And welcome to the Euroseas Ltd. Conference Call on the Fourth Quarter 2025 Financial Results. We have with us Mr. Aristides Pittas, Chairman and Chief Executive Officer, and Mr. Anastasios Aslidis, Chief Financial Officer of the company. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. Please press star one on your telephone keypad and wait for your name to be announced. I must advise you that this conference is being recorded today. Please be reminded that the company announced their results with a press release that has been publicly distributed. Before passing the floor over to Mr. Pittas, I would like to remind everyone that in today's presentation and conference call, Euroseas Ltd. will be making forward-looking statements. 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 and may result in such expectations not being realized. I kindly draw your attention to Slide number two of the webcast presentation, which has the full forward-looking statement, and the same statement was included in the press release. Please take a moment to go through the whole statement and read it. And now I would like to pass the floor over to Mr. Pittas. Please go ahead, sir.

Good morning, ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. Together with me is Anastasios Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the three- and twelve-month periods ended 12/31/2025. Please turn to Slide three of the presentation for our core financial highlights. For 2025, we reported total net revenues of $57,400,000 and a net income of $40,500,000, or $5.79 per diluted share. Adjusted net income for the quarter was $1,300,000, or $4.48 per diluted share. Adjusted EBITDA for the period was $40,700,000. Please refer to the press release for the reconciliation of our net income and adjusted EBITDA. Anastasios Aslidis will go over our financial highlights in more detail later on in the presentation. As part of the company's common stock dividend plan, we are pleased to announce that the Board of Directors increased the quarterly dividend by 7% to $0.75 per share for 2025. This represents an annualized dividend per share of $3.00, resulting in an annualized dividend yield of about 5% based on our current share price. Additionally, since the launch of our 20,000,000 share repurchase program in May 2022, we have repurchased 480,000 shares of common stock in the open market, representing about 6.8% of our outstanding shares, for an aggregate price of approximately $11,400,000. Following two one-year extensions, the program was renewed for the first time in May 2025. We intend to continue executing our repurchase program in a disciplined manner, deploying capital when appropriate to support and enhance long-term shareholder value. Please turn to Slide four for an overview of our recent developments where we highlight key progress across vessel sales and business partnering activity and operational performance. As previously announced, we successfully completed the sale and…

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

Sorry for the interruption. We had the line break down. I hope you can hear me. I will continue. I just described the 4,484 TEU vessels that we expect to take delivery in 2027 and 2028. So now please turn to Slide six for a further update on our fleet employment. We continue to benefit from a high level of forward coverage. Looking ahead, we have secured a high degree of revenue visibility in the several years. For 2026, 87% of our available voyage days have been fixed at an average daily rate of approximately $30,700 per day. In 2027, our coverage stands at about 71% with an average rate of around $31,900 per day, whilst for 2028, we already have 41% of our days secured at an average rate of around $32,400 per day. This forward coverage, achieved through our disciplined chartering strategy, allows us to balance market exposure with earnings stability across different phases of the cycle. It provides meaningful cash flow visibility and positions us to sustain profitability over the next several years, even in the event of a sudden market correction. Moving on to Slide eight, let's review the key market developments during 2025. One-year time charter rates remain firm at historically elevated levels, supported in the near term by a substantial portion of the fleet being fixed forward. This forward coverage has helped sustain charter rate resilience even though the freight market softened amid increased vessel supply and seasonally weaker demand. The Shanghai Containerized Freight Index recovered by approximately 13% from near two-year lows recorded in late September. On a quarter-on-quarter basis, average rates across the major container segments were largely unchanged and continue to hover around similar high levels. Secondhand asset prices remained stable in 2025 compared to the previous quarter. This resilience was…

