaker #2: According to November Clarkson's, deliveries in this size 2025. Turning on range remain limited, with slide 12, we go over the new building additions projected at fleet age profile and order book only 2.1% only for ships in the 1,000 to of the fleet in 3,000 TEU 2025, followed by 2% range which is quite different from in 2026, the overall 3.4% in picture.

Speaker #2: Let's turn to the last slide of this section, which includes both historical averages and slide medians. This robust rate, 16, is mirrored in the asset left-hand graph, which shows the cycle of the values as well.

Yes potential easing of disruptions with the dead Sea.

Shipping companies.

Adopting a cautious wait and see stance with no immediate developing weakness yet.

Speaker #2: As of November 14, of 35 million dollars, 2025, the one-year and an average of roughly time shutter rate 36 million stands at dollars. Likewise, 10-year-old second-hand vessels are currently valued 35,750 dollars per at 37 million day, well above both historical dollars, significantly higher averages and medians.

In 2027, and then the bulk of the increase containership ordering even for smaller vessels.

Speaker #2: 15 years old, making According to clocks, them likely candidates deliveries in this size range for starting when the market remain limited, with new building corrects.

Demand in terms of ton miles doesn't surprise on the upside in the market.

Into a more challenging phase.

Regarding energy transition, while it continues to be an important factor in the balance of containment space.

The recent approval of the <unk> net zero framework has inevitably slowed the process suspension.

Speaker #2: As of 2028 and segment. November 2025, the The other six beyond. About half of the order book stands at 12% of the fleet is over 15 years fleet, a modest level old, making them likely candidates for scrapping when the market corrects.

Arguably the proposal was overambitious.

Technical targets and economic causes.

The only way is for the month.

Speaker #2: And the consequently market average of about 20 relevance is providing such million. This chart is to smaller new building environments, almost like us. Vessels are generally reluctant to buy vessels in 2028 at today's prices for delivery.

Nevertheless, the process of transitioning to new modern environmentally friendly fuels will continue but hopefully in a more disciplined and the domestic demand.

Yes.

Let's turn now to the last slide of this section.

Slide 16.

Speaker #2: It is proving, though, overcapacitating the that quite a few market. And with that, I will charterers fearing the potential loss of pass the floor to our CFO, market share and Tasos Aslidis, to go over our consequently market relevance, financial highlights in further are providing such charters to detail.

The left hand graph shows the cycle of the one year time charter rate for two and a half thousand Teu container ships over the past several years.

As of November 14, 2025, the one year time charter rates.

Speaker #2: smaller new building vessels Thank you very much, Aristides. Good even with 2028 morning from me as well, ladies and deliveries. gentlemen. Over the next five Unfortunately, until this slides, I will give you my usual stops, we will continue to see overview of our financial highlights for the order books swelling, the quarter, and the which obviously will eventually nine-month period of 2025, result in overcapacitating the and compare them to the same periods of last market.

And the term debt.

35700 Hunter will increase.

<unk> per day, well above historical averages and mediums.

This robust rate environment is moodle and asset values as well.

Speaker #2: And with year. For that, that, I will pass the floor let's turn to slide to our CFO, Tasos 18. For the third quarter of Aslidis, to go over our financial 2025, the highlights in further company reported total net detail.

New building vessels are now valued at $40 45.

Speaker #2: Reflecting the sector. What stands out is the concentration of new building activity in the larger vessel classes. North Panamax and Post Panamax vessels show order books representing significant capacity being added to the mainland significantly smaller order books, intermediate segments have trade.

$5 million compared to the 10 year median of $55 million and demand levels are roughly $36 million.

Speaker #2: Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. Over the next five slides, I will give you my usual overview of our financial highlights for the last quarter and the nine-month period of the year, which includes total net revenues of $56.9 million, representing an increase over total net revenues of $54.1 million during the third quarter.

Speaker #2: ranging from just 4% to 12%, depending By contrast, the feeder and of their existing on size, even though a fleet. Reflecting the significant substantial portion of this fleet, 40% to nearly 80% between 20 and capacity being added to the 40%, are already more than 20 mainland trade.

Likewise <unk> second hand vessels are currently valued at $7 million.

Significantly higher than the 10 year median.

$14 million.

Our village or about $20 million.

In this environment owners like us are generally reluctant to buy vessels to date prices unless these can be combined with the Charles Davis with charters, which would bring the residual values down to more normalized pricing.

Speaker #2: For the third quarter of third quarter of this year compared to last 2025, the company year. We reported total net revenues of reported a net income for the 56.9 period of 29.7 million, representing a million, as compared to a net income 5.1% of 27.6 million increase over total net revenues for the third quarter of of 54.1 million during the third quarter of last 2024.

Speaker #2: Now, please turn to already more than 20 years slide old. This widening 15. Turning to the container gap between new building activity in the sector outlook, conditions large vessel segments and the across the container shipping sector limited replacement in remain mixed.

It is proving that quite a few charts.

During the potential loss of market share and consequently market development.

Providing such charter's smaller new building vessels, even with print 28 deliveries.

Speaker #2: We reported a previous year that does not include net income for the period of imputed interest income of $29.7 million, as of about $0.9 million, compared to a net income which is related to the $27.6 million for the third self-financing of our pre-delivery quarter of payments for our new building in 2024.

Unfortunately until these thoughts we will continue to see the order books flooding, which obviously will eventually result in loan book.

Capacity chasing the market.

And with that I will pass the floor to our CFO processes needed to go over our financial highlights in further detail.

Speaker #2: In mixed. Uncharted 2026, US trade policy and rates continue to hold firm, supported in part by Red Sea key drivers of trade broader geopolitical developments will be routing, even as the Shanghai volumes and route patterns.

Thank you very much entity. This morning from me as well, ladies and gentlemen.

Speaker #2: For the previous adjusted EBITDA for the third year, a figure of $38.8 million for the previous year in that quarter of 2025 does not include imputed increases to interest income of about $0.9 million, which is compared to $36.1 million related to the self-financing pre-delivery payments achieved during the third quarter of our program for 2024, again for our new building primarily due to the increase in the program.

Over the next five slides I will give you my usual overview of our financial highlights for the quarter and the nine months period of 2025 and compare them to the same periods of last year.

Speaker #2: Uncertainty around US to limited near-term supply China trade and steady demand across most persists. Due to three vessel sizes. In 2025 was an epitome 2026, US of this trade policy and broader uncertainty.

For that lets turn to slide 18.

Speaker #2: This revenues. Basic and diluted earnings per the lower interest rate we paid in share for the third quarter of decrease is due to the third quarter of this year 2025 were compared to last for our $4.27 and debt.

Speaker #2: The US imposed port geopolitical developments will be key fees on Chinese-owned controlled drivers of trade volumes and route or bid ships, only for China to reciprocate, patterns.

For the first quarter of 2025, the company reported total net revenues of $56 9 million, representing a five 1% increase over total net revenues of $54 1 million during the third quarter of last year.

Speaker #2: and then within Recent tariff agreements raising from days both these fees were put 10 to 50% have on ice, following discussions provided some short-term between Mr. Trump and Mr. stability.

Speaker #2: Adjusted $4.25, EBITDA for the third quarter of respectively, calculated on 2025 increased about 7 to million basic and diluted weighted average number of shares 38.8 million, compared to 36.1 million outstanding, compared to achieved during the third quarter of 2024, again primarily due to the increase in revenues.

On a per vessel per day basis.

Our vessels earned a $10, 7% higher average charter rate in the third quarter of this year compared to last year.

Speaker #2: Basic and diluted earnings per share for the third quarter of 2025 were $4.25, respectively, calculated on about $4.27 and $3.95 basic and diluted, respectively, for the same period diluted weighted average number of shares last year.

We reported net income for the period of $29 7 million as compared to a net income of $27 6 million for the third quarter of 2024.

Speaker #2: In these fees, which were put on in 2027, and on the back ice, following discussions between Mr. Trump and Mr. Xi in ordering, even for smaller vessels, if demand in China increases at the end of October.

Total interest and other financing costs professional third quarter of 2025.

Wanted to $3 7 million compared to $4 2 million.

For the previous year, a figure of the previous year, but does not include imputed interest income of about $9 million, which is related to the shelf financing profile pre delivery payments.

Speaker #2: The adjusted earnings per basic and diluted, share for the three quarters for respectively, adjusted for unrealized gains on derivatives, the three-month period ended compared to adjusted earnings September 30, 2025, would have been $4.26 and $4.23 basic diluted, respectively, adjusted for unrealized gains on derivatives, compared to adjusted earnings of $3.94 basic and year.

Speaker #2: The adjusted earnings per basic and diluted, share for the three quarters for respectively, adjusted for unrealized gains on derivatives, the three-month period ended compared to adjusted earnings September 30, 2025, would have been $4.26 and $4.23 basic diluted, respectively, adjusted for unrealized gains on derivatives, compared to adjusted earnings of $3.94 basic and year. same period of last of $3.94 periods, ended September $3.92 diluted for the numbers for the corresponding nine-month Let's now look at the $3.92 diluted for the same period 30, and compare them.

Our new building program.

