Q2 2026 Euroseas Ltd Earnings Call

August 13, 2026

Speaker #1: Ladies and gentlemen, thank you for standing by. Your EUROSEAS conference will begin in approximately 2 to 3 minutes. Again, please continue to hold. Your conference will begin shortly.

Operator 3: Ladies and gentlemen, thank you for standing by. Your EUROSEAS conference will begin in approximately two to three minutes. Again, please continue to hold. Your conference will begin shortly.

Speaker #2: Ladies and gentlemen, please stand by. We'll begin momentarily. Once again, please stand by. We will begin momentarily.

Operator 4: Ladies and gentlemen, please stand by. We will begin momentarily. Once again, please stand by. We will begin momentarily.

Speaker #1: Thank you for standing by, ladies and gentlemen, and welcome to the Euroseas conference call on the second quarter results. We have with us Mr. Aristides Pittas, Chairman and Chief Executive Officer, and Mr. Anastasios Aslidis, Chief Financial Officer of the company.

Operator 3: Thank you for standing by, ladies and gentlemen, and welcome to the Euroseas conference call on the Q2 2026 financial results. We have with us Mr. Aristides Pittas, Chairman and Chief Executive Officer, and Mr. Tasos Aslidis, Chief Financial Officer of the company. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session, at which time, if you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. I must advise you that this conference is being recorded today. Please be reminded that the company announced their results with a press release that has been publicly distributed. Before passing the floor to Mr. Pittas, I would like to remind everyone that in today's presentation and conference call, Euroseas will be making forward-looking statements.

Operator: Thank you for standing by, ladies and gentlemen, and welcome to the Euroseas conference call on the Q2 2026 financial results. We have with us Mr. Aristides Pittas, Chairman and Chief Executive Officer, and Mr. Tasos Aslidis, Chief Financial Officer of the company. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session, at which time, if you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced.

Speaker #1: 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 #1: 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.

Operator: 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 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 #1: Before passing the floor 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 #1: 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 3: 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 2 of the webcast presentation, which has the full forward-looking statement, and the same statement was also 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 to Mr. Pittas. Please go ahead, sir.

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 2 of the webcast presentation, which has the full forward-looking statement, and the same statement was also 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 to Mr. Pittas. Please go ahead, sir.

Speaker #1: 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 also included in the press release.

Speaker #1: Please take a moment to go through the whole statement and read it. And now, I I would like to pass the floor to Mr. Pittas.

Speaker #1: Please go ahead, sir.

Speaker #3: Good morning, ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. I'd like to apologize for the 10-minute delay, but I was caught in a in another very important phone call.

Aristides J. Pittas: Good morning, ladies and gentlemen, and thanks all for joining us today for our scheduled conference call. I'd like to apologize for the 10-minute delay, but I was caught in another very important phone call. Sorry about that. Together with me is Tassos Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the three and six-month periods ended 30 June 2026. Please turn to slide 3 of the presentation for our quarterly financial highlights. For the Q2 2026, we reported total net revenues of $56.5 million and a net income attributable to controlling shareholders of $33.2 million or $4.74 per diluted share. Adjusted net income for the quarter was $32.9 million, or $4.70 per diluted share. Adjusted EBITDA for the period was $40.1 million.

Aristides Pittas: Good morning, ladies and gentlemen, and thanks all for joining us today for our scheduled conference call. I'd like to apologize for the 10-minute delay, but I was caught in another very important phone call. Sorry about that. Together with me is Tassos Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the three and six-month periods ended 30 June 2026.

Speaker #3: Sorry about that. Together with me, Tassos Aslidis, our Chief Financial Officer, the purpose of today's call is to discuss our financial results for the 3 and 6-month periods ended June 30, 2026.

Speaker #3: Please turn to slide 3 of the presentation for our quarterly financial highlights. For the second quarter of 2026, we reported total net revenues of $56.5 million, and the net income attributable to controlling shareholders of $33.2 million, or $4.74 per diluted share.

Aristides Pittas: Please turn to slide 3 of the presentation for our quarterly financial highlights. For the Q2 2026, we reported total net revenues of $56.5 million and a net income attributable to controlling shareholders of $33.2 million or $4.74 per diluted share. Adjusted net income for the quarter was $32.9 million, or $4.70 per diluted share. Adjusted EBITDA for the period was $40.1 million.

Speaker #3: Adjusted net income for the quarter was $32.9 million, or $4.70 per diluted share. Adjusted EBITDA for the period was $40.1 million. Please refer to the press release for a reconciliation of adjusted net income and adjusted EBITDA to net income.

Aristides J. Pittas: Please refer to the press release for a reconciliation of adjusted net income and adjusted EBITDA to net income. Our CFO, Tassos Aslidis, will go over our financial highlights in more detail later on in the presentation. We are pleased to announce that our board of directors has declared another quarterly dividend of $0.80 per share for the Q2 2026 as part of the company's common stock dividend plan. Based on current share price levels, the distribution reflects an annualized yield between 4.2% and 4.5% based on the recent range of our share price. Since the launch of our $20 million share repurchase program in May 2022, we have repurchased 480,000 shares in the open market through 13 August 2026, representing approximately 6.8% of our outstanding shares for a total consideration of around $11.4 million.

Aristides Pittas: Please refer to the press release for a reconciliation of adjusted net income and adjusted EBITDA to net income. Our CFO, Tassos Aslidis, will go over our financial highlights in more detail later on in the presentation. We are pleased to announce that our board of directors has declared another quarterly dividend of $0.80 per share for the Q2 2026 as part of the company's common stock dividend plan.

Speaker #3: Our CFO, Tassos Aslidis, will go over our financial highlights in more detail later on in the presentation. We are pleased to announce that our Board of Directors has declared another quarterly dividend of $0.80 per share for the second quarter of 2026, as part of the company's common stock dividend plan.

Speaker #3: Based on current share price levels, the distribution reflects an annualized yield between 4.2% and 4.5%, based on the recent range of our share price.

Aristides Pittas: Based on current share price levels, the distribution reflects an annualized yield between 4.2% and 4.5% based on the recent range of our share price. Since the launch of our $20 million share repurchase program in May 2022, we have repurchased 480,000 shares in the open market through 13 August 2026, representing approximately 6.8% of our outstanding shares for a total consideration of around $11.4 million.

Speaker #3: Since the launch of our $20 million share repurpose program in May 2022, we have repurchased $480,000 shares in the open market through August 13, 2026, representing approximately $6.8 percent of our outstanding shares, for a total consideration of around $11.4 million.

Speaker #3: We remain committed to executing the program in a disciplined and opportunistic manner, allocating capital prudently while enhancing long-term value for our shareholders. Please turn to slide 4 for an overview of our recent developments covering key activities across vessel sale acquisitions, chartering, and fleet operations.

Aristides J. Pittas: We remain committed to executing the program in a disciplined and opportunistic manner, allocating capital prudently while enhancing long-term value for our shareholders. Please turn to slide 4 for an overview of our recent developments, covering key activities across vessel sale acquisitions, chartering, and fleet operations. On the S&P front, as announced in mid-June, we entered into an agreement with Nantong CIMC Sinopacific Offshore & Engineering in China for the construction of two additional 1,800 TEU GLS containerships, sister ships to the two we ordered in April 2026, with expected deliveries in December 2028 and March 2029. Total consideration for these vessels is approximately $64.5 million, which will be financed by a combination of debt, aiming at 60% to 65%, and equity. On 4 May, we entered into a joint venture with NRP Project Finance for our first intermediate newbuilding, motor vessel Thrylos.

Aristides Pittas: We remain committed to executing the program in a disciplined and opportunistic manner, allocating capital prudently while enhancing long-term value for our shareholders. Please turn to slide 4 for an overview of our recent developments, covering key activities across vessel sale acquisitions, chartering, and fleet operations.

Speaker #3: On the S&P front, as announced in mid-June, we entered into an agreement with Nanton CIMC, China Pacific, offshore and engineering in China, for the construction of two additional 1,800 EU GLS container ships.

Aristides Pittas: On the S&P front, as announced in mid-June, we entered into an agreement with Nantong CIMC Sinopacific Offshore & Engineering in China for the construction of two additional 1,800 TEU GLS containerships, sister ships to the two we ordered in April 2026, with expected deliveries in December 2028 and March 2029. Total consideration for these vessels is approximately $64.5 million, which will be financed by a combination of debt, aiming at 60% to 65%, and equity. On 4 May, we entered into a joint venture with NRP Project Finance for our first intermediate newbuilding, motor vessel Thrylos.

Speaker #3: Systems to the two we ordered in April 2026, with expected deliveries in December 2028 and March 2029. Total consideration for these vessels is approximately $64.5 million, which will be financially a combination of debt, aiming at a 60 to 65 percent, and equity.

Speaker #3: On May 4, we entered into a joint venture with NRP Project Finance for our third intermediate newbuilding, Motor Vessel Thrillos. The vessel is scheduled for delivery in Q1 2028.

Aristides J. Pittas: The vessel is scheduled for delivery in Q1 2028. Under the terms of the agreement, NRP Investments will acquire a 49% stake for approximately $12.2 million with the transaction assuming at least 60% debt financing. The first capital contribution has already been paid. On the chartering side, we have secured multi-year charter extensions for motor vessel Pepi Star and motor vessel Stephania K. Both vessels are fixed for a minimum of 24 to maximum of 26 months at a daily rate of $25,500 per day, providing earnings visibility through at least the third quarter of 2028. We had no technical or commercial off-hire days this period. Now please turn to slide 5. Our operating fleet consists of 21 vessels with a combined carrying capacity of approximately 61,000 TEU and an average age of 13 years.

Aristides Pittas: The vessel is scheduled for delivery in Q1 2028. Under the terms of the agreement, NRP Investments will acquire a 49% stake for approximately $12.2 million with the transaction assuming at least 60% debt financing. The first capital contribution has already been paid. On the chartering side, we have secured multi-year charter extensions for motor vessel Pepi Star and motor vessel Stephania K.

Speaker #3: Under the terms of the agreement, NRP investors will acquire a 49 percent stake for approximately $12.2 million. With the transaction assuming at least 60 percent debt financing.

Speaker #3: The first capital contribution has already been paid. On the chartering side, we have secured multi-year charter extensions for Moto Vessel Peppystar and Moto Vessel Stefania K, both vessels are fixed for a minimum of $24 to maximum of $26 months at a daily rate of 25,500 dollars per day, providing earnings visibility through at least a third quarter of 2028.

Aristides Pittas: Both vessels are fixed for a minimum of 24 to maximum of 26 months at a daily rate of $25,500 per day, providing earnings visibility through at least the third quarter of 2028. We had no technical or commercial off-hire days this period. Now please turn to slide 5. Our operating fleet consists of 21 vessels with a combined carrying capacity of approximately 61,000 TEU and an average age of 13 years.

Speaker #3: We had no technical or commercial of higher days this period. Now, please turn to slide 5. Our operating fleet consists of 21 vessels, with a combined carrying capacity of approximately 61,000 EU and an average age of 13 years.

Speaker #3: This includes 6 intermediate container ships with a carrying capacity of 25,500 EU and an average age of 18 years, alongside 15 feeder container ships with a combined carrying capacity of 35,600 EU and an average age of 9 years.

