Q4 2025 Euroseas Ltd Earnings Call

February 25, 2026

Operator: Thank you for standing by, ladies and gentlemen. Welcome to the Euroseas conference call on the Q4 2025 financial results. We have with us Mr. Aristidis Pittas, Chairman and Chief Executive Officer, and Mr. Anastasios 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 with 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 call, Euroseas will be making forward-looking statements.

Speaker #2: 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 1 on your telephone keypad and wait for your name to be announced.

Speaker #2: I must advise you that this conference is being recorded today. Please be reminded that the company announced their results with a press release that has been publicly distributed.

Speaker #2: Before passing the floor over to Mr. Pittas, I would like to remind everyone that in today's presentation and conference call, EUROSEAS will be making forward-looking statements.

Speaker #2: 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 involve risks and uncertainties that may result in such expectations not being realized.

Operator: 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 involve risks and uncertainties that 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, and the same statement was included in the press release. Please take a moment to go through the whole statement and read it. Now I would like to pass the floor over to Mr. Pittas. Please go ahead, sir.

Speaker #2: I kindly draw your attention to slide number 2 of the webcast presentation which has the full forward-looking statement and the same statement was included in the press release.

Speaker #2: 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. Pittas.

Speaker #2: Please go ahead, sir. Good morning, ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. Together with me is Tasnos Aslidis, our Chief Financial Officer.

Aristides Pittas: Good morning, ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. Together with me is Tassos Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the 3 and 12-month periods ended 31 December 2025. Please turn to slide 3 of the presentation for our quarterly financial highlights. For Q4 2025, we reported total net revenues of $57.4 million and a net income of $40.5 million for $5.79 per diluted share. Adjusted net income for the quarter was $31.3 million, or $4.48 per diluted share. Adjusted EBITDA for the period was $40.7 million. Please refer to the press release for the reconciliation of adjusted net income and adjusted EBITDA.

Speaker #2: The purpose of today's call is to discuss our financial results for the 3 and 12-month periods ended December 31st, 2025. Please turn to slide 3 of the presentation for our quarterly financial highlight.

Speaker #2: For the fourth quarter of 2025, we report a total net revenue of $57.4 million and a net income of $40.5 million, or $5.79 per diluted share.

Speaker #2: Adjusted net income for the quarter was $31.3 million, or $4.48 per diluted share. Adjusted EBITDA for the period was $40.7 million. Please refer to the press release for the reconciliation of adjusted net income and adjusted EBITDA.

Aristides Pittas: Tasos Aslidis will go over our financial highlights in more detail later on in the presentation. As part of the company's common stock dividend plan, we are pleased to announce that our board of directors increased the quarterly dividend by 7% to $0.75 per share for Q4 2025. This represents an annualized dividend per share of $3, resulting in an annualized dividend yield of about 5% based on our current share price. Additionally, since the launch of our $20 million share repurchase program in May 2022, we have repurchased 480,000 shares of our common stock in the open market, representing about 6.8% of our outstanding shares for an aggregate price of approximately $11.4 million. Following two one-year extensions, the program was renewed for a third time in May 2025.

Speaker #2: Tasnos Aslidis will go over our financial highlights in more detail later on in the presentation. As part of the company's common stock dividend plan, we are pleased to announce that the board of directors increased the quarterly dividend by 7% to $75 per share for the fourth quarter of 2025.

Speaker #2: This represents an annualized dividend per share of $3, resulting in an annualized dividend yield of about 5% based on our current share price. Additionally, since the launch of our $20 million share repurchase program in May 2022, we have repurchased $480,000 shares of our common stock in the open market, representing about 6.8% of our outstanding shares, for an aggregate price of approximately $11.4 million.

Speaker #2: Following two one-year extensions, the program was renewed for a third time in May 2025. We intend to continue executing our repurchase program in a disciplined manner, deploying capital when appropriate to support and enhance long-term shareholder value.

Aristides Pittas: We intend to continue executing our repurchase program in a disciplined manner, deploying capital when appropriate to support and enhance long-term shareholder value. Please turn to slide 4 for an overview of our recent developments, where we highlight key progress across vessel sale and purchases, chartering activity, and operational performance. As previously announced, we successfully completed the sale and delivery of motor vessel Marcos V to her new unaffiliated owners on 20 October 2025. This transaction generated a gain on sale of $9.2 million. On the chartering front, we secured multiyear employment for several vessels, further strengthening our revenue stability. Motor vessels Gregos, Terataki, and Leonidas were all fixed for about 3 years at an attractive daily rate of $30,000 per day.

Speaker #2: Please turn to slide 4 for an overview of our recent developments where we highlight key progress across vessel sale and purchases startling activity and operational performance.

Speaker #2: As previously announced, we successfully completed the sale and delivery of motor vessel MARCOS V to her new unaffiliated owners on October 20th, 2025. This transaction generated a gain on sale of $9.2 million.

Speaker #2: On the charting front, we secured multi-year employment for several vessels, further strengthening our revenue stability. Motor vessel GREGOS, TERATAKI, and LEONIDAS were all fixed for about three years at an attractive daily rate of $30,000 per day.

Speaker #2: In addition, motor vessel EM SPECES was fixed for a minimum of 22 months to a maximum of 24 months, at a daily rate of $21,500 per day.

Aristides Pittas: In addition, motor vessel EM Spetses was fixed for a minimum of 22 months to a maximum of 24 months at a daily rate of $21,500 per day. We have no idle or commercial of hire days for the period. Now please turn to slide 5. Our underwater fleet currently consists of 21 vessels with a total carrying capacity of 61,000 TEU and an average age of 13.1 years. This includes 6 intermediate vessels with a combined carrying capacity of approximately 25,500 TEU and an average age of 18.2 years, and 15 feeder vessels with a combined carrying capacity of about 35,000 TEU and an average age of 9.4 years. In addition, we have 4 intermediate vessels under construction, each with a capacity of 4,484 TEU.

Speaker #2: We have no idle or commercial or higher days for the period. Now, please turn to slide 5. Our underwater fleet currently consists of 21 vessels with a total carrying capacity of 61,000 TEUs and an average age of 13.1 years.

Speaker #2: This includes six intermediate vessels with a combined carrying capacity of approximately 25,500 TEUs and an average age of 18.2 years, and 15 feeder vessels with a combined carrying capacity of about 35,000 TEUs and an average age of 9.4 years.

Speaker #2: In addition, we have four intermediate vessels under construction, each with a capacity of 4,484 TEUs. Two of these are expected to be delivered in the third and fourth quarters of 2027, and the remaining two in the first and second quarters of 2028, adding a further 18,000 TEUs of capacity to our fleet.

Aristides Pittas: Two of these are expected to be delivered in Q3 and Q4 of 2027, and the remaining two in Q1 and Q2 of 2028, adding a further 18,000 TEU of capacity to our fleet. On a fully delivered basis, our fleet will grow to 25 vessels, with a carrying capacity of approximately 80,000 TEU.

Speaker #2: On a fully delivered basis, our fleet will grow to 25 vessels with a carrying capacity of approximately 80,000 TEUs.

Speaker #1: Ladies and gentlemen, please stand by your conference will resume momentarily. You are now connected.

Operator: Ladies and gentlemen, please stand by. Your conference will resume momentarily. You are now connected.

Speaker #3: You are now connected.

Speaker #2: Sorry for the interruption. We had the line break down. I hope you can hear me. I will continue I just described the 4,484 TEU vessels that we expect to take delivery in 2027 and 2028.

Aristides Pittas: Sorry for the interruption. We had a line breakdown. I hope you can hear me. I will continue. I just described the 4,480 40 TEU vessels that we expect to take delivery in 2027 and 2028. Now please turn to Slide 6 for a further update on our fleet employment. We continue to benefit from high level of forward coverage. Looking ahead, we have secured a high degree of revenue visibility in the next several years. For 2026, 87% of our available voyage days have been fixed at an average daily rate of approximately $30,700 per day. In 2027, our coverage stands at about 71%, with an average rate of around $31,900 per day.

Speaker #2: So now, please turn to slide 6 for a further update on our fleet employment. We continue to benefit from high levels of forward coverage.

Speaker #2: Looking ahead, we have secured a high degree of revenue visibility for the next several years. For 2026, 87% of our available voyage days have been fixed, at an average daily rate of approximately $30,700 per day.

Speaker #2: In 2027, our coverage stands at about $71%, with an average rate of around $31,900 per day. Whilst for 2028, we already have 41% of our days secured at an average rate of around $32,400 per day.

Aristides Pittas: Whilst for 2028, we already have 41% of our days secured at an average rate of around $32,400 per day. This forward coverage, achieved through our disciplined chartering strategy, allows us to balance market exposure with earnings stability across different phases of the cycle. It provides meaningful cash flow visibility and positions us to sustain profitability over the next several years, even in the event of a sudden market correction. Moving on to Slide 8, let's review the key market developments during Q4 2025. One year time charter rates remained firm at historically elevated levels, supported in the near term by a substantial portion of the fleet being fixed forward. This forward coverage has helped sustain charter rate resilience, even as broader freight markets softened amid increased vessel supply and seasonally weaker demand.

Speaker #2: This forward coverage achieved through our disciplined chartering strategy allows us to balance market exposure with earning stability across different phases of the cycle. It provides meaningful cash flow visibility and positions us to sustain profitability over the next several years even in the event of a sudden market correction.

Speaker #2: Moving on to slide 8, let's review the key market developments during the fourth quarter of 2025. One-year time charter rates remained firm at historically elevated levels, supported in the near term by a substantial portion of the fleet being fixed forward.

Speaker #2: This forward coverage has helped sustain charter rate resilience even as broader rate markets softened, amid increased vessel supply and seasonally weaker demand. The SANGAI containerized freight index recovered by approximately 13% from near two-year lows recorded in late September.

Aristides Pittas: The Shanghai Containerized Freight Index recovered by approximately 13% from near two-year lows recorded in late September. On a quarter-on-quarter basis, average rates across the major container segments were largely unchanged and continued to hover around similar high levels. Secondhand asset prices remained stable in Q4 2025 compared to the previous quarter. This resilience was supported by limited vessel availability and continued competition among buyers seeking to expand their fleets amid ongoing trade disruptions. Meanwhile, the new building price index declined modestly, easing by 1.5% quarter-over-quarter. After an extended period of strong growth, containing new building prices softened compared to, in Q4 compared to Q3, as yards are mostly full till the end of 2028. Consequently, ordering activity has slowed. However, prices remain high by historical standards.

Speaker #2: On a quarter-on-quarter basis, average rates across the major container segments were largely unchanged and continued to hover around similar high levels. Second-hand asset prices remained stable in the fourth quarter of 2025, compared to the previous quarter.

Speaker #2: This resilience was supported by limited vessel availability and continued competition among buyers seeking to expand their fleets amid ongoing trade disruptions. Meanwhile, the new building price index declined modestly, easing by 1.5% quarter-over-quarter.

