EuroDry Ltd.

Thank you for standing by, ladies and gentlemen, and welcome to the Eurodry Limited conference call on the third quarter 2025 financial results. We have with us today Mr. Aristides Pires, Chairman and Chief Executive Officer, and Mr. Tasos Aslitis, 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. At which time, if you wish to ask a question, please press star 1 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 its results with a press release that has been publicly distributed. Before passing the floor over to Mr. Pitas, I would like to remind everyone that in today's presentation and conference call, your dry 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 turn the floor over to Mr. Pitas. Please go ahead, sir.

Good morning, ladies and gentlemen, and thank you all for joining us today for our scheduled conference calls. Together with me is Mr. Tasos Ashliris, RC Financial Officer. The purpose of today's call is to discuss our financial results for the three and nine month period that ended September 30th, 2025. Please turn to slide three of the presentation. Our financial highlights are shown here. In the third quarter of 2025, we reported total net revenues of $14.4 million, and the net loss attributable to controlling shareholders of $0.7 million, or $0.24 loss per basic and diluted share. Adjusted net loss attributable to controlling shareholders for the quarter was $0.6 million, or $0.23 loss per basic and diluted share. Adjusted EBITDA for the quarter was $4.1 million. Please refer to the press release for the reconciliation of adjusted net loss and adjusted EBITDA. Our CFO, Tasos, will go over our financial highlights in more detail later on in the presentation. Our work today will have purchased about 335,000 shares of our common stock in the open market, for a total of $5.3 million under our $10 million shared purchase 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 our purchases after the originally approved amount of $10 million at a disciplined rate, taking into account the company's liquidity needs and relatively small free flows. Please turn to slide four to view our recent developments. On October 21, 2025, we delivered motor vessel Irini-B to her new owners and then affiliated third party. The Irini-B was one of our oldest ships and the longer-held vessel in our fleet. She was sold for $8.5 million. On the chartering front, Our fixtures during the third quarter were predominantly short-term. Seven of our vessels are currently employed under time charters, ranging between a month to a little over three months, allowing us to position our vessels advantageously as market conditions improve. 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 reassert themselves, and the market showed signs of recovery, which still continue. The specifics of the charter fixed during the period are outlined in the accompanying presentation. Most notable amongst them, due to the length of the charters, is the motivational Yannis Peters, which secured an extension of its index-linked charters at 115 percent of the average Baltic supermax 10-time charter index, until at least November 26. During this quarter, motor vessel Santa Cruz completed her special survey and dry dock over a period of 35 days. Flight 5 shows Eurodry's current fleet, which consists of 11 vessels, with an average age of approximately 10.8 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 63,500 deadweight tons, scheduled for delivery in the second and third quarters of 2027. Upon delivery, our fleet will expand to 30 vessels with a total carrying capacity Now please turn to slide 6 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 45% based on existing time-charter agreements. This figure excludes vessels operating under index-linked charters, which, once subject to market fluctuations, still have secured employment. We currently have four vessels, the Maria, Good Heart, Molly Moslak, and Yannis Pitas, trading on index-linked charters with durations ranging from March 2026 to at least November 2026. Turning to slide 8, We'll go over the general market highlights for the third quarter ended September 30, 2025, and up until recently. Panamax spot rates rose steadily through the third quarter of 2025, increasing from an average of about $14,500 per day to approximately $14,950 per day by quarter end. reflecting a slight increase. As of November 7th, spot rates for Panamax vessels increased further and now stand at around $15,500 a day. Now, one-year time charter rates are a bit lower than the spot rates, and Clarkson's gives the standard Panamax one-year TC rate at $15,125 a day. During the third quarter, the Baltic Dry Index and the Baltic Panamax Index recorded year-over-year increases of approximately 6% and 14% respectively, reflecting a slightly better market compared to the same period last year. This recent recovery in the supercancer range was supported by stronger-than-expected demand for minor bugs, robust grain trade flows, and the marginal tightening in vessel supply driven by longer voyage distances and regional trade disruptions. Please mark out slide 9. According to the IMF's October 2025 