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1. Company Snapshot

1.a. Company Description

EuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide.The company owns and operates drybulk carriers that transport major bulks, such as iron ore, coal, and grains; and minor bulks, including bauxite, phosphate, and fertilizers.As of March 31, 2022, it operated a fleet of ten drybulk carriers comprising five Panamax drybulk carriers, two Ultramax drybulk carrier, two Kamsarmax carriers, and one Supramax drybulk carrier with a cargo capacity of 726,555 deadweight tons.


EuroDry Ltd.was incorporated in 2018 and is based in Marousi, Greece.

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1.b. Last Insights on EDRY

EuroDry Ltd.'s recent performance was negatively impacted by a Q4 loss of $0.25 per share, missing the Zacks Consensus Estimate by a significant margin. The company's earnings declined to a loss of $0.25 per share from a profit of $0.70 per share in the same period last year. Additionally, EuroDry's revenue fell short of estimates, indicating a decline in its drybulk vessel operations. The sale of M/V Tasos, a 2000-built Panamax Bulk Carrier, for demolition, may have contributed to the company's reduced revenue base.

1.c. Company Highlights

2. EuroDry's Q3 2025 Earnings: A Deeper Dive into Financials and Outlook

EuroDry Limited reported total net revenues of $14.4 million for the third quarter of 2025, a 2.2% decrease from $14.7 million in the same period last year. The adjusted net loss attributable to controlling shareholders was $0.23 per share, worse than the estimated loss of $0.15 per share. Adjusted EBITDA for the quarter was $4.1 million, down from $5 million in Q3 2024. The company's financial performance was impacted by the challenging market conditions, with the management fees, general, and administrative expenses increasing to $7,013 per vessel per day in Q3 2025 from $6,851 in the same period last year.

Publication Date: Nov -30

📋 Highlights
  • Net Loss and Adjusted EBITDA:: Reported $700,000 net loss ($0.24/share) and $4.1M adjusted EBITDA for Q3 2025.
  • Fleet Expansion:: Signed to purchase two 63,100-ton Ultramax vessels, scheduled for 2027 delivery, adding to 11-vessel fleet.
  • Share Repurchases:: Spent $5.3M to buy 135,000 shares; share repurchase program extended for an additional year.
  • Market Index Growth:: Baltic Dry Index surged 614% YoY, while Panamax charter rates averaged $15,125/day, above 20-year median.
  • Net Asset Value Undervaluation:: Estimated fleet market value of $214M exceeds book value by $38M, translating to $44/share NAV vs $13/share trading price.

Operational Highlights

The company's operational performance remained strong, with commercial utilization at 99.6% and operational acquisition at 99.2% for the first nine months of 2025. The average number of vessels operated was 12.3, earning $13,639 per vessel per day. The total cash flow breakeven level for the first nine months of 2025 was $12,071 per vessel per day, compared to $13,789 in the same period of 2024. According to the management, the drybulk carrier market is expected to enter a rebalancing phase, with new deliveries declining and scrapping activity picking up, leading to a more balanced supply-demand environment.

Market Outlook and Valuation

The drybulk market is showing signs of recovery, with the Baltic Dry Index and the Baltic Panamax Index recording year-over-year increases of approximately 614% and 6.4%, respectively. The company's net asset value per share is estimated to be in excess of $44, significantly higher than the recent trading price of $13 per share. The current valuation metrics indicate that the stock is trading at a Price-to-Book Ratio of 0.4, and an EV/EBITDA ratio of 10.44. With analysts estimating revenue growth of 23.6% for next year, there is potential for share appreciation if market conditions improve or other capital costs decrease.

Debt and Liquidity

The company's debt stood at $97.9 million as of September 30, 2025, with an average margin of 2.05%. The cost of senior debt is approximately 5.9%, assuming a 3.84% short rate. EuroDry has plans to improve near-term liquidity by refinancing certain assets and has drawn approximately $53 million in debt to finance two newbuildings. The company's liquidity has improved significantly, and it is well-positioned to navigate the challenging market conditions.

Future Plans and Expectations

The company has a number of vessels scheduled for dry docking in the coming years, including the Vixenya, Starlight, and Blessed Buck. EuroDry plans to continue its share repurchase plan, with the Board of Directors approving an extension of the program for an additional year. The company's management is focused on navigating the challenges in the drybulk market and is taking steps to improve liquidity and reduce costs.