Speaker #2: Arguably, the if demand in tons or ton proposal was miles doesn't surprise on the over-ambitious, as technical targets and economic hurdles upside, the market may enter into a more challenging were anyway phase.

This decrease the decrease is due to the lower interest rates, we paid in the third quarter of this year compared to last for a bit.

Speaker #2: insurmountable. Nevertheless, the Regarding energy process of transitioning to transition, while it continues to be an new, more environmentally friendly important factor in the balance of tools will container trade, the continue, but hopefully in a more recent non-approval of the disciplined and realistic IMO's net zero framework has inevitably slowed the manner.

Adjusted EBITDA for the third quarter of 2025.

Great.

278, 8 million compared to $36 1 million achieved during the third quarter of 2024.

Speaker #2: Let's turn now to the last slide process of this section. substantially. Arguably, the proposal Slide 15. was overambitious, as The left-hand graph shows the cycle of technical targets and economic the one-year time chart arrays for two hurdles were and a half thousand EU container anyway insurmountable.

Again, primarily due to the inclusion of <unk>.

Speaker #2: For the first nine revenues of months of 2025, 159.6 million, that we earned we reported total net during the first nine months of last revenues of year.

Basic and diluted earnings per share for the third quarter of 2025 were for Thomas from 27% and $4 25, respectively calculated on about $7 million.

Speaker #2: Ships, over the past 10 years. As of November 14, 2025, the one-year time chart stands at 35,000, hopefully in a more disciplined and realistic $750 per manner. Nevertheless, the process of transitioning to new, more environmentally friendly fuels will continue.

Basic and diluted.

Weighted average number of shares outstanding compared to three.

$3 nine seven and.

Speaker #2: had. We Total interest and reported a net income for other financing costs for the first nine months of million, for the first nine months of last the period of 96.5 million as 2025 amounted to 11.7 million, not including compared to a net income of 0.1 million of imputed interest 88.4 million for the income, compared to first nine months of last 10.7 year.

And $3 95.

Basic and diluted respectively for the same period of last year.

Speaker #2: New one-year time shutter rate for two and a half building vessels are now valued at thousand TEU container ships 405 million over the past 10 dollars, compared with a 10-year median years.

The adjusted earnings per share for the third quarter for the three months period ended September <unk> 2025.

Speaker #2: Total million for last year, again not including in that case interest and other financing costs for the first nine months, $3.6 million of imputed interest income amounted to 2025.

It would be $4 26, and $4 25 basic and diluted respectively.

Adjusted for unrealized gain.

Gains from derivatives compared to adjusted earnings of $3 94 basic.

Speaker #2: than the 10-year median of This robust rate environment 14 million dollars. is mirrored in asset values as And average for about well. New building vessels 20 million.

92 <unk>.

Diluted for the same period of last year.

Speaker #2: In this area now valued at the environment, owners like $45 million, compared to us are generally reluctant to buy vessels at today's prices, unless these can be combined with partners with a 10-year median of $35 million and an average of roughly $36 million.

Let's now look at the numbers for the corresponding nine months periods.

Ended September 30th.

Speaker #2: charters which would bring the residual Likewise, 10-year-old second-hand values down to more normalized vessels are currently valued at prices. It is 37 million dollars, proving, though, that quite a few significantly higher than the charters fearing the 10-year median of 14 potential loss of market share million dollars.

Comparable.

For the first nine months of 2025.

Total net revenues of $175 million, representing a six 9% increase over total net revenues of $159 six medium.

We earned during the first nine months of last year.

Mainly as a result of the higher number of vessels, we owned and operated and higher other savings that weekend.

Speaker #2: Unfortunately, unless these can be combined with until this stops, we will charterers, with charters, which would continue to see the order books bring the residual values down swelling, which obviously will to more normalized eventually result in prices.

We reported <unk>.

Net income for the period of $96 5 million as compared to net income of $88 4 million for the first nine months of last year.

Total interest and other Frank and other financing costs for the first nine months of 2025 amounted to $11 7 million not including <unk> 1 million of imputed interest income compared to $10 7 million.

Speaker #2: The adjusted earnings per share for the nine-month period ending September 30 of this year would be $12.25 basic and $12.19 diluted, compared 2024. Let's now turn to slide to 19 to review our flips $11.57 basic and performance.

Last year again, not including in that case, $3 6 million of interest income.

This increase is due to the increased amount of debt we felt on average during their respective nine months period.

This year compared to last partly offset by lower interest rates we paid.

Adjusted EBITDA for the first nine months of 2025.

Speaker #2: On a 2025, and compare them to the per-vessel per day same periods of last basis, our vessels earned a year. For that, let's turn 10.7% to slide higher average charter rate in the 18.

$115 2 million compared to <unk> $2 9 million for the first nine months of last year at 12% increase.

Speaker #2: I will not go through the utilization quarter of this year, 22 vessels were owned and rate figures as I did in the previous operated, earning an calls, as they are average time charter equivalent rate of near 100%, but I will move directly to discuss the rest of the 29,284 per day, compared table.

Basic and diluted earnings per share for the first nine months of this year were 13 point.

Speaker #2: On to 23 vessels that we average, in the third quarter of this operated in the third quarter of 2024, earning an average year, 22 vessels were owned and of 26,446 per operated, earning an average time shorter equivalent rate of day.

$13 90, a $13 94, respectively.

Speaker #2: Total interest and other year. On the per-vessel per day financing costs for the basis, our third quarter of vessels earned a 2025 amounted to 3.7 10.7% higher million, compared to average shutter rate in the third quarter of 4.2 million for the this year compared to last previous year, a figure of the year.

Okay again on approximately 7 million basic and diluted weighted average number of shares outstanding.

<unk> two base could diluted earnings per share of.

$12 75.

And $12 66.

For the first nine months of 'twenty 'twenty four.

Speaker #2: Our total daily operating $7,249 per vessel per day for the expenses including same period of 2024. If we move further management fees, G&A expenses, down on this table, we can but excluding dry docking costs, were see the cash flow break-even levels which take 7,246 dollars per vessel per into account, in addition to the above day, during the third quarter of this expenses, the dry docking year, compared to expenses, interest expenses, 7,249 and loan dollars per vessel per day for the same period repayments.

Calculate again.

Approximately the same number of shares Boucher.

About seven seven meeting.

Speaker #2: program. This Total interest and other financing decrease is costs for the third quarter of due to the lower interest rates 2025 amounted we paid in the third quarter of this to 3.7 million, year compared to last compared to 4.2 four.

Second earnings per share for the nine months period.

Okay.

Ending September 30 of this year would be $12 and 25%.

Basic and $12 19 diluted compared to $11 57, basic and $11.49 diluted for the same period of 2024.

Let's now turn to slide 19 to review our fleet performance.

I will not go through their utilization rate figure since I did in the previous calls.

He understands a percent, but we'll need the acting to discuss first off the table.

On average.

Third quarter of this year.

Two vessels were owned and operated.

Speaker #2: Below 2024. Let's move now to discuss similar figures for the nine-month the break-even line, you can period, keeping again the discussion on see our dividend the utilization distribution expressed in rates.

And now versus time charter equivalent rate of $29294 per day.

<unk> to 'twenty three vessels that we operated in the third quarter of 2024 carry income average of $26446 per day.

Speaker #2: The adjusted earnings outstanding, compared to per share for the three 3.97 and quarters for the three-month period ended September 30, $3.95 basic diluted, 2025, would have respectively, for the same period of last been $4.26 and $4.23 year.

Our total daily operating expenses.

Speaker #2: Let's move now to discuss similar figures for the nine-month period, skipping again the discussion on the utilization rates. We can report that we own and operated an average of 22.6 vessels, during the first nine months of 2025, earning an average time shorter equivalent rate of 28,735 dollars per day, compared to 21.3 vessels that day, compared to we own and operated in the same period of

Including management fees G&A expenses, but excluding drydocking costs were.

$7246 per vessel per day during the third quarter of this year compared to 7249.

Progression per day for the same period of 2024.

Further down on these days.

Can see the cash flow breakeven levels.

Which take into account in addition to the above expenses to Drydocking expenses interest expenses and.

Speaker #2: 2024, earning on

Speaker #2: average

Speaker #2: For of last the first nine months of 2025, we reported total year. Let's now look at the numbers for net revenues of the corresponding nine-month 170.5 million, periods ended September representing a 6.8% 30, and increase over total net compare them.

Speaker #2: 28,624 dollars per vessel per

Longer payments.

For the third quarter of 2025, our daily customer breakeven level was $13073 per vessel per day compared to $13629 per vessel per day for the same period of last year.

Speaker #2: expenses, again including management fees. Our operating and G&A expenses averaged $7,386 during the Q3 2025 Euroseas Ltd Earnings Call.

Speaker #2: Mainly $170.5 million, representing a result of the higher number of vessels we own and operate, which increased by 6.8%, and higher average earnings that increased our total net revenues to $159.6 million.

Speaker #2: Day, for the same period of last

Beyond breakeven lines, you can see our dividend distribution expressed.

Speaker #2: year. Again, at the bottom

Speaker #2: Of this table, you can see the.

Dollars per vessel per day basis.