Aristides J. Pittas: This includes six intermediate containerships with a carrying capacity of 25,500 TEU and an average age of 18 years alongside 15 feeder containerships with a combined carrying capacity of 35,600 TEUs and an average age of 9 years. We have 12 newbuilding vessels on order, eight feeders and four intermediate containers, with delivery scheduled Q3 2027 through Q1 2029. Upon completion of our newbuilding program, our fleet will expand to 33 vessels, with a total carrying capacity of approximately 97,000 TEU, positioning us with one of the youngest feeder and intermediate containership fleets in the market. Please turn to slide 6 for a further update on our fleet employment and forward coverage.

Aristides Pittas: This includes six intermediate containerships with a carrying capacity of 25,500 TEU and an average age of 18 years alongside 15 feeder containerships with a combined carrying capacity of 35,600 TEUs and an average age of 9 years. We have 12 newbuilding vessels on order, eight feeders and four intermediate containers, with delivery scheduled Q3 2027 through Q1 2029.

Speaker #3: We have 12 new building vessels on order, 8 feeders, and 4 intermediate containers, with deliveries scheduled from Q3 2027 through Q1 2029. Upon completion of our new building program, our fleet will expand to 33 vessels, with a total carrying capacity of approximately 97,000 EU.

Aristides Pittas: Upon completion of our newbuilding program, our fleet will expand to 33 vessels, with a total carrying capacity of approximately 97,000 TEU, positioning us with one of the youngest feeder and intermediate containership fleets in the market. Please turn to slide 6 for a further update on our fleet employment and forward coverage.

Speaker #3: Positioning us with one of the youngest feeders and intermediate containers of fleets in the market. Please turn to slide 6 for a further update on our fleet employment and forward coverage.

Speaker #3: Our chartering coverage stands at 96 percent for 2026, 81 percent for 2027, and 47 percent for 2028, at highly attractive average daily rates of approximately $30,900 per day for 2026, $31,700 for 2027, and $32,300 for 2028.

Aristides J. Pittas: Our chartering coverage stands at 96% for 2026, 81% for 2027, and 47% for 2028, at highly attractive average daily rates of approximately $30,900 per day for 2026, $31,700 for 2027, and $32,300 for 2028. This insulates our earnings even if market rates soften when current charters expire. Moving on to slide 8, let me walk you through the market key developments that shaped the containership sector over the second quarter of 2026. Container shipping markets continued their upward trajectory through the whole of Q2 and Q3 to date, driven by robust mainland demand and supply, disruptions tied to the Middle East geopolitical tensions. Charter rates reached the highest level since before the COVID-19 pandemic, while freight rates extended their momentum, posting notable gains through July. On the asset side, secondhand vessel prices held steady during the second quarter compared with the first, despite ongoing geopolitical uncertainties.

Aristides Pittas: Our chartering coverage stands at 96% for 2026, 81% for 2027, and 47% for 2028, at highly attractive average daily rates of approximately $30,900 per day for 2026, $31,700 for 2027, and $32,300 for 2028. This insulates our earnings even if market rates soften when current charters expire. Moving on to slide 8, let me walk you through the market key developments that shaped the containership sector over the second quarter of 2026.

Speaker #3: This insulates our earnings even if market rates soften when current charters expire. Moving on to slide 8, let me walk you through the market key developments that shaped the container ship sector over the second quarter of 2028.

Speaker #3: 2026, sorry. Container shipping markets continued their upward trajectory through the whole of Q2 and Q3 to date. Driven by robust mainland demand and supply, disruptions tied to the Middle East geopolitical tensions.

Aristides Pittas: Container shipping markets continued their upward trajectory through the whole of Q2 and Q3 to date, driven by robust mainland demand and supply, disruptions tied to the Middle East geopolitical tensions. Charter rates reached the highest level since before the COVID-19 pandemic, while freight rates extended their momentum, posting notable gains through July. On the asset side, secondhand vessel prices held steady during the second quarter compared with the first, despite ongoing geopolitical uncertainties.

Speaker #3: Charter rates reached the highest levels since before the COVID-19 pandemic, while freight rates extended their momentum posting notable gains through July. On the asset side, second-hand vessel prices held steady during the second quarter, compared with the first, despite ongoing geopolitical uncertainties.

Speaker #3: The fundamentals remained solid, like supply of available tonnage and strong competition for prompt charter-free vessels, continued to underpin valuations. New building prices also moved higher.

Aristides J. Pittas: The fundamentals remain solid. Tight supply of available tonnage and strong competition for prompt charter-free vessels continued to underpin valuations. New building prices also moved higher, up approximately 2% quarter-over-quarter, reflecting robust demand across the sector. Fleet utilization remains remarkably tight. Idle capacity, excluding vessels under repair, was just 200,000 TEU, or 6% of the global fleet as of early July. This remains at historic lows and underscores the structural supply tightness we are seeing during this market cycle. Finally, recycling activity has been notably subdued year-to-date, with only 10 vessels accounting for 25,000 TEU sent to scrap through July. This further reflects the high value environment for tonnage and limited incentive to recycle. Meanwhile, the fleet grew by 2.6% year-to-date. Please turn to slide 9, which illustrates the development of 6-to-12-month time charter rates over the past decade.

Aristides Pittas: The fundamentals remain solid. Tight supply of available tonnage and strong competition for prompt charter-free vessels continued to underpin valuations. New building prices also moved higher, up approximately 2% quarter-over-quarter, reflecting robust demand across the sector. Fleet utilization remains remarkably tight. Idle capacity, excluding vessels under repair, was just 200,000 TEU, or 6% of the global fleet as of early July.

Speaker #3: Up approximately 2 percent quarter over quarter, reflecting robust demand across the sector. Fleet utilization remains remarkably tight. Idle capacity excluding vessels under repair was just 200,000 EU for all 6 percent of the global fleet as of early July.

Speaker #3: This remains at historic lows and underscores the structural supply tightness we've seen during this market cycle. Finally, recycling activity has been notably subdued year to date, with only 10 vessels, accounting for 25,000 EU, sent to scrap through July.

Aristides Pittas: This remains at historic lows and underscores the structural supply tightness we are seeing during this market cycle. Finally, recycling activity has been notably subdued year-to-date, with only 10 vessels accounting for 25,000 TEU sent to scrap through July. This further reflects the high value environment for tonnage and limited incentive to recycle. Meanwhile, the fleet grew by 2.6% year-to-date. Please turn to slide 9, which illustrates the development of 6-to-12-month time charter rates over the past decade.

Speaker #3: This further reflects the high value environment for tonnage and limited incentive to recycle. Meanwhile, the fleet grew by 2.6 percent year to date. Please turn to slide 9, which illustrates the development of 6 to 12-month time charter rates over the past decade.

Speaker #3: Across all vessel classes, from smaller feeders through the larger intermediate container segment, current charter rates remain notably above both their respective 10-year historical averages and median levels.

Aristides J. Pittas: Across all vessel classes, from smaller feeders to the larger intermediate container segment, current charter rates remain notably above both their respective 10-year historical averages and median levels. These smaller vessel classes play an essential role in maintaining network flexibility and supporting regional and intra-regional trade flows, a role that has become increasingly critical amid geopolitical uncertainty and supply chain disruptions. With scarce available tonnage and underlying demand holding firm, the conditions supporting elevated time charter rates appear broadly intact for now. Please turn to slide 10, where we review the global macroeconomic backdrop and its implications for container shipping demand. According to the IMF July 2026 World Economic Outlook, global growth is projected at 3% in 2026, recovering to 3.4% in 2027, broadly unchanged cumulatively from April's forecast.

Aristides Pittas: Across all vessel classes, from smaller feeders to the larger intermediate container segment, current charter rates remain notably above both their respective 10-year historical averages and median levels. These smaller vessel classes play an essential role in maintaining network flexibility and supporting regional and intra-regional trade flows, a role that has become increasingly critical amid geopolitical uncertainty and supply chain disruptions.

Speaker #3: This smaller vessel classes play an essential role in maintaining network flexibility and supporting regional and intra-regional trade flows, a role that has become increasingly critical amid geopolitical uncertainties and supply chain disruptions.

Speaker #3: With scarce available tonnage and underlying demand holding firm, the conditions supporting elevated time charter rates appear broadly intact for now. Please turn to slide 10, where we review the global macroeconomic backdrop and its implications for container shipping demand.

Aristides Pittas: With scarce available tonnage and underlying demand holding firm, the conditions supporting elevated time charter rates appear broadly intact for now. Please turn to slide 10, where we review the global macroeconomic backdrop and its implications for container shipping demand. According to the IMF July 2026 World Economic Outlook, global growth is projected at 3% in 2026, recovering to 3.4% in 2027, broadly unchanged cumulatively from April's forecast.

Speaker #3: According to the IMF's July 2026 World Economic Outlook, global growth is projected at 3 percent in 2026, recovering to 3.4 percent in 2027—broadly unchanged cumulatively from April's forecast.

Speaker #3: The outlook is mixed. Elevated energy prices and geopolitical tensions—particularly the Iran conflict and the Ukraine-Russia war—are driving inflation and interest rates higher. However, AI-driven investment is supporting growth in technology-integrated countries.

Aristides J. Pittas: The outlook is elevated energy prices and geopolitical tensions, particularly the Iran conflict and Ukraine-Russia war, are driving inflation and interest rates higher. However, AI-driven investment is supporting growth in technology-integrated countries. Meanwhile, global disinflation has stalled, with the inflation shock pushing the yield on the 10-year US Treasury to approximately 4.7%. The US economy has remained comparatively resilient with 2.3% growth. China is projected to grow 4.6% this year, supported by infrastructure investment and high-tech exports, but declined to just 4.1% growth in 2027. While ASEAN-5 region is projected to slow to 4.1% in 2026, therefore recovering to 4.3% growth in 2027. On container trade, as measured in TEUs, volume is projected to moderate from 4.6% growth in 2025 to just 3.7% in 2026 reflecting tariff impacts and slower global growth overall due to the geopolitical disruptions.

Aristides Pittas: The outlook is elevated energy prices and geopolitical tensions, particularly the Iran conflict and Ukraine-Russia war, are driving inflation and interest rates higher. However, AI-driven investment is supporting growth in technology-integrated countries. Meanwhile, global disinflation has stalled, with the inflation shock pushing the yield on the 10-year US Treasury to approximately 4.7%. The US economy has remained comparatively resilient with 2.3% growth.

Speaker #3: Meanwhile, global disinflation has stalled, with the inflation shock pushing the yield on the 10-year US Treasury to approximately 4.7 percent. The US economy has remained comparatively resilient at 2.3 percent growth.

Speaker #3: China is projected to grow 4.6 percent this year, supported by infrastructure investment and high-tech exports, but declined to adjust 4.1 percent growth in 2027.

Aristides Pittas: China is projected to grow 4.6% this year, supported by infrastructure investment and high-tech exports, but declined to just 4.1% growth in 2027. While ASEAN-5 region is projected to slow to 4.1% in 2026, therefore recovering to 4.3% growth in 2027. On container trade, as measured in TEUs, volume is projected to moderate from 4.6% growth in 2025 to just 3.7% in 2026 reflecting tariff impacts and slower global growth overall due to the geopolitical disruptions.

Speaker #3: While Asia, in five regions, is projected to slow to 4.1% in 2026, it is expected to recover to 4.3% growth in 2027. On container trade, as measured in TEUs, volume is projected to moderate from 4.6% growth in 2025 to just 3.7% in 2026, reflecting tariff impacts and slower global growth overall due to geopolitical disruptions.

Speaker #3: Growth is expected to remain subdued at 3.4 percent in 2027, as the effects of the current disruption will take longer to dissipate. For container shipping specifically, containerized trade measured in TEU miles is projected to grow by approximately 3.6 percent in 2026.

