• Total Net Revenues (Q4 2024): $14.5 million, an 8.7% decrease from $15.9 million in Q4 2023.
• Net Loss Attributable to Controlling Shareholders (Q4 2024): $3.3 million or $1.20 loss per basic and diluted share.
• Adjusted Net Loss (Q4 2024): $0.7 million or $0.25 per basic and diluted share.
• Adjusted EBITDA (Q4 2024): $4.8 million, compared to $6.6 million in Q4 2023.
• Total Net Revenues (Full Year 2024): $61.1 million, a 28.3% increase from $47.6 million in 2023.
• Adjusted EBITDA (Full Year 2024): $12.4 million, compared to $14.6 million in 2023.
• Basic and Diluted Loss Per Share (Full Year 2024): $3.54, compared to $1.05 in 2023.
• Average Time Charter Equivalent Rate (Q4 2024): $12,200 per vessel per day, down from $14,507 in Q4 2023.
• Total Operating Expenses (Q4 2024): $7,087 per vessel per day, compared to $7,340 in Q4 2023.
• Cash Flow Breakeven Rate (Q4 2024): $11,529 per vessel per day, compared to $12,263 in Q4 2023.
• Debt (as of December 31, 2024): $108 million.
• Book Value of Vessels (End of 2024): $185.5 million.
• Cash and Other Assets (End of 2024): $29.2 million.
• Book Value of Shareholders' Equity (End of 2024): Over $100 million or $35.5 per share.

• Warning! GuruFocus has detected 2 Warning Sign with EDRY.

Release Date: February 24, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• EuroDry Ltd (NASDAQ:EDRY) reported a successful refinancing of two vessels, resulting in a $30 million loan and an increase in cash reserves by about $11 million.
• The company has initiated a share repurchase program, buying back 334,000 shares for $5.3 million, indicating confidence in its stock value.
• EuroDry Ltd (NASDAQ:EDRY) signed a contract for the construction of two eco-friendly Ultramax bulk carriers, scheduled for delivery in 2027, aligning with environmental standards.
• The sale of the motor vessel Tasos is expected to generate a gain of approximately $2.1 million, contributing positively to the company's financials.
• The company maintained high operational efficiency with no scheduled dry dockings or repairs during the quarter, ensuring full fleet utilization.

Negative Points

• EuroDry Ltd (NASDAQ:EDRY) reported a net loss of $3.3 million for Q4 2024, primarily due to a $2.8 million impairment on an older vessel.
• The average time charter rates for Panamax vessels declined significantly, impacting revenue generation.
• Global economic uncertainties, including geopolitical tensions and trade policy changes, pose risks to the dry bulk sector's growth prospects.
• The company's adjusted EBITDA decreased to $4.8 million from $6.6 million in the same quarter last year, reflecting weaker market conditions.
• The dry bulk trade demand growth is projected to decelerate sharply, with a forecasted growth of just 0.9% in 2025, challenging future revenue potential.

Q & A Highlights

Q: For the 4Q impairment of $2.8 million, was that related to Tasos and then reversed in the current quarter? A: No, the impairment was not related to Tasos. We recorded a capital gain on Tasos. The impairment was on another vessel, Santa Cruz, which was purchased at a higher point in the cycle, leading to the impairment.

Q: Can you talk about the new build negotiations? Have you worked with a specific shipyard before, and how did the price negotiations work? A: We haven't built at that shipyard before, but we did extensive research and received positive feedback from other owners. The negotiation was tough, but we secured a good price. Prices may be slightly softening, but not for 2027 deliveries.

Q: At what point would you begin locking in 1-year charters, and what might you expect the average to be for the last three quarters of the year? A: It's difficult to project the average for the next three quarters. If time charters for modern ships reach $15,000-$16,000 a day, we might consider it. Otherwise, we'll continue with the spot market, which is improving.

Q: How do you plan to finance the two vessels scheduled for delivery in 2027? A: We plan to finance a good part with debt, potentially 55%-60%. The equity portion will require additional payments in 2026 and 2027. We hope to generate the equity organically, but alternative financing options are being considered.

Q: Can you provide an update on the current activity in the S&P market and your assessment of asset values for potential acquisitions? A: Asset prices have dropped by about 15% since late last year. We are looking for a further 15% drop to consider acquisitions. Recent deals have seen prices rise slightly, so we are monitoring the market closely.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.