Speaker #2: break-even level, which includes, as we

Speaker #2: We reported a net million that we earned during the income for the period of first nine months of last 96.5 year. Mainly as a result of million, as compared to a net income the higher number of vessels we of 88.4 own and operated, and higher average earnings that we year.

Speaker #2: said, interest expenses, dry docking

The third quarter of this year, it amounted to 2000 and $410 compared to $2017 for the same period of 2024.

Speaker #2: excluding balloons, and that was

Speaker #2: compared to

Let's move now to discuss similar figures for the nine months period, keeping again the discussion on the utilization rates.

Speaker #2: same period of last

Speaker #2: year. And finally, I will not go through it.

Speaker #2: There is the dividend that we paid in the nine months expressed in a dollar per day basis.

We can report.

But we owned and operated an average of $22 six vessels.

During the first nine months of 2025.

Now first time charter equivalent rate of $28775 per day compared to 21, three vessel that we own and operated.

Speaker #2: This increase is due to the increased amount of debt that we held on average during including 0.1 million of imputed interest the respective nine-month period income, compared to of this year, compared to last, 10.7 million for partly offset by the lower last year, again not interest rates we including in that case 3.6 paid.

Same period of 2024 and on average $28624 per vessel per day.

Our operating expenses again, including management fees and G&A expenses.

Speaker #2: Adjusted EBITDA for the million of imputed interest first nine months of income. 2025 was This increase is due to the 115.2 million, compared to increased amount of debt that we helped 102.9 million for the first nine months of last on average during the respective year, a 12% nine-month period of this year increase.

$7396.

During the first nine months of 2025 compared to $7452 per vessel per day for the same period of last year.

Speaker #2: Basic and diluted earnings per share for the first nine months of this year were partly offset by the lower interest rates we paid.

Again at the bottom of this table you can see the breakeven.

Speaker #2: were Adjusted EBITDA for the first nine months 13.90 and of 2025 $13.84, was 115.2 respectively, calculated again on million, compared to approximately 7 million basic and 102.9 million for the first nine diluted weighted average number of shares outstanding, compared to months of last year, a basic and diluted earnings per share 12% of increase.

Loving the cash flow breakeven level, which includes recent interest expenses diverting expansion enrollment payments, excluding balloons and Dr. Ross <unk> <unk>.

$33.

<unk> per day compared to 40000.

$743 for the same period of last year.

Speaker #2: $12.75 and earnings per share for the first nine months of $12.66 for the first nine months of 2024 were calculated again at $13.90 and on approximately the same number of shares, about 7 million, calculated again at approximately $13.84, respectively.

Finally, I will not go through it.

Dividends that we paid during the nine months experiencing a dollar per day basis.

Let's now turn to slide 20.

We don't use this slide to this time around to provide a better perspective of the deck.

Speaker #2: The million basic diluted adjusted earnings per share for the nine-month period ending weighted average number of shares September 30 of this year outstanding, compared to basic would be diluted earnings per share of $12.25 basic and $12.19 $12.75 and diluted, compared to $12.66 for the first nine months $11.57 basic and of $11.49 2024, calculated again on diluted for the same period of approximately the same number of shares about 7 million.

Of our contract coverage, especially in light of their Houston forward charters concluded prior to Steve as mentioned at the beginning of representation.

The table shown present, the development of our fleet ownership days over the period over the next few years.

2006 to 2028.

Estimated breakdown of how many days are available for hire.

Main days are already contracted.

Speaker #2: I will not go through the $11.49 diluted for the utilization rate figures, as I did in the same period of previous calls, as they are all 2024.

It incorporates assumptions about delivery dates for vessels under construction scalping dates for older ships estimate the timing and duration.

Speaker #2: Near 100%, but turning to slide 19, I will move directly to discuss the rest to review our flips. Let's now look at the table. On average, in the third performance.

Utilization rate assumption going forward, we use are quite conservative one with 98%.

And estimates for contracted dates and average contractor chains.

Please note the data in this table.

Mitch that we use for our modeling purposes for a future time charter equivalent revenues and the actual figures will be different but still I hope just can provide some appreciation.

Speaker #2: Our total daily operating expenses 29,284 dollars per day, compared to including management fees, G&A expenses, but excluding dry docking 23 vessels that we operated in costs, were the third quarter of $7,246 per vessel 2024, earning an average of per day, during the third quarter of this year, compared to 26,446 dollars per day.

<unk> of our revenue and earnings visibility.

Hi, Sharon theatres mentioned earlier, our contract coverage currently stands 75% for 2026, 52% for 2027 and 29% for 2028.

Our vast conductor traits are respectively.

<unk> thousand 333570, 5000 5000 for each of the three years.

Sure if one makes an assumption about the other shape.

Speaker #2: Thus, for the third quarter of of 2025, our daily 2024. If we move further down on this cash flow break-even level table, we can see the cash was flow break-even $13,073 per vessel per day, compared to levels, which take into account, in addition to the above expenses, $13,629 per vessel per day for the same period the dry docking expenses, of last interest expenses, and loan year.

And contracted days will land one can easily come up with an estimate of our overall revenues for the respective year.

I hope this helps our investors and analysts to cover us and their own analyses for future profitability.

Let's now move to slide 21 to review our debt profile.

Speaker #2: Below the break-even line, you repayments. Thus, for can see our dividend the third quarter of distribution expressed 2025, our daily cash flow in dollars per vessel per day break-even level was basis, and for the third quarter 13,073 dollars of this year, it amounted to per vessel per day, compared to $2,410 compared to $2,013 for the same 13,629 dollars per vessel period of per day for the same period of last year.

As of September <unk> 2025, our total outstanding bank debt stood at about $224 million with an average interest rate margin of about 2%.

Which based on the three months' shelf rate of three.

387%, resulting in a cost of our debt of about five 9%, which is well within the prevailing caring for our Shanghai lagged peers.

Speaker #2: We can report that dollars per vessel per day basis, we own and operated an average of and for the third quarter of this 22.6 vessels, during the first nine months of year, it amounted to 2025, earning an 2,410 dollars compared average time charter equivalent rate to 2,013 of dollars for the same period of 28,735 per 2024.

For the fourth quarter of 225, we expect loan repayments of approximately $5 4 million with no balloon payments during the remainder of the year, which.

Accordingly, we reduced our year end balance.

Speaker #1: On average

In 2026 scheduled loan repayments amounting to approximately $19 5 million again with no bundling payments during the year.

Speaker #1: Day $28,624 per vessel per are operating.

Speaker #1: expenses again , including management fees and expenses

Speaker #1: averaged $7,386 during the first nine months of 2025 ,

In terms of trying to show them, we expect them to run longer payments of about $16 8 million together with a 20 million balloon payment.

Breaking total scheduled repayments for 2027 for approximately $36 19 seamlessly we can see in the table.

Speaker #1: The bottom repayments, balloon period that said, was.

Speaker #1: Even $14,743 for the same you can last year. Through and it.

In the chart the scheduled payments for the period 2028 to 2013.

Speaker #1: and loan Again , at interest even day , dry expenses $7,452 per vessel level . see the compared the same includes , as we of last per flow break expenses . .

At the end of 'twenty therapy.

Speaker #1: $13,133 per first nine months of vessel per day year compared to

Remaining outstanding debt, assuming no balloon financing for final clarity on that would be about $7 6 million.

This schedule is shown here does not include that we expect to draw to finance the construction of our four new buildings.

Speaker #1: There is 7,452 dollars per vessel per the dividend that we paid in the expressed in a nine months , dollar period of per day

Speaker #1: basis .

Speaker #1: Let's now turn to

Speaker #1: slide 20 , which use this

Delta, which we estimate to be in the age of $140 million to $150 million.

Speaker #1: slide break-even level, the cash flow this time around to

Speaker #1: provide a better perspective of the

Speaker #1: depth of our contract

At the bottom of this slide <unk>, we show our cash flow breakeven estimate for the next 12 months.

Speaker #1: coverage expenses, and loan repayments, , especially in light

Speaker #1: recent forward

Speaker #1: charters 13,133 concluded that is mentioned at the beginning of

Speaker #1: the dollars per vessel per day, presentation. The

Broken down by its key components.

Speaker #1: table presents the shown development

On this basis.

Speaker #1: of our 14,743 dollars for the fleet

Total cash flow breakeven level for the next 12 months, thanks to approximately $12000 per vessel per day and level well below the earnings of our fleet.

Speaker #1: days over the ownership period

Speaker #1: of the next three years ,

In making the comparison with the other edge of our fleet our fleet. One carrier you appreciate the cash flow generation potential that our vessels provides.

Operator: Folks, we have with us today Mr. Aristides Pittas, Chairman and Chief Executive Officer, and Mr. Tasos Aslidis, Chief Financial Officer of the company. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session, at which time, if you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. I must advise you that this conference is being recorded today. Please be reminded that the company announced their results in a press release that has been publicly distributed. Before passing the floor over to Mr. Pittas, I would like to remind everyone that in today's presentation and conference, Euroseas will be making forward-looking statements. These statements are within the meanings of the Federal Securities Laws.

To sum up my.

My presentation here and let's move to slide 22 to review some highlights from our balance sheet.

As of September 30th 225 cash.

