Euroholdings Q2 2026 Earnings Call: Complete Transcript

On Wednesday, Euroholdings (NASDAQ: EHLD ) discussed second-quarter financial results during its earnings call. The full transcript is provided below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

2 million, marking significant increases from the previous year. 7%. Strategically, Euroholdings is transitioning to a tanker-focused operating model, having acquired two medium-range product tankers, while continuing to operate its two legacy container vessels. The container vessels remain fully employed under profitable time charters, with rechartering discussions underway at improved rates.

In the tanker market, Euroholdings plans to employ its vessels in the spot market to capitalize on current conditions, despite volatile rates. Future growth will focus on expanding the tanker fleet, although funding beyond one additional ship is a challenge due to current equity constraints. Management expressed confidence in securing profitable employment for the aging container ships due to favorable market dynamics, and aims to creatively grow the company without diluting shareholder value. Full Transcript OPERATOR Thank you for standing by, ladies and gentlemen, and welcome to the Euroholdings conference call on the second quarter 2026 financial results.

We have with us Mr. Aristides Pitas, Chairman and Chief Executive Officer, and Mr. Tassos Eslitis, Chief Strategy Officer. At this time all participants are in a listen-only mode.

There will be a presentation followed by a question-and-answer session, at which time if you wish to ask a question, please press star one on your telephone keypad and wait for the message advising that your line is open. 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 to Mr.

Pitas, I would like to remind everyone that in today's presentation, Euroholdings 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 that 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 also 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 to Mr. Pitas. Please go ahead, sir.

Aristides Pitas, Chairman and Chief Executive Officer Good morning ladies and gentlemen, and thank you all for joining us today for our scheduled conference call. Together with me, our Chief Strategy Officer and Treasurer. The purpose of today's call is to discuss our financial results for the three- and six-month period ended June 30, 2026. Let's turn to slide three.

We remind our listeners that Euroholdings was spun off from Euroseas on March 17, 2025 and began trading on the NASDAQ under the symbol EHLD the following day. We started off with two debt-free container vessels, the MV Aegean Express and MV Joanna, along with $14 million in cash. Euroseas shareholders received one Euroholdings share for every 2 1/2 shares they held. Since our listing, performance has been strong.

50 throughout this last quarter. 14 per share, and we've now declared our sixth consecutive dividend at the same level. On June 23, 2025, Marla Investments, affiliated with the Latiss family, acquired the 51% stake from the Peters family, becoming our major shareholder. My family retains approximately 8% ownership.

In August 2025 we announced our strategic decision to focus on the tanker sector. We successfully acquired our first medium-range product tanker, the Elas Avatar, in November 2025. We also agreed to acquire a sister vessel, the Halas Fighter, which is expected to be delivered by September 2026. Going forward, we will continue operating our two legacy feeder container ships throughout their useful commercial life while we gradually transition to a tanker-focused operating model.

Please turn to slide 4 of the presentation, which presents our main financial highlights during the second quarter of 2026. Tasos will go through these in more detail in the second half of the presentation. 52 earnings per basic and diluted share. 04 million.

Please refer to the press release for a reconciliation between net income and adjusted EBITDA. 7% based on recent trading levels. Please turn to slide 5 for an overview of our fleet after the delivery of the Halas Fighter. Our fleet will comprise two containers and two product tankers with a combined carrying capacity of about 141,000 deadweight tons.

Our container ship segment consists of up to two feeder container ships with a combined carrying capacity of 3,171 TEU and an average age of approximately 28 years. Our product tanker segment will be represented by the two MR tankers, which are built in 2015 with a carrying capacity of about 100,000 deadweight tons, and an average age of approximately 11 years. Let's turn to slide 6. Our two feeder container ships remain fully employed under profitable time charter, generating stable cash flows that support our growth initiatives.

Both vessels are employed through November 2026, but we are already discussing possibly rechartering them for an additional one to two years at an improved rate. Turning to our tanker fleet, the tanker Elas Avatar is employed in the spot market, giving us the flexibility to capitalize on current market conditions. We are actively pursuing follow-on employment for the vessel and remain confident we can secure attractive charter rates. While MR tanker rates have moderated from earlier this year, they still remain above long-term averages.

Similarly, we plan to employ the Halas Fighter on the spot market once we get delivery of her. Please turn to slide 7, which displays 6- to 12-month time charter rates for 1,700 TEU feeder container ships over the past decade. As of August 7, the prevailing market rate stands at approximately $31,750 per day, well above the ten-year average of approximately $18,500 per day and nearly three times the ten-year median of $11,720 per day. This underscores the exceptional strength of the current charter market.

Our strategy to recharter these vessels rather than sell them or scrap them is well supported by these market dynamics. Despite the age of our container ships, we are confident that we will secure profitable employment at levels well above historical norms. I will now continue with an overview of the product tanker market. Please turn to slide 9, which illustrates MR tanker time charter rates for both one- and three-year terms.

On the one-year side, current rates stand at $29,000 per day, above the five-year average of about $26,000 and a five-year median of $27,500. For three-year charters, rates are at $23,500 per day, above the five-year average of $22,000 per day and in line with a five-year median of $23,250 per day. Moving on to slide 10, we can see the development of newbuilding and secondhand values. Secondhand asset values have historically responded more directly to changes in freight market conditions and they depend primarily on shifts in demand-supply conditions.

On the other hand, newbuilding prices depend significantly also on other structural factors such as yard capacity, input costs, inflation, and labor availability and cost. With shipbuilding costs rising significantly over the last few years, secondhand prices are finding a higher level. As of August 7, MR newbuilding prices stood at $52 million, compared to five-year secondhand values of $48 million and 10-year secondhand values of $38 million. These valuations reflect the current strength of the market and provide confidence in our asset base.

