Euroseas Ltd. (ESEA): Business Model Canvas [Dec-2025 Updated]

You're looking for the real engine behind Euroseas Ltd.'s performance, and honestly, the Q3 2025 numbers give us a defintely solid picture of their strategy. This isn't a wild spot market gamble; it's a focused play on stability, locking in major global liner companies with long-term time charters that give revenue visibility stretching into 2032. They are actively modernizing their 22-ship fleet with four newbuilds while maintaining near-perfect operational uptime-think 99.7-99.9% utilization for 9M 2025-which directly supports their value proposition of reliable delivery. Dive below to see how their key activities, like managing a $224 million debt load and focusing on low cash flow breakeven rates, map out their entire business model on one canvas.

Euroseas Ltd. (ESEA) - Canvas Business Model: Key Partnerships

Euroseas Ltd. relies on a network of external and affiliated entities to execute its strategy of owning and operating container carrier vessels.

Affiliated ship manager Eurobulk Ltd. for technical and commercial operations

The day-to-day commercial and technical management and operations of the Euroseas Ltd. fleet are handled by its affiliated ship management company, Eurobulk Ltd.,. Eurobulk Ltd. holds ISO 9001:2008 and ISO 14001:2004 certifications.

Shipyards for the four newbuilding vessels under construction

Euroseas Ltd. has an active newbuilding program, securing capacity with Chinese shipyards for its fleet modernization efforts. As of late 2025, the company has four vessels under construction totaling 17,200 TEU.

The most recent orders were placed with Jiangsu New Yangzi Shipbuilding CO., in China, for two additional 4,300 TEU container vessels, scheduled for delivery in March and May of 2028. The total consideration for each of these two newbuilding contracts is approximately $59.25 million. Overall payment obligations outstanding on the four newbuildings stood at roughly $200 million as of September 30, 2025.

Partner/Shipyard	Vessel Type/Capacity	Contract Status/Delivery	Approximate Unit Cost
Jiangsu New Yangzi Shipbuilding CO., China	4,300 TEU (Two vessels)	Scheduled March and May 2028	$59.25 million each
Shipyard for two prior newbuilds (Sisterships)	4,300 TEU (Two vessels)	Delivery expected in 2027	Not explicitly stated for these two

The company's strategy is to position itself in the eco intermediate-sized containership segment.

Commercial banks and financial institutions for $224 million in outstanding debt

Euroseas Ltd. maintains relationships with commercial banks and financial institutions to support its capital structure and newbuilding program,. As of September 30, 2025, the total outstanding bank debt stood at $224.0 million,. The all-in cost of this debt was approximately 5.9% as of that date. Scheduled loan repayments over the next 12 months from September 30, 2025, totaled about $20.4 million,.

Major global liner companies as long-term charterers

Securing long-term employment with major global liner companies provides significant revenue visibility, with contracted revenues extending into the early 2030s,. The company has locked in multi-year forward charters for its newbuilds and existing fleet,.

• Newbuilds secured at $35,500/day for 47-49 months on delivery (with an option for 59-61 months at $32,500/day).
• M/V Synergy Oakland secured for 34-38 months at $33,500/day starting May 14, 2026.
• M/V Rena P extended for 35 to 37 months at $35,500/day, commencing August 21, 2025.
• M/V Synergy Antwerp and M/V Synergy Keelung chartered at $35,500/day for 36-39 months starting May/June 2025.
• M/V Emmanuel P secured at $38,000/day for 36-38 months, expected to commence in the first half of September 2025.
• Three feeder containerships on 34-36 month charters at $32,000/day, commencing late 2024/early 2025.

These forward charters are estimated to generate a minimum of about $183 million of EBITDA over their contracted periods,.

Deloitte as the independent auditor for fiscal year 2025

Shareholders approved the appointment of Deloitte Certified Public Accountants, S.A. as the independent auditors for the fiscal year ending December 31, 2025,.

Euroseas Ltd. (ESEA) - Canvas Business Model: Key Activities

You need to see the hard numbers driving the day-to-day operations at Euroseas Ltd. (ESEA). This is about locking in revenue and managing a complex, high-value asset base.