Cash and other costs.

Now the current assets in our balance sheet total approximately.

And entering to $6 4 million, which is already made $75 9 million of advances.

For our new building program.

And we said also on our asset size the book value of our vessels.

Including <unk>, which and casual games to the amount of Wolfcamp foreseen, which stood at about 512.

$5 million for a total book value of our assets of about $675 million.

On the liability side as I mentioned in the previous slides, we had debt amounting to $224 million.

Operator: Matters discussed may be forward-looking statements, which are based on current management expectations that involve risks and uncertainties and may result in such expectations not being realized. I kindly draw your attention to slide number two of the webcast presentation, which has the full forward-looking statement. The same statement was also included in the press release. Please take a moment to go through the whole statement and read it. I would like to pass the floor over to Mr. Pittas. Please go ahead, sir.

Other liabilities for about $24 million, resulting in shareholders equity of roughly.

$427 million.

However, the market value of our fleet charter adjusted Mark to market value of our vessels is significantly higher than their book value.

According to our latest estimates our fleet is valued at approximately $619 million, which translates into a net asset value for our company of about $595 million or roughly almost eight 5%.

Aristides Pittas: Good morning, ladies and gentlemen, and thank you for joining us today for our scheduled conference call. Together with me is Tasos Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the three and nine-month period ended 30 September 2025. Please turn to slide three of the presentation for our quarterly financial results. For the first quarter of 2025, we reported total net revenues of $56.9 million and a net income of $29.7 million, or $4.25 per diluted share. Adjusted net income for the quarter was $29.6 million, or $4.23 per diluted share. Adjusted EBITDA for the period was $38.8 million. Please refer to the press release for a reconciliation of adjusted net income and adjusted EBITDA. Tasos Aslidis will go over our financial highlights in more detail later on in the presentation.

With our last closing price and duration trains engaged of around $60.

Per share our stock trades at all.

Almost a 30% discount to its charter adjusted net asset value.

And with that let me pass the floor back to activities to continue our growth.

Thank you. So let me open up the floor for any questions you may have.

Thank you Steve I would like to ask a question. Please press star one on your telephone keypad.

From Asia, Tom will indicate your line is in the question queue. You May press star two if he would like to remove your question from Mikael for participants using speaker equipment may be necessary to pick up your handset before pressing the star key is our first question S Fab Mark Reichman with noble capital.

Please proceed.

Thank you if there is just really two areas I wanted to focus on the first is.

Aristides Pittas: We are pleased to announce that our Board of Directors has declared another quarterly dividend of $0.70 per share for the third quarter of 2025, payable on or about 16 December 2025 to shareholders of record as of 9 December 2025. Based on current share price levels, the distribution reflects an annualized yield of approximately 5%. In addition, since launching our $20 million share repurchase plan in May 2022, we have repurchased 466,000 shares of our common stock in the open market for a total of approximately $10.5 million. This plan was renewed in May 2025. We remain committed to utilizing this program thoughtfully and strategically, deploying it when appropriate to support and enhance long-term shareholder value. Now, please turn to slide four, where we review our recent developments, including updates on our sale and purchase activity, chartering progress, and operational highlights.

What are your expectations for the scheduled off hire days for the fourth quarter and the remainder of 2026 I mean, if I looked at your slide deck. It seems like that you are anticipating.

Very very light dry docking schedule at least over the next 12 months. So just a little clarity there would be appreciated.

I think we described we have not maintenance not many dry dockings over the next 12 months.

On the <unk>.

All right.

Slightly off hire for Q4.

As in the previous quarter almost zero.

And for modeling purposes, what I showed you on the on this new slide 20.

The 2%.

<unk> off hire just to model it but typically we run our fleet.

North of 99% utilization rate.

Okay. So so if they were at 39 days in the third quarter or do you think that the fourth quarter would be lower than that.

If you've got zero.

Aristides Pittas: During the third quarter, we completed the sale of motor vessel Marcos V for $50 million. The vessel was delivered to a new and affiliated owner on 20 October 2026, and we recorded an estimated gain of $9.3 million from the transaction. On the employment front, we extended the charter for motor vessel ONFMP for a minimum of 11 months and up to 12 months at a daily rate of $25,000 per day. The earliest delivery under this contract is October 2026. Motor vessel Synergy Oakland was extended just yesterday for a further 36 months following the end of the current charter at $33,500 per day.

Sure.

In terms of scheduled dry docks I think we've done certain things scheduled drydocks in the fourth quarter to the best of mining on the top of my head.

We have always having water surveys.

Oh, Okay and so.

Those surveys.

I think in the third quarter. The number of days came it maybe in a little higher than what we were expecting but we might have just had a special survey built in but.

I mean do you think do you think it would be great greater than five or 10 days for the fourth quarter.

Let me start today by I would say not.

Yeah.

Not even better in the third quarter, we hit among young people underwent drydocking, we have no scheduled dry docks in the fourth and the next scheduled guidance would be in the third quarter of next year to the best of my understanding.

Aristides Pittas: Finally, also yesterday, our four newbuildings, motor vessels Elena Thrillos, Nikita G, and Socrates CH, were chartered upon their expected deliveries in the second half 2027 and first half 2028 for a firm period of four years at a daily rate of $35,500 per day, or a five-year period at $32,500 per day at the charter resorption, which is declarable by November 2026. Turning on to operations, the motor vessel Emmanuel P successfully completed its scheduled dry docking, resulting in an off-hire period of approximately 39 days. As part of this repair, we installed energy-saving devices that are expected to deliver fuel savings in excess of 20%. We experienced no idle or commercial off-hire time during Q3. Now, please turn to slide five. Our current fleet on the water consists of 21 vessels of total carrying capacity of 61,000 TEU and an average age of about 12 years.

Okay. Thank you Cosmos and the second area is so.

If containership ordering has accelerated even in the smaller sector, which could increase supply.

Mentioned that.

Think that could pressure rates from 2027 on a you are pretty well covered in 2027 with 52%.

Locked in but I mean, if we look at your slide nine where you're showing kind of the rates and you can kind of see that the rates are above the average and then if you take into consideration that the.

The rerouting that kind of settles back that youre kind of youre kind of expecting maybe.

The potential for <unk>.

For rates to decline into 2027 2028.

I was just kind of curious I wanted to focus on that slide nine if I could.

<unk>.

I see the averages and the medians and it seems to me median is pretty severe.

I'd probably look at it.

Taken the standard deviation of the rates and may be putting a plus one minus one standard deviation around the average.

But I mean Youre also looking at a couple of kind of a time series here and so if we're looking at.

Aristides Pittas: This includes six intermediate vessels with a combined carrying capacity of 25,500 TEU and an average age of around 17 years, as well as 15 feeder vessels with a combined carrying capacity of 35,600 TEU and an average age of 8.4 years. In addition, we have four intermediate vessels under construction, each with a capacity of 4,484 TEU. Two of these are expected to be delivered in the second half of 2027, while the remaining two in the first half of 2028, adding a further 17,000 TEU of capacity to our fleet. On a fully delivered basis, our fleet will now grow to 25 vessels with a carrying capacity of approximately 78,300 TEU. Please turn to slide six for a further update on our fleet employment. We continue to benefit from strong forward coverage, as you can see.

Different regimes shifts if you were to plant a flag and say 2020, what differences do you see in the market.

<unk> pre 2020, and maybe the last 10 years versus the next 10 years I mean, I think you.

Youre looking at an aging fleet.

Youre looking at increasing environmental standards. So obviously the fleets are going to get replenished rates could probably go up based on the newer vessels efficiencies could go down or go up.

As you've got more fuel efficient vessels. So youre your costs could come down, but I was just kind of a kind of just kind of flesh that out a little bit in terms of your expectations and are there differences in the overall market too simplistic to kind of look at this slide.

From 2015 to 2025 and draw conclusion or are there. Some other factors that may.

They may have a bearing on rates going forward.

Main the main.

The main reason why.

2015 to 2020.

Aristides Pittas: For the first quarter of 2025, 100% of our available days have already been secured at an average rate of approximately $30,345 per day. Looking ahead in 2026, we have already covered 75% of our voyage days at an average rate of around $31,300 per day. In 2027, this coverage stands at 52% at an even higher average rate of around $33,500 per day. Even in 2028, it stands at 30% at an average rate of around $35,500 per day. Our disciplined chartering strategy provides us with high visibility of future cash flows, and will support our profitability within the next couple of years, even if the market was to correct heavily. Moving on to slide eight, let's review the market highlights for the third quarter of 2025. Throughout the third quarter, one-year time charters remained firm at elevated levels, supported by tight vessel supply and limited availability.

Markets were very low as you can see it.

If we're looking at for this decade is that there was a few drove the group demand.

<unk>.

Back in 2007, and 2000 were made for the growth of the laser.

So we had.

A huge oversupply of vessels, which was the reason why telco dates between 2015 and 2020 road extremely move with them of course.

We had the pandemic.

The consequent significant increases from the mine.

For vessels, which resulted in this huge boom that we witnessed during the pandemic.

Amid the market started to correct that for different than that.

Rates dropped again to much more reasonable levels.

<unk>.

The.

