Thank you for standing by, ladies and gentlemen. Welcome to the EuroDry Limited Conference Call on the Third Quarter twenty twenty five Financial Results. We have with us today Mr. Aristides Pittas, Chairman and Chief Executive Officer and Mr. Tazos 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. I must advise you that this conference is being recorded today. Please be reminded that the company announced its 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, EuroDry will be making forward-looking statements. These statements fall 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 that 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 turn 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 Mr. Tazos Aslidis, our Chief Financial Officer. The purpose of today's call is to discuss our financial results for the three and nine month period ended September 30, 2025. Please turn to Slide three of the presentation. Our financial highlights are shown here. For 2025, we report total net revenues of $14,400,000 and a net loss attributable to controlling shareholders of $700,000 or a $0.24 loss per basic and diluted share. Adjusted net loss attributable to controlling shareholders for the quarter was $600,000 or a $0.23 loss per basic and diluted share. Adjusted EBITDA for the quarter was $4,100,000. Please refer to the press release for the reconciliation of adjusted net loss and adjusted EBITDA. Our work today will have purchased about 135,000 shares of our common stock in the open market for a total of $5,300,000 under our $10,000,000 share repurchase plan, which we announced in August 2022. Our Board of Directors has approved an extension of the program for an additional year. We intend to continue executing the process up to the originally approved amount of $10,000,000 at a disciplined rate, taking into account the company's liquidity needs and relatively small free float. Please turn to Slide four to view our recent developments. On October 21, 2025, we delivered motor vessel LNVP to our new owners, an unaffiliated third party. The vessel was one of our oldest ships and had been held in our fleet for a long time. She was sold for $8,500,000. On the chartering front, our fixtures during the third quarter were predominantly short-term. Several of our vessels are currently employed under time charters ranging between a month to a little over three months. As conditions improve, we will position our vessels advantageously. While the Red Sea disruptions continue to influence route decisions and freight premiums, their impact on dry bulk charter rates has largely stabilized. Towards the end of the quarter, seasonal patterns began to reassess and the market showed signs of recovery which have continued. The specifics of the charters fixed during the period are outlined in the accompanying presentation. Most notable are often due to the length of the charters. The motor vessel administrator secured an extension of its index-linked charter at 115% of the average Baltic time charter index until at least November 2026. During this quarter, the motor vessel Santa Cruz completed a special survey and dry dock over a period of thirty-five days. Slide five shows EuroDry's current fleet, which consists of 11 vessels with an average age of approximately ten point eight years and a total carrying capacity of about 767,000 deadweight tons. In addition, we have two Ultramax vessels under construction, each with a capacity of 63,100 tons scheduled for delivery in 2027. Upon delivery, our fleet will expand to 13 vessels with a total carrying capacity of just under 900,000 deadweight tons. Now please turn to Slide six for a visual update on our current fleet employment. As of September 30, 2025, our fixed rate coverage for the remainder of the year stands at approximately 5%. This figure excludes vessels operating under index-linked charters, which, while subject to market fluctuations, still have secured employment. We currently have four vessels - the Maria, Goodheart, Molyboslak, and Jani Peters - trading on index-linked charters with durations ranging until March 2026 and at least November 2026. Turning to Slide eight, we will go over the general market highlights for the third quarter ended September 30, 2025 and up until recently. Panama export rates rose steadily through 2025, increasing from an average of about $14,100 per day to approximately $14,950 per day by corporate end, reflecting a slight increase. As of November 7, spot rates for Panamax vessels increased further and now stand at around $15,500 per day. Now, one-year time charter rates are a bit lower than the spot rate, and Clarksons gives the standard Panamax one UTC rate at $15,125 per day. During the third quarter, the Baltic Dry Index and the Baltic Panamax Index recorded year-over-year increases of approximately 614% respectively, reflecting a slightly better market compared to the same period last year. This recent recovery in the super range was supported by stronger than expected demand from minor bulks, robust grain trade flows, and marginal tightening in vessel supply driven by longer volume distances and regional trade disruptions. Please now turn to Slide nine. According to the IMF's October 25 projections, global growth is expected to ease slightly from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026. With advanced economies growing around 1.5% and emerging markets and developing economies just above 4%. Persistent trade tensions and ongoing policies are impacting investment and trade activity, and as tariffs work their way through supply chains onto consumers. The IMF predicts a gradual but not too severe global growth deceleration. Global inflation is projected to moderate worldwide, though unevenly across regions, remaining above target in the United States where risks remain tilted to the upside and most subdued elsewhere. U.S. growth is projected at 2% in 2025 and 2.1% in 2026. This modest upgrade revision from earlier forecasts reflects smaller than expected effects from tariffs and more favorable financial conditions. In late October, the Federal Reserve lowered the target range for the Federal Funds rate by 25 basis points to 3.775% to 4%. Chair Powell has not ruled out the possibility of an additional rate cut at the December meeting. The overall outlook remains fragile, with downside risks stemming from persistent uncertainty, potential protectionist measures, and ongoing labor constraints. Among emerging markets, India is forecast to grow by 6.6% in 2025 and 6.2% in 2026, supported by robust domestic investment, resilient agricultural