EuroDry swings to Q1 profit as shipping rates surge 101%

EuroDry (NASDAQ:EDRY) reported a return to profitability for the first quarter of 2026, driven by a sharp recovery in daily charter rates across its dry bulk shipping fleet compared to the softer rate environment of the prior year.

The Athens-based maritime transportation provider generated total net revenues of $12.8 million for the three months ended March 31, 2026, representing a 38.9% increase from the $9.2 million reported in the first quarter of 2025.

Net income attributable to controlling shareholders reached $0.3 million, or $0.09 per diluted share, reversing a net loss of $2.7 million, or $0.95 per share, in the prior-year period.

On an adjusted basis, isolating non-cash items, EuroDry reported earnings of $0.12 per share.

The financial turnaround reflected a strong recovery in the spot and short-term charter markets.

EuroDry operated an average fleet of 11 vessels during the quarter, down from 12.8 vessels a year earlier following strategic older-asset divestments.

Despite the smaller fleet scale, the remaining vessels achieved an average time charter equivalent (TCE) rate of $14,416 per day—a 101.1% increase compared to the $7,167 daily average captured during the first quarter of 2025.

Fleet utilization optimized to 99.7%, up from 97.2% in the matching period. Consolidated vessel operating expenses came in at $5.5 million.

The operational improvements significantly strengthened cash generation.

First-quarter adjusted EBITDA climbed to $4.9 million, recovering from a negative $1 million adjusted EBITDA deficit in the first quarter of 2025.

As part of its long-term fleet modernization strategy, EuroDry finalized contracts for the construction of two 82,000 deadweight tonnage (DWT) eco-designed Kamsarmax newbuild bulk carriers.

The vessels carry an aggregate contract value of approximately $74 million and are scheduled for shipyard delivery during calendar year 2028.

Management intends to fund the capital commitments through a standard combination of commercial senior debt and corporate equity.

EuroDry concluded the first quarter with outstanding debt obligations of $100.9 million against liquid cash and cash equivalents of approximately $24.9 million.

Under its board-authorized share repurchase program, which allows for up to $10 million in equity buybacks, the company has acquired 349,330 common shares on the open market for a total consideration of approximately $5.6 million