The role of it between.

I'll start and end user demand.

Clothes this was.

The result.

The increase in the market that we have seen these are the three main frac.

Factors have caused us so many other things that play around with that but these are the three main.

Main factors right.

The way we are.

I don't think that we can see rates again as low as what we've seen we saw between 15 and 20.

Aristides Pittas: This environment encouraged charters to secure forward cover early in the season. However, towards the end of the quarter, the freight market softened as concerns over over-supply and increased competition among carriers began to weigh on sentiment. By late September, the Shanghai Containerized Freight Index had declined to its lowest level in nearly two years. However, during October and early November, we witnessed a stabilization and even a strong uptick by 30%. The average second-hand price index rose by about 4.4% in the third quarter versus the second quarter, supported by limited vessel availability, geopolitical tensions, and strong buyer interest. Meanwhile, newbuilding prices remained stable quarter over quarter, with Korean and Japanese yards gradually increasing prices relative to Chinese yards. Idle capacity continued to be practically non-existent. Also, recycling activity remained subdued, with only 11 vessels totaling 6,000 TEU scrapped year to date.

Sure.

But I don't think you can see that also for one additional reason that it hasnt been quite significant inflation.

Resulting in.

Prices of new building ships into anything substantial.

Over the last five or six years, so new building.

Building ships cannot become much cheaper because within that we'll be losing money.

They play.

Kind of a floor for second hand values as well.

A very difficult equation.

It's extremely difficult to predict.

That's right.

But it's not unreasonable to expect that that rates would could be higher than say your average.

This average going forward.

There's never a dull day in the shipping market, so theres, probably bound to be some volatility.

But but looking ahead in your breakeven rate is actually pretty you have a pretty good cost structure. So.

So I don't know I just.

Just extending this back to 2015.

Anyway, that's very helpful.

Aristides Pittas: In Bangladesh, scrap prices had dropped slightly to around $425 per lightweight ton. Overall, the global fleet has expanded by a significant 6% year to date. Please turn to slide nine for a broader market overview, focusing on the development of six to 12-month time charter rates over the past 10 years. The slide illustrates the charter rates across all major container ship segments remain significantly elevated compared to their 10-year median levels. This emphasizes the ongoing strong demand and support for feeder and intermediate vessels, in particular. The market's ability to maintain these highs is a testimony of the continuing imbalance between effective vessel supply and demand. Please turn to slide ten. According to the IMF's October 2025 projections, global growth is expected to ease slightly from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026.

It provides a little perspective.

The zip over numbers. Thank you.

The bit of color on what has happened but to predict what will happen is so much more difficult.

Alright.

Yes.

Another indication Marco for work the market thinks is.

Charters will just concluded obviously and this is where our levels we've seen in the market.

The market believes that the $35000 per day, roughly that we booked our ships for the.

The 44 continent Youll class.

Is that a level that would be okay to lock yourself in portfolio years, two years out from now.

That might be an indication of the 54 might be.

This is a market opinion I guess the current Counterparties opinion.

Willing buyer willing seller type of ink that.

Ill provide some other insights I guess.

Right now that's a very good point pass those thank you very much.

And local marketing.

Our next question is from Tate Sullivan with Maxim Group. Please proceed.

Hi, Thanks.

Aristides Pittas: Advanced economies are forecast to grow by roughly 1.5%, while emerging markets and developing economies are projected to grow just about 4%. Global inflation is expected to moderate worldwide, albeit unevenly across regions, remaining above target in the United States, where risks are tilted to the upside, and more subdued elsewhere. US growth is projected at 2% in 2025 and 2.1% in 2026, a modest upward revision from earlier forecasts, reflecting smaller-than-expected effects from tariffs and more favorable financial conditions. In late October, the Federal Reserve reduced the target range for the federal funds rate by 25 basis points, bringing it to 3.75% to 4%. Chair Powell has not ruled out an additional rate cut at the December meeting, but has emphasized that this is by no means guaranteed.

You gave a lot of good descriptions on why Youre willing to book your Newbuild well forward I mean, that's a longer timeline to delivery and then Moshe almost all your other newbuild I think but can you talk.

The charterers willingness to book ship that far forward have you I mean is.

Is it to avoid sudden spikes in the market like neighbors they had post COVID-19.

Would love to hear your thoughts on that please.

As we said.

The fleet over the seats below 6000 Teu is a very old fleet that 825% is older than 20 years, 50% is older than 15 years.

Seeing this.

This aging fleet in the smaller sizes and the charterers are competing amongst them to have those ships because they know that these ships are needed.

Trade is increasing continuously the big ships get food, but then.

But then you need the smaller fleets to do the regions today. So.

Aristides Pittas: The Fed has hinted that interest rates may remain on hold as inflation remains too high, and while the labor market is cooling, it continues to show mixed signals. The broader outlook remains fragile, with downside risks stemming from persistent uncertainty, potential protectionist measures, and ongoing labor market constraints. Among emerging markets, India is forecast to expand by 6.6% in 2025 and 6.2% in 2026, supported by strong domestic investment, resilient agricultural output, and a vibrant services sector. The ASEAN five economies are also expected to post solid growth of around 4.2% in 2025 and 4.1% in 2026, underpinned by healthy regional demand and continued industrial activity. China's economic outlook is expected to remain positive, but at a decelerating pace.

Thank you Yossi this potential lack of ships.

Two two.

Secure tonnage.

Do you get any end market indications that they are willing to book such long term contracts that they have dormant vessels that are sitting in ports waiting for.

Our voyages at all in the current market.

No the cash.

You get paid.

Yes, the current market is a market to full employment.

Might be some delays and some waiting times motor racing times occasionally due to the various things that are happening.

But.

No the market is food.

Okay. Thanks failure.

News and commentary echoes.

Recently as in the sector to.

Cashless remaining newbuild commitments for the new ship for new ships I think you can keep your what you have already funded so as youre remaining commitment about $200 million does.

Is that fair.

Yes, correct I think I think all the conduct the contracted prices in total approximately 240 medium and as I mentioned, we serve have made payments amounting to about 36 million in Nashville, Charlotte roughly 200 million remaining to be paid.

Aristides Pittas: Challenges include a widening gap between industrial supply and weak domestic demand, as well as ongoing trade tensions with the United States, including new tariffs on Chinese goods, export controls, and restrictions on high-tech goods. As a result, China's growth is projected to moderate to 4.8% in 2025 and 4.4% in 2026, reflecting a gradual slowdown following front-loaded exports and waning fiscal support. Despite these domestic headwinds, the Chinese economy is still being supported by strong export performance to regions such as Southeast Asia and the EU, along with a still resilient manufacturing sector. We analyze global growth data carefully as it affects directly trade volumes as a whole. Specific factors affecting trade create slight fluctuations around GDP growth. On containerized trade, Clarksons estimates demand growth for 2025 to expand by 3.2%, signaling a strong correlation with expected GDP growth.

And then maybe one installment payments February and then some payment.

Year or two every year.

I think the.

Next payment is run their existing cutting.

Which should be about 12 months happening before the delivery of the ships from middle of next year, we'll start making cuts.

Additional 10% payments and that would be I think home now 10% payments before the final payment.

Okay Alright, thank you both.

And all of our content.

Our next question is from climate Marlins with value Investor's edge. Please proceed.

Hi, good afternoon, and thank you for taking my questions.

Most of that's already been covered but I wanted to also have eaten into your fleet positioning you'll have a clearly be gated fleet between legacy and modern tonnage.

Assuming the recent the fixed for new Woodson audit there at 23 eight.

Is there any appetite to order additional tonnage alongside on term contracts or are you comfortable with your current positioning.

Aristides Pittas: Current forecasts, though, point to a dip to 0.7% growth in 2026 and a further decline of 6% in containerized trade growth in 2027. These expected declines largely reflect the unwinding of extraordinary rerouting patterns and temporary distortions that boosted volumes in prior years. The influx of capacity recently ordered will probably, at some point, outpace demand growth, especially if geopolitical disruptions were to suddenly resolve and allow ships to turn to shorter, more efficient routes. Turning on slide 11, where you can see the total fleet age profile and container ship order book. The top left chart depicts a container ship fleet that is relatively young, with most vessels under 15 years old, and only 12% of the fleet over 20 years old.

So there is always a possibility.

Something we are looking at.

Various profitability further move something we'll develop for Merck.

Obviously, having secured this allows for the vessel.

Gives us.

Significant safety and comfort.

Luke.

Potentially doing something more.

Makes sense. Thanks critical R and final question from me pro forma for the state of the macro space and even when including the Capex on the New Orleans, you're sitting in a solid financial position.

Our medium term leverage target you plan to meet going forward or do you see let's say more.

We can target.

Okay.

Todd.

But generally.

Our strategy is to have.

Levered.

Our own 50% and remove.

Aristides Pittas: The top right chart shows the new deliveries as a percentage of the existing fleet, which are projected at 6.9% for 2025, 5.1% for 2026, and 8.3% for 2027, with actual fleet growth expected to be slightly lower due to slippage and future demolition activity. The bottom chart shows that the order book continues to increase rapidly, reaching approximately 32% of the fleet as of 1 November 2025. Turning on slide 12, we go over the fleet age profile and order book only for ships in the 1,000 to 3,000 TEU range, which is quite different from the overall picture. As of 1 November 2025, the order book for vessels below 3,000 TEU stands at a modest 8.1% of the fleet.

