EuroDry Ltd.

Thank you for standing by, ladies and gentlemen, and welcome to Eurodry Limited Conference Call on the First Quarter 2026 Financial Results. With us today, we have Mr. Aspariasi Spitas, Chairman and Chief Executive Officer, and Ms. Athena Altiotti, Finance and Investment Manager. 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 everybody that in today's presentation, the conference call Eurodry will be making forward-looking statements. These statements are within the meanings of the federal security 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 on 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.

Good morning, ladies and gentlemen. Thank you all for joining us today for our special conference call. Together with me is Latina Tagliotti, who will go over the financial details in more detail in more detail. The purpose of today's call is to discuss our financial results for the three-month period ended March 31, 2026. Please turn to slide three on the presentation where we present our financial highlights. For the first quarter of 2026, we reported total net revenues of $12.8 million and net income attributable to controlling shareholders of $0.26 million, or $0.09 earnings per diluted share. Adjusted net income attributable to controlling shareholders for the quarter was $0.33 million, or $0.12 per diluted share. Adjusted EBITDA was $4.9 million. Please refer to the press release for reconciliation of adjusted net income and adjusted EBITDA. Rakhina Tagliotti will go over our financial highlights in more detail. This month in our share repurposed line of up to 10 million, which was originally announced in August 2022 and successfully extended in 2023, 2024 and 2025, with current authorization to run through August 2026. We have repurposed 300 sales in the open market for a total of $5.6 million. The advantages under the program are executed in a disciplined and measured manner at management's discretion. We have decided to expand our new building program by adding two confirmations, which will complement the two confirmations already in order. We signed contracts with bills to EDI-3 standards, which deliver the schedule for the first and second quarters of 2028. The total contract value is approximately $74 million, which will be financed through a combination of debt and equity. The contracts are conditional upon receiving a refund guarantee from a bank accessible to the company. Once all four of modern ships, the majority of which have been built for us directly. Coming to slide four, we highlight our recent shattering and operational developments. From a shattering perspective, our fix-ups during the first quarter were predominantly short-term. Currently, four of our vessels are employed on index-linked charters at 115% of the average Baltic Supremacy 10-time charter index, providing continued exposure to market dynamics while preserving operational flexibility. The remaining seven vessels are employed on three-time charters with durations ranging from approximately one to just over three months, whilst only the CRISPR scale is on a longer PC till December. Further details of the charter fixed during the period are provided in the accompanying slide. There were no idle or commercial not-hire periods during the quarter. However, motor vessel Xenia underwent dry docking for approximately 28 days, spanning from December 18, 2025, to January 15, 2026. We can hedge the very small part of our exposure through SSAs. Luckily, these hedges are not in the money, as the market has been stronger than we forecasted, earning the majority of our fleet higher rates. In particular, on February 19th, we sold 90 days of the Compsermax index, which is based on the average of $5. $240 per day, and an additional 90 days for the third quarter of 2026 at $17,250 per day. It's equivalent to one vessel. In addition, on March 30th, we saw the further 90 days of the Kamsar-Makshabar Index for the third quarter of 2026 at $17,100 per day, also equivalent to one vessel. Please turn to slide 5. Next, please turn to slide 6, where we graphically show our fleet employment. Our current fixed rate coverage for the remainder of the year stands at approximately 23.5%, based on existing time chart agreements. This figure excludes our four vessels on index-linked employment, To slide 8, we reviewed the general market highlights for the first quarter ended March 31, 2026, and recent developments through mid-May. Anomal spot rates improved from an average of approximately $13,290 per day during the first quarter, as of last week. Similarly, one-year rates have also increased, with classes affecting the standard Panamax one-year time charter rate at approximately $18,000 per day as of May 15th. Notwithstanding this improvement, one-year charter rates continue to trade slightly below prevailing spot market levels. Then, slide 9, We review the global macroeconomic backdrop and its implications for dry bulk shipping demand. According to the IMF April 2026 World Economic Outlook Update, global growth is projected to moderate to 3.1% in 2026 and 3.2% in 2027, with downside risks dominating the outlook. The risk factors include a potential broadening of the Middle East conflict, uncertainty surrounding AI-driven productivity gains, and the prospect of renewed trade tensions. Any of these could materially weaken growth and destabilize financial markets. Global headlines and inflationary pressures expected to be most pronounced in emerging markets and developing economies. In the United States, the 2026 growth projection was revised by the IMF modestly lower to 2.3%, while the 2027 outlook was revised slightly upwards to 2.1%. The U.S. economy continues to demonstrate resilience on base of certain microeconomic imbalances. Markets have thrived in a more hawkish interest rate path, reflecting the inflationary impact of