Aristides J. Pittas: Growth is expected to remain subdued at 3.4% in 2027 as the effects of the current disruption will take longer to dissipate. For container shipping specifically, containerized trade measured in TEU-miles is projected to grow by approximately 3.6% in 2026. However, we anticipate a normalization effect in 2027, with TEU-mile demand projected to decline by 4.8%, reflecting expectations for trade routes and sailing distances to return to historical patterns. Turning on to slide 11, you can see the total fleet age profile and container ship orderbook. Starting with the age profile in the upper left, the overall container ship fleet remains relatively young, with a majority of vessels under 15 years of age and only about 15% of the fleet over 20 years old.

Aristides Pittas: Growth is expected to remain subdued at 3.4% in 2027 as the effects of the current disruption will take longer to dissipate. For container shipping specifically, containerized trade measured in TEU-miles is projected to grow by approximately 3.6% in 2026.

Speaker #3: However, we anticipate a normalization effect in 2027, with TEU mile demand projected to decline by 4.8 percent, reflecting expectations for trade routes and sailing distances to return to historical patterns.

Aristides Pittas: However, we anticipate a normalization effect in 2027, with TEU-mile demand projected to decline by 4.8%, reflecting expectations for trade routes and sailing distances to return to historical patterns. Turning on to slide 11, you can see the total fleet age profile and container ship orderbook. Starting with the age profile in the upper left, the overall container ship fleet remains relatively young, with a majority of vessels under 15 years of age and only about 15% of the fleet over 20 years old.

Speaker #3: Turning to slide 11, you can see the total fleet age profile and container ship order book. Starting with the age profile in the upper left, the overall container ship fleet remains relatively young, with the majority of vessels under 15 years of age, and only about 15 percent of the fleet over 20 years old.

Speaker #3: However, this aggregate view is totally different when examining the feeder and intermediate segments in isolation, which we will explore in greater detail over the next several slides.

Aristides J. Pittas: However, this aggregate view is totally different when examining the feeder and intermediate segments in isolation, which we will explore in greater detail over the next several slides. Turning to vessel deliveries, the top right chart illustrates scheduled new deliveries as a percentage of the existing fleet. Deliveries are projected at approximately 5.5% for 2026, 9.4% for 2027, and 24.2% for 2028 onwards, although actual fleet growth is expected to be somewhat lower due to slippage and future demolition activity. The bottom chart puts the current orderbook in historical context. At approximately 39.8% of the fleet as of August 2026, the orderbook has climbed to levels not seen in over 15 years, a development that warrants close attention as we think about the medium-term supply outlook for the sector. Turning on slide 12, we highlight the age profile and order book for the 1,000 to 3,000 TEU feeder segment.

Aristides Pittas: However, this aggregate view is totally different when examining the feeder and intermediate segments in isolation, which we will explore in greater detail over the next several slides. Turning to vessel deliveries, the top right chart illustrates scheduled new deliveries as a percentage of the existing fleet. Deliveries are projected at approximately 5.5% for 2026, 9.4% for 2027, and 24.2% for 2028 onwards, although actual fleet growth is expected to be somewhat lower due to slippage and future demolition activity. The bottom chart puts the current orderbook in historical context.

Speaker #3: Turning to vessel deliveries, the top-right chart illustrates scheduled new deliveries as a percentage of the existing fleet. Deliveries are projected at approximately 5.5 percent for 2026, 9.4 percent for 2027, and 24.2 percent for 2028 onwards.

Speaker #3: Although actual fleet growth is expected to be somewhat lower due to slippage and future demolition activity. The bottom chart puts the current order book in historical context.

Speaker #3: At approximately 39.8 percent of the fleet as of August 2026, the order book has climbed to levels not seen in over 15 years. A development that warrants close attention, as we think about a medium-term supply outlook for the sector.

Aristides Pittas: At approximately 39.8% of the fleet as of August 2026, the orderbook has climbed to levels not seen in over 15 years, a development that warrants close attention as we think about the medium-term supply outlook for the sector. Turning on slide 12, we highlight the age profile and order book for the 1,000 to 3,000 TEU feeder segment.

Speaker #3: Turning on to slide 12, we highlight the age profile and order book for the 1,000 to to 3,000 TEU feeder segment. The supply here tells a markedly different story from the broader market.

Aristides J. Pittas: The supply here tells a markedly different story from the broader market. The age profile here is striking. Approximately 24% of the fleet is between 15 to 19 years, while 30% of the fleet is over 20 years old, meaning more than half of the feeder fleet is at or approaching scrapping age. As environmental regulations tighten and compliance costs rise, a meaningful portion of these older tonnages will likely exit the market over the coming years, depending on how challenging market conditions become. Against this aging backdrop, new building activity in the sub 3,000 TEU segment remains significantly restrained. As of August 2026, the order book stands at 17.6%, substantially below the broader market, which is 9.8%, with scheduled deliveries of just 3.1% for 2026, 6.8% for 2027, and 8.1% for 2028 and beyond.

Aristides Pittas: The supply here tells a markedly different story from the broader market. The age profile here is striking. Approximately 24% of the fleet is between 15 to 19 years, while 30% of the fleet is over 20 years old, meaning more than half of the feeder fleet is at or approaching scrapping age. As environmental regulations tighten and compliance costs rise, a meaningful portion of these older tonnages will likely exit the market over the coming years, depending on how challenging market conditions become.

Speaker #3: The age profile here is striking. Approximately 24 percent of the fleet is between 15 and 19 years, while 30 percent of the fleet is over 20 years old.

Speaker #3: Meaning, more than half of the feeders fleet is at or approaching scrapping age. As environmental regulations tighten and compliance costs rise, a meaningful portion of this older tonnage will likely exit the market over the coming years, depending on how challenging market conditions become.

Speaker #3: Against this aging backdrop, new building activity in the sub-3,000 TEU segment remains significantly restrained. As of August 2026, the order book stands at 17.6 percent, substantially below the broader market, which is 9.8 percent.

Aristides Pittas: Against this aging backdrop, new building activity in the sub 3,000 TEU segment remains significantly restrained. As of August 2026, the order book stands at 17.6%, substantially below the broader market, which is 9.8%, with scheduled deliveries of just 3.1% for 2026, 6.8% for 2027, and 8.1% for 2028 and beyond.

Speaker #3: With scheduled deliveries of just 3.1 percent for 2026, 6.8 percent for 2027, and 8.1 percent for 2028 and beyond. Let's move to slide 13 to focus on the intermediate segment, the other core segment of our fleet.

Aristides J. Pittas: Let's move to slide 13 to focus on the intermediate segment, the other core segment of our fleet. As of August 2026, the order book in this segment stands at approximately 28% of the existing fleet. While higher than the feeder segment, this remains modest relative to the large mainline vessel classes, where new building activity has been considerably more active. What makes this segment particularly compelling from a supply perspective is the age profile. About 36% of the fleet is between 15 to 19 years old, while 30% of vessels in this range are over 20 years of age, meaning roughly two-thirds of the fleet is either at or approaching an age where retirement decisions become likely. Scheduled deliveries are projected at 3.8% for 2026, rising to approximately 7.8% in 2027 and 15.9% for 2028 and beyond.

Aristides Pittas: Let's move to slide 13 to focus on the intermediate segment, the other core segment of our fleet. As of August 2026, the order book in this segment stands at approximately 28% of the existing fleet. While higher than the feeder segment, this remains modest relative to the large mainline vessel classes, where new building activity has been considerably more active.

Speaker #3: As of August 2026, the order book in this segment stands at approximately 28 percent of the existing fleet. While higher than the feeder segment, this remains modest, relative to the large mainline vessel classes.

Speaker #3: Where new building activity has been considerably more active. What makes the segment particularly compelling from a supply perspective is the age profile. About 36 of the fleet is between 15 to 19 years old, while 30 percent of vessels in this size range are over 20 years of age.

Aristides Pittas: What makes this segment particularly compelling from a supply perspective is the age profile. About 36% of the fleet is between 15 to 19 years old, while 30% of vessels in this range are over 20 years of age, meaning roughly two-thirds of the fleet is either at or approaching an age where retirement decisions become likely. Scheduled deliveries are projected at 3.8% for 2026, rising to approximately 7.8% in 2027 and 15.9% for 2028 and beyond.

Speaker #3: Meaning roughly two-thirds of the fleet is either at or approaching an age where retirement decisions become likely. Scheduled deliveries are projected at 3.8 percent for 2026, rising to approximately 7.8 percent in 2027, and 15.9 percent for 2028 and beyond.

Speaker #3: However, when weighed against potential accelerated scrapping among the older tonnage, net fleet growth in this segment is expected to remain contained over the coming years.

Aristides J. Pittas: However, when weighed against potential accelerated scrapping among the older tonnages, net fleet growth in this segment is expected to remain contained over the coming years. The interplay between a maturing fleet and a measured new building pipeline continues to create a structurally supportive environment for intermediate container ship operators, despite the unavoidable cascade effect, which of course will also take place. Turning to slide 14. This chart places the dynamics we've discussed in broader context across the entire container ship sector. What's evident is the pronounced concentration of new building activity in the larger vessel classes. Neo-Panamax and Post-Panamax segments carry order books of 40% to 87% of their existing fleet, reflecting the significant capacity directed towards major mainline trades. These are the segments facing the most acute oversupply risk.

Aristides Pittas: However, when weighed against potential accelerated scrapping among the older tonnages, net fleet growth in this segment is expected to remain contained over the coming years. The interplay between a maturing fleet and a measured new building pipeline continues to create a structurally supportive environment for intermediate container ship operators, despite the unavoidable cascade effect, which of course will also take place. Turning to slide 14.

Speaker #3: The interplay between a maturing fleet and a measured newbuilding pipeline continues to create a structurally supportive environment for intermediate containership operators, despite the unavoidable cascade effect which, of course, will also take place.

Speaker #3: Turning to slide 14. This chart places the dynamics we've discussed in broader context, across the entire container ship sector. What's evident is the pronounced concentration of new building activity in the larger vessel classes.

Aristides Pittas: This chart places the dynamics we've discussed in broader context across the entire container ship sector. What's evident is the pronounced concentration of new building activity in the larger vessel classes. Neo-Panamax and Post-Panamax segments carry order books of 40% to 87% of their existing fleet, reflecting the significant capacity directed towards major mainline trades. These are the segments facing the most acute oversupply risk.

Speaker #3: Neo-Panamax and Post-Panamax segments carry order books of 40% to 87% of their existing fleet, reflecting the significant capacity directed towards major mainland trades.

Speaker #3: These are the segments facing the most acute oversupply risk. By contrast, feeders and intermediate segments exhibit significantly lower order book activity, ranging from 14 to 28 percent, depending on vessel size.

Aristides J. Pittas: By contrast, feeders and intermediate segments exhibit significantly lower order book activity, ranging from 14% to 28%, depending on vessel size. This modest ordering activity is occurring against an aging fleet backdrop. The gap between the wave of new buildings in larger vessel classes and limited fleet renewal in feeders and intermediate segments points to a structurally more favorable supply outlook for the sizes in which EUROSEAS operates. Now, please turn to slide 15, where we summarize our outlook. Markets have gained meaningful momentum through July, with rates at decade highs supported by strong East-West demand amid these disruptions. A limited 2026 supply is supporting the near-term balance, though we do expect some of the moderation towards the end of the year. Looking ahead to 2027, the supply-demand picture shifts. Red Sea route normalization and a significant uptick in vessel deliveries could pressure the market.