Securing long-term time charter contracts, often 3-5 years

Euroseas Ltd. actively secures multi-year contracts to provide revenue visibility. For instance, the M/V Emmanuel P secured a contract for a minimum of 36 months up to a maximum of 38 months at a gross daily rate of $38,000. Furthermore, newbuild vessels have been chartered for up to 5 years at rates reaching $35,500/day.

Here's a look at the forward contract coverage as of late 2025:

Period	Percentage of Available Days Secured	Average Contracted Rate (per day)
Q1 2026	100%	$30,345
2026 (Total)	75%	~$31,300
2027	52%	~$33,500
2028	29%	~$35,500

The M/V Synergy Oakland also saw an extension for 36 months at $33,500/day.

Technical and commercial management of the containership fleet

The day-to-day running of the vessels falls to the affiliated ship management company, Eurobulk Ltd.. Related party management fees for the third quarter of 2025 were $2.0 million. The daily vessel management fee was adjusted for inflation effective January 1, 2025, increasing from 810 Euros to 840 Euros. Operating expenses, which include these management fees, averaged $7,246 per vessel per day in Q3 2025.

Strategic fleet renewal via newbuilds and older vessel sales

Euroseas Ltd. is actively refreshing its fleet. They completed the sale of the M/V Marcos V for $50 million, realizing an estimated gain of $9.3 million. This is part of a strategy to replace older tonnage with modern, fuel-efficient vessels.

The current fleet and pipeline look like this:

• Vessels on the water (as of Q3 2025): 21 vessels, 61,000 TEU capacity.
• Vessels under construction: 4 intermediate vessels.
• Capacity addition from newbuilds: 17,000 TEU by 2028.
• Newbuild cost: Two vessels ordered in August 2025 cost approximately $59.25 million each.

Maintaining near 100% vessel utilization (e.g., 99.7-99.9% in 9M 2025)

Efficiency in employment is a core activity. For the first nine months of 2025, the commercial fleet utilization was reported in the range of 99.7-99.9%. In the third quarter of 2025, the company reported no idle or commercial off-hire time. The average number of vessels owned and operated in 9M 2025 was 22.6.

Managing newbuilding program payments of roughly $200 million

Managing the capital commitments for the new vessels is a major financial activity. As of September 30, 2025, advances paid for the newbuilding program totaled $35.9 million. The total payment obligations outstanding on the four newbuild vessels are roughly $200 million. Interest charged and capitalized related to this newbuilding program for the first nine months of 2025 amounted to $0.1 million.

Euroseas Ltd. (ESEA) - Canvas Business Model: Key Resources

You're looking at the core assets that power Euroseas Ltd. right now, late in 2025. These aren't abstract concepts; they are hard numbers representing the ships, the money in the bank, and the efficiency of the operation.

The physical assets are the foundation of the business. Euroseas Ltd. maintains a fleet that is actively generating revenue, supplemented by a strong pipeline of modern, high-specification vessels joining the fleet soon. This combination balances immediate earning power with future fleet renewal.

Key Resource Category	Metric/Description	Latest Real-Life Number
Operating Fleet Size	Number of containerships operated (Average Q3 2025)	22.0 vessels
Total Fleet Capacity	Total cargo capacity of the operating fleet	67,494 TEU
Newbuilding Pipeline	Number of high-specification vessels under construction	4 vessels
Newbuilding Specification	TEU capacity of the two most recently ordered newbuilds	4,300 TEU each
Liquidity Position	Cash and other current assets (as of September 30, 2025)	$126.4 million
Operational Efficiency	Daily cash flow breakeven level (Q3 2025)	$13,073 per vessel per day

The financial strength is evident in the balance sheet position as of the third quarter end. You see a significant cash buffer available for operations, debt servicing, and potential opportunistic investments.

The management team's experience is a non-physical but critical resource. This group brings over 140+ years of combined shipping history to the table, which helps them navigate the volatile charter markets.

Also, consider the efficiency metric. That cash flow breakeven rate of $13,073 per vessel per day for Q3 2025 is a concrete number showing how much revenue a ship needs to generate just to cover its immediate cash costs. It's a low bar compared to historical levels, which speaks to disciplined cost control.

