EuroDry (EDRY) Q3 2026: Charter Rates Surge 55% to Drive Profit Turnaround
As seen on the 24/7 Wall St. homepage on November 12, 2026.
EuroDry's average time charter rate jumped 55.3% to $20,551 a day, turning a year-ago loss into $6.9 million of net income at a company worth just $113 million. Revenue missed expectations, but management flagged that October rates softened for Panamax and Kamsarmax vessels, the main thing to keep an eye on from here.
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EuroDry posted adjusted earnings per share of $2.32 for Q3 2026, beating the $2.06 consensus estimate by roughly 13%. The more striking story is the year-over-year swing: the company reported net income of $6.9 million for the quarter compared with a loss of $673,477 in Q3 2025, a turnaround driven almost entirely by the rate environment rather than fleet size.
The engine behind that swing was a 55.3% jump in the average time charter equivalent rate, which rose to $20,551 per day from $13,232 a year earlier. Revenue grew 34.9% year over year to $19.4 million, though that figure missed analyst expectations of $20.8 million by 6.65%. Fleet utilization of 99.7% and a sharp drop in drydocking expenses, from roughly $1.3 million to $133,000, helped translate the stronger rates into operating income of $8.7 million.
The balance sheet strengthened considerably over the period. Cash and equivalents exceeded $50 million net of restricted cash, up 484% year over year, partly because management raised $10.7 million through an at-the-market equity program, issuing 163,753 shares at an average price of $67.54. CEO Aristides Pittas described the ATM issuance as accretive to net asset value, noting the share price had briefly exceeded the company's NAV per share amid the rate rally.
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EuroDry also expanded its newbuilding program to five vessels, adding a third 82,000 DWT Kamsarmax ordered from Hengli Shipbuilding for approximately $37 million, with delivery scheduled for Q3 2029. When all five vessels deliver, the fleet will reach 16 ships totaling roughly 1.1 million deadweight tons, positioning the company among peers with a younger average fleet age.
The forward picture carries a caveat. Management flagged that charter rates softened in October, more so for Panamax and Kamsarmax vessels than for Ultramax ones. Pittas said rates remain at levels that would generate significant earnings if maintained, and expressed broader optimism based on a lean industry orderbook following years of underbuilding and what he called continuing inefficiencies in the global transportation system. With about $11.1 million in scheduled debt repayments due over the next 12 months against a cash cushion above $50 million, liquidity risk appears contained near term, but the direction of Panamax and Kamsarmax spot rates in the coming weeks is the clearest thing for investors to monitor.
Mentioned: EDRY