Aristides Pittas: By contrast, feeders and intermediate segments exhibit significantly lower order book activity, ranging from 14% to 28%, depending on vessel size. This modest ordering activity is occurring against an aging fleet backdrop. The gap between the wave of new buildings in larger vessel classes and limited fleet renewal in feeders and intermediate segments points to a structurally more favorable supply outlook for the sizes in which EUROSEAS operates.

Speaker #3: This modest ordering activity is occurring against an aging fleet backdrop. The gap between the wave of new buildings in larger vessel classes and limited fleet renewal in feeders and intermediate segments points to a structurally more favorable supply outlook for the sizes in which EUROSEAS operates.

Speaker #3: Now, please turn to slide 15, where we summarize our outlook. Markets have gained meaningful momentum through July, with rates at decade highs, supported by strong East-West demand and Middle East disruptions.

Aristides Pittas: Now, please turn to slide 15, where we summarize our outlook. Markets have gained meaningful momentum through July, with rates at decade highs supported by strong East-West demand amid these disruptions. A limited 2026 supply is supporting the near-term balance, though we do expect some of the moderation towards the end of the year. Looking ahead to 2027, the supply-demand picture shifts. Red Sea route normalization and a significant uptick in vessel deliveries could pressure the market.

Speaker #3: A limited 2026 supply is supporting the near-term balance, though we do expect some of the moderation towards the end of the year. Looking ahead to 2027, the supply-demand picks a shift.

Speaker #3: Red Sea route normalization and the significant uptick in vessel deliveries could pressure the market. That said, capacity management, accelerated scrapping, and slower steaming could help absorb incremental supply.

Aristides J. Pittas: That said, capacity management, accelerated scrapping, and slower steaming could help absorb incremental supply. Geopolitical uncertainty also complicates the timing of any normalization. Finally, the impact of tariffs has been more muted than feared. Though US trade policy remains a variable we are continuing to monitor closely. Turning to slide 16, the charts illustrate the strength of the current cycle. One-year time charter rates for 2,500 TEU container ships stand at $38,250 per day, substantially above the 10-year historical average of $24,000, a median of $16,000 per day. This is obviously reflected in asset values as well. The right chart shows newbuilding vessels are now priced at $45.5 million versus the 10-year median and average of approximately $36.7 million, while the 10-year-old vessel is currently valued at $41 million compared to the historical average of $22.5 million, and a median of $18.75 million.

Aristides Pittas: That said, capacity management, accelerated scrapping, and slower steaming could help absorb incremental supply. Geopolitical uncertainty also complicates the timing of any normalization. Finally, the impact of tariffs has been more muted than feared. Though US trade policy remains a variable we are continuing to monitor closely.

Speaker #3: Geopolitical uncertainty also complicates timing of any normalization. Finally, the impact of tariffs has been more muted than feared. Though US trade policy remains a variable we are continuing to monitor closely.

Speaker #3: Turning to slide 16, the chart illustrates the strength of the current cycle. One-year time charter rates for 2,500 TEU container ships stand at 38,250 dollars per day, substantially above the 10-year historical average of 24,000, and median of 16,000 per day.

Aristides Pittas: Turning to slide 16, the charts illustrate the strength of the current cycle. One-year time charter rates for 2,500 TEU container ships stand at $38,250 per day, substantially above the 10-year historical average of $24,000, a median of $16,000 per day. This is obviously reflected in asset values as well. The right chart shows newbuilding vessels are now priced at $45.5 million versus the 10-year median and average of approximately $36.7 million, while the 10-year-old vessel is currently valued at $41 million compared to the historical average of $22.5 million, and a median of $18.75 million.

Speaker #3: This is obviously reflected in asset values as well. The right chart shows newbuilding vessels are now priced at $45.5 million, versus the 10-year median and average of approximately $36.7 million, while the 10-year-old vessels are valued at $41 million, compared to the historical average of $22.5 to $18.75 million.

Speaker #3: These elevated second-hand valuations, particularly without attached employment, present a less comparative reward profile at this stage of the cycle. New buildings, by contrast, offer greater pricing flexibility and cost predictability.

Aristides J. Pittas: These elevated secondhand valuations, particularly without attached employment, present a less competitive risk-reward profile at this stage of the cycle. Newbuilding, by contrast, offers greater pricing flexibility and cost predictability. This conviction has driven our decision to expand our order book expansion to 12 vessels. Building on the nine vessels we completed in early 2025. This strategic position, combined with our strong balance sheet and substantial liquidity, puts us in an enviable position, well-capitalized to pursue attractive opportunities when they arrive, while our fleet benefits from lower operating costs and environmental advantages that differentiate us competitively. I will now turn the call over to Tassos, who will go over our financial results for the Q2 and H1 of 2026 in more detail.

Aristides Pittas: These elevated secondhand valuations, particularly without attached employment, present a less competitive risk-reward profile at this stage of the cycle. Newbuilding, by contrast, offers greater pricing flexibility and cost predictability. This conviction has driven our decision to expand our order book expansion to 12 vessels.

Speaker #3: This conviction has driven our decision to expand our order book, expansion to 12 vessels. Building on the 9 vessels we completed in early 2025.

Aristides Pittas: Building on the nine vessels we completed in early 2025. This strategic position, combined with our strong balance sheet and substantial liquidity, puts us in an enviable position, well-capitalized to pursue attractive opportunities when they arrive, while our fleet benefits from lower operating costs and environmental advantages that differentiate us competitively. I will now turn the call over to Tassos, who will go over our financial results for the Q2 and H1 of 2026 in more detail.

Speaker #3: This strategic position, combined with our strong balance sheet and substantial liquidity, puts us in an enviable position when well-capitalized to pursue a treaty of opportunities when they arrive, while our fleet benefits from lower operating costs and environmental advantages that differentiate us competitively.

Speaker #3: I will now turn the call over to Tassos, who will go over our financial results for the second quarter and first half of 2026 in more detail.

Speaker #2: Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. Over the next five slides, I will give you the usual overview of our financial highlights, for the second quarter and first half of 2026, and compare those results to the same period of last year.

Tasos Aslidis: Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. Over the next five slides, I will give you the usual overview of our financial highlights for the Q2 and H1 of 2026 and compare those results to the same period of last year. For that, let's turn to slide 18. For the Q2 of 2026, the company reported total net revenues of $56.5 million, representing a 1.3% decrease over total net revenues of $57.2 million during the Q2 of 2025. This was the result of the lower average number of vessels we owned and operated this past quarter in 2026 compared to the same Q2 of 2025, and it was partly offset by the increase in the time charter rates that we earned on average in the respective periods.

Speaker #2: For that, let's turn to slide 18. For the second quarter of 2026, the company reported total net revenues of 56.5 million, representing an 1.3 percent decrease over total net revenues of 57.2 million during the second quarter of 2025.

Tasos Aslidis: For the Q2 of 2026, the company reported total net revenues of $56.5 million, representing a 1.3% decrease over total net revenues of $57.2 million during the Q2 of 2025. This was the result of the lower average number of vessels we owned and operated this past quarter in 2026 compared to the same Q2 of 2025, and it was partly offset by the increase in the time charter rates that we earned on average in the respective periods.

Speaker #2: This was the result of the lower average number of vessels we owned and operated this quarter, this past quarter, in 2026, compared to the same second quarter of 2025. It was partly offset by the increase in the time charter rates that we earned on average and their cycle periods.

Speaker #2: The company reported net income of 32.6 million, a net income attributable to controlling shareholders, of 33.2 million for the second quarter of 2026, as compared to a net income attributable to controlling shareholders of 29.9 million for the same period of the second quarter, of 2025.

Tasos Aslidis: The company reported net income of $32.6 million, a net income attributable to controlling shareholders of $33.2 million for Q2 2026 as compared to a net income attributable to controlling shareholders of $29.9 million for the same period in Q2 2025. The net loss attributable to not controlling shareholders of $0.6 million in Q2 2026 represents the 49% ownership of the entities owning our newbuilding MV Thrylos, which are represented by NRP Investments. Interest and other financing costs for Q2 2026 amounted to $2.7 million compared to $4 million for Q2 2025. This decrease is due to the decreased amount of debt and the decreased interest rate of our loans in the current period compared to the same period last year.

Speaker #2: The net loss attributable to non-controlling shareholders of $0.6 million in the second quarter of 2026 represents the 49% ownership of the entities owning our new building, MV Thrillers, and which are represented by NRP investors.

Tasos Aslidis: The net loss attributable to not controlling shareholders of $0.6 million in Q2 2026 represents the 49% ownership of the entities owning our newbuilding MV Thrylos, which are represented by NRP Investments. Interest and other financing costs for Q2 2026 amounted to $2.7 million compared to $4 million for Q2 2025. This decrease is due to the decreased amount of debt and the decreased interest rate of our loans in the current period compared to the same period last year.

Speaker #2: Interest, another financing cost for the second quarter of 2026, amounted to 2.7 million, compared to 4 million for the second quarter of 2025. This decrease is due to the decreased amount of debt and the decrease in interest rates of our loans in the current period compared to the same period last year.

Speaker #2: If we account for interest income, the respective amounts become 1.3 million and 3.37 million, for the second quarter of 2026 and 2025 respectively, and these are the figures shown in the net interest line in the table on the slide.

Tasos Aslidis: If we account for interest income, the respective amounts become $1.3 million and $3.7 million for Q2 2026 and 2025 respectively, and these are the figures shown in the net interest line in the table on the slide. As part of our liquidity management strategy, we entered into investments in equity and debt securities in Q1 2026. For the 3 months ended 30 June 2026, the company recognized a $0.29 million unrealized mark-to-market gain on its investments in equity securities, resulting from an increase in the fair value of the investments. At the same time, we acquired debt securities with an initial cost of $20 million, classified as available for sale under GAAP, for which the fair value decreased between quarters, resulting in an unrealized loss of approximately $0.24 million during Q2 2026.

Speaker #2: Next part of our liquidity management strategy: we entered into investments in equity and debt securities in the first quarter of 2026. For the three months ended June 30th, 2026, the company recognized a 0.29 million unrealized investments in equity securities, resulting from an increase in the fair value of the investments.

Speaker #2: At the same time, we acquired debt securities with an initial cost of 20 million, classified as available for sale under EURICAP, for which the fair value decreased between quarters, resulting in an unrealized loss of approximately 0.24 million, during the second quarter of 2026.

Tasos Aslidis: At the same time, we acquired debt securities with an initial cost of $20 million, classified as available for sale under GAAP, for which the fair value decreased between quarters, resulting in an unrealized loss of approximately $0.24 million during Q2 2026.

Speaker #2: We did not have such investments in the respective quarter of last year. It is worth noting that these investments are intended to be held to maturity, and as such, the loss is purely accounting in nature, and there is no cash impact.

Tasos Aslidis: We did not have such investments in the respective quarter of last year. It is worth noting that these investments are intended to be held to maturity, and as such, the loss is purely accounting in nature, and there is no cash impact. In fact, these holdings continue to generate regular dividend income, which partially offsets any short-term valuation fluctuations. Adjusted EBITDA for Q2 2026 was $40.1 million, compared to $39.3 million during the same period of last year. Basic and diluted earnings per share attributable to controlling shareholders for Q2 of the year were $4.77 and $4.74 basic and diluted, calculated on approximately 7 million of weighted average number of shares outstanding, compared to basic and diluted earnings attributable to controlling shareholders of $4.32 and $4.29 per share basic and diluted respectively for Q2 of last year.