output, and vital services. The ZM5 economies are expected to post solid growth of around 4.2% in 2025 and 4.1% in 2026, underpinned by healthy regional growth and continued industrial activity. China's economic outlook is projected to continue at a decelerating pace. These challenges include the widening gap between supply and weak domestic demand, as well as ongoing trade tensions with the U.S., including the new tariffs on Chinese goods, export controls, and restrictions on high-tech exports. China's growth is expected to moderate to 4.8% in 2025 and 4.4% in 2026. Despite domestic headwinds, the Chinese economy is being supported by strong export performance to regions like Southeast Asia and the EU, along with a still-resilient manufacturing sector. Turning to the dry bulk sector to see how global growth affects the demand for dry bulk, Clarkson Research now projects dry bulk trade demand growth at just 1.4% in 2025, 2.1% in 2026, and 1.8% in 2027, indicating a stronger trajectory than previously estimated growth. The recovery is supported by steady output in Asia, continued demand from iron ore bags, and improving agricultural and coal trade flows. Please turn to Slide 10 to review the current state of the order book in the dry bulk sector. As of November 2025, the order book stands at approximately 10.9% of the existing fleet, which is higher than the 7% recorded in 2021, but remains amongst the lowest levels in history. For context, the order book accounted for 8% of the fleet in 2008 and nearly 30% in 2004. Current ordering activity remains limited due to shipyard capacity constraints, high new building costs, and uncertainties surrounding future fuel technologies and environmental regulations. Turning to Slide 11, let us now look into the supply fundamentals in a little bit more detail. As of November 2025, the total dry bulk fleet comprises roughly 14,150 vessels. According to Clarkson's latest estimates, new deliveries as a percentage of the existing fleet are projected at 3.7% for 2025, 4.2% for 2026, and 3.4% for 2027, with actual fleet growth expected to be slightly lower due to slippage and demolition activity. The fleet age profile shows that about 10.6% of the global fleet is over twenty years old, representing a pool of potential scrapping candidates, particularly if market conditions worsen and environmental requirements tighten further. Overall, fleet renewal remains balanced amongst the various vessel sizes. The majority of vessels are concentrated in the ten to fourteen-year-old range, while still most vessels built around that time were not ECO ships. Therefore, the number of ECO vessels available in the market is still a minority amongst the existing fleet. Please turn to Slide twelve, where we summarize our outlook for the dry bulk market. The dry bulk carrier market is experiencing notably junior sales courses with average time charter rates for Supramax and Panamax vessels increasing by roughly 13% quarter on quarter, reflecting improved demand trends across several key commodities. The Red Sea attacks earlier in the summer disrupted Canal transit further and tightened vessel supply, thus supporting trade demand. Demand for larger vessel classes remains strong while smaller segments also recorded gains, adding to the overall positive trend. Looking ahead to the remainder of 2025, market conditions still remain uncertain, shaped by recent geopolitical and policy developments. In October 2025, as we all know, the U.S. and China escalated their trade dispute, introducing reciprocal port fees on each other's vessels, which added complexity to shipping operations. However, following the meeting between President Trump and President Xi last month, both sides signaled a temporary de-escalation, and port fees were postponed. Meanwhile, the ceasefire between Israel and Hamas has also drawn attention to potential easing of Red Sea disruptions. For now, shipping companies are still adopting a cautious wait-and-see stance and no immediate changes in routing patterns have been observed. In 2026, the market still faces challenges around trade growth and trade adjustment patterns. However, Chinese demand for iron ore will remain a key driver, while global infrastructure spending should continue to support industrial materials trade. Strong harvests in the U.S., Brazil, and Russia are also expected to sustain robust grain exports for the Supramax and Panamax sectors. A rebound in corn trade and steady minor bulk demand are also anticipated. However, the potential normalization of Red Sea traffic could result in lower ton-mile demand as routes revert. On the supply side, ordering activity remains limited due to shipyard capacity constraints and continued uncertainty about fuel technologies, especially after the recent IMO decision to postpone the adoption of its proposed environmentally friendly routes. Ship owners are confused about what type of ships to order. The order book-to-fleet ratio currently near historical lows, provides a solid backdrop for charter rates, should demand strengthen. Although there is a clear industry shift towards alternative fuels, the pace of transition is expected to be slower than anticipated, constrained by technical challenges, economic considerations, and ongoing delays in the IMO's next net-zero framework. Aspirational measures related to the EXI, CII, EU ETS, UME, and UMAD Times may fully be implemented as apparent supply tightens further through increased scrapping and slower vessel speeds. By 2027, the dry bulk market is expected to enter a rebalancing phase with new deliveries declining and scrapping activity picking up, leading to a more balanced supply and demand environment. Let's turn to Slide 13. As of November 7, 2025, the one-year time charter rate for Panamax vessels stood at $15,125 per day, remaining modestly above the twenty-year historical median of $13,375 per day. The market for ten-year-old Panamax bulk carriers remains firm. In fact, we have seen an approximately 10% increase over the lows seen in Q2, which represented the lowest point since mid-2023. Current asset value stands at approximately $26,000,000, which is well above the historical median of $15,500,000 and the ten-year average of $18,000,000, underscoring continued resilience in second revenue building orders. We are in a position to continue modernizing our fleet and preparing ourselves for the next bull run, which will, as usual, perhaps suddenly and possibly when least expected. Let me now pass the floor over to our CFO, Tazos Aslidis, to go over our financial highlights in more detail.

Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. Over the next four slides, I will give you an overview of our financial highlights for the third quarter and nine months of 2025, and compare them to the same periods of last year. For that, please turn to Slide 15. For 2025, we reported net revenues of $14,400,000, representing a 2.2% decrease over total net revenues of $14,700,000 during the third quarter last year, which is primarily the result of the decreased average number of vessels we operated and relatively lower market compared to the same period of last year. Details on other financing costs, including interest income, for 2025, amounted to $1,600,000, compared to $1,900,000 for the same period in 2024. Interest expense in the third quarter of this year was lower primarily due to partly offset by the increased average amount of debt we carried. Adjusted EBITDA for 2025 was $4,100,000 compared to $5,000,000 achieved during 2024. Basic and diluted loss per share attributable to controlling shareholders for 2025 was $0.24 calculated on approximately $2,800,000 base diluted weighted average number of shares outstanding, compared to a loss per share of $1.53 attributable to about the same number of basic and diluted weighted average number of shares for the third quarter of last year. Excluding the effect from the loss attributable to controlling shareholders for the quarter of the unrealized loss on derivatives, the adjusted loss for the third quarter of this year would have been $0.23 per share based on diluted shares compared to an adjusted loss of $1.42 per share based on basic and diluted shares for the same period in the third quarter of 2024. Let's now look at the numbers for the corresponding nine-month period ended September 30, 2025 and compare them to the same period, the nine months of 2024. For the first nine months of 2025, we reported total net revenues of $34,900,000, representing a 25% decrease over total net revenues of $46,600,000 that we reported during the first nine months of 2024. Adjusted EBITDA for the first nine months of 2025 was $5,000,000 compared to $7,600,000 during the first nine months of 2024. Again, excluding the effect of the net loss attributable to controlling shareholders during the first nine months from the unrealized loss on the EBITDA and the net gain on the sale of a vessel, the adjusted loss for the nine months period ended September 30, 2025 would have been $3.39 per share, based on diluted shares compared to adjusted loss for the nine months ended September 30, 2024. Please move now to Slide 16 to review our fleet performance. We'll start our review by looking at our fleet utilization rates for the third quarter and nine month periods of 2025 and compare them to the same period of last year. During 2025, our commercial utilization rate was 100%, while our operational utilization rate was 99.3% compared to 100% commercial and 98.5% operational in the corresponding period of 2024. Additionally, we own and operated 12 vessels in the first nine months of 2025 compared to 13 vessels in the same period of 2024, resulting in an average time charter equivalent rate of $13,232 a day compared to 13 vessels in the same period for 2024 and another rate of $13,105 per vessel per day. Our total daily operating expenses including management fees, general and administrative expenses, but excluding buybacks and costs were $7,013 per vessel per day in the third quarter of 2025 compared to $6,851 per vessel per day for the same period of last year. This new charter down is stable. We can see the cash flow breakeven level, which also accounts for our entire growth and expenses, interest expenses, and loan repayments. Thus, for 2025, our daily cash flow breakeven level was $12,200 per vessel per day compared to $15,145 per vessel per day for the first quarter of last year. Reviewing the same figures for the nine-month period and comparing them to the same periods of last year, we reported a commercial utilization rate of about 99.6% and an operational utilization rate of 99.2% for the first nine months of this year compared to 99.9% commercial and 98.7% operational for the same period of last year. On average, we operated 12.3 vessels during the first nine months and achieved a daily rate of $10,210 compared to operating 13 vessels during the same period of last year, earning an average of $13,639 per vessel per day. Fuel analysis further down for operating expenses: Our operating expenses including management fees and general and administrative expenses, excluding operating costs, were $7,285 per vessel per day in the first nine months of this year compared to $6,927 for the same period of last year. If we include interest expenses, loan repayments, and direct working expenses, our total cash flow breakeven level for the first nine months of 2025 would be $12,071 compared to $13,789 per vessel per day for the same period of 2024. Let's now move to slide 17 to give you some highlights regarding our debt and our forward cash flow breakeven. As of September 30, 2025, EuroDry's debt stood at $97,900,000, with an average margin of about 2.05%. Assuming a three-month short rate of 3.84%, the cost of our senior debt is approximately 5.9%. The repayment schedule of our debt you can see on the top right chart of this slide, which shows total debt repayments of $13,100,000 in 2025, of which 10.3% have already been made. As of September 30, 2025, cash and other assets on our balance sheet stood at approximately $18,800,000, while our advances for new buildings amounted to about $7,200,000. In addition, on the asset side, we have the book value of our vessels, which was about $176,000,000, resulting in a total book value of our assets of roughly $200,000,000. On the liability side, total bank debt remained at $97,900,000, which is roughly 48.4% of the book value of our assets. We have other liabilities of $5,200,000, representing about 0.6% of our total liabilities, resulting in the book value for shareholders' equity of almost $9,000,000, translating into a net book value per share of $31.8. Based on our own estimates, we believe the market value of our fleet is higher than the respective book value; we estimate it to be about $214,000,000 compared to the indicated book value of $176,000,000, approximately $38,000,000 above book value. We plan the net asset value of our fleet on a per share basis to be in excess of $44. If we compare this to the recent trading days of our shares, which is around $13 per share, it becomes evident that there is significant potential upside for share appreciation should market conditions improve or other capital costs be discounted to a level. With this statement, I would like to pass the floor back to our team to continue our call. Thank you.