Speaker #2: After an extended period of strong growth, container new building prices softened, compared to in the fourth quarter compared to the third, as yards are mostly full till the end of 2028 and consequently ordering activity has slowed.

Speaker #2: However, prices remain high by historical standards. Idle fleet capacity has trended steadily downward and is now approaching negligible levels. Recycling activity remained muted in 2025, with just 11 vessels being scrapped during the year.

Aristides Pittas: Idle fleet capacity has trended steadily downward and is now approaching negligible levels. Recycling activity remained muted in 2025, with just 11 vessels being scrapped during the year. Scrap prices have recently softened to around $435 per lightweight ton in Bangladesh. Overall, the global fleet expanded by approximately 7% in 2025. Please turn to Slide 9 for our broader market overview, focusing on the development of 6 to 12-month time charter rates over the past 10 years. As illustrated on the slide, charter rates across all major container ship segments remain meaningfully above their respective 10-year historical averages and median levels. While rates have moderated from the extraordinary peaks of 2021 and 2022, they continue to reflect a structurally stronger earnings environment than the long-term norm.

Speaker #2: Scrap prices have recently softened to around $435 per lightweight ton in Bangladesh. Overall, the global fleet expanded by approximately 7% in 2025. Please turn to slide 9 for our broader market overview, focusing on the development of 6 to 12-month time charter rates over the past 10 years.

Speaker #2: As illustrated on the slide, charter rates across all major container ship segments remain meaningfully above their respective 10-year historical averages and median levels. While rates have moderated from the extraordinary peaks of 2021 and 2022, they continue to reflect a structurally stronger earnings environment than the long-term norm.

Speaker #2: This is particularly evident in the feeder and intermediate segments, where demand remained solid. These vessel classes continue to play a critical role in maintaining network flexibility and supporting regional and intra-regional trade flows, especially amid ongoing geopolitical uncertainties and supply chain realignments.

Aristides Pittas: This is particularly evident in the feeder and intermediate segments, where demand remains solid. These vessel classes continue to play a critical role in maintaining network flexibility and supporting regional and intra-regional trade flows, especially amid ongoing geopolitical uncertainties and supply chain realignments. Moreover, limited vessel availability at the moment, combined with sustained demand, has continued to support the elevated time charter rates. Please turn to slide 10. According to the IMF's 2026 World Economic Outlook update, the global economy is projected to maintain a resilient expansion, with GDP growth now forecast at 3.3% in 2026, and 3.2% in 2027, reflecting a slight upward revision to the outlook relative to last October's projections.

Speaker #2: Moreover, limited vessel availability at the moment, combined with sustained demand, has continued to support the elevated time charter rates. Please turn to slide 10.

Speaker #2: According to the IMF 2026 World Economic Outlook Update, the global economies projected to maintain resilient expansion with GDP growth now forecast at 3.3% in 2026 and 3.2% in 2027, reflecting a slight upward revision to the outlook relative to last October's projections.

Speaker #2: Inflation pressures are expected to ease further, with headline inflation declining from an estimated 4.1% in 2025 to 3.8% in 2026 and 3.4% in 2027, supporting a gradual return to target price stability.

Aristides Pittas: Inflation pressures are expected to ease further, with headline inflation declining from an estimated 4.1% in 2025 to 3.8% in 2026, and 3.4% in 2027, supporting a gradual return to target price stability. Despite relatively stable medium-term outlook, there are still meaningful downside risks, though. These include the possibility that expectations around technology-driven growth prove too optimistic, as well, of course, as the risk of escalating geopolitical tensions. Ongoing trade frictions and broader geopolitical fragmentation continue to create uncertainty for the global economy. The recent events in Venezuela, Greenland, and the Middle East are reminders that external risks remain always present. With that said, some trade pressures could possibly ease in 2026, which could help reduce the drag from the tariffs on overall growth.

Speaker #2: Despite a relatively stable medium-term outlook, there are still meaningful downside risks, though. These include the possibility that expectations around technology-driven growth prove too optimistic, as well, of course, as the risk of escalating geopolitical tensions.

Speaker #2: Ongoing trade frictions and broader geopolitical fragmentation continue to create uncertainty for the global economy. The recent events in Venezuela, Greenland, and the Middle East are a reminder that external risks remain always present.

Speaker #2: That said, some trade pressures could possibly ease in 2026, which could help reduce the drag from the tariffs on overall growth. In the United States, growth is projected to remain broadly steady, with GDP expanding by about 2.4% in 2026 and 2% in 2027, although business and consumer sentiment appears subdued and inflation is expected to ease towards target only gradually.

Aristides Pittas: In the United States, growth is projected to remain broadly steady, with GDP growth expanding by about 2.4% in 2026 and 2% in 2027, although business and consumer sentiment appears subdued, and inflation is expected to ease towards target only gradually. Among emerging markets and developing economies, India is forecast to remain one of the fastest growing major economies, with GDP growth projected at about 6.4% for both 2026 and 2027, which is undermined by robust domestic demand and investment momentum. The ASEAN-5 region is projected to also maintain solid growth, with expansion of 4.2% in 2026 and 4.4% in 2027, supported by strong domestic investment and technology exports, even amid global trade uncertainties and tariff pressures.

Speaker #2: Among emerging markets and developing economies, India is forecast to remain one of the fastest-growing major economies, with GDP growth projected at about 6.4% for both 2026 and 2027, which is undermined by robust domestic demand and investment momentum.

Speaker #2: The ASEAN Five region is projected to also maintain solid growth, with expansion of 4.2% in 2026 and 4.4% in 2027, supported by strong domestic investment and technology exports even amid global trade uncertainties and tariff pressures.

Speaker #2: Finally, China's growth trajectory is expected to moderate more, with GDP forecast at 4.5% in 2026, down from 5% in 2025, and easing further to 4% in 2027.

Aristides Pittas: China's growth trajectory is expected to moderate more, with GDP forecast at 4.5% in 2026, down from 5% in 2025, and easing further to 4% in 2027. The slowdown reflects pressure from weaker external demand, subdued manufacturing investment and ongoing challenges in the property sector. While segments of the economy, particularly exports and AI-related investment, continue to grow at a healthy pace, broader domestic demand remains soft, pointing to an increasingly case-based recovery. On the containerized trade, according to Clarksons' latest estimates, container ship trade growth is projected to soften, with TEU-mile demand expected to decline by approximately 1% in 2026 and 5.5% in 2027. This decline is solely due to the expectation that trading through the Suez will normalize during these two years.

Speaker #2: The slowdown reflects pressure from weaker external demand, subdued manufacturing investment, and ongoing challenges in the property sector. While segments of the economy, particularly exports and AI-related investment, continue to grow at a healthy pace, broader domestic demand remains soft, pointing to an increasingly case-based recovery.

Speaker #2: On the containerized trade, according to Clarkson's latest estimates, container ship trade growth is projected to soften with TEU mild demand expected to decline by approximately 1% in 2026 and 5.5% in 2027.

Speaker #2: This decline is solely due to the expectation that trading through the Suez will normalize during these two years. Some of these artificial uplift in TEU mild demand is expected to unwind beginning in 2026, with a more pronounced impact anticipated in 2027.

Aristides Pittas: Some of this artificial uplift in TEU-mile demand is expected to unwind beginning in 2026, with a more pronounced impact anticipated in 2027. At the same time, the substantial new building capacity ordered during the pandemic period is scheduled for delivery over the coming years. This influx of tonnage is likely to outpace underlying demand growth at certain points in the cycle, particularly if geopolitical disruptions ease more rapidly than expected and vessels are able to return to more efficient routes. Turning on to slide 11, you can see the total fleet age profile and container ship outlook. The top left chart shows that the total container ship fleet remains relatively young, with the majority of vessels under 15 years of age and only about 13% of the fleet over 20 years old.

Speaker #2: At the same time, the substantial new building capacity order during the pandemic period is scheduled for delivery over the coming years. This influx of tonnage is likely to outpace underlying demand growth at certain points in the cycle.

Speaker #2: Particularly if geopolitical disruptions ease more rapidly than expected, and vessels are able to return to more efficient routes. Turning on to slide 11, you can see the total fleet age profile and container ship outlook.

Speaker #2: The top left chart shows that the total container ship fleet remains relatively young, with the majority of vessels under 15 years of age, and only about 13% of the fleet over 20 years old.

Speaker #2: This, however, changes drastically if you look in the feeder intermediate segments in isolation, which we will go over in the next few slides. Stay on this slide for a moment; the top right chart illustrates scheduled new deliveries as a percentage of the existing fleet projected at approximately 5% for 2026, 8.5% for 2027, and 17.6% onwards.

Aristides Pittas: This, however, changes drastically if you look in the feeder intermediate segments in isolation, which we will go over in the next few slides. Stay on this slide for a moment. The top right chart illustrates scheduled new deliveries as a percentage of the existing fleet, projected at approximately 5% for 2026, 8.5% for 2027, and 17.6% for 2028 onwards. Although actual fleet growth is expected to be somewhat lower due to slippage and future demolition activity. The bottom chart shows that the order book has increased to close to 35% of the fleet as of February 2026. Let's turn to slide 12, where we highlight the fleet's age profile and order book, specifically for ships in the 1,000 to 3,000 TEU range, which represents our feeder fleet.

Speaker #2: Although actual fleet growth is expected to be somewhat lower due to slippage and future demolition activity, the bottom chart shows that the order book has increased to close to 35% of the fleet as of February 2026.

Speaker #2: Let's turn to slide 12, where we highlight the fleet age profile and order book specifically for ships in the 1,000 to 3,000 TEU range, which represents our feeder fleet.

Speaker #2: As of February 2026, order book for vessels below 3,000 TEU stands at a relatively modest 10% of the fleet. At the same time, roughly 28% of the fleet is over 20 years old.

Aristides Pittas: As of February 2026, order book for vessels below 3,000 TEU stands at a relatively modest 10% of the fleet. At the same time, roughly 28% of the fleet is over 20 years old. This dynamic points to a clear imbalance between limited new building activity on one side and an aging fleet on the other. As environmental regulations tighten and compliance costs increase, a meaningful portion of these older vessels are likely to be scrapped. According to Directions, deliveries in this size range remain limited, with new building additions projected at only 2.4% of the fleet in 2026, followed by 3.9% in 2027, and 3.8% in 2028 and beyond.

Speaker #2: This dynamic points to a clear imbalance between limited new building activity on one side and an aging fleet on the other. As environmental regulations tighten and compliance costs increase, a meaningful portion of these older vessels are likely to be scrapped.

Speaker #2: According to Clarkson's, deliveries in this size range remain limited, with new building additions projected at only 2.4% of the fleet in 2026, followed by 3.9% in 2027 and 3.8% in 2028 and beyond.