3. NewsRoom

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EuroDry Ltd. (EDRY) Q3 2025 Earnings Call Transcript

Nov -14

Source: seekingalpha.com

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EuroDry (EDRY) Reports Q3 Loss, Misses Revenue Estimates

Nov -13

Source: zacks.com

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EuroDry Ltd. Sets Date for the Release of Third Quarter 2025 Results, Conference Call and Webcast

Nov -10

Source: globenewswire.com

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EuroDry (EDRY) Upgraded to Buy: What Does It Mean for the Stock?

Oct -08

Source: zacks.com

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Are Transportation Stocks Lagging EuroDry (EDRY) This Year?

Oct -08

Source: zacks.com

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Should You Buy EuroDry (EDRY) After Golden Cross?

Sep -08

Source: zacks.com

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EuroDry (EDRY) Reports Q2 Loss, Lags Revenue Estimates

Aug -11

Source: zacks.com

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EuroDry Ltd. (EDRY) Q2 2025 Earnings Call Transcript

Aug -11

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Time Charter

Expected Growth: 4.83%

EuroDry Ltd.'s 4.83% Time Charter growth driven by increasing global trade, rising commodity demand, and a rebound in shipping rates. Additionally, the company's modern fleet and operational efficiency have enabled it to capitalize on the upswing in the dry bulk shipping market, further boosting revenue.

Commissions

Expected Growth: 4.83%

EuroDry Ltd.'s 4.83% growth in commissions is driven by increasing demand for dry bulk shipping services, expansion into new markets, and strategic partnerships. Additionally, the company's focus on operational efficiency and cost savings has contributed to improved margins, further boosting commission growth.

Voyage Charter

Expected Growth: 4.83%

EuroDry Ltd.'s 4.83% growth in Voyage Charter is driven by increasing global trade, rising commodity demand, and a growing need for dry bulk shipping. Additionally, the company's strategic fleet expansion, operational efficiency, and cost management have contributed to this growth.

7. Detailed Products

Dry Bulk Vessels

EuroDry Ltd. operates a fleet of dry bulk vessels that transport a variety of dry bulk cargoes such as iron ore, coal, grains, and other commodities.

Supramax Vessels

EuroDry Ltd. operates a fleet of Supramax vessels that cater to the transportation needs of dry bulk commodities.

Ultramax Vessels

EuroDry Ltd. operates a fleet of Ultramax vessels that provide efficient and cost-effective transportation of dry bulk commodities.

Kamsarmax Vessels

EuroDry Ltd. operates a fleet of Kamsarmax vessels that cater to the transportation needs of dry bulk commodities.

Ship Management Services

EuroDry Ltd. provides ship management services that include technical management, crew management, and commercial management.

8. EuroDry Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for EuroDry Ltd. is medium due to the availability of alternative dry bulk shipping companies.

Bargaining Power Of Customers

The bargaining power of customers for EuroDry Ltd. is low due to the company's strong relationships with its customers and the lack of concentration in the customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for EuroDry Ltd. is medium due to the availability of alternative suppliers of dry bulk shipping services.

Threat Of New Entrants

The threat of new entrants for EuroDry Ltd. is low due to the high barriers to entry in the dry bulk shipping industry, including the need for significant capital investment and regulatory compliance.

Intensity Of Rivalry

The intensity of rivalry for EuroDry Ltd. is high due to the competitive nature of the dry bulk shipping industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.66%
Debt Cost 7.04%
Equity Weight 51.34%
Equity Cost 7.67%
WACC 7.36%
Leverage 94.77%

11. Quality Control: EuroDry Ltd. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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ZIM Shipping

A-Score: 5.8/10

Value: 10.0

Growth: 6.7

Quality: 6.9

Yield: 10.0

Momentum: 1.0

Volatility: 0.3

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HHLA

A-Score: 5.0/10

Value: 6.0

Growth: 2.6

Quality: 2.4

Yield: 3.8

Momentum: 8.0

Volatility: 7.3

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Seanergy Maritime Holdings

A-Score: 4.5/10

Value: 7.8

Growth: 2.2

Quality: 3.8

Yield: 9.4

Momentum: 1.5

Volatility: 2.3

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Cadeler

A-Score: 4.0/10

Value: 7.3

Growth: 5.8

Quality: 5.9

Yield: 0.0

Momentum: 0.5

Volatility: 4.3

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DFDS

A-Score: 3.3/10

Value: 8.7

Growth: 5.3

Quality: 1.3

Yield: 1.2

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

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EuroDry

A-Score: 2.4/10

Value: 8.0

Growth: 2.9

Quality: 0.4

Yield: 0.0

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.22$

Current Price

13.22$

Potential

-0.00%

Expected Cash-Flows