commodity-related supply shocks. The Federal Reserve remains in a wait-and-see mode, with the rate caps currently on hold pending further evidence of easing goods inflation. As of May 2026, the Effective eventually takes hold. The Iran-5 region is projected to grow at a slightly lower rate than previously anticipated, at approximately 4.1% in 2026 and 4.4% in 2027, due to external headings like Middle East energy shocks, geopolitical trade fragmentation, and fading export momentum. Meanwhile, China's growth trajectory is projected to remain relatively resilient, with GDP growth of 4.4% in 2020 and 4% in 2027, supported in part by the country's technological and industrial competitiveness. Practical economic imbalances, however, remain a key challenge. activity gains. Coming on to the dry bulk sector, slushes suggest dry bulk trade growth at a personal 2.5% in 2026 and 1.3% in 2027, suggesting continued or great moderating demand for dry bulk vessels. While the broader global economy is still expected by the IMF to hold back, which may continue to weigh on trade flows and trade market dynamics. Please turn to slide 10, as we review the current state of the dry-bucket order book. As of May 2026, the order book stands at approximately 13.2% of the existing fleet, although higher than the cyclical low of 7% recorded It remains among the lowest levels in history. For context, the order book accounted for 66% of the fleet in 2008 and around 34% in 2014. The persistent low level of new ordering activity reflects a combination of constraining factors regulations. These supply-side constraints could provide support for social utilization and trade trades over the medium term. Turning to slide 11, we examine the supply-side fundamentals in greater detail. As of May 2021, According to Glasgow's latest estimates, scheduled rebuilding deliveries as a percentage of the existing fleet are projected at 5.5% in 2026, 4.1% in 2027, and 5.6% for 2028 and beyond. Actual fleet Looking at the fleet age profile, approximately 11% of the global fleet is over 20 years old, representing vessels that could be considered for scrapping if market conditions moderate or environmental regulations tighten further. Then, slide 12, we summarize our outlook for the dry bulk market. Balkan markets with earnings proving particularly resilient through what is typically a seasonally short period. After a supremacist pandemic, PAN-SATA rates rose by approximately 8% since the first fourth quarter of 2025, reaching their strongest levels in two years, and broadly in line with March 2024. PAN's rival trade trends continue to support vessel demand, driven by strong iron ore grain and bauxite export volumes. The metal seabed mine-dried bulk trade has remained firm until 2026, partly supported by continued bauxite trade. Additionally, total genuine ore export providing a further boost. That's right, and certainly remains an unsanitary amount of demand, and we don't run pressure on steel at all. At other exercises, case suggestions continue to outperform smaller vessel classes. Those are both the form of phenomena segments that don't reduce the gain during the process, and are Zoom affects the remainder of 2020 days and expects never-gettings, potentially resulting in full deliverables above the 365 levels. The japonica disruption continues to create market inefficiencies across level trade routes, and FFA pricing points to a firm market over the next 10 to 12 months. Federal key factors are expected to shape the outlook for 2027. In the coal trade, higher gas prices are expected to provide some support, with imports into Europe, Japan and Korea anticipated to rise, although global coal volumes are still forecast by classes to decline by approximately 2% in 2026. Emerging bottlenecks at the Panama Canal represent an additional source of potential supply tightening. Big-size vessels are expected to continue up-performing, supported by burning bauxite trade flows. Guinea's Simandu iron ore project is set to boost iron ore production as part of China's Belt and Road Strategy, supporting Chinese industrial activity, reducing reliance on Australian and Brazilian imports, and displacing lower-grade domestic productions. Finally, is the single most important unknown. On the supply side, new building orders have accelerated in recent months and may gain further momentum in the foreseeable future despite the lack of maritime birds. Looking ahead to 2027, banker markets are expected to see another year of moderate earnings with least growth likely to outpace trade growth demand trends. Coal policy, vessel speeds, and fleet renewal and demolition activity will also remain important variables. Our base case assumes a moderately sector market environment in 2027, although a prolonged conflict scenario, particularly on the dry bulk demand. Next on slide 13 for a review of our position on the dry bulk market's writing. As of May 15, 2026, the one-year time charter rate for a standard 75,000-bedway Tom Panam Express stood at approximately 18,000 per day. This is considerably above the historical median of $13,375 per day. This higher-rate environment is reflected, although disproportionately, as we think, in the second-hand asset market. Values for 10-year-old Panama's Valtavias are extremely firm. At approximately $18.5 million, current prices sit well above both the historical median of $19.5 million and the 10-year average of approximately $19 million. We are very reluctant Nevertheless, as we believe that modernizing our fleet is important for the future of our company, and our new building values are still at decent levels, we have decided to utilize our liquidity to order two cancer mattresses, thus positioning our fleet to benefit from a market improvement which we believe will come at some point in the coming years. And with that, I will now turn over the