Speaker #2: Let's move to slide 13 now to see the supply outlook for the 3 to 8,000 TEU segment, representing the intermediate container ship segment. As of February 2026, the order book here stands at 17% of the fleet, a modest level compared to the largest main classes.

Aristides Pittas: Let's move to slide 13 now to see the supply outlook for the 3 to 8,000 TEU segment, representing the intermediate container ship segment. As of February 2026, the order book here stands at 17% of the fleet, a modest level compared to the largest main classes. Meanwhile, the age profile of this segment is also notably advanced, with almost 29% of vessels being over 20 years old and another 37 between 15 and 19 years. With a limited new building pipeline, net fleet growth in this segment is expected to remain contained over the next few years. Moving on to slide 14. This chart places those dynamics in a broader context across the entire container ship sector. What becomes very clear is how sharply the order book is concentrated in the larger vessel classes.

Speaker #2: Meanwhile, the age profile of this segment is also notably advanced, with almost 29% of vessels being over 20 years old and another 37% between 15 and 19 years.

Speaker #2: With a limited new building pipeline, net fleet growth in this segment is expected to remain contained over the next few years. Moving on to slide 14.

Speaker #2: This chart places those dynamics in a broader context across the entire container ship sector. What becomes very clear is how sharply the order book is concentrated in the larger vessel classes.

Aristides Pittas: New Panamax and Post-Panamax units show order books of 40% to nearly 80% of their existing fleets, in line with the significant capacity being added to the main lane trades. By contrast, the feeder and intermediate segments show significantly smaller order books, ranging from just 4% to 18%, depending on size, despite a meaningful share of these fleets between 20% and almost 40% already being more than 20 years old. This widening gap between new building activity in the large vessel segments and the more limited replacement in smaller sizes, highlights why our core segments remain structurally well-positioned with minimal risks of oversupply. Now please turn to slide 15 for a synopsis of our outlook on the container sector. Trends remain multifaceted.

Speaker #2: Net Panamax and post-Panamax units show order books of 40% to nearly 80% of the existing fleets, in line with significant capacity being added to the mainland trades.

Speaker #2: By contrast, the feeder and intermediate segments show significantly smaller order books, ranging from just 4% to 18%, depending on size. This is despite a meaningful share of these fleets—between 20% and almost 40%—already being more than 20 years old.

Speaker #2: This widening gap between new building activity in the large vessel segments and the more limited replacement in smaller sizes highlights why our core segments remain structurally well-positioned with minimal risk of oversupply.

Speaker #2: Now, please turn to slide 15 for a synopsis of our outlook on the container sector. Trains remain multifaceted. While time charter rates remain strong, weaker freight rates, firm fleet growth, microeconomic uncertainty, and the possibility of vessels being rerouted again via the Red Sea point to the potential for a softer market environment ahead.

Aristides Pittas: While time charter rates remain strong, weaker freight rates, firm fleet growth, microeconomic uncertainty, and the possibility of vessels being rerouted again via the Red Sea, points to the potential for a softer market environment ahead. Overall, time charter rates remain near historical highs. Looking into 2026, the container sector is expected to deliver one of the lowest order books in recent years, with only 5% expected to be delivered, versus 8.5% expected to be delivered in 2027 and over 17% in 2028 and beyond. However, any return to normality in routes could release effective capacity back into the market, potentially putting pressure on rates and prompting further network adjustments. Looking further ahead to 2027, when container ship deliveries are set to accelerate, we could experience additional softening in container shipping markets.

Speaker #2: Overall, time chart arrays remain near historical highs. Looking into 2026, the container sector is expected to deliver one of the lowest order books in recent years, with only 5% expected to be delivered versus 8.5% expected to be delivered in 2027 and over 17% in 2028 and beyond.

Speaker #2: However, any return to normality in routes could release effective capacity back into the market, potentially putting pressure on rates and prompting further network adjustments.

Speaker #2: Looking further ahead to 2027, when container ship deliveries are set to accelerate, we could experience additional softening in container shipping markets. While capacity manager and higher demolition management and higher demolition activity may help mitigate part of this pressure, the sector still faces the potential for a more challenging supply-demand balance.

Aristides Pittas: While capacity manager and higher demolition management and higher demolition activity may help mitigate part of this pressure, the sector still faces the potential for a more challenging supply-demand balance. The energy transition continues to pick up speed in the container ship sector. Alternative fuels are clearly on the horizon, but the shift is not happening overnight. Technical challenges, economic hurdles, and delays in finalizing the IMO Net-Zero Framework mean the journey to zero emissions will be gradual. Still, the momentum is undeniable, and the industry is steadily charting a course towards an even cleaner future. Let's turn to 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.

Speaker #2: The energy transition continues to pick up speed in the container ship sector. Alternative fuels are clearly on the horizon, but the shift is not happening overnight.

Speaker #2: Technical challenges, economic hurdles, and delays in finalizing the IMO net-zero framework mean the journey to zero emissions will be gradual. Still, the momentum is undeniable, and the industry is steadily charting a course towards an even cleaner future.

Speaker #2: Let's turn to slide 16. The left-hand graph shows the cycle of the one-year time chart array for 2,500 TEU container ships over the past 10 years.

Speaker #2: As of February 20th, 2026, the one-year time chart array stands at 36,000 per day, well above both the 10-year historical average and median levels.

Aristides Pittas: As of 20 February 2026, the 1-year time charter rate stands at $36,000 per day, well above both the 10-year historical average and median levels. This firm rate environment is mirrored in asset values as well. New building vessels are now valued at approximately $43 million, compared to a 10-year median of $35 million and an average of roughly $36 million. Likewise, 10-year-old secondhand vessels are currently valued at thirty-seven and a half million dollars, significantly higher than the 10-year historical median of $15 million, and a historical average of about $21 million. The continued firmness in charter rates and asset values highlights the underlying resilience of the container ship market and reflects the robust long-term fundamentals that continue to underpin demand for these vessels.

Speaker #2: This firm rate environment is mirrored in asset values as well. New building vessels are now valued at a approximately 43 million dollars, compared to a 10-year median of 35 million dollars and an average of roughly 36 million.

Speaker #2: Likewise, 10-year-old second-hand vessels are currently valued at 37.5 million dollars, significantly higher than the 10-year historical median of 15 million dollars and a historical average of about 21 million.

Speaker #2: The continued firmness in chart arrays and asset values highlights the underlying resilience of the container ship market and reflects the robust long-term fundamentals that continue to underpin demand for these vessels.

Speaker #2: Our financial strength allows us to act strategically as attractive investments emerge in both the second-hand and new building segments. Supported by our strong liquidity profile and revenue visibility, we believe we are well-positioned to further enhance shareholder returns.

Aristides Pittas: Our financial strength allows us to act strategically as attractive investments emerge in both the second-hand and new building segments. Supported by our strong liquidity profile and revenue visibility, we believe we are well-positioned to further enhance shareholder returns. Our investors can rely on us continuing to offer a meaningful dividend, as our recent 7% increase demonstrates, whilst retaining excess earnings for further optimized growth. With that, I will pass the floor to our CFO, Tassos Aslanidis, to go over our financial highlights in more detail.

Speaker #2: Our investors can rely on us continuing to offer a meaningful dividend, as our recent 7% increase demonstrates, whilst retaining excess earnings for further optimized growth.

Speaker #2: And with that, I will pass the floor to our CFO, Tassos Aslidis, to go over our financial highlights in more detail. Thank you very much, Aristides.

Anastasios Aslidis: Thank you very much, Aristidis. Good morning from me as well, ladies and gentlemen. Over the next few slides, I will give you the usual overview for our financial highlights for Q4 and full year of 2025, compare them to the same periods of the year before, 2024. For that, let's turn to slide 18. For Q4 of 2025, the company reported total net revenues of $57.4 million, representing a 7.7% increase over total net revenues of $53.3 million during Q4 of 2024. The increase mainly due to be the result of the higher charter rates earned in Q4 of 2025 compared to the corresponding period of the previous year, partly offset by the decreased average number of vessels that we operated in Q4 of 2025.

Tasos Aslidis: Thank you very much, Aristidis. Good morning from me as well, ladies and gentlemen. Over the next few slides, I will give you the usual overview for our financial highlights for Q4 and full year of 2025, compare them to the same periods of the year before, 2024. For that, let's turn to slide 18. For Q4 of 2025, the company reported total net revenues of $57.4 million, representing a 7.7% increase over total net revenues of $53.3 million during Q4 of 2024. The increase mainly due to be the result of the higher charter rates earned in Q4 of 2025 compared to the corresponding period of the previous year, partly offset by the decreased average number of vessels that we operated in Q4 of 2025.

Speaker #2: Good morning from me as well, ladies and gentlemen. Over the next few slides, I will give you the usual overview for our financial highlights, for the fourth quarter and full year of 2025, and compare them to the same periods of the year before, 2024.

Speaker #2: For that, let's turn to slide 18. For the fourth quarter of 2025, the company reported total net revenues of $57.4 million, representing a 7.7% increase over total net revenues of $53.3 million during the fourth quarter of 2024.

Speaker #2: The increase is mainly due to the higher charter rates earned in the fourth quarter of 2025 compared to the corresponding period of the previous year, partly offset by the decreased average number of vessels that we operated in the fourth quarter of 2025.

Speaker #2: Consequently, and including the $9.2 million gain on the sale of our vessel MV Marcos V during the fourth quarter, we reported a net income for the period of $40.5 million, as compared to a net income of $24.4 million for the fourth quarter of 2024.

Anastasios Aslidis: Consequently, including the $9.2 million gain on the sale of our vessel, MV Marcos V, during Q4, we reported a net income for the period of $40.5 million, as compared to a net income of $24.4 million for Q4 2024. Total interest and other financing costs for Q4 2025 amounted to $3.4 million, compared to $4.1 million for Q4 of the previous year, before accounting for $0.6 million of imputed interest income related to the self-financing of the pre-delivery payments for one of our new buildings at the time, which was capitalized.

Tasos Aslidis: Consequently, including the $9.2 million gain on the sale of our vessel, MV Marcos V, during Q4, we reported a net income for the period of $40.5 million, as compared to a net income of $24.4 million for Q4 2024. Total interest and other financing costs for Q4 2025 amounted to $3.4 million, compared to $4.1 million for Q4 of the previous year, before accounting for $0.6 million of imputed interest income related to the self-financing of the pre-delivery payments for one of our new buildings at the time, which was capitalized.

Speaker #2: Total interest and other financing costs for the fourth quarter of 2025 amounted to 3.4 million, compared to 4.1 million for the fourth quarter of the previous year, before accounting for 0.6 million of imputed interest income related to the self-financing of the pre-delivery payments for one of our new buildings, at the time, which was capitalized.