Thank you very much, Tazos. I would now like to proceed to open the floor for any questions you may have. We will now be conducting a question and answer session. Our first question comes from the line of Hans Baldahl with Noble Capital Markets. Please proceed with your question.

Hello, the market fundamentals are looking more promising for 2026, and we've seen the rates push up. I know you mentioned a breakeven rate of $12,000. Can you talk about your threshold for shifting from the short-term index-linked exposure in possibly securing some longer-term coverage? Are there specific rates you're looking for?

Yes, we will reach longer-term coverage if we see numbers in the range of $15,000 to $17,000. That's the area we will be concentrating on.

Okay. And is that across the board, or is that an average between the Kamsarmax, Panamax, and Supramax categories?

It's a bit of a blend, let's say. What I just told you would generally apply, but obviously, our older Panamaxes earn less, so we might fix something at a lower rate. The younger Kamsarmax and the Supramax are probably around the same these days.

Okay. I see that the Ekaterini is looking for employment. Do you have a timeline of when you expect that vessel to start up again?

The Ekaterini was fixed a couple of days ago for a trip via South America back to the Far East. The trip is estimated to take about ninety to one hundred days at a level of approximately $16,500 per day.

Okay, understood. My last question is regarding the near-term debt. I know that with the sale of the Ekaterini and the refinancing steps, your liquidity has improved recently, but you still have the $12,200,000 in current debt. Do you have any plans to improve the near-term liquidity?

