EuroDry (EDRY) Q2 FY26 earnings call: guidance and Q&A

Will the average debt margin change with new financings, specifically for new builds?

The CFO expects the average debt margin to decrease, with recent quotes for new loans being closer to 1.5% compared to the current average of 1.99%.

“Most likely, if it changes, will go down. I think we are getting quotes from our banks well below 2%, closer to 1.5% lately.”

asked by Tate Sullivan · answered by Anastasios Aslidis

Inquiry about the increase in estimated dry docking days for H2 2026 (17 days vs. 2 days previously) and the expected off-hire days for 2027.

The increase in H2 2026 dry docking days is due to the vessel Alexandros's schedule, with 16 days in Q4 and the remainder in Q1 2027. For 2027, additional dry docking for the vessel Starlight and in-water surveys are scheduled, which will result in some off-hire days.

“I think that involves our vessel, Alexandros, which is dry docking falls right on the third or the fourth quarter. So now we have the budgeted 20 something, 22, 23 days. Now we have 16 on Q4 and the remaining on Q1 '27.”

asked by Tate Sullivan · answered by Anastasios Aslidis

Which factor (Indonesian export restrictions or Middle East geopolitical events) is a more important consideration for the fleet's future?

The CFO stated that anything happening in the Middle East is the "overwhelming consideration" for the entire market due to its wide-ranging side effects on trade and inefficiencies, far outweighing Indonesian export restrictions.

“I think by far, not only for us, for the whole market, anything going on in the Middle East is the overwhelming consideration because it has so many side effects either in the form of direct effects on trade or on inefficiencies introduced in the various routes.”

asked by Tate Sullivan · answered by Anastasios Aslidis

Explanation for the positive $1.5 million impact of voyage expenses in Q2 and expectations for H2.

The positive impact was due to increasing oil prices in Q2. The company delivers vessels with fuel and buys back fuel, profiting when prices rise between charter periods. If oil prices are stable, the impact would be near zero; if dropping, it would be negative. A small negative number is generally expected due to the nature of time charters.

“So in an environment with increasing oil prices, you tend to make money on the fuel, what you take back at the pre-agreed price, if the price has increased in between while the charter was being performed and you resell to the next charter, you record the gain.”

asked by Mark Reichman · answered by Anastasios Aslidis

Expectations for daily operating expenses given current control despite inflation, and potential cost pressures.

The company expects daily operating expenses to remain near budget levels, which were slightly higher (less than 3%) than the previous year. They are currently on or slightly below budget and do not foresee higher expenses in H2, having accounted for inflationary pressures in their budget.

“I think we expect it to remain near our budget levels. I think we are doing well versus our budget. Our budget was slightly higher compared to last year, I think less than 3% overall.”

asked by Mark Reichman · answered by Anastasios Aslidis

With several vessels rolling off charter, is the company inclined to lock in longer-term fixed rates or retain spot market exposure?

The Board's strategy is to secure one-year charters for a few more vessels if rates are in the high teens or start with a "two." If rates are in the mid-teens or below, they prefer spot market exposure.

“If we are in the mid-teens and below, we try to be on the spot market. If we're approaching the high teens and beyond that, we try to secure some of our tonnage on longer-term charters.”

asked by Mark Reichman · answered by Anastasios Aslidis

Is the historically low order book and aging fleet a structural support for EuroDry's vessel classes, or are they more exposed to cyclical demand factors?

While the order book is a supporting factor for their vessel sizes (Ultramax and Panamax), the age profile of these segments is older, which counterbalances the lower Capesize order book. Both demand and supply are equally important. Demand improved in 2026, supported by supply, and this is hoped to continue into 2027.

“I mean cyclicality comes both from demand and supply. For our sizes, the middle range of sizes, Ultramax and Panamax, the order book is a little higher than the Capesize order book, but the age profile of the segments is older.”

asked by Mark Reichman · answered by Anastasios Aslidis