Anastasios Aslidis: This decrease is mainly due to the decreased benchmark interest rates are, you know, of our bank's loans in the current period, in Q4 of 2025, partly offset by the slightly higher amount of debt we carried. During both periods, we recorded interest income of about $0.8 million. Adjusted EBITDA for Q4 of 2025 increased to $40.7 million, compared to $32.8 million for the corresponding period of 2024, a 24% increase, primarily due to the higher revenues we collected. Basic and diluted earnings per share for Q4 of 2025 were $5.82 and $5.79, respectively, calculated approximately on about 7 million basic diluted weighted average number of shares outstanding.

Speaker #2: The decrease this decrease is mainly due to the decreased benchmark interest rates our of our banks' loans in the current period, in the fourth quarter of 2025, partly offset by the slightly higher amount of debt we carried.

Tasos Aslidis: This decrease is mainly due to the decreased benchmark interest rates are, you know, of our bank's loans in the current period, in Q4 of 2025, partly offset by the slightly higher amount of debt we carried. During both periods, we recorded interest income of about $0.8 million. Adjusted EBITDA for Q4 of 2025 increased to $40.7 million, compared to $32.8 million for the corresponding period of 2024, a 24% increase, primarily due to the higher revenues we collected. Basic and diluted earnings per share for Q4 of 2025 were $5.82 and $5.79, respectively, calculated approximately on about 7 million basic diluted weighted average number of shares outstanding.

Speaker #2: During both periods, we recorded interest income of about 0.8 million. Adjusted EBITDA for the fourth quarter of 2025 increased to 40.7 million, compared to 32.8 million for the corresponding period of 2024, a 24% increase, primarily due to the higher revenues we collected.

Speaker #2: Basic and diluted earnings per share for the fourth quarter of 2025 were $5.82, and $5.79 respectively, calculated approximately on about 7 million basic and diluted weighted average number of shares outstanding, compared to basic and diluted earnings per share of $3.51 and $3.49 respectively, for the fourth quarter of 2024.

Anastasios Aslidis: Compared to basic diluted earnings per share of $3.51, and $3.49, respectively, for Q4 2024. Excluding the gain on the sale of vessel, and the unrealized income or loss on derivatives, the adjusted earnings per share for Q4 2025 would have been $4.50 basic, and $4.48 diluted, one of our highest quarters, compared to adjusted earnings per share of $3.35 percent basic and $3.33 diluted for the same period of 2024. During which we also had to adjust our results for the contribution of the fair value of below market charter rate contracts and the related depreciation.

Tasos Aslidis: Compared to basic diluted earnings per share of $3.51, and $3.49, respectively, for Q4 2024. Excluding the gain on the sale of vessel, and the unrealized income or loss on derivatives, the adjusted earnings per share for Q4 2025 would have been $4.50 basic, and $4.48 diluted, one of our highest quarters, compared to adjusted earnings per share of $3.35 percent basic and $3.33 diluted for the same period of 2024. During which we also had to adjust our results for the contribution of the fair value of below market charter rate contracts and the related depreciation.

Speaker #2: Excluding the gain on the sale of vessel of a vessel and the unrealized income or loss on derivatives, the adjusted earnings per share for the fourth quarter of 2025 would have been $4.50 basic and $4.48 diluted, one of our highest quarters, compared to adjusted earnings per share of $3.35 basic and $3.33 diluted, for the for the same period of 2024.

Speaker #2: During which, we also had to adjust our results for the contribution of the fair value of below-market chart array contracts and the related depreciation.

Speaker #2: Let's now look at the numbers for the full year 2025 and compare them to the full year of 2024. For the full year of 2025, the company reported total net revenues of 227.9 million, representing a 7% increase over total net revenues of 212.9 million, during the fourth quarter of during the full year of 2024, and that again mainly as a result of the higher number of vessels we own and operated and the higher average time chart equivalent rates we earn during 2025.

Anastasios Aslidis: Let's now look at the numbers for the full year 2025 and compare them to the full year of 2024. For the full year of 2025, the company reported total net revenues of $227.9 million, representing a 7% increase over total net revenues of $212.9 million during the full year of 2024. That, again, mainly is a result of the higher number of vessels we own and operated, and the higher average Time Charter Equivalent rates we earned during 2025. We reported a net income for the year of 2025 of $137 million, compared to a net income of $112.8 million during 2024.

Tasos Aslidis: Let's now look at the numbers for the full year 2025 and compare them to the full year of 2024. For the full year of 2025, the company reported total net revenues of $227.9 million, representing a 7% increase over total net revenues of $212.9 million during the full year of 2024. That, again, mainly is a result of the higher number of vessels we own and operated, and the higher average Time Charter Equivalent rates we earned during 2025. We reported a net income for the year of 2025 of $137 million, compared to a net income of $112.8 million during 2024.

Speaker #2: We reported a net income for the year of 2025 of $137 million, compared to a net income of $112.8 million during 2024. Total interest and other financing costs for the 12 months of 2025 amounted to 15.1 million, again not including 0.1 million of imputed interest income, compared to interest and other financing costs of 14.8 million, during 2024, not including again of 4.2 million of imputed interest income, in relation to our new building program.

Anastasios Aslidis: Total interest and other financing costs for the 12 months of 2025 amounted to $15.1 million, again, not including $0.1 million of imputed interest income, compared to interest and other financing costs of $14.8 million during 2024, not including again, $4.2 million of credit interest income in relation to our new building program. This increase is mainly due to the increased amount of debt in the current period compared to the same period of 2024. Adjusted EBITDA for the 12 months of 2025 increased to $155.9 million, compared to $135.8 million during 2024, a 15% increase. Again, primarily the result of the higher revenues we collected.

Tasos Aslidis: Total interest and other financing costs for the 12 months of 2025 amounted to $15.1 million, again, not including $0.1 million of imputed interest income, compared to interest and other financing costs of $14.8 million during 2024, not including again, $4.2 million of credit interest income in relation to our new building program. This increase is mainly due to the increased amount of debt in the current period compared to the same period of 2024. Adjusted EBITDA for the 12 months of 2025 increased to $155.9 million, compared to $135.8 million during 2024, a 15% increase. Again, primarily the result of the higher revenues we collected.

Speaker #2: This increase is mainly due to the increased amount of debt in the current period, compared to the same period of 2024. Adjusted EBITDA for the 12 months of 2025 increased to $155.9 million, compared to $135.8 million during 2024, a 15% increase.

Speaker #2: Again, primarily the result of the higher revenues we collected. For the full year of 2025, we recorded 19.4 million gain on sale of vessels, a 10 million gain on the sale of motor vessel Diamandis early in the year, and a 9 million a 9.2 million gain on the sale of motor vessel Marcos V, compared to 5.7 million gain on the sale of motor vessel EM Astoria, we recorded during 2024.

Anastasios Aslidis: For the full year of 2025, we recorded a $19.4 million gain on sale of vessels, a $10 million gain on the sale of motor vessel Diamantis P early in the year, at a $9 million, a $9.2 million gain on the sale of motor vessel Marcos V, compared to $4 to 5.7 million gain on the sale of motor vessel EM Astoria we recorded during 2024. Basic and diluted earnings per share for 2025 were $19.73 and $19.72, respectively, calculated on about 6.9 million basic and diluted weighted average number of shares outstanding, compared to basic and diluted earnings per share of $16.25 and $16.20 during 2024.

Tasos Aslidis: For the full year of 2025, we recorded a $19.4 million gain on sale of vessels, a $10 million gain on the sale of motor vessel Diamantis P early in the year, at a $9 million, a $9.2 million gain on the sale of motor vessel Marcos V, compared to $4 to 5.7 million gain on the sale of motor vessel EM Astoria we recorded during 2024. Basic and diluted earnings per share for 2025 were $19.73 and $19.72, respectively, calculated on about 6.9 million basic and diluted weighted average number of shares outstanding, compared to basic and diluted earnings per share of $16.25 and $16.20 during 2024.

Speaker #2: Basic and diluted earnings per share for 2025 were $19.73 and $19.72 respectively, calculated on about 6.9 million basic and diluted weighted average number of shares outstanding, compared to basic and diluted earnings per share of 16.25 dollars and 16.20 dollars during 2024.

Speaker #2: Again, excluding the gain on sale of vessels, the unrealized income or loss on derivatives, and the contribution of the fair value of below-market time charter contracts and related depreciation for the relevant periods, the adjusted earnings per share for the 12 months ended December 31, 2025, would have been $16.75 basic and $16.74 diluted, compared to $14.92 basic and $14.87 diluted for 2024.

Anastasios Aslidis: Again, excluding the gain on sale of vessels, the unrealized income or loss of derivatives on derivatives and the contribution of the fair value of below market time charter contracts and related depreciation for the relevant periods. The adjusted earnings per share for the 12 months ended 31 December 2025 would have been $16.75 basic and $16.74 diluted, compared to $14.92 basic and $14.97 diluted for 2024. Let's turn to slide 19, which highlights our fleet's performance. As usual, we report our utilization rate there. Our utilization figures are near 100% across all periods, so I will not get into describing in detail the individual utilization rates.

Tasos Aslidis: Again, excluding the gain on sale of vessels, the unrealized income or loss of derivatives on derivatives and the contribution of the fair value of below market time charter contracts and related depreciation for the relevant periods. The adjusted earnings per share for the 12 months ended 31 December 2025 would have been $16.75 basic and $16.74 diluted, compared to $14.92 basic and $14.97 diluted for 2024. Let's turn to slide 19, which highlights our fleet's performance. As usual, we report our utilization rate there. Our utilization figures are near 100% across all periods, so I will not get into describing in detail the individual utilization rates.

Speaker #2: Now, let's turn to Slide 19, which highlights our fleet's performance. As usual, we report our utilization rate there. And our utilization figures are near 100 percent across all periods.

Speaker #2: So I will not get into describing in detail the individual utilization rates. On average, 21.22 vessels were owned and operated during the fourth quarter of 2025, earning an average time chart equivalent rate of 30,268 dollars per day, compared to 23 vessels during the fourth quarter of 2024, earning on average 26,479 dollars per day.

Anastasios Aslidis: On average, 21.22 vessels were owned and operated during the Q4 2025, earning an average Time Charter Equivalent rate of $30,268 dollars per day, compared to 23 vessels during the Q4 2024, earning on average $26,479 dollars per day. Our total daily operating expenses, including management fees, G&A expenses, but excluding dry docking costs, were $8,284 dollars per day during the Q4 2025, compared to $7,728 dollars per vessel per day for the same period, the Q4 2024.

Tasos Aslidis: On average, 21.22 vessels were owned and operated during the Q4 2025, earning an average Time Charter Equivalent rate of $30,268 dollars per day, compared to 23 vessels during the Q4 2024, earning on average $26,479 dollars per day. Our total daily operating expenses, including management fees, G&A expenses, but excluding dry docking costs, were $8,284 dollars per day during the Q4 2025, compared to $7,728 dollars per vessel per day for the same period, the Q4 2024.