Yes. Our liquidity has improved significantly due to a couple of actions we took that are not reflected in the numbers for the nine months but have already begun affecting us. We've refinanced Janus Pittas, which will release about $4,500,000. We have sold the Ekaterini, which will release about $6,500,000 after repaying the couple of million dollars of debt that were there. We have also, as indicated in the press release, arranged to finance the pre-delivery installment payments for our new buildings.

So I think we have improved our liquidity significantly. The difference by the end of the year is projected to be plus $15,000,000 after the restructuring we executed.

Okay.

Thank you very much. That's everything for me.

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

Yes, good afternoon, Aristides. Good afternoon, Tazos.

I just wanted to follow up on the new build financing.

Tazos, did you say that you're going to draw down the first one of the two new build facilities in the fourth quarter?

Yes. So we've already done that. The second new building had its payment due this year, and we already made that payment using a loan. The other payment is still coming up. We have another loan with a different bank as well, which should be referenced in the press release. This will bring forward that payment as well.

So, I'm trying to get a sense of when you're going to show the incremental debt on the balance sheet. Because the new build payments, as I understand it, are approximately 60% of the total cost of the new builds and those aren't due until mid-2027. Can you give me an idea of what the incremental debt will look like in 2026 and 2027?

By the time of the delivery of these vessels, we would have drawn approximately $53,000,000 in debt to finance the two new buildings - $26,000,000 and $26,900,000 respectively. If we also draw debt to finance pre-delivery installments, that will be reflected in our balance sheet.

Okay, just to clarify that. And then, Aristides, can you talk about the market a little bit? I'm trying to reconcile the sudden increase in rates on the Alexandros P and Christos K in the August and September timeframe. Can you highlight the reasons you think the rates went from Alexandros P going to $6,000 to $28,000? And then Christos went from the low teens to $28,000. Could you also provide an idea of the rate outlook for both into the remainder of the fourth quarter and into early 2026?

The market, the overall market is slightly improving, as shown by the various indices. However, the indices are comprised of various different voyages. The voyages from the Far East to the Atlantic generally are low-paying voyages. The voyages from the Atlantic to the Far East are high-paying voyages. So if you secure a trip like the Ekaterini, which starts from the Far East, goes to South America, and returns to the Far East, then you will get the average rate, which is around $16,500 that we fixed. But in the two cases we're discussing, we're referring to the first two voyages that were positioning voyages to places where you can obtain higher rates to go back out, which is why you see those significant differences in earnings.

Yes. I guess the next question would be if they'll have to reposition for the rest of the fourth quarter. We should expect a lower rate for the rest of the quarter. Is that fair?

Aristides, on those two ships. I think on average, you should be looking at average charter rates. So, the way we run our models, at least we incorporate those assumptions, running our models for three, six months, or longer. We generally use market indices to reflect what we believe will happen because it's challenging to pinpoint every ship's exact value. However, yes, if a vessel is in the Far East, in China, it will have a cost to go to an area where it can command higher freight rates. Clearly, it depends on the type of next movement. If it's within the Panama Canal, it will be closer to the average. If it's back and forth in the Atlantic, it will align with the expected lower rate I previously mentioned because coming back from the Pacific would yield better rates. By taking the average is probably the safest estimate.

Yes, okay, fair enough. And then I want to clarify that the 115% of the BSI-fifty-eight that is referenced on Page eight is what you have for the four vessels currently earning at 115% of that number. It looks like about $16,625, is that correct?

Yes, it takes the Baltic Shipping Index and multiplies it by 1.15 to calculate what we are currently paying for these four vessels.

Okay. And on your chart that shows your employment on Page six, you don't have any dry docks scheduled through the middle of 2026. Will there be any dry docks over the next nine months? Can you highlight what your dry docking schedule might look like?

Yes. There is a dry dock for Vixenya that is going to happen very soon. Other than that, I don't think we have anything else within the next six to nine months. We will only have one dry dock in 2026 towards the second half of the year.

Okay. And then typically, I guess, you discussed your fleet renewal business program concerning lower rates. When will the dry docks occur for the Starlight and the Blessed Buck, which are still two of the oldest Panamaxes you have? The Santa Cruz was done in the third quarter, so I'm assuming you're going to keep that for a while.

Yes. I believe the Blessed Buck and Starlight will have their dry dock towards 2027, most likely in the second quarter.

It appears we have no further questions at this time. I'd like to turn the floor back over to you for closing comments.

Thank you. We will thank everybody for participating in today's call. We will be back to you in the New Year with the results of the full year. Thank you. Thanks, everybody, for attending.

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.