Over the next few slides, I will give you the usual overview of our financial highlights for the fourth quarter and full year of 2025, and compare them to the same periods of the year before, 2024. For that, let's turn to Slide 18. For 2025, the company reported total net revenues of $57,400,000, representing a 7.7% increase over total net revenues of $53,300,000 during 2024. The increase is mainly due to the result of the higher charter rates earned in 2025 compared to the corresponding period the previous year, partly offset by the decreased average number of vessels that we operated in 2025. Consequently, including the $9,200,000 gain on the sale of our vessel MV Marcos V during the fourth quarter, we reported a net income for the period of BRL 40.5 million as compared to a net income of $24,400,000 for 2024. Total interest and other financing costs for 2025 amounted to $3,400,000 compared to $4,100,000 for the fourth quarter of the previous year, before accounting for €600,000 of imputed interest income related to the self-financing of the pre-delivery payments for one of our newbuildings at the time, which was capitalized. This decrease is mainly due to the decreased benchmark interest rates of our bank loans in the current period, 2025, partly offset by the slightly higher amount of debt we carried. During both periods, we reported interest income of about $800,000. Adjusted EBITDA for 2025 increased to $40,700,000 compared to $32,800,000 for the corresponding period of 2024, a 24% increase primarily due to the higher revenues we collected. Basic and diluted earnings per share for 2025 were $5.92 and $5.79 respectively, calculated approximately on about 7,000,000 basic and diluted weighted average number of shares outstanding compared to basic and diluted earnings per share of $3.51 and $3.49…

Thank you, Anastasios. Let me now open up the floor for any questions you may have. Thank you.

We will now be conducting a question-and-answer session. Our first question comes from the line of Mark Reichman with Noble Capital Markets. Please proceed with your question.

Thank you. Well, I know you have got some of those balloon payments coming up, but I was just wondering, given your strong liquidity and contract backlog, how are you prioritizing between the dividends, share repurchases, secondhand acquisitions, and potential newbuild orders? Basically your capital allocation priorities.

We will continue giving a strong dividend to our shareholders. We will continue looking at opportunities to grow the company accretively. We do not see such opportunities in the secondhand market, so we are more focused on the newbuilding market. We will keep very moderate leverage, and we will capitalize whenever there is an investment opportunity to do. I think that is the strategy in one minute.

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

Scrapping will not happen unless we see charter rates falling, right? Because now even very old vessels continue to get employment at very decent rates. So, as soon as the market drops though, I would expect a significant increase in the number of ships that go to the scrapyard. Because indeed the average age of the fleet has grown dramatically. So, first step that will happen is the market will drop at some point, perhaps because the world finds some equilibrium and we start trading through the Suez and do not have such disruptions. That will mean there will be too many ships around, that will mean the market will fall. Charter rates will drop. Vessels will be scrapped, older vessels will be scrapped. And then we will be buying more secondhand vessels at significantly lower prices. The newbuilding market has grown sufficiently, as we discussed, but now one can expect to take a newbuilding delivery in 2029 onwards. So this makes quite a lot of people reluctant to place orders when they are going to receive the vessels three, four years down the line.

And then just—I ask this question generally every conference call—could you just provide some visibility on the off-hire or drydocking days in 2026? Maybe even 2027.

I will be happy to provide that. I mean, as I said on top of my—the drydocking strategy for the next—it is very, very limited. It is very, very limited for this year. So we have gone through most of the, as Aristides said, imminent drydockings.

We have two, I think, this year.

Yes. And whatever the expenses are pretty minimal for the next twelve months. So you can tell from the chart on Slide 21 that the actual component is very small per day, so that is reflective, I guess, for the—

Okay. Well, thank you very much. I really appreciate it. It is very helpful.

Thank you, Mark. Thank you.

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

Thank you. I mean, arguably, I think asset values and the long-term contracted value for the sector has gone up, and M&A probably lifting higher. But separately, on the other side, I see operating expenses per day of $7,000 roughly in the fourth quarter, up about 5% year over year. Based on your exposure in the sector, can you talk—as the market is pricing higher for crew costs, supplies—what do you see across your business?

A big part of those, Tate, is the dollar-euro exchange rate that was the most opposite for us during the fourth quarter, during the latter part of 2025. A portion of our operating expenses are in euros—the management fee and some other expenses. So that is part of it.

Are you seeing any higher salary costs, salaries—yes, crew salaries—and probably not to that 5% increase amount. Or is that not—

No. Increases are below 5%, both on crew costs and G&A. It is the euro-dollar thing that has increased a little bit spare parts, management fee costs, things like that affected by the euro-dollar. Also, please note that on the quarter, at least, where we operated two vessels less in the fourth quarter of this year, the G&A component is divided by a smaller number of ships, and so that is why you see probably a little bit bigger jump on a per-day basis on a per-vessel basis.

Okay. And while I have you two, I mean, dividend policy—impressive streak of dividend increases. How do you and your Board evaluate the dividend? I mean, how do you compare what you see from other containership companies? Are you looking at 20%, 30% payout ratio or depending on the year, please?