Thank you very much, Aristides. Good morning from me as well, ladies and gentlemen. Over the next five slides, I will give you an overview of our financial highlights for the first quarter of 2026 and compare those results to the same period as last year. For that, let's turn to slide 15. For the first quarter of 2026, The company reported total net revenues of $12.79 million, representing a 38.9% increase over total net revenues of $9.21 million during the first quarter of 2025, which was the result of the increased science factor rates our vessels earned during the first quarter of 2026, hardly offset by the decreased average number of vessels owned and operated during the third quarter of 2026 compared to the same period of 2025. The company reported a net income attributable to controlling shareholders of $0.26 million as compared to a net growth attributable to controlling shareholders of $3.7 million for the same period of 2025. Interest and other financing costs for the first quarter of 2026 decreased to $1.5 million, as compared to $1.8 million for the same period of 2025. Interest expense during the first quarter of 2026 was lower, mainly due to the increased benchmark rate for our loan and the decreased average debt during the first quarter of 2026, as compared to the same period of last year. In the first quarter of 2025, we recorded a gain on the sale of $2.1 million relating to the sale of motor vessel status. There were no vessel sales in the respective quarter of 2026. Our target equity for the first quarter of 2026 was $4.87 million compared to a negative $1.02 million during the first quarter of 2025. Basic and diluted earnings per share attributable to controlling shareholders for the first quarter of 2026 was $0.09, calculated on $2,796,647. and $2,828,521 basic and diluted weighted average number of shareholder funds. Compared, the basic and diluted rolls per share are reputable to controlling shareholders of $1.35 for the first quarter of 2025, calculated on $2,828,521. 737,297 basic and diluted weighted average number of shares outstanding. Exclusively assessed on the net income attributable to controlling shareholders for the quarter of the unrealized loss on derivatives, the assessed income attributable to controlling shareholders for the quarter of ended March 31st, 2026, would have been 12 cents per share, basic and diluted. Compared to an adjusted growth of $2.07 per share, basic and diluted are reputable to controlling shareholders, respectively, for the quarter ended March 31st, 2025. Usually, security analysts do not include the above items in the established estimates of earnings per share. Turning to slide 16, we review our sleep performance for the first quarter of Plan 26, which compares them to the same period of Plan 25. Beginning with utilization, our commercial utilization rate reached 100% in the first quarter of Plan 26. while our operational utilization rate was 99.7%, resulting in overall utilization of 99.7%. This compares favorably to the first quarter of Plan 25, when commercial utilization stood at 98.4%, operational at 99%, and overall at 97.4%. reflecting a meaningful improvement in clean deployment efficiency year over year. On average, 11 vessels were owned and operated during the first quarter of 2026, earning an average time-shutter equivalent rate of $14,416 per day. This compares to an average of 12.8 vessels in the same period of 2025, earning an average CP rate of $7,167 per vessel per day, reflecting a more than doubling of earnings on a per vessel basis year over year. Earnings to operating costs, total operating expenses, including management fees and CNA expenses, but excluding dry docking costs were $7,479 per vehicle per day during the first quarter of 2026, compared to $7,304 per vehicle per day during the same period of 2025, reflecting a modest increase. Finally, our daily cash flow break-even rate, which takes into account the operating expenses, dry docking costs, interest expense, and stable loan repayment, excluding balance payment, stood at $12,514 in the first quarter of 2026, compared to $11,528 in the first quarter of 2025, with a CC rate of about $14,400, comfortably exceeding the break-even rate of $12,540. Please turn to slide 17. This slide serves as a calculation tool which enables our shareholders and investors to check their potential in the remainder of 2026 in the current environment. The table shown in this slide has two components. The first part refers to our six-day contract. As you can see, our contract coverage in six contract rates is about 23% for the rest of the year. It is about 50% in the second quarter, but declines to 15% in the third, and it is very small for the fourth quarter. This charting strategy reflects our expectation that the market will be quite positive. As