Speaker #2: Our total daily operating expenses, including management fees and G&A expenses, but excluding the reduction costs, were $8,284 per day during the fourth quarter of 2025, compared to $7,728 per vessel per day for the same period, the fourth quarter of 2024.

Speaker #2: If we move further down on this table, we can see the cash flow break-even levels which take into account the above expenses and, in addition, interest and reduction expenses and loan repayments without accounting for balloon payments.

Anastasios Aslidis: If we move further down on this table, we can see the cash flow breakeven levels, which take into account the above expenses and in addition, interest and dry docking expenses and loan repayments without accounting for balloon payments. For the Q4 2025, our daily cash flow breakeven level on that basis was $13,009 per vessel per day, compared to $14,936 per vessel per day for the Q4 2024.

Tasos Aslidis: If we move further down on this table, we can see the cash flow breakeven levels, which take into account the above expenses and in addition, interest and dry docking expenses and loan repayments without accounting for balloon payments. For the Q4 2025, our daily cash flow breakeven level on that basis was $13,009 per vessel per day, compared to $14,936 per vessel per day for the Q4 2024.

Speaker #2: For the fourth quarter of 2025, our daily cash flow break-even level on that basis was 13,009 dollars per vessel per day, compared to 14,936 dollars per vessel per day, for the fourth quarter of 2024.

Speaker #2: Finally, below the break-even line, you can see the dividend we distributed expressed in dollars per vessel per day. And that amounts to a little more than 2,000 dollars for 2,539 dollars for the fourth quarter of 2025, where the dividend was increased, and 2,035 dollars for the fourth quarter of 2024.

Anastasios Aslidis: Finally, below the breakeven line, you can see the dividend we distributed expressed in dollars per vessel per day, that amounts to a little more than $2,000, for $2,539 for the Q4 of 2025, where the dividend was increased, and $2,035 for the Q4 of 2024. Let's move quickly and review the annual figures on the right part of this slide. Again, for the full year of 2025 and 2024, our utilization rates were near 100%.

Tasos Aslidis: Finally, below the breakeven line, you can see the dividend we distributed expressed in dollars per vessel per day, that amounts to a little more than $2,000, for $2,539 for the Q4 of 2025, where the dividend was increased, and $2,035 for the Q4 of 2024. Let's move quickly and review the annual figures on the right part of this slide. Again, for the full year of 2025 and 2024, our utilization rates were near 100%.

Speaker #2: Let's move quickly and review the annual figures on the right part of this slide. Again, for the full year of 2025 and 2024, our utilization rates were near 100 percent.

Speaker #2: So let me jump and say that, on average, 22.2 vessels were owned and operated during 2025, earning on average $29,107 per day, compared to 21.7 vessels in 2024, earning on average $28,054 per day.

Anastasios Aslidis: Let me jump and say that the on average, 22.2 vessels were owned and operated during 2025, earning on average $29,107 per day, compared to 21.7 vessels in 2024, earning on average $28,054 per day. Total operating expenses for the full year, including management fees and G&A expenses, again, without accounting for dry docking costs, were $7,600 in 2025, compared to $7,526 in 2024. The cash flow breakeven level for the full year ended up being $13,100 in 2025, compared to $14,794 for 2024.

Tasos Aslidis: Let me jump and say that the on average, 22.2 vessels were owned and operated during 2025, earning on average $29,107 per day, compared to 21.7 vessels in 2024, earning on average $28,054 per day. Total operating expenses for the full year, including management fees and G&A expenses, again, without accounting for dry docking costs, were $7,600 in 2025, compared to $7,526 in 2024. The cash flow breakeven level for the full year ended up being $13,100 in 2025, compared to $14,794 for 2024.

Speaker #2: Total operating expenses for the full year including management fees and G&A expenses, but again without counting for the reduction costs, were 7,600 dollars in 2025, compared to 7,526 dollars in 2024.

Speaker #2: The cash flow break-even level for the full year ended up being 13,100 dollars, in 2025, compared to 14,794 dollars for 2024. And again, in the last line, we can see the dividend we paid expressed in dollars per vessel per day, and that amounted to 2,335 dollars in 2025 versus 2,131 dollars in 2024.

Anastasios Aslidis: Again, in the last line, we can see the dividend we paid expressed in dollars per vessel per day, and that amounted to $2,335 in 2025, versus $2,131 in 2024. Let's now turn to slide 20. In this slide, we want to provide a better perspective of the depth of our contract coverage, especially in light of the recent charter that we concluded, and Aristidis mentioned earlier in the presentation. The table shown presents the development of our fleet ownership days over the period of the next three years, at an estimated breakdown of how many days are available for hire and how many days are already contracted.

Tasos Aslidis: Again, in the last line, we can see the dividend we paid expressed in dollars per vessel per day, and that amounted to $2,335 in 2025, versus $2,131 in 2024. Let's now turn to slide 20. In this slide, we want to provide a better perspective of the depth of our contract coverage, especially in light of the recent charter that we concluded, and Aristidis mentioned earlier in the presentation. The table shown presents the development of our fleet ownership days over the period of the next three years, at an estimated breakdown of how many days are available for hire and how many days are already contracted.

Speaker #2: Let's now turn to Slide 20. And in this slide, we want to provide a better perspective of the depth of our contract coverage, especially in light of the recent charter that we concluded and Aristides mentioned earlier in the presentation.

Speaker #2: The table shown presents the development of our fleet ownership days over the period of the next three years, at an estimated breakdown of how many days are available for hire and how many days are already contracted.

Speaker #2: It incorporates assumptions about delivering dates for the vessels under construction, scrapping dates for older ships, estimated dry docking and timing and duration, utilization assumption going forward, and estimates for contracted days and average contracted day.

Anastasios Aslidis: It incorporates assumptions about delivering dates for the vessels under construction, scrapping dates for older ships, estimated dry docking and timing and duration, utilization assumption going forward, and estimates for contracted days and average contracted rates. Please note that the data presented in this table represents our internal estimates provided for indicative purposes and used for modeling future Time Charter Equivalent revenues and actual results may differ. Nevertheless, we believe this provides useful visibility into our forward revenue and earnings profile. Our contract coverage currently stands at approximately 87% for 2026, 71% for 2027, and about 41% for 2028, as Aristidis mentioned earlier. Average contracted rates are approximately $30,700, $31,890, and $32,400 per day for the respective years.

Tasos Aslidis: It incorporates assumptions about delivering dates for the vessels under construction, scrapping dates for older ships, estimated dry docking and timing and duration, utilization assumption going forward, and estimates for contracted days and average contracted rates. Please note that the data presented in this table represents our internal estimates provided for indicative purposes and used for modeling future Time Charter Equivalent revenues and actual results may differ. Nevertheless, we believe this provides useful visibility into our forward revenue and earnings profile. Our contract coverage currently stands at approximately 87% for 2026, 71% for 2027, and about 41% for 2028, as Aristidis mentioned earlier. Average contracted rates are approximately $30,700, $31,890, and $32,400 per day for the respective years.

Speaker #2: Please note that the data presented in this table represents our internal estimates provided for indicative purposes and used for modeling future time chart equivalent revenues and actual results may differ.

Speaker #2: Nevertheless, we believe this provides useful visibility into our forward revenue and earnings profile. Our contract coverage currently stands at approximately 87% for 2026, 71% for 2027, and about 41% for 2028, as Aristides mentioned earlier.

Speaker #2: Average contracted rates are approximately 30,731,890 and 32,400 per day for the respective years. We hope the framework will assist investors and analysts in evaluating earnings potential forward by making their own assumption for the uncontracted days of the fleet and coming to an estimate of our revenues and future profitability.

Anastasios Aslidis: We hope this framework will assist investors and analysts in evaluating earnings potential forward by making their own assumptions for the uncontracted days of the fleet and coming to an estimate of our revenues and future profitability. Let's now turn to slide 21 to review our debt profile. As of 31 December 2025, our total outstanding back debt stood at about $218.4 million, with an average interest rate margin of about 2%. If we assume a 3-year SOFR rate of 3.7%, the total cost of our debt stands at about 5.7%, which is well within the prevailing range for our segment and peers. Turning to our debt amortization profile, in 2026, scheduled loan repayments amount to approximately $19.5 million.

Tasos Aslidis: We hope this framework will assist investors and analysts in evaluating earnings potential forward by making their own assumptions for the uncontracted days of the fleet and coming to an estimate of our revenues and future profitability. Let's now turn to slide 21 to review our debt profile. As of 31 December 2025, our total outstanding back debt stood at about $218.4 million, with an average interest rate margin of about 2%. If we assume a 3-year SOFR rate of 3.7%, the total cost of our debt stands at about 5.7%, which is well within the prevailing range for our segment and peers. Turning to our debt amortization profile, in 2026, scheduled loan repayments amount to approximately $19.5 million.

Speaker #2: Let's now turn to Slide 21 to review our debt profile. As of December 31st, 2025, our total outstanding back debt stood at about 218.4 million, with an average interest rate margin of about 2 percent.

Speaker #2: If we assume a three-year SOFR rate of 3.7 percent, the total cost of our debt stands at about 5.7 percent, which is well within the prevailing rates for our segment and peers.

Speaker #2: Turning to our debt amortization profile, in 2026, schedule lower repayments amount to approximately 19.5 million. In 2027, our total debt service debt repayments increases to about 36.8 million, consisting of 16.8 million of regular repayments and a 20 million balloon payment.

Anastasios Aslidis: In 2027, our total debt service, debt repayments, increases to about $36.8 million, consisting of $16.8 million of regular repayments and a $20 million balloon payment. Repayments moderate to approximately $12 million in 2028, with no balloon maturities due in that year. Looking further ahead, 2030 includes total repayments for about $33.8 million, again comprising $7.4 million of scheduled repayments and a $26.4 million balloon repayment. In the past, we were able to refinance balloon repayments routinely if we chose to do so, and this remains our expectation for the upcoming balloon payments over the next 5 years shown in this chart. If we choose to refinance them, we expect to be able to do so relatively straightforwardly.

Tasos Aslidis: In 2027, our total debt service, debt repayments, increases to about $36.8 million, consisting of $16.8 million of regular repayments and a $20 million balloon payment. Repayments moderate to approximately $12 million in 2028, with no balloon maturities due in that year. Looking further ahead, 2030 includes total repayments for about $33.8 million, again comprising $7.4 million of scheduled repayments and a $26.4 million balloon repayment. In the past, we were able to refinance balloon repayments routinely if we chose to do so, and this remains our expectation for the upcoming balloon payments over the next 5 years shown in this chart. If we choose to refinance them, we expect to be able to do so relatively straightforwardly.

Speaker #2: Repayments moderate to approximately 12 million in 2028, with no balloon maturities due in that year. Looking further ahead, 2030 includes total repayments for about 33.8 million, again comprising 7.4 million of scheduled repayments and a 26.4 million balloon repayment.