Speaker #2: In fact, this holdings continue to generate regular dividend income, which partially offsets any short-term valuation fluctuations. Adjusted EBITDA for the second quarter of 2026 was 40.1 million, compared to 39.3 million during the same period of last year.

Speaker #2: Basic and diluted earnings per share attributable to controlling shareholders for the second quarter of this year were $4.77 basic and $4.77 diluted, calculated on approximately 7 million weighted average number of shares outstanding, compared to basic and diluted earnings attributable to controlling shareholders of $4.32 and $4.29 per share, basic and diluted respectively, for the second quarter of last year.

Tasos Aslidis: Basic and diluted earnings per share attributable to controlling shareholders for Q2 of the year were $4.77 and $4.74 basic and diluted, calculated on approximately 7 million of weighted average number of shares outstanding, compared to basic and diluted earnings attributable to controlling shareholders of $4.32 and $4.29 per share basic and diluted respectively for Q2 of last year.

Speaker #2: Excluding the effect on the net income attributable to controlling shareholders for this quarter, of the unrealized gain on investments in equity securities, the adjusted earnings attributable to controlling shareholders for the second quarter of 2026 would have been $4.73 basic and $4.17 diluted.

Tasos Aslidis: Excluding the effect on the net income attributable to controlling shareholders for this quarter, for the unrealized gain on investments in equity securities, the adjusted earnings attributable to controlling shareholders for Q2 2026 would have been $4.73 basic and $4.17 diluted. Compared to adjusted earnings attributable, again, to controlling shareholders for $4.23 basic and $4.20 diluted for the same period of last year. Let us now look at the numbers on the same slide, and look at the numbers corresponding to the 6-month period ended 30 June, and compare them to the same period of last year. For H1 2026, the company reported total net revenues of $112.3 million, representing a 1.1% decrease over total net revenues of $113.6 million during H1 of last year. The same reasons that I used to explain the quarterly decline apply here.

Speaker #2: Compared to adjusted earnings attributable again to controlling shareholders for $4.23 basic and $4.20 diluted for the same period of last year. Let's now look at the numbers on the same slide and look at the numbers corresponding to the six-month period ended June 30th, and compare them to the same period of last year.

Tasos Aslidis: Let us now look at the numbers on the same slide, and look at the numbers corresponding to the 6-month period ended 30 June, and compare them to the same period of last year. For H1 2026, the company reported total net revenues of $112.3 million, representing a 1.1% decrease over total net revenues of $113.6 million during H1 of last year. The same reasons that I used to explain the quarterly decline apply here.

Speaker #2: For the first half of 2026, the company reported total net revenues of 112.3 million, representing an 1.1 percent decrease of the total net revenues of 113.6 million during the first half of last year.

Speaker #2: The same reasons that I used to explain the quarterly decline applied here. The company reported a net income for the period of 65.1 million, a net income attributable to controlling shareholders of 65.7 million, as compared to net income and net income attributable to controlling shareholders of 66.8 million for the same period of the first half of 2025.

Tasos Aslidis: The company reported a net income for the period of $65.1 million, a net income attributable to controlling shareholders of $65.7 million as compared to net income and net income attributable to controlling shareholders of $66.8 million for the same period for the H1 2025. Total interest and other financing costs for the H1 2026 amounted to $5.7 million. Total interest for financing cost for the H1 2025 amounted to $7.9 million. The decrease again due to the lower levels of debt on average and the lower interest rates paid. Accounting for interest income for the respective amount become $2.44 million and $3.2 million for the H1 2026 and 2025, and these are the two figures shown on the slide, and they include the net interest that we recognized.

Speaker #2: Total interest, another financing cost for the first half of 2026, amounted to 5.7 million, total interest for financing cost for the first half of 2025 amounted to 7.9 million, the decrease again due to the lower levels of debt on average and the lower interest rate paid.

Tasos Aslidis: Total interest for financing cost for the H1 2025 amounted to $7.9 million. The decrease again due to the lower levels of debt on average and the lower interest rates paid. Accounting for interest income for the respective amount become $2.44 million and $3.2 million for the H1 2026 and 2025, and these are the two figures shown on the slide, and they include the net interest that we recognized.

Speaker #2: The accounting for interest income for the respective amounts becomes 2.44 million and 6.77 million for the first half of 2026 and 2025, and these are the two figures shown on the slide.

Speaker #2: And they include the net interest that we recognized. Adjusted EBITDA for the first half of 2026 was $81 million, compared to $76.4 million for the same period of last year.

Tasos Aslidis: Adjusted EBITDA for the H1 2026 was $81 million compared to $76.4 million for the same period of last year. Basic and diluted earnings per share attributable to controlling shareholders for the H1 2026 were $9.44 basic and $9.39 diluted, compared to $9.63 basic and $9.60 diluted for the same period of 2025. The adjusted earnings per share attributable to controlling shareholders for the six months ended 30 June 2026, would have been $9.45 basic and $9.40 diluted compared again to adjusted earnings for the same period of last year of $7.99 basic and $7.97 diluted. Let's now turn to slide 19 to review our fleet performance. We'll start our review by looking at the fleet utilization rate for the Q2s 2026 and 2025. As usual, our fleet utilization rate is broken down into commercial and operational components.

Speaker #2: Basic and diluted earnings per share attributable to controlling shareholders for the first half of 2026 were $9.44 basic and $9.39 diluted, compared to $9.63 basic and $9.60 diluted for the same period of 2025.

Speaker #2: The adjusted earnings per share attributable to controlling shareholders for the six-month ended June 30th, 2026, would have been $9.45 basic and $9.40 diluted, compared again to adjusted earnings for the same period of last year of $7.99 basic and $7.97 diluted And let's now turn to slide 19 to review our flipped performance.

Tasos Aslidis: The adjusted earnings per share attributable to controlling shareholders for the six months ended 30 June 2026, would have been $9.45 basic and $9.40 diluted compared again to adjusted earnings for the same period of last year of $7.99 basic and $7.97 diluted. Let's now turn to slide 19 to review our fleet performance. We'll start our review by looking at the fleet utilization rate for the Q2s 2026 and 2025. As usual, our fleet utilization rate is broken down into commercial and operational components.

Speaker #2: We'll start our review by looking at the fleet utilization rate for the second quarters of 2026 and 2025. As usual, our fleet utilization rate is broken down into commercial and operational components.

Speaker #2: During the second quarter of 2026 and 2025, commercial utilization was for both periods 100 percent, while operational utilization was 99.9 percent respectively. On average, 21 vessels were owned and operated in the second quarter of 2026, earning an average time charter equivalent rate of 30,306 dollars per day, compared to 22 vessels for the same period of last year earning on average 29,420 dollars per day.

Tasos Aslidis: During the Q2 2026 and 2025, commercial utilization was for both periods at 100%, while operational utilization was 99.9%, as expected. On average, 21 vessels were owned and operated in the Q2 2026, earning an average time charter equivalent rate of $30,306 per day, compared to 22 vessels for the same period of last year, earning on average $29,420 per day. Our total daily operating expenses include management fees, G&A expenses, but excluding dry docking costs, were $8,036 per vessel per day in the Q2 of this year, compared to $7,694 per vessel per day in the Q2 2025.

Speaker #2: Our total daily operating expenses included. G&A expenses, but excluding dry docking costs, were 8,036 dollars per vessel per day in the second quarter of this year, compared to 7,394 dollars per vessel per day in the second quarter of 2025.

Speaker #2: If we move further down on this table, we can see as always the daily cash flow break-even level, which takes into account, in addition to the operating expenses, the dry docking expenses, interest expenses, and loan repayments, without accounting for balloon repayments.

Tasos Aslidis: If we move further down on this table, we can see as always the daily cash flow breakeven level, which takes into account, in addition to the operating expenses, the dry docking expenses, interest expenses, and loan repayments without accounting for balloon repayments, and all of those are expressed on a per vessel per day basis. For the Q2 2026, thus, our daily cash flow breakeven rate was $12,233 per vessel per day as compared to $13,261 for the same period, the Q2 2025. At the very bottom of this table, you can see the dividend we paid, expressed in dollars per vessel per day. In the Q2 2026, this amounted to $2,916, compared to $2,275 in the same period of last year. The increase reflecting the increase in the actual amount of dividend paid and the reduction in the number of vessels.

Speaker #2: And all of those are expressed on a per dollar per day basis. On a per vessel per day basis. For the second quarter of 2026, thus, our daily cash flow break-even rate was 12,233 dollars per vessel per day, as compared to 13,261 dollars for the same period of the second quarter of 2025.

Tasos Aslidis: For the Q2 2026, thus, our daily cash flow breakeven rate was $12,233 per vessel per day as compared to $13,261 for the same period, the Q2 2025. At the very bottom of this table, you can see the dividend we paid, expressed in dollars per vessel per day. In the Q2 2026, this amounted to $2,916, compared to $2,275 in the same period of last year. The increase reflecting the increase in the actual amount of dividend paid and the reduction in the number of vessels.

Speaker #2: At the very bottom of this table, you can see the dividend we paid expressed in dollars per vessel per day. In the second quarter of 2026, this amounted to 2,916 dollars, compared to 2,275 dollars in the same period of last year, the increase reflecting the increase in the actual amount of dividend paid and the reduction in the number of vessels.

Speaker #2: Let's now look at the right-hand side of this table and review the same metrics for the first half period. During the first half period, of 2026, both operational and commercial utilization rates were at 100 percent, while operational utilization rate in the corresponding period of 2025 was 99.6 percent, and commercial was again 100 percent.

Tasos Aslidis: Let's now look at the right-hand side of this table and review the same metric for the H1 period. During the H1 period for 2026, both operational and commercial utilization rates were at 100%, while operational utilization rate in the corresponding period of 2025 was 99.6%, and commercial was again 100%. On average, for the six-month period, we own and operated 21 vessels, earning an average time charter equivalent rate of $30,330 per day, compared to 22.83 vessels we operated in the same period of last year, earning an average of $28,468 per day. Operating expenses, again including management fees and G&A expenses, but no dry docking costs, averaged $7,963 per vessel per day this year, compared to $7,454 for the same period for the H1 of 2025.

Speaker #2: On average, for the six-month period, we owned and operated 21 vessels, earning an average time charter equivalent rate of 30,330 dollars per day, compared to 22.83 vessels we operated in the same period of last year, earning an average of 28,468 dollars per day.

Tasos Aslidis: On average, for the six-month period, we own and operated 21 vessels, earning an average time charter equivalent rate of $30,330 per day, compared to 22.83 vessels we operated in the same period of last year, earning an average of $28,468 per day. Operating expenses, again including management fees and G&A expenses, but no dry docking costs, averaged $7,963 per vessel per day this year, compared to $7,454 for the same period for the H1 of 2025.

Speaker #2: Operating expenses again, including management fees and G&A expenses, but no dry docking cost, averaged 7,963 dollars per vessel per day, this year compared to 7,454 dollars for the same period of the first half of 2025.

Speaker #2: The break-even levels, again, at the bottom of this table, were 12,290 for the six months of this year, compared to 13,163 for 2025. And the common dividend expressed in dollars per day per vessel in the first half of this year amounted to 2,839, up 29 percent from 2,196 in the first quarter of last year.