you can see, it is indicated by the forward-facing market. The rest of our vessels are employed in contact with links to the relevant to their site bounding dry index. Our calculator indicatively shows the troop format and fan format in bounding forward rate as of May 15, 2026, and also shows how this index level is calculated to rate for our ship. We actually display the final blended rate for the open base of our fleet. which you can see right below the two products and phenomena that were raised in the table, and which, as you can see, tends to be very similar to the index level. Based on this assumption, and by further assuming possibility, $7,500 per day per day of orders and GMA costs, and the 5% commission rate, one can estimate the EBITDA contributions. The final result is additionally adapted for our preliminary driving expenses expected during the year. This overall exercise is meant to provide a tool to calculate our EBITDA for 2026. Obviously, one can enter each their own assumptions about the rate to do that. It is worth observing that at current FSA rates, one would expect an annualized EBITDA rate of 34 million. Of course, one can make their own assumptions of how the market might turn out. In the rest of 2026, ethics can also easily estimate our EBITDA dependence to the average rate earned by our open debt. For example, a change of $1,000 per day in the average rate earned would result in a $2.2 million change in our 2026 EBITDA. Turning to slide 18. we review our debt profile and cash flow rate even estimate. As of March 31, 2020, our outstanding debt stood at $109 million, carrying an average margin of approximately 1.99%. Assuming a three-month stop rate of 3.54%, as of that date, the only cost of our senior debt averaged 5.53%. The upper chart illustrates our debt amortization schedule. Schedule debt repayment total approximately $12.2 million during 2026, $21 million in 2027, $12 million in 2028, and $28.8 million in 2029, inclusive of balloon payments of approximately $1.2 million, $10.2 million, $6. $6.7 million, and $19 million respectively. Please note that although we have arranged the net financing of our two ultramarine buildings, our current debt figure that I quoted includes only the portion of one of the two loans drawn to date, representing the pre-delivery payment made thus far. The 2028 and 2027 and 2028 repayment figures include scheduled repayments under both new building loan facilities that we have started drawing to finance our ultimate new building. New buildings we've got scheduled for delivery during the second and third quarter of 2027. Turning to the bottom of this slide, we present our cash flow rate even estimates for the next 12 months. broken down by major components. Our EBITDA break-even level starts at $8,035 per day, while our all-in cash flow break-even, incorporating operating expenses, dry docking costs, interest expense, and loan repayment is estimated at $12,310 per day. Let's move now to my final slide, slide 19, to review Some highlights from our balance sheet as of March 31, 2016. This slide offers a snapshot of our agency's liabilities and hopefully provides a concise picture of our financial position. On the other side, TAS and other assets stood at approximately $31.6 million. Advances for new buildings amounted to approximately $14.4 million. and the gross value of our venture was approximately $163.1 million, breaking our total assets at approximately $209.1 million. On the liability side, total debts stood at approximately $100.9 million, while other short-term liabilities amounted to $5 million. for combined liabilities of approximately $105.8 million, representing roughly 51% of total assets. Careholders' equity on a book volume basis stood at approximately $93.8 million, or $32.45 per share. However, based on our internal estimates and external valuations, The market value of our fleet is meaningfully apart its book value. We estimate the current market value of our vessel at approximately $226.9 million compared to the book value of approximately $163.1 million, implying an excess value of approximately $63.9 million. Our strategy for this and adjusting for this difference yields an estimated net asset value in excess of $52.77 per share. When compared to the recent trading range of our shares, which had moved up by around $71 recently, it becomes evident that there is a substantial dip down to our estimated net asset value, and by extension, a significant potential upset for both shareholders and potential investors. We remain committed to executing our strategy and creating long-term values for our shareholders, and we believe the current share price represents a compelling entry point relative to our estimated net asset value. With that, I will hand it over to Dr. Rispiri to continue.