Speaker #2: In the past, we were able to refinance balloon repayments routinely, if we chose to do so, and this remains our expectation for the upcoming balloon payments over the next five years, shown in this chart.

Speaker #2: If we choose to refinance them, we expect to be able to do so relatively straightforwardly. Please also note that these scheduled shows here do not include debt that we expect to draw to finance the construction of our four new buildings, which we estimate to be in the range of $140 to $150 million for the four vessels.

Anastasios Aslidis: Please also note that this schedule shown here does not include debt that we expect to draw to finance the construction of our four new buildings, which we estimate to be in the range of $140 million to $150 million for the four vessels. Overall, our debt maturity profile remains well targeted, with no significant near-term refinancing pressure. At the bottom of this slide, we show our cash flow breakeven estimate for the next 12 months, broken down by its key components. On this basis, our total cash flow breakeven level for the next 12 months stands at approximately $12,200 per vessel per day, a level well below the contracted and prevailing earnings of our fleet.

Tasos Aslidis: Please also note that this schedule shown here does not include debt that we expect to draw to finance the construction of our four new buildings, which we estimate to be in the range of $140 million to $150 million for the four vessels. Overall, our debt maturity profile remains well targeted, with no significant near-term refinancing pressure. At the bottom of this slide, we show our cash flow breakeven estimate for the next 12 months, broken down by its key components. On this basis, our total cash flow breakeven level for the next 12 months stands at approximately $12,200 per vessel per day, a level well below the contracted and prevailing earnings of our fleet.

Speaker #2: Overall, our debt maturity profile remains well-targeted, with no significant near-term refinancing pressure. At the bottom of this slide, we show our cash flow break-even estimate for the next 12 months, broken down by its key components.

Speaker #2: On this basis, our total cash flow break-even level for the next 12 months stands at approximately $12,200 per vessel per day, a level well below the contracted and prevailing earnings of our fleet.

Speaker #2: Given the average earnings of our fleet for 2026 stand above $30,000 per vessel per day, one can appreciate the cash flow generation that our vessels provide.

Anastasios Aslidis: Given the average earnings of our fleet for 2026 stand above $30,000 per vessel per day, one can appreciate the cash flow generation that our vessels provide. To sum up my remarks, let's move to slide 22 to review some highlights from our balance sheet. As of the end of 2023, cash and other current assets totaled $188.7 million. We already made about $35.9 million advances for our new building vessels. The book value of our fleet stood at $465 million, bringing the total book value for our assets to about $700 million.

Tasos Aslidis: Given the average earnings of our fleet for 2026 stand above $30,000 per vessel per day, one can appreciate the cash flow generation that our vessels provide. To sum up my remarks, let's move to slide 22 to review some highlights from our balance sheet. As of the end of 2023, cash and other current assets totaled $188.7 million. We already made about $35.9 million advances for our new building vessels. The book value of our fleet stood at $465 million, bringing the total book value for our assets to about $700 million.

Speaker #2: To sum up my remarks, let's move to Slide 22 to review some highlights from our balance sheet. As of the end of last year, CAS, another current asset, totaled 188.7 million.

Speaker #2: We've already made about $35.9 million in advances for our new building vessels. The book value of our fleet stood at $465 million, bringing the $35.9 million, the total book value for our assets to about $700 million.

Speaker #2: On the liability side, as I mentioned in the previous slide, we had debt amounting to 218.6 million, and other liabilities amounting to about 18.2 million, resulting in a shareholders' book equity of roughly 463 million.

Anastasios Aslidis: On the liability side, as I mentioned in the previous slide, we had debt amounting to $218.6 million and other liabilities amounting to about $18.2 million, resulting in a shareholder's book equity of roughly $463 million. The market value of our fleet is significantly higher than the respective book value. According to our last estimates, our fleet is valued at approximately $664 million, which translates into a Net Asset Value for our company of about $660 million, or around $93.7 per share. With our last closing price in the recent trading range of $62.4 per share, our stock trades at almost 33% discount to charter adjusted asset, Net Asset Value.

Tasos Aslidis: On the liability side, as I mentioned in the previous slide, we had debt amounting to $218.6 million and other liabilities amounting to about $18.2 million, resulting in a shareholder's book equity of roughly $463 million. The market value of our fleet is significantly higher than the respective book value. According to our last estimates, our fleet is valued at approximately $664 million, which translates into a Net Asset Value for our company of about $660 million, or around $93.7 per share. With our last closing price in the recent trading range of $62.4 per share, our stock trades at almost 33% discount to charter adjusted asset, Net Asset Value.

Speaker #2: However, the market value of our fleet is significantly higher than the respective book value. According to our last estimates, our fleet is valued at approximately 664 million, which translates into a net asset value for our company of about 660 million, or around 93.7 dollars per share.

Speaker #2: With our last closing price in the recent trading range of 62.4 dollars per share, our stock trades at almost 33 percent discount to its charter-adjusted asset net asset value.

Speaker #2: That highlights the appreciation potential that our stock has, given the discount and the depth of our contracted revenues. And with that, let me pass the floor back to Aristides to continue the call.

Anastasios Aslidis: That highlights the appreciation potential that our stock has, given the discount and the depth of our contracted value, revenue. With that, let me pass the floor back to Aristidis to continue the call.

Tasos Aslidis: That highlights the appreciation potential that our stock has, given the discount and the depth of our contracted value, revenue. With that, let me pass the floor back to Aristidis to continue the call.

Speaker #1: Thank you, Tasso. Let me now open up the floor for any questions you may have.

Aristides Pittas: Thank you, Taso. Let me now open up the floor for any questions you may have.

Speaker #3: Thank you.

Operator: Thank you. Thank you. We will now be conducting a question and answer session. 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. 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. One moment please, while we poll for questions. Thank you. Our first question comes from the line of Mark Reichman with Noble Capital Markets. Please proceed with your question.

Speaker #4: Thank you.

Speaker #3: We will now be conducting your question-and-answer session. 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.

Speaker #3: You may press *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.

Speaker #3: One moment, please, while we pull for questions. Thank you. Our first question comes from the line of Mark Reichman with Noble Capital Markets. Please proceed with your question.

Speaker #1: Thank you. Well, I know you've got some of those balloon payments coming up, but I was just wondering, given your strong liquidity and contracted backlog, how are you prioritizing kind of between the dividends, the share repurchases, secondhand acquisitions, and potential new build orders?

Mark Reichman: Thank you. Well, I know you've got some of those balloon payments coming up, but I was just wondering, you know, given your strong liquidity and contracted backlog, you know, how are you prioritizing kind of between the dividends, the share repurchases-

Aristides Pittas: Mm-hmm.

Mark Reichman: you know, secondhand acquisitions and potential new build orders?

Speaker #5: Yes.

Aristides Pittas: Yes,

Mark Reichman: Basically, your capital allocation priorities.

Speaker #1: Basically, your capital allocation priorities.

Speaker #5: Yeah. Yeah. Yeah. We will continue giving a strong dividend to our shareholders. We will continue looking at opportunities to grow the company accretively. We don't see such opportunities currently on the secondhand market, so we are more focused on the new building market.

Aristides Pittas: yeah. We will continue giving a strong dividend to our shareholders. We will continue looking at opportunities to grow the company aggressively. We don't see such opportunities currently on the secondhand market, so we are more focused on the new building market. We will keep very moderate leverage, and we will capitalize, you know, whenever there is an investment opportunity to do. I think that's the strategy in one minute.

Speaker #5: We will keep very moderate leverage and we will capitalize whenever there is an investment opportunity to do. I think that's the strategy in one minute.

Speaker #1: Okay. On the last call, you had mentioned that container ship orders had accelerated as charters had committed to take new ships on charter for longer periods, even with deliveries well into the future.

Mark Reichman: Okay. You know, on the last call, you had mentioned that container ship orders had accelerated as charters had committed to take new ships on charter for long, longer periods, even with deliveries well into the future. I think you had mentioned that with that new supply, you thought that rates for older vessels could experience pressure beyond 2026 unless demand accelerates. It just seems like, you know, the container ship market is kind of transitioning towards those newer vessels. It sounds like you kind of expect scrapping to accelerate meaningfully over the next two to three years. To what extent do you think that could offset the new deliveries?

Speaker #1: And I think you had mentioned that with that new supply, you thought that rates for older vessels could experience pressure beyond 2026 unless demand accelerates.

Speaker #1: So it just seems like the container ship market is kind of transitioning towards those newer vessels. But it sounds like you kind of expect scrapping to accelerate, meaningfully, over the next two to three years and to what extent do you think that could offset the new deliveries?

Aristides Pittas: It, scrapping will not happen unless we see charter rates falling, right? Because now, even very old vessels continue to get employment at very decent rates. As soon as the market drops, though, I would expect a significant increase in the number of ships that go to the scrapyard, because indeed, the average age of the fleet has grown dramatically. First step that will happen is the market will drop at some point, perhaps because the world finds some equilibrium, and we start trading through the Suez and don't have such disruptions. That will mean there will be too many ships around. That will mean the market will fall, charter rates will drop, vessels will be scrapped, all the vessels will be scrapped.

Speaker #5: Scrapping will not happen, unless we see charter rates falling, right? Because now, even very old vessels continue to get employment at very decent rates.

Speaker #5: So as soon as the market drops, though, I would expect a significant increase in the number of ships that go to the scrapyard, because indeed, the average age of the fleet has grown dramatically.

Speaker #5: So, the first step that will happen is the market will drop at some point, perhaps because the world finds some equilibrium and we start trading through the swathes, and don't have such disruptions.

Speaker #5: That will mean there will be too many ships around. That will mean the market will fall. Charter rates will drop. Vessels will be scrapped.

Speaker #5: Older vessels will be scrapped, and then we will be buying more secondhand vessels at significantly lower prices. The newbuilding market has grown sufficiently, as we discussed, but now one can expect to take a newbuilding delivery in 2029 onwards.

Aristides Pittas: We will be buying more secondhand vessels at significantly lower prices. The new building market has grown sufficiently, as we discussed. One can expect to take a new building delivery in 2029 onwards. This makes quite a lot of people reluctant to place orders when they're going to receive the vessels 3, 4 years down the line.

Speaker #5: So, this makes quite a lot of people reluctant to place orders when they're going to receive the vessels three, four years down the line.

Speaker #1: Okay. And then just I ask this question generally. Every conference call, could you just provide some visibility on the off-hire or dry docking days in 2026 and maybe even 2027?

Mark Reichman: Okay. Just I ask this question generally, every conference call. Could you just provide some visibility on the off hire or dry docking days in 2026 and maybe even 2027?

Anastasios Aslidis: I'll be happy to provide that. I mean, I don't say on the top of my head the dry docking schedule.