10% to 15% above the 15% below.

Pending on circumstances in time in the market.

We believe that a decent level.

Uh huh.

In a business that is making more than 6%, which is our cost of capital.

All of that facility.

It makes sense to have some level of if you can.

More than 66%, which is what we believe that historically we do.

On the other hand level want to be too exposed because we know what happens in <unk>.

It's a market that we believe through bad markets two hour curfews.

So we don't want to over leverage.

So I think that gives you a guidance about them.

<unk>.

Yes, that's helpful. I'll turn it over thank you for taking my questions.

Aristides Pittas: According to Clarksons, deliveries in this size range remain limited, with newbuilding additions projected at only 2.1% of the fleet in 2025, followed by 2% in 2026, 3.4% in 2027, and 2.7% in 2028 and beyond. About half of the fleet is over 15 years old, making them likely candidates for scrapping when the market corrects. Let's move to slide 13 now to see the supply outlook for the 3,000 to 8,000 TEU segment, the other sector in which we currently operate. As of November 2025, the order book stands at 12% of the fleet, a modest level compared to the larger mainline classes. Meanwhile, the age profile of this segment is notably advanced, with 27% of vessels over 20 years old, and another 38% between 15 and 19 years.

Excellent. Thank you.

Our final question is from Paul <unk> with Alliance Global Partners. Please proceed.

Hi, actually it's high touch us.

Cost side.

Do math on the delivery.

<unk> I am calculating the second half of 2027 years or about $65 million on the first two new builds and then in the first half of 'twenty eight youre going to over bad.

We have to pay about $65 million.

For the last two new builds is that is that correct.

That's probably the highest I've seen useful.

And.

You should.

And get something like 55% of the contract price to be paid in the year of delivering in the in the in the half year Vicki vary so something like.

65 million for the first bar and 65 million for the second pair soundtrack.

Yes, that's what I was here.

And then just a nitpicky one.

Aristides Pittas: With a limited newbuilding pipeline, net fleet growth in this segment is expected to remain contained, if not become negative over the next few years. Moving on slide 14, this chart places those dynamics and perspectives across the entire container ship sector. What stands out is the concentration of newbuilding activity in the larger vessel classes. New Panamax and post-Panamax vessels show order books representing 40% to nearly 80% of their existing fleets, reflecting the significant capacity being added to the mainland trade. By contrast, the feeder and intermediate segments have significantly smaller order books, ranging from just 4% to 12%, depending on size, even though a substantial portion of these fleets, between 20% and 40%, are already more than 20 years old.

How do you how do you decide to offer the charter.

The one year option after the fourth year.

If you look at the way that.

Time charters are structured on the four new builds.

Four years at $35 five and then.

Five years at 32, 5% it seems like Youre, giving up a lot on that last year of extra coverage can you just talk about that.

Okay.

And I think they were we were discussing with charter environment options of Triferic on ships.

From three years to five years, and there were different combinations of rates.

<unk>.

And we ended up on grain.

Focus on the four year duration of 75 <unk>.

<unk> have the option to extend.

Or.

The other five year deal. So if you have a year to decide about what that implies to.

Aristides Pittas: This widening gap between newbuilding activity in the large vessel segments and the limited replacement in smaller segments highlights why our core fleet remains structurally well-positioned with minimal risk of oversupply. Now, please turn to slide 15. Turning to the container sector outlook, conditions across the container shipping sector remain mixed. Time charter rates continue to hold firm, supported in part by Red Sea rerouting, even as the Shanghai Containerized Freight Index has steadily declined. Overall, charter rates remain near historic highs due to limited near-term supply, and steady demand across most vessel sizes. In 2026, US trade policy and broader geopolitical developments will be key drivers of trade volumes and route patterns. Recent tariff agreements, ranging from 10% to 50%, have provided some short-term stability, but uncertainty around US-China relations persists. Q3 2025 was an epitome of this uncertainty.

So far around.

Overall <unk> for the fifth year, if you compare for years with 75, five years, and 32 and half the implied rate could be.

Fifth year.

If you keep the first four years of 45 to five and half is around.

And in the low twenties.

We felt that was appropriate.

Trade off to make.

Yes.

Calculated 2500.

And then on your slide 20.

<unk>.

It seems like Youre, implying.

The fleet will even with the new builds coming into the fleet will decline 26, and 27 28.

Can you just talk about your <unk>.

Strategy on selling some of the older assets.

Mainly the feeders that don't have as much contract cover.

We have been investing.

Let me say.

Let me take that we are taking a very conservative approach that.

Markets.

<unk> declined significantly.

And we will need to instead of passing the spectrum.

Aristides Pittas: The US imposed port fees on Chinese-owned, controlled, or built ships, only for China to reciprocate, and then, within days, both these fees were put on ice following discussions between Mr. Trump and Mr. Xi in China at the end of October. Additionally, the recent ceasefire between Israel and Hamas suggests a potential easing of disruptions in the Red Sea, but shipping companies are adopting a cautious wait-and-see stance, with no immediate rerouting witnessed yet. In 2027, on the back of the increased container ship ordering, even for smaller vessels, if demand in tons or ton miles does not surprise on the upside, the market may enter into a more challenging phase. Regarding energy transition, while it continues to be an important factor in the balance of container trade, the recent non-approval of the IMO's net zero framework has inevitably slowed the process substantially.

Two of the vessels.

We will decide to scrap them.

Of course.

No.

The lowest possible scenario, but we are going to be.

Being very conservative.

Sections.

And just to get granular it it looks like the Hydra.

And the Jonathan <unk> would be the two scrapping candidates if the market does do what do you think it is going to do.

Sure.

The go forward the equity.

Okay.

Great.

Yes.

Currently in our fleet.

Okay perfect. Thank you so much.

Thank you Paul Okay.

No further questions I would like to turn the conference back over to management for closing remarks.

Thank you very much everybody for listening in.

We will be back to you at the beginning of the year.

The full year results.

Thank you.

Thank you thanks, everybody. Thank you.

Aristides Pittas: Arguably, the proposal was overambitious, as technical targets and economic hurdles were anyway insurmountable. Nevertheless, the process of transitioning to new, more environmentally friendly fuels will continue, but hopefully in a more disciplined and realistic manner. Let's turn now to the last slide of this section, slide 16. The left-hand graph shows the cycle of the one-year time charter rate for 2,500 TEU container ships over the past 10 years. As of 14 November 2025, the one-year time charter rate stands at $35,750 per day, well above both historical averages and medians. This robust rate environment is mirrored in asset values as well. Newbuilding vessels are now valued at $45 million compared with a 10-year median of $35 million and an average of roughly $36 million.

This will conclude today's conference you may disconnect at this time and thank you for your participation.

Aristides Pittas: Likewise, 10-year-old second-hand vessels are currently valued at $37 million, significantly higher than the 10-year median of $14 million, and the average of about $20 million. In this environment, owners like us are generally reluctant to buy vessels at today's prices unless these can be combined with charters, which would bring the residual values down to more normalized prices. It is proving, though, that quite a few charterers, fearing the potential loss of market share, and consequently market relevance, are providing such charters to smaller newbuilding vessels, even with 2028 deliveries. Unfortunately, until this stops, we will continue to see the order book swelling, which obviously will eventually result in overcapacitating the market. With that, I will pass the floor to our CFO, Tasos Aslidis, to go over our financial highlights in further detail. Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen.

Aristides Pittas: Over the next five slides, I will give you my usual overview of our financial highlights for the quarter and the nine-month period of 2025, and compare them to the same periods of last year. For that, let's turn to slide 18. For the third quarter of 2025, the company reported total net revenues of $56.9 million, representing a 5.1% increase over total net revenues of $54.1 million during the third quarter of last year. On a per-vessel-per-day basis, our vessels earned a 10.7% higher average charter rate in the third quarter of this year compared to last year. We reported a net income for the period of $29.7 million, as compared to a net income of $27.6 million for the third quarter of 2024.

Aristides Pittas: Total interest and other financing costs for the third quarter of 2025 amounted to $3.7 million compared to $4.2 million for the previous year, a figure of the previous year that does not include imputed interest income of about $0.9 million, which is related to the self-financing of our pre-delivery payments for our newbuilding program. This decrease is due to the lower interest rate we paid in the third quarter of this year compared to last for our debt. Adjusted EBITDA for the third quarter of 2025 increased to $38.8 million compared to $36.1 million achieved during the third quarter of 2024, again primarily due to the increase in revenue.

Aristides Pittas: Basic and diluted earnings per share for the third quarter of 2025 were $4.27 and $4.25, respectively, calculated on about 7 million basic and diluted weighted average number of shares outstanding, compared to $3.97 and $3.95 basic and diluted, respectively, for the same period of last year. The adjusted earnings per share for the three-month period ended 30 September 2025 would have been $4.26 and $4.23 basic and diluted, respectively, adjusted for unrealized gains from derivatives, compared to adjusted earnings of $3.94 basic and $3.92 diluted for the same period of last year. Let's now look at the numbers for the corresponding nine-month periods ended 30 September and compare them.