Tasos Aslidis: The breakeven levels, again at the bottom of this table, were $12,290 for the six months of this year, compared to $13,163 for 2025. The common dividend expressed in dollars per day per vessel in the H1 of this year amounted $2,839, up 29% from $2,196 in the Q1 of last year. Let's now move to the next slide, which has less numbers and aims to provide a better perspective of the depth of our contract coverage that Aristides discussed in an earlier slide. This table presents the development of fleet ownership days over the period of the next three years because we have newbuildings coming in and an estimated breakdown of how many days are available for hire and how many days are already contracted.

Speaker #2: Let's now move to the next slide, which has fewer numbers and aims to provide a better perspective of the depth of our contract coverage that Aristides discussed in an earlier slide.

Speaker #2: This table presents the development of fleet ownership days over the next three years, reflecting the addition of newbuildings coming in, as well as an estimated breakdown of how many days are available for hire and how many days are already contracted.

Tasos Aslidis: This table presents the development of fleet ownership days over the period of the next three years because we have newbuildings coming in and an estimated breakdown of how many days are available for hire and how many days are already contracted.

Speaker #2: It incorporates assumptions about delivery times for the vessels under construction, scrapping times for older vessels, estimated dry docking duration and timing, utilization rate assumptions going forward, and estimates for contracted dates and average contracted rate per day.

Tasos Aslidis: It incorporates assumptions about delivered times for the vessels under construction, scrapping times for older vessels, estimated dry docking duration and timing, utilization rate assumptions going forward, and estimates for contracted days and average contracted rate per day. Please note that the data presented in this table represents our internal estimates provided only for indicative purposes to be used for modeling future time charter equivalent revenues, and of course, actual results might differ. Nevertheless, we believe this provides a useful visibility into our forward revenue and earnings profile. Although our contracted coverage has been discussed earlier, just for reference, I will mention that the contract coverage currently stands at approximately 96% for the remainder of 2026, 81% for 2027, and almost 47% for 2028, while our average contracted rate for those periods are $30,858 for 2026, $31,658 for 2027, and $32,010 for 2028.

Speaker #2: Please note that the data presented in this table represents our internal estimates, provided only for indicative purposes to be used for modeling future time charter equivalent revenues. Of course, actual results might differ.

Speaker #2: Nevertheless, we believe this provides a useful visibility into our forward revenue and earnings profile. Although our contracted coverage has been discussed earlier, just for reference, I will mention that the contract coverage currently stands at approximately 96 percent for the remainder of 2026, 81 percent for 2027, and almost 47 percent for 2028, while our average contracted rate for those periods is 30,858 dollars for 2026, 31,658 for 2027, and 32,010 for 2028.

Tasos Aslidis: Nevertheless, we believe this provides a useful visibility into our forward revenue and earnings profile. Although our contracted coverage has been discussed earlier, just for reference, I will mention that the contract coverage currently stands at approximately 96% for the remainder of 2026, 81% for 2027, and almost 47% for 2028, while our average contracted rate for those periods are $30,858 for 2026, $31,658 for 2027, and $32,010 for 2028.

Speaker #2: Let me now turn to slide 21 to review our debt profile. As of June 30th, our total outstanding back debt stood at about 208 million, with an average interest rate margin of around 2 percent.

Tasos Aslidis: Let me now turn to slide 21 to review our debt profile. As of 30 June, our total outstanding bank debt stood at about $208 million, with an average interest rate margin of around 2%. We assume here a three-month SOFR rate of 3.76%. Our total debt cost amounts to about a little more than 5.75%, which is well within the prevailing rate for our peers. Turning to our debt amortization profile on the top left of this slide, we can see that in 2026, total repayments amounted to $19.6 million, consisting of approximately $9.06 million of scheduled loan repayments and $10.49 million of already paid loan obligations. In 2027, total debt service increases to approximately $36.85 million, inclusive of a balloon payment of $20 million. In 2028, repayments of loans are lower, down to $12 million and no balloon payments due.

Speaker #2: If we assume here a three-month SOFR rate of 3.76 percent, our total debt cost amounts to a little more than 5.75 percent, which is well within the prevailing rate for our bills.

Speaker #2: Turning to our debt amortization profile on the top left of this slide, we can see that in 2026, total repayments amounted to $19.6 million, consisting of approximately $9.06 million of scheduled loan repayments and $10.49 million of already paid loan obligations.

Tasos Aslidis: Turning to our debt amortization profile on the top left of this slide, we can see that in 2026, total repayments amounted to $19.6 million, consisting of approximately $9.06 million of scheduled loan repayments and $10.49 million of already paid loan obligations. In 2027, total debt service increases to approximately $36.85 million, inclusive of a balloon payment of $20 million. In 2028, repayments of loans are lower, down to $12 million and no balloon payments due.

Speaker #2: In 2027, total debt service increases to approximately $36.85 million, inclusive of a balloon payment of $20 million. In 2028, repayments of loans are lower, down to $12 million, and no balloon payments are due.

Speaker #2: And looking farther ahead, 2029 includes total repayments of $40.6 million, which includes $10.6 million of scheduled loan repayments and a $30 million balloon. 2030 includes total repayments of $33.8 million, split between $7.4 million of scheduled repayments and $26.4 million of balloons.

Tasos Aslidis: Looking farther ahead, 2029 includes total repayments of $40.6 million, which includes a $10.6 million of scheduled loan repayments and $30 million balloon. 2030 includes total repayments of $33.8 million, split between $7.4 million of scheduled repayments and $26.4 million of balloon. Historically, we have been able to finance balloon payments on favorable terms, and we expect to maintain that capacity of doing it in the future if we choose to do so. These figures reflect our current debt profile and do not include financing that we will assume to finance our new building program. At the bottom of this table, we can show our vessel's monthly ready rate, which stands at $13,382 per vessel per day, and you can see the components it is broken down. Let me conclude this presentation by turning to slide 22 for a quick review of selected highlights from our balance sheet.

Speaker #2: Historically, we have been able to finance balloon payments on favorable terms in February, and we expect to maintain that capacity in the future if we choose to do so.

Speaker #2: These figures reflect our current profile, debt profile, and do not include financing that we will assume to finance our new building program. At the bottom of this table, we can show our 12-month forward break-even rate, which stands at 13,382 dollars per vessel per day, and you can see the component is broken down.

Tasos Aslidis: These figures reflect our current debt profile and do not include financing that we will assume to finance our new building program. At the bottom of this table, we can show our vessel's monthly ready rate, which stands at $13,382 per vessel per day, and you can see the components it is broken down. Let me conclude this presentation by turning to slide 22 for a quick review of selected highlights from our balance sheet.

Speaker #2: Let me conclude this presentation by turning to slide 22 for a quick review of selected highlights from our balances. As usual, we present our balance sheet in a simplified way in the form of two bars.

Tasos Aslidis: As usual, we present our balance sheet in a simplified way in the form of two bars. On the left bar, we show the asset side. We have in the current assets of cash and other current assets of approximately $226 million. We have made approximately $74 million of advances against our new building program, and the book value of our fleet stands at about $453 million, bringing the total assets in our balance sheet to $753 million. Moving to the right bar, the liabilities, there we mentioned we have the bank debt of $208 million and additional liabilities of about $21 million and a small amount of minority investment, resulting in about $523 million of book shareholders' equity. However, the true shareholders' equity should be adjusted for the market value of our fleet, which is significantly higher than its book value.

Speaker #2: On the left bar, we show the asset side. We have in the current assets of cash and other current assets of approximately 226 million.

Speaker #2: We have made approximately $74 million of advances against our new building program, and the book value of our fleet stands at about $453 million, bringing the total assets in our balance sheet to $753 million.

Speaker #2: Moving to the right bar, the liabilities. There, we mention we have bank debt of $208 million, additional liabilities of about $21 million, and a small amount of minority investments, resulting in about $523 million of book shareholders' equity.

Tasos Aslidis: Moving to the right bar, the liabilities, there we mentioned we have the bank debt of $208 million and additional liabilities of about $21 million and a small amount of minority investment, resulting in about $523 million of book shareholders' equity. However, the true shareholders' equity should be adjusted for the market value of our fleet, which is significantly higher than its book value.

Speaker #2: However, the true shareholders' equity should be adjusted for the market value of our fleet, which is higher, significantly higher than its book value, we estimate that our current fleet is valued at approximately 660 million dollars, which translates to a net asset value for the company of more than 725 million, or about 103 dollars per share.

Tasos Aslidis: We estimate that our current fleet is valued at approximately $660 million, which translates to a net asset value for the company of more than $725 million or about $103 per share. The current price levels, which although have increased, still trade below to our net asset value and this valuation gap presents an opportunity for both our shareholders, but also to investors that want to consider investing in Euroseas. With that, I will turn the floor back to Aristides to moderate the question and answer period. Thank you, Taso. Let me now open up the floor for any questions you may have.

Speaker #2: The current price levels which, although we have increased, still trade below to our net asset value and present, and this valuation gap presents an opportunity for both our shareholders but also to investors that want to consider investing in EUROSEAS.

Speaker #2: And with that, I'll turn the floor back to Aristides to moderate the question-and-answer period.

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

Speaker #3: 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.

Operator 3: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. 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.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. 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 #3: 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.

Speaker #3: Our 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.

Speaker #3: Thank you. Our first question comes from the line of Mark Reichman with Noble Capital Markets. Please proceed with your question.

Speaker #4: You know, so advances for vessels under construction—so those were about $74 million at June 30th. And I was just wondering if you could just maybe kind of walk us through, you know, how much additional equity capital will need to be contributed to the newbuild program between now and the first quarter of 2029, and just maybe the breakout, I guess, between—can you hear me?

Mark Reichman: Yeah. Advances for vessels under construction, those were about $74 million at 30 June. I was just wondering if you could just maybe kind of walk us through how much additional equity capital will need to be contributed to the new build program between now and Q1 2029, and just maybe the breakout, I guess, between. Can you hear me? Yeah, I can hear you. I think, on the top of my head, the overall cost of our new building program is around $560 million, and we plan to finance it about 60% debt.

Speaker #2: Yeah, I can hear you. I can hear you. So, I think off the top of my head, the overall cost of our new building program is around $560 million, and we plan to finance it with about 60 percent debt, so roughly speaking, the equity requirements altogether would be around $230 million, of which $74 million have been made.

Aristides J. Pittas: Roughly speaking, the equity requirements altogether would be around $230 million, of which $74 million have been made.

Aristides Pittas: Roughly speaking, the equity requirements altogether would be around $230 million, of which $74 million have been made.

Mark Reichman: Okay. That's helpful. The fleet table on page 7, I think what's interesting is, clearly the older vessels remain on attractive charters, while you've got this much younger fleet coming. Because six of those vessels were built between 2001 and 2009, and have charters that are expiring over the next several years, what are your thoughts on whether you continue to operate those as the new builds arrive? Do you plan to sell some? I guess just related to that question, on page 20 you have 20.8 vessels for 2026, which would imply 21 vessels through the first three quarters and maybe 20 vessels in the fourth quarter. If maybe you could just square that up as part of the discussion.

Speaker #4: Okay, that's helpful. And then the fleet table, you know, on page seven, I think what's interesting is, you know, clearly the older vessels remain on attractive charters.

Speaker #4: You know, while you've got this much younger fleet coming, but because six of those vessels, you know, were built between 2001 and 2009, you know, and have charters that are expiring over the next several years, what are your thoughts on, you know, whether you continue to operate those, you know, as a new builds arrive, you know, do you plan to sell some, and then I and I guess just related to that question, you know, on page 20, you have 20.8 vessels, you know, for 2026, which would imply, you know, 21 vessels through the first three quarters and maybe 20 vessels in the fourth quarter, so maybe you could just kind of square that up as part of the discussion.