projections, global growth is expected to ease slightly from 3.3 percent in 2024 to 3.2 percent in 2025 and 3.1 percent in 2026. with advanced economies growing around 0.5%, and emerging markets and developing economies just about 4%. Persistent trade tensions and ongoing policy uncertainty are dampening investment and trade activity, and as tariffs work their way through supply chains and 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 are tilted to the upside and more subdued elsewhere. U.S. growth is projected at 2% in 2025 and 2.1% in 2026, a modest upgrade revision from earlier forecasts. reflecting smaller-than-expected defects 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 3.75 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 growing the fastest, and is focused to expand by 6.6% in 2025 and 6.2% in 2027. and the vibrant services sector. The ASEAN 5 economies are also expected to pose solid growth of around 4.2% in 2025 and 4.1% in 2026, underpinned by the healthy interregional trade and the continued industrial activity. China's economic outlook is projected to continue, though at a decelerating pace. These challenges include a widening gap between industrial 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 consequently 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, and a still resilient manufacturing sector. Turning to the dry bulk sector to see how the global growth affects the demand for dry bulk, Claxon 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 industrial output in Asia, continued demand for minerals, and improving agricultural and coal trade flow. This turns 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. Although higher than the 7% recorded in 2021, it remains amongst the lowest levels in history. For context, the order book accounted for 80% of the fleet in 2008, and nearly 30 percent in 2014. Current ordering activity remains limited due to shipyard capacity constraints, high new building costs, and uncertainty surrounding future fuel technologies and environmental regulations. Turning to slide 11, let us now look into the supply fundamentals in a little bit more 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 The fleet age profile shows that about 10.6% of the global fleet is over 20 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 10 to 14-year-old range, where 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 12, where we summarize our outlook for the dry-bulk market. The dry-bulk Carrier market strengthened notably during the third quarter, with average time charter rates for Sukhumvit 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, further supporting freight rates. Demand for larger vessel classes remained firm, while smaller segments also recovered strong gains, adding to the overall positive momentum. Looking ahead to the remainder of 2025, market conditions still remain uncertain, shaped by the 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 Xi last month, both sides signaled a temporary de-escalation and port fees postponed. Meanwhile, the ceasefire between Israel and Hamas has also drawn attention to a potential easing of Red Sea disruptions. adopting the cautious wait-and-see stance, and no immediate changes in routing patterns have been experienced. In 2026, the market still faces challenges around trade growth and potential pattern of trade adjustments. However, China's demand for bauxite and iron ore will remain a key driver, while global infrastructure spending should continue to support industrial materials trade. Long harvests in the U.S., Brazil, and Russia are also expected to sustain robust grain exports for the succulents in the Panamax sector. Also expected is a rebound in coal trade and steady minor bulk demand. However, the potential normalization of Red Sea traffic could result in lower ton-mile demand as routes resorted again. 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 new routes, ship owners are confused on what type of ships to order. The order book to fleet ratio, currently near historical lows as said before, provides a solid backdrop for a charter rate recovery should demand strengthening. Although there is a clear industry shift towards alternative fuels, the pace of transition is likely to be slower than anticipated, constrained by technical challenges, economic considerations, and ongoing delays in the IMO's next net-zero framework. As on mission-related measures, such as the EXI, CII, EU-ETS, and EU-Maritime are fully implemented, apparent supply could tighten 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-demand environment. Let's turn to slide 13. As of November 7, 2025, the one-year time chart rate for Panamax versions stood at $15,125 per day, remaining modestly above the 20-year historical median of $13,375 per day. As of the third quarter of 2025, the market for 10-year-old Panamax bulk carriers remained firm, in Q2, which represented the lowest point since mid-2023. Current asset values stand at approximately $26 million, which are well above the historical median of $15.5 million and a 10-year average of $18 million.

Underscoring continued resilience in second