Let's now move into slide 11, which examines the MR tanker fleet age profile and orderbook. The global MR fleet exhibits a relatively old age profile, with approximately 47% of the fleet over 15 years of age, while only about 15% of the fleet is less than 5 years old. This aging fleet will require increasing replacement over the medium term as more vessels are approaching special survey and facing higher maintenance, inefficiency, and regulatory compliance costs. These dynamics underscore the need for continued fleet renewal across the sector.

Looking at the scheduled deliveries for 2026, these are projected to be lower than in 2025, indicating a moderating pace of fleet additions. 5% of the existing fleet, well below historical cyclical peaks. The combination of an aging fleet, measured new supply, and the historically lean orderbook creates a constructive medium-term supply backdrop for the MR tanker market. Let's now turn to slide 12, which highlights the trade demand outlook for product tankers.

4 million barrels per day in 2010 to around 23 million barrels per day in 2024. Whilst volumes are expected to soften moderately during 2026, they remain at historically elevated levels and are projected to recover in 2027. 7 trillion ton-miles in 2025. This reflects a structural shift towards longer voyage distances, which supports product tanker demand.

Beyond simple volume growth, global oil consumption has demonstrated remarkable resilience, growing from 79 million barrels per day in 2003 to more than 110 million barrels per day during the first half of 2026. Despite the temporary disruption experienced during the pandemic, this sustained demand provides a stable foundation for refinery throughput. Finally, global refining capacity has broadly kept pace, expanding from 92 million barrels per day in 2010 to around 103 million barrels per day today, and is projected to reach approximately 105 million barrels per day by 2028. Together, these fundamentals provide support to a constructive outlook for product tanker demand.

Let's move now to Slide 13 to summarize the current tanker outlook. MR tanker fundamentals remain constructive despite a weaker macroeconomic backdrop. 9% in 2026, by Clarkson’s, freight demand is supported by structurally longer-haul trading patterns rather than volume growth. The Middle East supply shock has fundamentally reshaped trade flows.

S. Gulf and Northwest Europe—creating longer voyages and stronger MR utilization. The Russian sanctions have reinforced this dynamic, further redirecting demand to Atlantic suppliers. Diesel and gasoline account for over 70% of MR cargo volumes and, while refining activity has softened, these headwinds have largely been offset by historical inefficiencies across global supply chains.

Freight rates have normalized from their peaks but remain well above long-term averages. Historically low global inventories represent a meaningful upside catalyst. The 2027 and 2028 global inventory rebuild cycle could generate transportation demand in excess of normal consumption levels. On the supply side, as discussed earlier, fleet fundamentals are healthier than the headline orderbook suggests.

5% of the existing fleet, more than 27% of today's fleet will be over 20 years old by 2028. As a result, scheduled deliveries will largely replace aging tonnage. Collectively, we expect freight markets to remain structurally firmer but considerably more volatile. While the extraordinary freight earnings experienced during the initial phase of the global disruption are unlikely to be repeated, geopolitical fragmentation, Atlantic Basin growth, inventory rebuilding, and longer voyage distances should keep rates above historical norms.

I will now pass the call over to Thassos, who will go over the financial highlights in more detail. Tassos Eslitis, Chief Financial Officer Thank you very much. Good morning from me as well, ladies and gentlemen. To review our financials, let's turn to Slide 15 to look at the second quarter and first half of 2026.

9 million during the second quarter of last year. This was the result of the increased average number of vessels we operated in the second quarter compared to last year and, of course, the increased average time charter equivalent earnings our vessels earned in this period. 8 million for the second quarter of 2025. Interest and other financing costs for the second quarter of 2026 amounted to — as a result of the loan drawn to finance the acquisition of motor vessel Elas Avatar in the fourth quarter of last year.

Interest expense during the second quarter of last year was nil. 8 million during the second quarter of 2025. 8 million basic and diluted weighted average number of shares outstanding. 30 per share for the same quarter of last year.

Let's now look at the corresponding six-month period ended June 30, 2026, and compare it to the same period of last year. 1 million during the first half of 2025, and that again was the result of the higher average number of vessels we operated and the increased average time charter equivalent rates our vessels earned. 0 million for the first half of 2025. Interest and other financing costs for the first half of 2026 amounted to — as a result of the loan drawn to finance Elas Avatar.

Interest for the first half of 2025 was also zero. 7 million for the first half of last year. 8 million basic and diluted weighted average number of shares outstanding. 60 per share.

Let's turn now to Slide 16 where we review our fleet operating metrics for the second quarter of 2026. During the second quarter of 2026 we maintained a 100% utilization rate across the fleet, consistent with the corresponding period in 2025. On average, we owned and operated three vessels during the second quarter of this year, earning an average time charter equivalent rate of $28,039 per day, compared to two vessels we operated in the same period of last year, earning an average of $16,528 per day. Our total operating expenses were $8,042 per vessel per day during the second quarter of 2026, compared to $11,296 per vessel per day for the second quarter of 2025.

Our breakeven rate for the second quarter of this year was $10,440 per vessel per day as compared to $11,363 for the second quarter of 2025. In the second quarter of this year, we also paid dividends equivalent to $1,444 per vessel per day versus declared dividends of $2,167 per vessel per day for the second quarter of 2025. The difference between this is that in 2025 we had two vessels and this year we had three. 1 vessels in the same period of 2025, earning an average of $16,158 per day.

Our total operating expenses for the first half of this year were $8,605 per vessel per day, compared to $9,858 per vessel per day in the first half of 2025. Our breakeven rate for the first half of 2026 was about $12,600 per day, compared to $10,762 per day in the first half of 2025.