Thank you, Adinat. May we now open up the floor for any questions we may have?

Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Mark Richmond with Noble Capital Partners. Please proceed.

Thank you for taking my questions. I really do appreciate slide 17. That's very helpful. And so I was wondering, you know, could you provide some additional detail regarding the financing strategy for the newly ordered CancerMax vessels and the expected impact on leverage levels? Sure.

We don't intend to. to have pre-delivery financing, I think. So we will get upon delivery financing to the order of 60% approximately. As you know, there is ample supply of bank financing these days. Many banks are courting us to provide that financing. So we're pretty sure that the very modest level of financing that we will require, we will be able to do.

And then how does management evaluate the tradeoff between continued share of free purchases and funding fleet expansion opportunities in the current market environment?

Yeah, we're trying to balance everything, as you say. We are continuing the repurchase of stock because our share price is extremely low. On the other hand, we want the liquidity in our stock, in the stock that is trading, to continue improving as it has over the last six months. We are careful not to overdo it and be too aggressive in this process. We've decided that we will do these four vessels, which will help us in the future, these four new building vessels. And the remaining earnings, we will see what we will do. But for now... we are pretty covered with these four vessels that we have alerted.

And then just lastly, are there additional opportunities for fleet renewal, vessel acquisitions, or selective asset sales if second-hand vessel prices remain elevated? And I'm really kind of looking at the Panamax vessels, you know, in your fleet that have that average age of, you know, it's like around 21 years.

Correct. These are... potential failed candidates at some point in time. For the time being, they are earning significant time shutter equivalents of about $20,000 per day, or close to that level, which obviously is helping us build up our cash reserves. But we will decide later towards Q3 if we will disclose one of them or not.

That's great. Thank you very much. Thanks, Mark.

As a reminder, this is Star 1 on your telephone keypad if you would like to ask a question. Our next question is from Pofrat with Alliance Global Partners. Please proceed.

Hello. Can you, Aristides, just discuss your hedging strategy? You know, it looks like you have two of the equivalent of one, you know, one dry broker, you know, hedged in the second quarter and then two in the third quarter hedged. Can you just talk about what you're seeing now on the curve and maybe looking into the fourth quarter on whether you continue to hedge?

Yes. Paul, you're right. We felt that the market would not be that strong, so we considered setting a little bit at the levels that we did, which was $9. The market has been stronger, so today FFA rates are higher than that. We evaluate the situation in our weekly meetings, and we'll decide if we will take more cover, either through time-shattering a few of our vessels, or through further FSAs. But this is something which is dynamic and that we look upon, you know, every week. Great.