We do not have a steady payout ratio that some other companies have. But we do have a strategy of providing a very decent dividend to our shareholders. I think our current dividend yield of around 5% is about the lowest level we will have it at. So, if need, we might pay out more out of our—we pay out of our earnings in dividends so that we continue to pay a very decent dividend.

Thank you.

You are welcome, Tate. Thanks.

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

Yes. Hello. You have covered a lot of ground, and you always do a comprehensive overview of the industry. Aristides, if you could just highlight what the near-term prospects are for some of your upcoming open days. Specifically, looking at the older assets, the Corfu, the—I never can pronounce this correctly, but the—can you please name of my godmother. I know, and I always apologize for pronouncing her name incorrectly. I just cannot get it. But if you could just talk about the prospects there and then at what point do you consider scrapping those older assets—

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

Okay. The implication is that rates are high enough to keep those in the fleet active until maybe the 2027 timeframe, maybe 2028.

So yes, I would say, Poe, that, you know, they are going to pass this special survey now. So they will potentially have another three years of life if they pass the special survey. We will be able to trade them for another three years before we need another extensive survey. And that is probably the time that they will be scrapped.

Okay. And with extensive forward cover, as Anastasios says, it makes it simpler for us to model out the cash flows and how your financial position is going to look. And even with newbuild costs of $140,000,000 to $150,000,000, I think over the next two years, I have you in a net cash position assuming that you do not need to finance those newbuild payments. You have bought stock back fairly—not as sizable as maybe you would have hoped just given the potential volume constraints. You have increased the dividend. Even with a higher dividend, you are still in net cash position. At what point—and you are talking about newbuilds potentially, but newbuilds would be 2029, 2030 delivery at this point in time. So are you thinking at all about a special dividend to distribute some of the cash to shareholders? I mean, at least in my model, you are overcapitalized when I look out into 2027 and even 2028. Is a special dividend something you might consider—

You are correct, I think, in your calculations. We are not really considering a special dividend at this stage. So probably, we are hopeful that we will be able to find use for the extra capital that we currently have—better use than returning it to shareholders. But we will continue providing a very decent dividend to our shareholders.

Yes. And implied in that, Aristides, I had you increase the dividend at the middle of the year, not at the beginning of the year. Is the potential cadence of dividend increases going to be a little quicker because of how much cash you have on the balance sheet and how much cash you could—

That is very probable, but I really cannot comment on how we will decide. But the dividend will be—addition. Hopefully, our share price will appreciate, and then we will feel that we need to always have a minimum dividend and therefore increase the dividend as well.

Okay, great. Thank you.

Thanks.

Our next question comes from the line of Climent Molins with Value Investor's Edge. Please proceed with your question.

Hi, good afternoon. Thank you for taking my questions. Most has already been covered, but I wanted to follow up on Tate’s question on the cost side. Is your OpEx guidance for 2026 based on the current euro and USD rate?

What is the guidance for—what is, what we assume for the dollar-euro exchange rate?

Exactly. Because your guidance aims lower than Q4 OpEx, and it was—what were the key drivers behind that?

I think there is—basically, every year, we are making a budget for expected OpEx for the following year, which reflects potentially expenses required for certain ships during the period, and an assumption for the dollar-euro exchange rate. So I think we expect the dollar-euro exchange rates to remain in the high teens, 1.15 to 1.20 range. And typically, we budget—we are finalizing the budgets for this year now, but we, as a base, we assume a 3% overall increase for our OpEx expenses. I do not know whether that is exactly what you asked—

Yes. I was asking your assumption on the euro-USD exchange rate because you mentioned that as the driver behind the cost increase?

Yes. I mean, it is in the high teens, 1.15 to 1.20.

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

That is helpful.

That is—

Okay.

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

I just wanted to follow up on Poe’s question. You have got the four intermediate vessels to be delivered in 2027 and 2028. But when you look at your feeder vessels, I mean, you have got a few that are aging. So is now the time to start ordering some feeder vessels? I mean, there is the lead time, if you are telling us that Everdiqui and Corfu probably have about three years left?

Of course, but we are looking into that possibility. Nothing to report yet. Thank you, guys.

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

Thank you all for attending our conference call today, and we will be back in three months, starting with similar kind of results. Thank you. Thanks, everybody.

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.