Speaker #5: I'll be happy to provide that. I mean, I don't have on the top of my head the dry docking schedule for the next.

Tasos Aslidis: I'll be happy to provide that. I mean, I don't say on the top of my head the dry docking schedule.

Aristides Pittas: It's very, very limited. It's very, very limited for this year.

Speaker #1: It's very, very limited. It's very, very limited for this year.

Speaker #5: We have gone through most of the, as Aristides said, imminent dry dockings.

Anastasios Aslidis: We have gone through most of the, as Aristidis said, imminent dry dockings.

Tasos Aslidis: We have gone through most of the, as Aristidis said, imminent dry dockings.

Speaker #1: We have two, I think, within the year.

Aristides Pittas: We have two, I think, within the year.

Speaker #5: Yeah. And whatever the.

Anastasios Aslidis: Yeah, and, whatever.

Tasos Aslidis: Yeah, and, whatever.

Mark Reichman: The expenses are pretty minimal for the next 12 months.

Speaker #1: But the expenses are pretty minimal for the next 12 months, so.

Anastasios Aslidis: Yeah, you can tell from the chart on slide 21, that the

Speaker #5: Yeah. Yeah. You can tell from the chart on slide 281 that the dry docking component is very small per day, so that is reflective, I guess, of the.

Tasos Aslidis: Yeah, you can tell from the chart on slide 21, that the

Mark Reichman: Right

Anastasios Aslidis: ... component is very small per day, so that.

Tasos Aslidis: ... component is very small per day, so that.

Mark Reichman: Right

Anastasios Aslidis: is reflective, I guess, of the...

Tasos Aslidis: is reflective, I guess, of the...

Speaker #1: Okay. Well, thank you very much. I really appreciate it. It's very helpful.

Mark Reichman: Okay. Well, thank you very much. I really appreciate it. That's very helpful.

Anastasios Aslidis: You're welcome, Mark.

Tasos Aslidis: You're welcome, Mark.

Speaker #5: You're welcome, Mark.

Speaker #1: Thank you, Mark. Thank you.

Aristides Pittas: Thank you, Mark. Thank you.

Speaker #3: Our next question comes from line of Kate Sullivan with Maxim. Please proceed with your question.

Operator: Our next question comes from the line of Tate Sullivan with Maxim. Please proceed with your question.

Operator: Our next question comes from the line of Tate Sullivan with Maxim.Please proceed with your question.

Speaker #6: Hi. Thank you. I'm inarguably, I think, asset values in the long-term contracting value for the sector has gone up, and M&A probably lifting higher.

Tate Sullivan: Hi. Thank you. I, arguably, I think asset values and the long-term contracting value for the sector has gone up, and M&A probably lifting higher. Separately, on the other side, I mean, I see operating expenses per day of $7,000 roughly in the Q4, up about 5% year-over-year. Based on your exposure in the sector, can you talk, is pricing higher for crew costs, supplies? What do you see across your businesses, please?

Speaker #6: But separately, on the other side, I mean, I see operating expenses per day as $7,000 roughly in the fourth quarter, up about 5% year over year.

Speaker #6: Based on your exposure in the sector, can you talk is pricing higher for crew costs, supplies, what do you see across your businesses?

Anastasios Aslidis: A big part of those, Tate, is the dollar-euro exchange rate that moved opposite for us during the latter part of 2025. A portion of our operating expenses are in euros, the management fee and some other expenses. That is part of it.

Tasos Aslidis: A big part of those, Tate, is the dollar-euro exchange rate that moved opposite for us during the latter part of 2025. A portion of our operating expenses are in euros, the management fee and some other expenses. That is part of it.

Speaker #5: A big part of those take is the dollar-euro exchange rate that moved opposite for us during the fourth during the latter part of 2025.

Speaker #5: A portion of our operating expenses are in euros—the management fee and some other expenses. So that is part of it.

Tate Sullivan: Are you seeing any higher salary costs, salaries?

Speaker #6: Are you seeing any higher salary costs, salaries? I mean, not to that yeah, crew salaries and probably not to that 5% increase amount. Or is that not?

Tate Sullivan: Are you seeing any higher salary costs, salaries?

Anastasios Aslidis: You mean crew salaries?

Tasos Aslidis: You mean crew salaries?

Tate Sullivan: Yeah, crew salaries, and probably not to that 5% increase amount, or is that not?

Aristides Pittas: No, I increases are below 5%, both on crew costs.

Speaker #5: No, increases are below 5%, both on crew costs and G&A. It's mainly the euro-dollar thing that has increased a little bit—spare parts, management fee costs, things like that affected by the euro-dollar.

Anastasios Aslidis: G&A.

Tasos Aslidis: G&A.

Aristides Pittas: G&A. It's mainly the euro dollar thing that has increased a little bit. Spare parts, management fee costs, things like that affected by the euro dollar.

Speaker #5: Also, please note that in the quarter, at least, where we operated two vessels less in the fourth quarter of this year, the G&A component is divided by a smaller number of ships.

Anastasios Aslidis: Also, please note that on the quarter at least, where we operated two vessels less in the Q4 of this year, the G&A component is divided by a few, by a smaller number of ships. That's why the, you know, you see probably a little bit bigger jump on a per-day basis, on a per-vessel basis.

Tasos Aslidis: Also, please note that on the quarter at least, where we operated two vessels less in the Q4 of this year, the G&A component is divided by a few, by a smaller number of ships. That's why the, you know, you see probably a little bit bigger jump on a per-day basis, on a per-vessel basis.

Speaker #5: And so that's why you see probably a little bit bigger jump on a per-day basis, on a per-vessel basis.

Speaker #6: Okay, thank you. And while I have you too— I mean, the dividend policy, the impressive streak of dividend increases—how do you and your board evaluate the dividend?

Tate Sullivan: Okay. Thank you. While I have you, too, although, I mean, the dividend policy, impressive streak of dividend increases, how do you and your board evaluate the dividend? I mean, how do you compare what you see from other container ship companies? Are you looking at a 20%, 30% payout ratio, or depending on the year, please? Thank you.

Speaker #6: I mean, how do you compare what you see from other container ship companies? Are you looking at a 20, 30 percent payout ratio, or does it depend on the year, please?

Speaker #6: Thank you.

Aristides Pittas: We don't have a steady payout ratio that some other companies have. We do have a strategy of providing a very decent dividend to our shareholders. I think our current dividend yield of around 5% is about the lowest levels we will have it at. If need, we might pay out more out of our earnings in dividends so that we continue to pay a very decent dividend.

Speaker #5: We don't have a steady payout ratio that some other companies have, but we do have a strategy of providing a very decent dividend to our shareholders.

Speaker #5: I think our current dividend yield of around 5% is about the lowest level we will have it at. So if needed, we might pay out more out of our earnings in dividends so that we continue to pay a very decent dividend.

Speaker #6: Thank you.

Tate Sullivan: Thank you.

Speaker #5: You're welcome, Kate.

Anastasios Aslidis: You're welcome, Tate.

Tasos Aslidis: You're welcome, Tate.

Speaker #1: Thanks.

Aristides Pittas: Thanks.

Speaker #3: Our next question comes from line of Poe Frat with Alliance Global Partners. Please proceed with your question.

Operator: Our next question comes from the line of Poe Fratt with Alliance Global Partners. Please proceed with your question.

Speaker #5: Yeah. Hello. You've covered a lot of ground, and you always do a comprehensive overlook of the or overview of the industry. Aristides, if you could just highlight what the near-term prospects are for some of your upcoming open days.

Operator: Yeah. Hello, you've covered a lot of ground. You always do a comprehensive overview of the industry. Aristidis, if you could just highlight what the near-term prospects are for some of your upcoming open days. Specifically, you know, looking at the older assets, the Corfu, the Ibri... I never can pronounce this correctly.

Poe Fratt: Yeah. Hello, you've covered a lot of ground. You always do a comprehensive overview of the industry. Aristidis, if you could just highlight what the near-term prospects are for some of your upcoming open days. Specifically, you know, looking at the older assets, the Corfu, the Ibri... I never can pronounce this correctly.

Speaker #5: Specifically, looking at the older assets, the Corfu. I never can pronounce this correctly, but the—

Aristides Pittas: Evridiki G.

Speaker #1: Aristides.

Operator: Evridiki. Can you...

Poe Fratt: Evridiki. Can you...

Speaker #5: Can you just.

Aristides Pittas: It's the name of my grandmother.

Speaker #1: It's the name of my grandmother.

Speaker #5: I know, and I always apologize for pronouncing her name incorrectly. I just can't get it. But if you could just talk about the prospects there and then at what point do you consider scrapping those older assets?

Operator: I know, I always apologize for pronouncing her name incorrectly. I just can't get it. If you could just talk about the prospects there, and then at what point do you consider scrapping those older assets?

Poe Fratt: I know, I always apologize for pronouncing her name incorrectly. I just can't get it. If you could just talk about the prospects there, and then at what point do you consider scrapping those older assets?

Speaker #1: I can tell you, Poe, that in all our modeling, we had been assuming up to very recently that the vessels would be scrapped. But the market has proven too strong for this to happen.

Aristides Pittas: I can tell you, Poe, that on all our modeling, we had been assuming up to very recently that the vessels will be scrapped. The market has proven too strong for this to happen. We will pass their special surveys and charter them out for minimum one, hopefully two years. We are discussing with potential charterers. I can't make any further comment at this point.

Speaker #1: So we will pass the special surveys and charter them out for a minimum one hopefully two years. We are discussing with potential charterers that I can't make any further comment at this point.

Speaker #5: Okay. The implication is that rates are high enough to keep those in the fleet active until maybe the 2027 timeframe, maybe 2028. So when.

Operator: Okay. My the implication is that rates are high enough to keep those in the, you know, in the fleet active until, you know, maybe the 2027 time frame, maybe 2028.

Poe Fratt: Okay. My the implication is that rates are high enough to keep those in the, you know, in the fleet active until, you know, maybe the 2027 time frame, maybe 2028.

Aristides Pittas: Yes, I would say, Poe, that, you know, they're going to pass the special survey now, they will potentially have another three years of life if they pass the special survey. We will be able to track them for another three years, before we need another extensive survey. That's probably the time that they will be scrapped.

Speaker #1: Yes, I would say, Poe, that they're going to pass the special survey now. So they will potentially have another three years of life if they pass the special survey.

Speaker #1: We will be able to trade them for another three years, before we need another extensive survey. And that's probably the time that they will be scrapped.

Operator: Okay. You know, with extensive board cover, you know, as you, as Taso says, you know, makes it simpler for us to model out the cash flows and how your financial position is going to look. Even with new build, you know, costs of $140 to $150 million, I think, over the next two years. I have you in a net cash position, assuming that you don't need to finance those new build payments. Would you have bought stock back, you know, fairly, not as sizable as maybe, you know, you would have hoped, just given the, you know, potential volume constraints? You've increased the dividend. Even with the higher dividend, you know, you're still being a net cash position.