And then would you, you know, with the addition of the two additional new builds, can you just highlight your new build CapEx for 2026, 2027, and 2028?

Yes. I think we can arrange to send this to you separately. I don't have the numbers on my head, but we will send them to you. Okay?

Okay. That's great. And then can you – you didn't buy – you know, there's quite a discrepancy between your, you know, estimated net asset value and where your stock currently is trading. You didn't buy any stock in the first quarter. Can you just help us, maybe help me understand what you can do to try to close that gap, that discount to your NAV, Aristides?

Well, the stock price increased substantially during the quarter, right, from what was it, $12, $13? Yes. up to 21, so it's been increasing. Nevertheless, we are still having the buyback program active and we have executed a few purchases during the last few days. We will continue executing on that, but only a little bit marginally because, as I said to Mark previously, for us it's important that we keep up the liquidity in the stock growing. So we won't be extremely aggressive on that.

Okay, great. And then from a cost standpoint, the two things that I'm sort of focused on, Looking forward, our bunker costs and also insurance costs. Can you just discuss your exposure to potential increases in both those areas?

Yes. On the bunker side, our seeds trade for all of them actually are on time charter basis, which means that the charterer is responsible for replenishing the bunkers and the and paying for them. So it's not a huge issue for us. As long as there is availability of bankers, we don't really mind the higher price. Of course, the banker reminds it, so it affects his decisions. And the insurance costs, There is increased war risk insurance in several areas, but agrarian vessels do not trade there. We are not affected.

Great. Very helpful. Thank you, Mr. Davis. Thanks.

Our next question is from Tate Sullivan with Maxim Group. Please proceed.

Hello. The voyage days in the first quarter were a bit below I forecasted, and you mentioned some repositioning in the press release. Given global dynamics, do you think the repositioning between charters will be a quarterly occurrence, or was that a special situation related to the first quarter?

No, I think it was a special situation in the first quarter. It happened that we had a lot of repositioning, but Or not, but I expect it to be narrowed to what we've been advising.

And then the voyage expenses, there was, again, related to those repositionings and maybe the bulk fuel sale. That's certainly a quarterly event as well. I think the last time that occurred was two odd years ago. Yes, exactly, exactly, exactly. Okay, and then last, your comments on the Panama Canal. Is that an emerging dynamic, removing some vessel voyage from the fleet, or has that been consistent in the first two months of this quarter?

No, it's practically an emerging dynamic because we are seeing more and more tankers cross the Panama Canal who pay higher fees to pass and for whom it's more important to pass through the canal. and that has practically squeezed the dry bank out of the canal. It's a consequence of the war in Iran and the fact that on the tanker sector there's been a significant shift on the trading patterns. Thank you. Thanks very much. Thanks, Dave.

We now have a follow-up from Mark Richmond with... Noble Capital Partners, please proceed.

Thank you. I just wanted to follow up on that. You know, when you look at the fixed rate coverage for the remainder of 2026, it's about 23.5%. And, you know, if you're expecting rates to kind of remain strong, I can understand why you would want to leave, you know, exposure to the market. And we're only in May 2021. But looking to 2027, if you're expecting the market to weaken a little bit or rates to go down, at what point do you try to start preparing for that or 2027 to maybe increase your fixed rate coverage as you head into 2027?

Indeed, you're right. We are looking into this market. But FFA rates for 2027 are quite high. lower than where they are today. But we are also looking at the alternative, which is to time-charter maybe a couple of vessels for a year's time so that we cover a little bit of the 2027 exposure. We wouldn't do too much, but it is possible that we will fix a couple of ships in longer PC or cover with SFA. Okay, great. That's very helpful. Thank you. Thanks, Mark.

There are no further questions at this time. I would like to turn the floor back over to Mr. Fidesz for closing remarks.

Thank you all for listening in to our results of today. We look forward to discussing again in Q2, which, as we all know, is going to be a pretty good quarter based on what we have seen today. Thank you all.

Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.