Aristides Pittas: For the first nine months of 2025, we reported total net revenues of $170.5 million, representing a 6.8% increase over total net revenues of $159.6 million that we earned during the first nine months of last year, mainly as a result of the higher number of vessels we own and operated, and higher average earnings that we had. We reported a net income for the period of $96.5 million, as compared to a net income of $88.4 million for the first nine months of last year. Total interest and other financing costs for the first nine months of 2025 amounted to $11.7 million, not including $0.1 million of imputed interest income, compared to $10.7 million for last year, again not including, in that case, $3.6 million of imputed interest income.

Aristides Pittas: This increase is due to the increased amount of debt that we held on average during the respective nine-month period of this year compared to last, partly offset by the lower interest rates we paid. Adjusted EBITDA for the first nine months of 2025 was $115.2 million compared to $102.9 million for the first nine months of last year, a 12% increase. Basic and diluted earnings per share for the first nine months of this year were $13.90 and $13.84, respectively, calculated again on approximately 7 million basic and diluted weighted average number of shares outstanding, compared to basic and diluted earnings per share of $12.75 and $12.66 for the first nine months of 2024, calculated again on approximately the same number of shares, about 7 million.

Aristides Pittas: The adjusted earnings per share for the nine-month period ending 30 September of this year would be $12.25 basic and $12.19 diluted, compared to $11.57 basic and $11.49 diluted for the same period of 2024. Let's now turn to slide 19 to review our fleet's performance. I will not go through the utilization rate figures as I did in the previous calls, as they are all near 100%, but I will move directly to discuss the rest of the table. On average, in the third quarter of this year, 22 vessels were owned and operated, earning an average time charter equivalent rate of $29,284 per day, compared to 23 vessels that we operated in the third quarter of 2024, earning an average of $26,446 per day.

Aristides Pittas: Our total daily operating expenses, including management fees, G&A expenses, but excluding dry docking costs, were $7,246 per vessel per day during the third quarter of this year, compared to $7,249 per vessel per day for the same period of 2024. If we move further down on this table, we can see the cash flow break-even levels, which take into account, in addition to the above expenses, the dry docking expenses, interest expenses, and loan repayments. For the third quarter of 2025, our daily cash flow break-even level was $13,073 per vessel per day, compared to $13,629 per vessel per day for the same period of last year. Below the break-even line, you can see our dividend distribution expressed in dollars per vessel per day basis, and for the third quarter of this year, it amounted to $2,410 compared to $2,013 for the same period of 2024.

Aristides Pittas: Let's move now to discuss similar figures for the nine-month period, skipping again the discussion on the utilization rates. We can report that we own and operated an average of 22.6 vessels during the first nine months of 2025, earning an average time charter equivalent rate of $28,735 per day, compared to 21.3 vessels that we own and operated in the same period of 2024, earning an average of $28,624 per vessel per day. Our operating expenses, again including management fees and G&A expenses, averaged $7,386 during the first nine months of 2025, compared to $7,452 per vessel per day for the same period of last year.

Aristides Pittas: Again, at the bottom of this table, you can see the break-even level, the cash flow break-even level, which includes, as we said, interest expenses, dry docking expenses, and loan repayments, excluding balloons, and that was $13,133 per vessel per day, compared to $14,743 for the same period of last year. Finally, I will not go through it. There is the dividend that we paid in the nine months expressed on a dollar-per-day basis. Let's now turn to slide 20. We'll use this slide this time around to provide a better perspective of the depth of our contract coverage, especially in light of the recent four-work charters concluded that Aristides mentioned at the beginning of the presentation.

Aristides Pittas: The table shown presents the development of our fleet ownership days over the period of the next three years, 2026 to 2028, at an estimated breakdown of how many days are available for hire and how many days are already contracted. It incorporates assumptions about delivery dates for vessels under construction, scrapping dates for older ships, estimated dry docking timing and duration, a utilization rate assumption going forward. We use a quite conservative one of 98%, and estimates for contracted dates and average contracted rate. Please note that the data in this table is only estimates that we use for our modeling purposes for future time charter equivalent revenues, and the actual figures will be different. Still, I hope this can provide some appreciation of our revenue and earnings visibility.

Aristides Pittas: As Aristides mentioned earlier, our contract coverage currently stands at 75% for 2026, 52% for 2027, and 29% for 2028. Average contracted rates are respectively $31,300, $33,500, and $35,500 for each of the three years. Here, if one makes an assumption about the average rate that our uncontracted days will earn, one can easily come up with an estimate of our overall revenues for the respective year. I hope this helps our investors and analysts to cover us in their own analysis of our future profitability. Let's now move to slide 21 to review our debt profile.

Aristides Pittas: As of 30 September 2025, our total outstanding bank debt stood at about $224 million, with an average interest rate margin of about 2%, which, based on a three-month soft rate of 3.87%, results in a cost of our debt of about 5.9%, which is well within the prevailing range for our segment and peers. For the fourth quarter of 2025, we expect loan repayments of approximately $5.4 million, with no balloon payments due in the remainder of the year, which, accordingly, will reduce our year-end balance. In 2026, scheduled loan repayments amount to approximately $19.5 million, again with no balloon payments during the year. In 2027, we expect regular loan repayments of about $16.8 million, together with a $20 million balloon payment, making total scheduled repayments for 2027 to approximately $36.8 million.

Aristides Pittas: Similarly, we can see in the table, in the chart, the scheduled payments for the period 2028 to 2030. At the end of 2030, the remaining outstanding debt, assuming no balloon financing of our current debt, would be about $76 million. This schedule shown here does not include debt we expect to draw to finance the construction of our four new buildings, debt which we estimate to be in the range of $140 to $150 million. At the bottom of this slide, as always, we show our cash flow break-even estimate for the next 12 months, broken down by its key components. On this basis, our total cash flow break-even level for the next 12 months stands at approximately $12,000 per vessel per day, a level well below the earnings of our fleet.

Aristides Pittas: Making the comparison with the other earnings of our fleet, one can really appreciate the cash flow generation potential that our vessels provide. To sum up my presentation here, let's move to slide 22 to review some highlights from our balance sheet. As of 30 September 2025, cash and assets in our balance sheet total approximately $126.4 million. We had already made $35.9 million of advances for our newbuilding program, and we had also on our asset side the book value for our vessels, including Marcos V, which, as of the end of the month, was held for sale, which stood at about $512.5 million for a total book value of our assets of about $675 million.

Aristides Pittas: On the liability side, as I mentioned in the previous slide, we had debt amounting to $224 million, other liabilities for about $24 million, resulting in book shareholders' equity of roughly $427 million. However, the market value of our fleet, the charter adjusted market value of our vessels, is significantly higher than their book value. According to our latest estimates, our fleet is valued at approximately $680 million, which translates into a net asset value for our company of about $595 million, or roughly almost $85 per share. With our last closing price and recent trading rates of around $60 per share, our stock trades at almost a 30% discount to its charter adjusted net asset value. With that, let me pass the floor back to Aristides to continue our call. Thank you, Tasho. Let me open up the floor for any questions we may have. Thank you.

Aristides Pittas: If you would like to ask a question, please press Star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the Star keys. Our first question is from Mark Wrightman with Noble Capital Partners. Please proceed. Thank you. There's just really two areas I wanted to focus on. The first is, what are your expectations for the scheduled off-hire days for the fourth quarter and the remainder of 2026? I mean, if I looked at your slide deck, it seems like that you're anticipating a very light dry docking schedule, at least over the next 12 months. Just a little clarity there would be appreciated.

Aristides Pittas: I think we're just correct. We have not many dry dockings over the next 12 months. The likely off-hire for Q4 are, as in the previous quarter, almost zero. For modeling purposes, what I showed you on this new slide 20, we will use a 2% all-in off-hire just to model it, but typically, we run our fleet at the north of 99% utilization rate. Okay. If there were 39 days in the third quarter, do you think that the fourth quarter would be lower than that if you've got zero? Do you have anything in the fourth quarter? In terms of scheduled dry dock, I think we don't have any scheduled dry dock in the fourth quarter, to the best of my knowledge, on the top of my head. We have only some in-water surveys. Oh, okay.

Aristides Pittas: Those surveys, I mean, I think in the third quarter, the number of days came maybe in a little higher than what we were expecting, but we might have just had a special survey built in. I mean, do you think it would be greater than 5 or 10 days for the fourth quarter? It's hard to say, but I would say not even. In the third quarter, we had a manual fleet that underwent dry docking. We have no scheduled dry dock in the fourth, and the next scheduled dry dock would be in the third quarter of next year, to the best of my understanding. Okay. Thank you, Tasos. The second area is, if container ship ordering has accelerated even in the smaller sector, which could increase supply, you've mentioned that you think that could pressure rates from 2027 on.