Mark Reichman: Do you plan to sell some? I guess just related to that question, on page 20 you have 20.8 vessels for 2026, which would imply 21 vessels through the first three quarters and maybe 20 vessels in the fourth quarter. If maybe you could just square that up as part of the discussion.

Aristides J. Pittas: Yes. We are not thinking of selling any vessels currently. The market is so strong that it makes sense operating the elder vessels as well. We are fixing these ships for two years, at least, charters. This will become an issue maybe two years down the line if the market has dropped significantly. For now, I think that the earnings that these older vessels generate are worth keeping them.

Aristides Pittas: Yes. We are not thinking of selling any vessels currently. The market is so strong that it makes sense operating the elder vessels as well. We are fixing these ships for two years, at least, charters. This will become an issue maybe two years down the line if the market has dropped significantly. For now, I think that the earnings that these older vessels generate are worth keeping them.

Speaker #2: Yes, we are not thinking of selling any vessels currently. The market is so strong that it makes sense to operate the older vessels as well.

Speaker #2: So we are fixing these ships, you know, for two years at least charters. So this will become an issue you know, maybe two years down the line if the market has dropped significantly.

Speaker #2: But for now, I think that the earnings that these older vessels generate are worth keeping them. And in slide 20, I think we have indicative figures the two old elder vessels that you I think essentially pinpointed we are negotiating to recharter.

Tasos Aslidis: In slide 20, I think we have indicative figures. The two elder vessels that I think essentially pinpointed, we are negotiating to recharter. At the end of 2027, we start getting the new building in. So there might be some assumptions about some disposal of them, but one can make their own assumptions about how many vessels we will be operating for the-

Speaker #2: At the end of 2027, we start getting the new buildings in. So, there might be some assumptions about some disposals then, but one can make their own assumptions about how many vessels will be operating.

Mark Reichman: On page 20 of the presentation, I think you have 20.8 and you have 21 vessels in your portfolio. So what accounts for the 20.8? Is that the one single dry docking?

Speaker #4: Around page 20—on page 20 of the presentation—I think you have 20.8, and you've got 21 vessels in your portfolio. So what accounts for the 20.8?

Speaker #4: Is that the one, single dry docking?

Tasos Aslidis: I think we have one vessel that we are modeling as potential to be sold, one of the elder ones.

Speaker #2: I think we have one vessel that we're modeling as a potential candidate to be sold, one of the older ones. But we are in the process of negotiating an extension to its charter at this point.

Mark Reichman: All right.

Tasos Aslidis: we are in the process of negotiating an extension to its charter at this point.

Mark Reichman: I see. Okay.

Tasos Aslidis: the model-

Mark Reichman: So we should assume 21, we could-

Speaker #4: I see. We should assume 21 we could.

Tasos Aslidis: Yeah. The model shown there has one vessel, namely EM Corfu, provisionally as a potential for.

Speaker #2: Yeah. The model is shown there. One vessel, namely EM Corfu, provisionally as a potential for.

Mark Reichman: Okay. You could assume potentially 21 vessels for the remainder of the year, but you could sell one maybe by Q4, in which case that would get to the 20.75.

Speaker #4: Okay. So we could you could assume potentially 21 vessels for the remainder of the year, but you could sell one maybe by the fourth quarter, in which case that would get that would get to the 20.7.

Aristides J. Pittas: That is a very slight possibility. That was a thought in our model a few months ago, but now we are seeing significant interest in that vessel. It will probably be extended with the charter for at least two years. That postpones the selling time by a couple of years.

Aristides Pittas: That is a very slight possibility. That was a thought in our model a few months ago, but now we are seeing significant interest in that vessel. It will probably be extended with the charter for at least two years. That postpones the selling time by a couple of years.

Speaker #2: That is a very slight that is a very slight possibility. That was a thought in our model, you know, a few months ago, but now we are seeing significant interest in that vessel.

Speaker #2: So it will probably be extended with a charter for at least two years, so that postpones the selling time by a couple of years.

Mark Reichman: I see. Okay. Just last question. You had a little over $164 million in restricted and unrestricted cash, I think about $208 million of debt. How do you think about the capital allocation in terms of putting that marginal dollar to work in new builds, acquisitions, debt repayments, dividends, and of course, your share repurchases, which you have highlighted?

Speaker #4: I see. Okay. And then just last question, so you had, you know, 160 a little over 164 million, you know, in restricted and unrestricted cash.

Speaker #4: You know, 208, I think, about 208 million dollars of debt. So how do you kind of think about the capital allocation in terms of, you know, putting that marginal dollar to work in new builds, you know, acquisitions, debt repayments, dividends, and of course your share repurchases, which you you know, have highlighted?

Aristides J. Pittas: Yes, well, this is the balancing act that we need to do because we do have this USD 160 million, as you say. Of course, we have another USD 160 million to pay for our new builds during the next couple of years. However, we will be making a similar amount, I think, in the next couple of years. So there will be enough money to look into further investments, perhaps growing the dividend, perhaps share repurchase. Everything is on the table, and we discuss it in our quarterly board of directors meetings in order to best utilize the capital.

Aristides Pittas: Yes, well, this is the balancing act that we need to do because we do have this USD 160 million, as you say. Of course, we have another USD 160 million to pay for our new builds during the next couple of years. However, we will be making a similar amount, I think, in the next couple of years. So there will be enough money to look into further investments, perhaps growing the dividend, perhaps share repurchase. Everything is on the table, and we discuss it in our quarterly board of directors meetings in order to best utilize the capital.

Speaker #2: Yes. Well, this that we need to do because we do have this 150 million, as you say. Of course, we have another 160 million to pay for our new builds during the next couple of years.

Speaker #2: However, we will be making a similar amount, I think, in the next couple of years. So, there will be enough money to look into further investments, perhaps growing the dividend, perhaps share repurchase.

Speaker #2: Everything is on the table, and we discuss it in our quarterly Board of Directors meetings in order to best utilize the capital.

Mark Reichman: Well, that's very helpful. Thank you very much.

Speaker #4: Okay, well, that's very helpful. Thank you very much.

Tasos Aslidis: You're welcome, Mark.

Aristides J. Pittas: Thank you, Mark.

Aristides Pittas: Thank you, Mark.

Speaker #2: You're welcome, Mark. Thank you, Mark.

Operator 3: Our next question comes from the line of Tate Sullivan with Maxim Group. Please proceed with your question.

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

Speaker #1: Our next question comes from the line of Kate Sullivan with Maxim Group. Please proceed with your question.

Tate Sullivan: Hi. Thank you, and you provided the new build commitment number earlier. Thank you for that. With the number of ships under construction and your experience in the last 2, 3 years with building new ships, is it reasonable to forecast any delays in delivery schedules at this point, given the busier shipyards? It seems quite consistent, but would appreciate your comments, please.

Speaker #3: Hi. Thank you, and you provided the new build commitment number earlier—thank you for that. And then, with the number of ships under construction and your experience in the last two to three years with building new ships, is it reasonable to forecast any delays in delivery schedules at this point, given the busier shipyards? Or, it seems quite consistent, but I would appreciate your comments, please.

Aristides J. Pittas: Yeah. At this point, we don't foresee any delay in the construction of the ships. We will only know closer to the delivery times, but shipyards in general seem to be more or less making their delivery schedules.

Aristides Pittas: Yeah. At this point, we don't foresee any delay in the construction of the ships. We will only know closer to the delivery times, but shipyards in general seem to be more or less making their delivery schedules.

Speaker #2: Yeah. At this point, we don't foresee any delay in the construction of the ships. Of course, you know, we will only know closer to the delivery times, but shipyards in general seem to be more or less making their delivery schedules.

Operator 4: Yeah, it's been impressive and your streak has been as well. Your contracting strategy for the new builds, would you say consistent to your prior new build contracts in terms of fixing multi-year contracts? Is there any change in the discussions to change contract structures in the containership industry to have floors and potential of upside to those rates? Any comment on that, please?

Operator: Yeah, it's been impressive and your streak has been as well. Your contracting strategy for the new builds, would you say consistent to your prior new build contracts in terms of fixing multi-year contracts? Is there any change in the discussions to change contract structures in the containership industry to have floors and potential of upside to those rates? Any comment on that, please?

Speaker #3: Yeah. It's been impressive in your streak has been as well. And then you're contracting strategy for the new builds. Would you say consistent to your prior new build contracts in terms of fixing multi-year contracts?

Speaker #3: Is there any change in the discussions to change contracts structures and the container ship industry to have floors and potential shares of upside to those rates?

Speaker #3: Any comment on that, please?

Aristides J. Pittas: Yeah, not really. The idea is to fix longer-term charters if we can, but it is a bit too early for us to do that right now. If we were to do it right now, we would have to accept the lower rates than what we think we can get if we wait a little longer. We fixed the four intermediate ships as you know, but the remaining eight ships, we are waiting to see if we can get a good rate.

Aristides Pittas: Yeah, not really. The idea is to fix longer-term charters if we can, but it is a bit too early for us to do that right now. If we were to do it right now, we would have to accept the lower rates than what we think we can get if we wait a little longer. We fixed the four intermediate ships as you know, but the remaining eight ships, we are waiting to see if we can get a good rate.

Speaker #2: Yeah, not really. Not really. The idea is to secure longer-term charters if we can, but it's a bit too early for us to do that right now.

Speaker #2: If we were to do it right now, we would have to accept a lower rate than what we think we can get if we wait a little longer.

Speaker #2: We fixed the four intermediate ships, as you know, but for the remaining eight ships, we will see if we can get a good rate. We have not seen any change in the contract structure, such as a floor and a cap.

Tasos Aslidis: We have not seen any change in the contract structure like a floor and a cap. Whatever discussions we have are the traditional sort of flat rate, possibly with some early expiring options to do three or four years or two or three years.

Speaker #2: Whatever discussions we have are the traditional sort of flat rate, possibly with some early expiring options to do three or four years, or two or three years.

Operator 4: Thank you very much.

Operator: Thank you very much.

Speaker #3: Thank you very much.

Aristides J. Pittas: Thank you.

Aristides Pittas: Thank you.

Speaker #2: Thank you.

Operator 3: As a reminder, if you would like to ask a question, press star one on your telephone keypad. Our next question comes from the line of Poe Fratt with Alliance Global Partners. Please proceed with your question.

Operator: As a reminder, if you would like to ask a question, press star one on your telephone keypad. Our next question comes from the line of Poe Fratt with Alliance Global Partners. Please proceed with your question.

Speaker #1: As a reminder, if you would like to ask a question, please press star one on your telephone keypad. Our next question comes from the line of Poe Fratt with Alliance Global Partners.

Speaker #1: Please proceed with your question.

Poe Fratt: I was wondering if you could help me reconcile the dry docking activity that is on page six with the information in your 20-F. The 20-F is showing six dry docks or intermediate and special surveys over the H2 of the year. The slide on page six only shows two. Is there more dry docking activity ahead of us? Certainly in 2027 there will be, but I was just asking about the rest of 2026.

Speaker #5: I was wondering if you could help me reconcile the dry docking activity that's on page six with the information in your 20-F. The 20-F is showing six dry docks or intermediate and special surveys over the second half of the year.

Speaker #5: And the slide on page six only shows two. So I was just— is there more dry docking activity ahead of us? And certainly, in '27 there will be, but I was just asking about the rest of 2026.