Poe Fratt: Okay. You know, with extensive board cover, you know, as you, as Taso says, you know, makes it simpler for us to model out the cash flows and how your financial position is going to look. Even with new build, you know, costs of $140 to $150 million, I think, over the next two years. I have you in a net cash position, assuming that you don't need to finance those new build payments. Would you have bought stock back, you know, fairly, not as sizable as maybe, you know, you would have hoped, just given the, you know, potential volume constraints? You've increased the dividend. Even with the higher dividend, you know, you're still being a net cash position.

Speaker #5: Okay. And with extensive forward cover, as Paso says, makes it simpler for us to model out the cash flows and how your financial position is going to look.

Speaker #5: And even with new build costs of $140 to $150 million, I think over the next two years, I have you in a net cash position, assuming that you don't even finance those new build payments.

Speaker #5: You have bought stock back, fairly—not as sizable as maybe you would have hoped, just given the potential volume constraints. You've increased the dividend.

Speaker #5: Even with a higher dividend, you're still being a net cash position. At what point and you're talking about new builds potentially, but new builds would be 2029, 2030 delivery at this point in time.

Operator: At what point, and, you know, you're talking about new builds potentially, but new builds would be, you know, 2029, 2030 delivery at this point in time. What are you thinking at all about a special dividend to distribute some of the cash to shareholders? I mean, you're, at least in my model, you're over-capitalized when I look out into 2027 and even 2028. Is a special dividend something you might consider?

Poe Fratt: At what point, and, you know, you're talking about new builds potentially, but new builds would be, you know, 2029, 2030 delivery at this point in time. What are you thinking at all about a special dividend to distribute some of the cash to shareholders? I mean, you're, at least in my model, you're over-capitalized when I look out into 2027 and even 2028. Is a special dividend something you might consider?

Speaker #5: So are you thinking at all about a special dividend to distribute some of the cash to shareholders? I mean, at least in my model, you're overcapitalized when I look at out into 2027 and even 2028.

Speaker #5: Is a special dividend something you might consider?

Aristides Pittas: You are correct, I think, in your calculations. We're not really considering a special dividend at this stage. Probably, you know, we are hopeful that we will be able to find use for the extra capital that we currently have, better use than returning it to shareholders. We will continue providing a very decent dividend to our shareholders.

Speaker #1: You are correct, I think, in your calculations. We're not really considering a special dividend at this stage. So, probably, we are hopeful that we will be able to find use for the extra capital that we currently have.

Speaker #1: Better use than returning it to shareholders. But we will continue providing a very decent dividend to our shareholders.

Speaker #5: Yeah. And implied in that, Aristides, I had you increase the dividend at the middle of the year, not at the beginning of the year.

Operator: Yeah, implied in that, Aristidis, you know, I had you increase the dividend in the middle of the year, not at the beginning of the year. Is the potential cadence of dividend increases gonna be a little quicker because of how much cash you have on the balance sheet and how much cash?

Poe Fratt: Yeah, implied in that, Aristidis, you know, I had you increase the dividend in the middle of the year, not at the beginning of the year. Is the potential cadence of dividend increases gonna be a little quicker because of how much cash you have on the balance sheet and how much cash?

Speaker #5: Is the potential cadence of dividend increases going to be a little quicker because of how much cash you have on the balance sheet and how much cash you.

Aristides Pittas: That's very probable, but I really can't comment.

Speaker #1: That's very probable. But I really can't comment on how we will decide. But the dividend will be decent, hopefully. Our share price will appreciate, and then we will feel that we need to always have a minimum dividend, and therefore increase the dividend as well.

Aristides Pittas: That's very probable, but I really can't comment.

Operator: Yeah.

Poe Fratt: Yeah.

Aristides Pittas: how we will decide. The dividend will be decent. Hopefully, our share price will appreciate, and then we will feel that we need to always have a minimum dividend, and therefore increase the dividend as well.

Speaker #5: Okay. Great. Thank you.

Operator: Okay, great. Thank you.

Poe Fratt: Okay, great. Thank you.

Speaker #1: Thanks.

Aristides Pittas: Thanks.

Speaker #3: As a reminder, if you would like to ask a question, press star one on your telephone keypad. Our next question comes from line of Clement Mullins with Value Investors.

Operator: As a reminder, if you would like to ask a question, press star one on your telephone keypad. Our next question comes from line of Climent Molins with Value Investors. Please proceed with your question.

Speaker #3: Please proceed with your question.

Aristides Pittas: Hi, good afternoon, thank you for taking my questions. Most has already been covered, I wanted to follow up on Dave's question on the cost side. Is your OpEx guidance for 2026 based on the current EUR and USD exchange rate?

Climent Molins: Hi, good afternoon, thank you for taking my questions. Most has already been covered, I wanted to follow up on Dave's question on the cost side. Is your OpEx guidance for 2026 based on the current EUR and USD exchange rate?

Speaker #6: Hi, good afternoon, and thank you for taking my questions. Most has already been covered, but I wanted to follow up on Tate's question on the cost side.

Speaker #6: Is Europe's guidance for 2026 based on the current euro and USD exchange rate?

Speaker #5: What's the question? What is the guidance for what is it that we assume for the dollar euro exchange rate?

Anastasios Aslidis: What's the question? What is it that we assume for the dollar Euro exchange rate?

Tasos Aslidis: What's the question? What is it that we assume for the dollar Euro exchange rate?

Speaker #6: Exactly. Because your guidance aims lower than Q4 OPEX, and it was like, what were the key drivers behind that?

Operator: Exactly. Your guidance aims lower than Q4 OpEx. It was like, what were the key drivers behind that?

Climent Molins: Exactly. Your guidance aims lower than Q4 OpEx. It was like, what were the key drivers behind that?

Speaker #5: I think basically every year we're making a budget for our expected OPEX for the following year, which reflects potentially special expenses required for certain ships during the period.

Anastasios Aslidis: I think there is basically we're every year making a budget for our expected topics for the following year. And which reflects potentially special expenses required for certain ships during the period, and an assumption for the dollar Euro exchange rate. I think we expect the dollar Euro exchange rate to remain in the high teens, 1.15 to 1.20 range. Typically, we budget, we're finalizing the budgets for this year now, but we as a base, we assume the 3% overall increase for our OpEx expenses. I don't know whether I captured this exactly what you asked, but.

Tasos Aslidis: I think there is basically we're every year making a budget for our expected topics for the following year. And which reflects potentially special expenses required for certain ships during the period, and an assumption for the dollar Euro exchange rate. I think we expect the dollar Euro exchange rate to remain in the high teens, 1.15 to 1.20 range. Typically, we budget, we're finalizing the budgets for this year now, but we as a base, we assume the 3% overall increase for our OpEx expenses. I don't know whether I captured this exactly what you asked, but.

Speaker #5: And an assumption for the dollar euro exchange rate. So I think we expect the dollar euro exchange rate to remain in the high teens 1.15 to 1.20 range.

Speaker #5: And typically, we budget we're finalizing the budgets for this year now, but we as a base, we assume the 3% overall increase for our OPEX expenses.

Speaker #5: I don't know whether I captured this exactly what you asked, but.

Speaker #6: Yeah, I was asking your assumption on the euro to USD exchange rate because you mentioned that as the driver behind the cost increase. But your core was—

Operator: Yeah. I was asking, like, your assumption on the Euro USD exchange rate, because you mentioned that as the driver behind the cost increase, but your core-

Climent Molins: Yeah. I was asking, like, your assumption on the Euro USD exchange rate, because you mentioned that as the driver behind the cost increase, but your core-

Anastasios Aslidis: Yes.

Tasos Aslidis: Yes.

Speaker #6: Thank you.

Operator: Thank you.

Climent Molins: Thank you.

Speaker #5: Yeah. I mean, it is in the high teens. 1.15 to 1.20.

Anastasios Aslidis: Yeah. I mean, it is in the high teens, 115 to 120.

Tasos Aslidis: Yeah. I mean, it is in the high teens, 115 to 120.

Aristides Pittas: For 2025, we started off with 105. We ended at 118. That was you know. Our costs are maybe, I would say, about 25% overall Euro-related.

Speaker #1: If you but for 2025, we started off with 1.05. We ended that 1.18. So that was and our costs are maybe I would say about 25% overall euro related.

Aristides Pittas: For 2025, we started off with 105. We ended at 118. That was you know. Our costs are maybe, I would say, about 25% overall Euro-related.

Speaker #6: That's helpful. Thank you.

Operator: That's helpful. Thank you.

Climent Molins: That's helpful. Thank you.

Speaker #5: Not dollar related. Yeah.

Anastasios Aslidis: Non-dollar in everything. Yeah.

Tasos Aslidis: Non-dollar in everything. Yeah.

Speaker #1: Yeah. Okay.

Aristides Pittas: Yeah. Okay.

Speaker #3: Our next question is a follow-up question from Mark Reichman with Noble Capital Markets. Please proceed with your question.

Operator: Our next question is a follow-up question from Mark Reichman with Noble Capital Markets. Please proceed with your question.

Speaker #7: I just wanted to follow up on Pose's question. You've got the four intermediate vessels to be delivered in '27 and '28, but when you look at your feeder vessels, I mean, you've got a few that are aging.

Mark Reichman: I just wanted to follow up on Poe's question. You know, you've got the 4 intermediate vessels to be delivered in 2027 and 2028. You know, when you look at your feeder vessels, I mean, you've got a few that are aging. Is now the time to start ordering some feeder vessels? I mean, if there's the lead time, if you're telling us that Evridiki and Corfu probably have about 3 years left.

Speaker #7: So, is now the time to start ordering some feeder vessels? I mean, if there's the lead time—if you're telling us that every Deki in Corfu probably has about three years left?

Speaker #1: Of course. But we are looking into that possibility. But nothing to report yet.

Aristides Pittas: Of course, but then we are looking into that possibility, but nothing to report yet.

Speaker #7: Okay. Thank you.

Mark Reichman: Okay. Thank you.

Speaker #1: Thank you, guys.

Aristides Pittas: Thank you, guys.

Speaker #3: We have reached the end of the question and answer session. Mr. Pittas, I'd like to turn the floor back to you for closing comments.

Operator: We have reached the end of the question and answer session. Mr. Pittas, I'd like to turn the floor back to you for closing comments.

Speaker #1: Thank you all for attending our today's conference call. And we will be back in three months' time with similar kind of results. Thank you.

Aristides Pittas: Thank you all for attending our today's conference call. We will be back in three months' time with similar kind of results. Thank you.

Speaker #5: Thanks, everybody.

Anastasios Aslidis: Thanks, everybody.

Tasos Aslidis: Thanks, everybody.

Speaker #3: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

Operator: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.

Aristides Pittas: Thank you also.

Tasos Aslidis: Thank you also.

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