Aristides Pittas: Now, you're pretty well covered in 2027 with 52% locked in. I mean, if we look at your slide 9, where you're showing kind of the rates, you can kind of see that the rates are above the average. If you take into consideration that the rerouting, if that kind of settles back, you're kind of expecting maybe the potential for rates to decline into 2027, 2028. What I was just kind of curious about, I wanted to focus on that slide 9 if I could, because I see the averages and the medians. It seems to me median is pretty severe. I mean, I would probably look at it by taking the standard deviation of the rates and maybe putting a plus one, minus one standard deviation around the average.

Aristides Pittas: I mean, you're also looking at a couple of kind of a time series here. If we're looking at different regime shifts, if you were to plant a flag and say 2020, what differences do you see in the market pre-2020 and maybe the last 10 years versus the next 10 years? I mean, I think you're looking at an aging fleet. You're looking at increasing environmental standards, so obviously, the fleet's going to get replenished. Rates could probably go up based on the newer vessels. Efficiencies could go down or could go up as you've got more fuel-efficient vessels, so your cost could come down. I was just kind of just to kind of flesh that out a little bit in terms of your expectations. Are there differences in the overall market?

Aristides Pittas: I mean, is it too simplistic to kind of look at this slide from 2015 to 2025 and draw a conclusion, or are there some other factors that may have a bearing on rates going forward? The main reason why years 2015 to 2020, the markets were very low, as you can see, if we're looking at this decade, is that there was a huge order book, nearly 100% back in 2007 and 2008, that got delivered. We had a huge oversupply of vessels, which was the reason why charter rates between 2015 and 2020 were extremely low. Of course, we had the pandemic with the consequent significant increase in ton miles for vessels, which resulted in this huge boom that we witnessed during the pandemic. The market started to correct after the pandemic, and rates dropped again to much more reasonable levels.

Aristides Pittas: We had the war between Palestine and Israel, which closed the Suez Canal and resulted in the increase in the market that we have seen. These are the three main factors. Of course, there are so many other things that play around that, but these are the three main factors why we are where we are. I don't think that we can see rates again as low as what we saw between 2015 and 2020, but this is shipping, you never know. I don't think you can see that. Also, for one additional reason, there has been quite significant inflation resulting in prices of newbuilding ships increasing substantially over the last five or six years. If newbuilding ships cannot become much cheaper because then shipyards will be losing money, they place kind of a floor for second-hand values as well.

Aristides Pittas: It's a very difficult equation, and it's extremely difficult to predict. That's why. It's not unreasonable to expect that rates could be higher than, say, your average, this average going forward. It is never a dull day in the shipping market, so there's probably bound to be some volatility. Looking ahead, your break-even rate is actually pretty—you have a pretty good cost structure. I don't know. Just extending this back to 2015, anyway, that's very helpful. It provides a little perspective on the forward numbers. Thank you. It gives a little bit of color on what has happened, but to predict what will happen is so much more difficult. Yes. Right. Yes. Another indication, Marco, of what the market thinks is the charters we just concluded, obviously, and these were levels we've seen in the market.

Aristides Pittas: The market believes that the $35,000 per day, roughly, that we booked our ships for the 4,400 EU class is a level that would be okay to lock yourself in for four years, two years out from now. That might be an indication that the 54 might be—I mean, this is a market opinion, I guess, the counterpart opinion, willing buyer, willing seller type of thing that might provide some other insights, I guess. Right. No, that's a very good point, Tasos. Thank you very much. You're welcome, Marc. Thank you. Our next question is from Tate Sullivan with Maxim Group. Please proceed. Hi. Thanks. I mean, you gave a lot of good descriptions on why you're willing to book your new builds well forward, I mean, at a longer timeline to delivery than almost all your other new builds, I think.

Aristides Pittas: Can you talk about the charterers' willingness to book the ships that far forward? I mean, is it to avoid sudden spikes in the market like they had post-COVID? Would love to hear your thoughts on that, please. As we said, the fleet of the ships below 6,000 TEU is a very old fleet, right? 25% is older than 20 years, 50% is older than 15 years. We are seeing this aging fleet in the smaller sizes, and the charterers are competing amongst them to have those ships because they know that these ships are needed. Trade is increasing continuously. The big ships get full, but then filled. But then you need the smaller ships to do the regional trade. I think we are seeing this potential lack of ships and rushing to secure tonnage.

Aristides Pittas: Do you get any market indications that they're willing to book such long-term contracts, that they have dormant vessels that are sitting in ports waiting for voyages at all in the current market? No. The current market, even though you continue, you get paid. Yeah. No, the current market is a market of full employment. There might be some delays and some waiting times, small waiting times occasionally due to the various reroutings that are happening. No, the market is full. Okay. Thanks. Yeah. I mean, your news and commentary echoes some recent news in the sector too. Tasos, your remaining new build commitments for the new ships, four new ships, I think you gave your what you have already funded. Is your remaining commitment about $200 million? Is that fair? New build on the floor. Yes. Correct.

Aristides Pittas: I think the contracted prices in total are approximately $240 million. As I mentioned, we have made payments amounting to about $36 million or so. Roughly $200 million are remaining to be paid. Maybe one installment payment, an installment payment every year or two, every year. I think the next payment is when there is the steel cutting, which should be about 12 months roughly before the delivery of the ship. Middle of next year, we'll start making additional 10% payments. There would be, I think, three more 10% payments before the final payment. All right. Thank you both. You're welcome, Tate. Our next question is from Clement Mullins with Value Investors Edge. Please proceed. Hi. Good afternoon, and thank you for taking my questions. Most has already been covered, but I wanted to delve a bit into your fleet positioning.

Aristides Pittas: You have a clearly bifurcated fleet between legacy and modern tonnage. Considering you recently fixed the four newbuilds on order at solid rates, is there any appetite to order additional tonnage alongside long-term contracts, or are you comfortable with your current positioning? There is always the possibility to order something. We are looking at various possibilities. I don't know if something will develop or not. Obviously, having secured these last four vessels gives us significant safety and comfort to look at potentially doing something more. Makes sense. Thanks for the caller. Final question from me. Performer for the sale of the Marcos V, and even when including the CapEx on the newbuilds, you're sitting in a solid financial position. Is there a medium-term leverage target you plan to meet going forward, or is it, let's say, a moving target?

Aristides Pittas: I would say it's a moving target, but generally, our strategy is to have leverage around 50%. We move 10% to 15% above or 10% to 15% below, depending on circumstances and timing in the market. We believe that a decent leverage in a business that is making more than 6%, which is our cost of capital or debt, sorry, it makes sense to have some leverage if you can earn more than 6%, which is what we believe that historically we do. On the other hand, we never want to be too exposed because we know what happens in a bad market, and we've lived through bad markets throughout our careers. We don't want to over-leverage. I think that gives you guidance about our general leverage strategy. Yeah. That's helpful. I'll turn it over. Thank you for taking my questions. Thanks, Clement. Thank you.

Aristides Pittas: Our final question is from Paul Frat with Alliance Global Partners. Please proceed. Hi, Ashley. Hi, Tasos. Tasos, just to do math on the delivery payments, I'm calculating the second half of 2027, you're going to owe about $65 million on the first two newbuilds. In the first half of 2028, you're going to owe about, or have to pay about, $65 million for the last two newbuilds. Is that correct? That's probably right. I think you should think of something like 55% of the contract price to be paid in the year of the delivery, in the half year of the delivery. Something like $65 million for the first pair and $65 million for the second pair sounds right. Yes. That's what I was using.

Aristides Pittas: Just a nitpicky one on how did you decide to offer the charterer the one-year option after the fourth year? If you look at the way that time charters are structured on the four new builds, four years at $35,500 and then five years at $32,500, it seems like you're giving up a lot on that last year of extra coverage. Can you just talk about that? I think we were discussing with the charterer various options of chartering our ships from three years to five years, and there were different combinations of rates and durations. We ended up agreeing that we'll focus on the four-year duration of $35,500, but they asked to have the option to extend or do the five-year deal. They have a year to decide about that. That implies a rate of around, of low to end, for the fifth year.

Aristides Pittas: If you compare four years at 35 and five years at 32.5, the implied rate for the fifth year, if you keep the first four years at 35.5, it's around in the low to end is. We felt that was an appropriate trade-off to make. Yeah. I had calculated $20,500. On your slide 20, it seems like you're implying that the fleet will, even with the new builds coming into the fleet, decline in 2026, 2027, and 2028. Can you just talk about your strategy on selling some of the older assets, mainly the feeders that don't have as much contract cover? I think we said two vessels that. Sorry. Let me take that. Let me take that.

Aristides Pittas: We are taking a very conservative approach that the market may decline significantly, and we will need to, instead of passing the special survey of our two elder vessels, we will decide to scrap them. This, of course, is the lowest possible scenario, but we are indeed being very conservative in our projections. Just to get granular, it looks like the Hydra and the Jonathan P would be the two scrapping candidates if the market does do what you think it is going to do. No. It's the Kofua and the Evridiki. It's the ones that are a bit one. Yeah. It's the oldest vessels in our fleet. Okay. Perfect. Thank you so much. Thank you, Paul. Okay. Thank you. With no further questions, I would like to turn the conference back over to management for closing remarks. Thank you very much, everybody, for listening in.

Aristides Pittas: We will be back to you at the beginning of the year with the full year results. Thank you. Thank you. Thanks, everybody. Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.