Aristides J. Pittas: In the rest of 2026, we have three dry dockings to be done. The remaining three perhaps that you see might be in water, the dry docks, which is a small delay of one day and a minimal cost. We have three big dry dockings within this quarter and the next one on three of our older vessels, the Evridiki G, the EM Corfu, and the Jonathan P.

Aristides Pittas: In the rest of 2026, we have three dry dockings to be done. The remaining three perhaps that you see might be in water, the dry docks, which is a small delay of one day and a minimal cost. We have three big dry dockings within this quarter and the next one on three of our older vessels, the Evridiki G, the EM Corfu, and the Jonathan P.

Speaker #2: For the rest of 2026, we have three dry dockings to be done. The remaining three, as you might see, could be in-water dry docks, which would involve a small delay of one day and minimal cost.

Speaker #2: We have three big dry dockings within this quarter and the next one on three of our elder vessels we have Riddiki the Krofu and the Jonathan.

Poe Fratt: Okay. That is helpful. Thank you for clarifying that. I apologize if I missed this when you reported your Q1 numbers, but can you just talk about the equity investments that you have made and the nature of those equity investments and sort of the risk profile potentially of those equity investments?

Speaker #5: Okay. That's helpful. Thank you for clarifying that. And I apologize if I missed this when you've reported your first quarter numbers. But can you just talk about the equity investments that you've made?

Speaker #5: And, you know, the nature of those equity investments and sort of the, you know, risk profile potentially of those equity investments?

Aristides J. Pittas: Yes. These are bond funds just to get a little bit of a higher return than just a deposit. These are bond funds investing in investment-grade bonds. So it is a very safe investment and very liquid. Then we have one additional investment in a capital-protected structured fund, which again is capital protected and depending on various parameters might give us a little bit of a higher return. So it is actually cash management. We are trying to get a little bit more than just the pure deposit rate.

Aristides Pittas: Yes. These are bond funds just to get a little bit of a higher return than just a deposit. These are bond funds investing in investment-grade bonds. So it is a very safe investment and very liquid. Then we have one additional investment in a capital-protected structured fund, which again is capital protected and depending on various parameters might give us a little bit of a higher return. So it is actually cash management. We are trying to get a little bit more than just the pure deposit rate.

Speaker #2: I think yes. These are bond funds, just to get a little bit of a higher return than just the deposit. These are bond funds investing in investment-grade bonds.

Speaker #2: So it's a very safe investment and very liquid. And then we have one additional investment in a capital-protected structured fund which, again, is capital-protected and depending on various parameters might give us a little bit of a higher return.

Speaker #2: So it's really actually cash management, but we're trying to get a little bit more than just the pure deposit rate.

Poe Fratt: Okay. That is helpful.

Speaker #5: Okay. That's helpful.

Tasos Aslidis: They are easily liquidated.

Speaker #2: Easily.

Poe Fratt: I am sorry, Tasos, I did not understand.

Speaker #5: I'm sorry, Tessis. I didn't understand.

Tasos Aslidis: No, it can be easily liquidated if we need the funds, which we would not need because we have $160 million outside this $38 million that is involved in-

Speaker #2: It can be easily liquidated if we need the funds, which we will not need because we have $160 million outside this $39 or $38 million that we're stating in those two instances.

Poe Fratt: Okay. But just to clarify, you are not investing in individual companies and with a higher risk profile than a bond fund, even though it says-

Speaker #5: Okay. But yeah, just to clarify, you're not investing in individual companies and, you know, with a higher risk profile than a bond fund, even though it says so?

Aristides J. Pittas: Yeah. No, it is not that.

Aristides Pittas: Yeah. No, it is not that.

Speaker #2: Yeah. No. You know, it's not that.

Poe Fratt: Okay, great. Thank you for clarifying that.

Speaker #5: Okay. Great. Thank you for clarifying that.

Operator 3: Our next question comes from the line of Clement Mullins with Value Investor's Edge. Please proceed with your question.

Operator: Our next question comes from the line of Clement Mullins with Value Investor's Edge. Please proceed with your question.

Speaker #1: Our next question comes from the line of Kliment Mullins with Value Investors Edge. Please proceed with your question.

Clement Mullins: Hi. Good afternoon, and thank you for taking my questions. I wanted to follow up on Mark's question on your older vessels. We have seen some forward fixtures in recent months, but mostly on modern tonnage. Could you talk a bit about the dynamics of forward fixing on older vessels? Is that something widely available? If that were the case, how does the implied discount compare to more modern vessels?

Climent Molins: Hi. Good afternoon, and thank you for taking my questions. I wanted to follow up on Mark's question on your older vessels. We have seen some forward fixtures in recent months, but mostly on modern tonnage. Could you talk a bit about the dynamics of forward fixing on older vessels? Is that something widely available? If that were the case, how does the implied discount compare to more modern vessels?

Speaker #6: Hi. Good afternoon, and thank you for taking my questions. I wanted to follow up on Mark's question on your older vessels. We've seen some forward fixtures in recent months, but mostly on modern tonnage.

Speaker #6: Could you talk a bit about the dynamics of forward fixing on older vessels? Is that something widely available? And if that were the case, how does the implied discount compare to more modern vessels?

Aristides J. Pittas: Well, there is actually a lack of vessels today. So, one can fix even older vessels that open up within the next three to six months quite easily at very decent rates. Very small discounts to the more modern ones, mainly reflecting the fact that they consume less fuel. But overall, the market is very tight, and that is why we expect we will be able to fix our three ships that open up within this year, later towards the end of the year. But I think we will be able to fix them within the next month or so.

Aristides Pittas: Well, there is actually a lack of vessels today. So, one can fix even older vessels that open up within the next three to six months quite easily at very decent rates. Very small discounts to the more modern ones, mainly reflecting the fact that they consume less fuel. But overall, the market is very tight, and that is why we expect we will be able to fix our three ships that open up within this year, later towards the end of the year. But I think we will be able to fix them within the next month or so.

Speaker #2: There is actually a lack of vessels today. So one can fix even older vessels that open up within the next three to six months.

Speaker #2: Quite easily. At very decent rates. Very small discounts to the more modern ones. Mainly reflecting, you know, the fact that they consume less fuel.

Speaker #2: But overall, the market is very tight. And that is why we expect we'll be able to fix, you know, our three ships that open up within this year, later towards the end of the year.

Speaker #2: But I think we will be able to fix them within the next month or so.

Clement Mullins: Okay, that is helpful. And final question from me. The order book for smaller vessels is significantly lower than for the larger sizes. Have you seen any cascading from larger vessels cannibalizing routes that are usually serviced by smaller vessels? Looking ahead, do you view this as a risk, or is it unlikely to have a material impact?

Climent Molins: Okay, that is helpful. And final question from me. The order book for smaller vessels is significantly lower than for the larger sizes. Have you seen any cascading from larger vessels cannibalizing routes that are usually serviced by smaller vessels? Looking ahead, do you view this as a risk, or is it unlikely to have a material impact?

Speaker #6: Okay. That's helpful. And final question from me. The order work for smaller vessels is significantly lower than for the larger sizes. Have you seen any cascading from larger vessels cannibalizing routes that are usually serviced by smaller vessels?

Speaker #6: And looking ahead, do you view this as a risk, or is it unlikely to have a material impact?

Aristides J. Pittas: Yes. The markets are totally unstable due to the geopolitical developments. That makes it difficult for liner companies to adjust their schedules significantly. So the answer is no. Currently, the lines are in a difficult position trying to carry the cargo they have to carry. It is difficult for them to optimize routes. When things normalize, if things normalize at some point, they have to at some point. I do not know if it is in 3 months or in a year or 2. But when things normalize, that is when the lines start to try to optimize, and optimization, of course, leads to increasing the size of the ships that serve various ports. So yes, we will see the cascading effect as things normalize. But until now, we do not really see that.

Aristides Pittas: Yes. The markets are totally unstable due to the geopolitical developments. That makes it difficult for liner companies to adjust their schedules significantly. So the answer is no. Currently, the lines are in a difficult position trying to carry the cargo they have to carry. It is difficult for them to optimize routes. When things normalize, if things normalize at some point, they have to at some point.

Speaker #2: Yes, you know, the markets are totally unstable due to the geopolitical developments. So, that makes it difficult for liner companies to adjust their schedules significantly.

Speaker #2: So the answer is no. Currently, you know, the lines are in a difficult position trying to carry the cargo they have to carry. It's difficult for them to optimize routes.

Speaker #2: When things normalize, if things normalize, at some point, they have to, at some point. I don't know if it's in three months or in a year or two.

Aristides Pittas: I do not know if it is in 3 months or in a year or 2. But when things normalize, that is when the lines start to try to optimize, and optimization, of course, leads to increasing the size of the ships that serve various ports. So yes, we will see the cascading effect as things normalize. But until now, we do not really see that.

Speaker #2: But when things normalize, that's when the lines start to try to optimize. And optimization, of course, leads to increasing the size of the ships that serve various ports.

Speaker #2: So yes, we will see the cascading effect, as things normalize. But to now, we don't really see that. And also, if you look at slide 14 and you see the size groups, you know, the elder fleet percentage and order book, there are between the larger sizes where there is a huge order book and ours, there are some other sizes that also are relatively balanced.

Tasos Aslidis: Also, if you look at slide 14 and you see the size groups, the elder fleet percentage and order book, they are between the larger sizes where there is a huge order book and ours. There are some other sizes that also are relatively balanced. So although what Aristides says could happen, will happen, we are farther away from the larger ships that will cascade down. They have to push other sizes down, which are also balanced. It is a little bit less of an issue than if we owned 8,000 TEU vessels.

Speaker #2: So although what Aristides says could, we are farther away from the larger ships that will cascade down. They have to jump, obviously, to push other sizes down, which are also balanced.

Speaker #2: It's a little bit less of a issue than if we owned 8,000 TEU vessels.

Clement Mullins: That is helpful. Thank you. I will turn it over. Thank you for taking my questions, and congratulations for the quarter.

Climent Molins: That is helpful. Thank you. I will turn it over. Thank you for taking my questions, and congratulations for the quarter.

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

Aristides J. Pittas: Thank you.

Aristides Pittas: Thank you.

Tasos Aslidis: Thank you.

Speaker #2: Thank you, Kliment.

Operator 3: A final reminder, if you would like to ask a question, press star one on your telephone keypad. One moment please, while we re-poll for any additional questions. Thank you. It appears we have no further questions at this time. Mr. Pittas, I'd like to turn the floor back over to you for closing comments.

Operator: A final reminder, if you would like to ask a question, press star one on your telephone keypad. One moment please, while we re-poll for any additional questions. Thank you. It appears we have no further questions at this time. Mr. Pittas, I'd like to turn the floor back over to you for closing comments.

Speaker #1: A final reminder, if you would like to ask a question, press star 1 on your telephone keypad. One moment, please, while we re-poll for any additional questions.

Speaker #1: Thank you. It appears we have no further questions at this time. Mr. Pittas, I'd like to turn the floor back over to you for closing comments.

Aristides J. Pittas: Thank you all for standing by and listening to our presentation. We'll be back to you in 3 months' time. Thank you.

Aristides Pittas: Thank you all for standing by and listening to our presentation. We'll be back to you in 3 months' time. Thank you.

Speaker #2: Thank you all for standing by and listening to our presentation. We'll be back to you in three months' time. Thank you.

Tasos Aslidis: Thanks, everybody.

Speaker #3: Thanks, everybody.

Operator 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.

Speaker #1: 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.