Key Highlights

  • Third-quarter Net Income attributable to controlling shareholders was USD 6.86 million, or USD 2.39 per diluted share, against a net loss of USD 0.7 million a year earlier, with adjusted diluted Earnings of USD 2.32 per share.
  • Net revenues rose 34.9% to USD 19.4 million from USD 14.4 million, and adjusted EBITDA reached USD 11.3 million compared with USD 4.1 million in the third quarter of 2025.
  • The fleet earned an average time charter equivalent rate of USD 20,551 per day, up from USD 13,232, against a daily Cash Flow breakeven of USD 11,984 per vessel for the quarter.
  • EuroDry raised about USD 10.7 million through its at-the-market program at an average USD 67.54 a share and ordered a third 82,000 deadweight ton Kamsarmax for about USD 37 million.

Higher Charter Rates Turn a Loss Into a Profit

EuroDry (NASDAQ:EDRY) discussed its third-quarter results on a call on November 11, 2026, covering the three months ended September 30, 2026. Management said net revenues were USD 19.4 million, up 34.9% from USD 14.4 million, as higher time charter equivalent rates outweighed a smaller fleet of 11 vessels against 12 a year earlier. Net income attributable to controlling shareholders was USD 6.86 million. Adjusted net income was USD 6.67 million, or USD 2.32 per diluted share, because the adjustment strips out unrealized gains on freight forward agreements. Nine-month net revenues were USD 49.9 million, up 43.1%, and nine-month net income attributable to controlling shareholders was USD 13.7 million against a loss of USD 7.45 million.

Spot Exposure, Breakeven Levels and the Debt Load

The company is a dry bulk owner whose vessels carry cargoes such as grain and minerals, and it employs nearly all of them in the spot market. Four ships are on index-linked charters tied to the Baltic Supramax index, and one is on a fixed charter at USD 15,500 per day until December or January. The spread between the USD 20,551 average rate and the USD 11,984 cash flow breakeven explains the profit; there were no idle days. Debt was USD 105.7 million on September 30, 2026, at an estimated all-in cost of about 5.89% assuming a SOFR rate of 4.06%. Drydocking costs are expected to rise to about USD 1,053 per vessel per day.

Equity Raise, Three Kamsarmax Orders and a Cautious Rate View

Management said shares hit all-time highs in the quarter and traded at a premium to net asset value, so it restarted the at-the-market program and sold 163,753 shares for about USD 10.7 million. It estimates net asset value at USD 66 to USD 67 per share, against Book Value of about USD 38.9. Five newbuildings are due, two Ultramaxes in 2027 and three Kamsarmaxes between 2028 and 2029, which would lift the fleet to 16 ships. Asked about 2027 rates, the chief executive declined to give a view, saying geopolitics could push the market sharply higher or lower and that the forward curve sits slightly below current levels.

Where Things Stand

The swing from loss to profit reflects freight rates, not a one-off. EuroDry (NASDAQ:EDRY) earned USD 2.39 per diluted share because its mostly spot-employed fleet averaged USD 20,551 per day against a breakeven near USD 12,000. The same exposure cuts both ways if rates ease, and Panamax spot rates had slipped to USD 17,200 per day by November 6 from a USD 18,000 quarterly average. Next markers are the fourth-quarter drydockings, the bank guarantee for the new Kamsarmax and the first Ultramax delivery in 2027.