• Cash and other current assets as of September 30, 2025: $126.4 million.
• Cash flow breakeven rate for Q3 2025: $13,073 per vessel per day.
• Total fleet capacity: 67,494 TEU.
• Newbuilding program size: 4 vessels under construction.
• Management experience: 140+ years of shipping history.

The company also had $112.4 million in unrestricted and restricted cash as of September 30, 2025, against outstanding debt of $224.0 million.

Euroseas Ltd. (ESEA) - Canvas Business Model: Value Propositions

You're looking at the core value Euroseas Ltd. (ESEA) delivers to its charterers and stakeholders as of late 2025. It boils down to locking in high-quality, long-term cash flows while operating a modern, efficient fleet in a segment with tight supply.

High revenue visibility with contracts extending into 2032

Euroseas Ltd. (ESEA) has strategically secured a significant portion of its future earnings through long-term contracts. This provides a high degree of revenue certainty, which is a major value proposition in the cyclical shipping market. Management estimates that new multi-year forward charters, including those for four newbuildings, will generate a minimum of about $183 million of EBITDA over their minimum charter periods. Furthermore, these contracts push contracted revenues well into 2032.

Charter coverage is robust across the near term:

• 2025: Coverage was secured at 100% of available days as of September 12th, 2025.
• 2026: Charter coverage stands at roughly 75%, with some reports indicating coverage around 66.6% at an average rate of about $31,610 per day.
• 2027: Coverage is in excess of 50%.

This backlog of contracted revenue significantly mitigates exposure to spot market volatility. For example, the charter for the M/V Emmanuel P, commencing in September 2025, is for a minimum of 36 to a maximum of 38 months at a gross daily rate of $38,000, expected to generate over $32.0 million in EBITDA over the minimum period.

Access to the structurally tight feeder/intermediate vessel segment

Euroseas Ltd. (ESEA) focuses on the feeder and intermediate vessel segments, which management views as having a low orderbook relative to the existing fleet age. As of the second quarter of 2025, the fleet breakdown shows a clear focus on these sizes:

Vessel Type	Number of Vessels	Total Capacity (TEU/DWT)	Average Age (Q2 2025)
Feeder	15	35,632 TEU	8.67 years
Intermediate	7	31,862 DWT	17.57 years

The market supply outlook for the smaller sizes supports this focus. According to Clarksons data as of November 2025, the order book for vessels below 3,000 TEU stands at a modest 8.1% of the fleet. This structural tightness in the segment where Euroseas Ltd. (ESEA) operates provides leverage for securing favorable charter terms.

Modernizing fleet with fuel-efficient newbuilds for charterers

The company is actively growing and modernizing its fleet, which is a key draw for charterers concerned with environmental performance and efficiency. Euroseas Ltd. (ESEA) has 4 intermediate vessels under construction, adding a further 17,000 TEU of capacity, with deliveries scheduled through the first half of 2028. Additionally, in August 2025, two more modern fuel-efficient 4,300 TEU container vessels were ordered, scheduled for delivery in March and May of 2028 at a total consideration of approximately $59.25 million each.

Efficiency upgrades are also part of the value proposition. For instance, energy saving devices installed on one vessel are expected to deliver fuel savings in excess of 20%. This commitment to modern, eco-design vessels appeals to charterers looking to manage their own operational and environmental footprints.

Reliable, near-perfect fleet utilization for cargo delivery

Operational reliability is a strong point for Euroseas Ltd. (ESEA), translating directly into consistent service for cargo delivery. For the second quarter of 2025, the commercial utilization rate was 100%, and the operational utilization rate was 99.9%. This high level of uptime demonstrates efficient management and minimal downtime.

Utilization figures for recent periods:

• Q1 2025 Commercial Utilization: 100%.
• Q2 2025 Operational Utilization: 99.9%.
• First Nine Months of 2025 Utilization: Around 99.7-99.9%.

The company experienced no idle or commercial off-hire time during the third quarter of 2025, though off-hire was noted for scheduled special surveys and retrofits.

Fixed, predictable charter rates mitigating market volatility

The combination of high utilization and long-term contracts results in highly predictable cash flows, which is a direct benefit to investors and allows for stable planning. The average Time Charter Equivalent (TCE) rate earned across the fleet for the first nine months of 2025 was $28,735 per day, based on an average of 22.6 vessels operated.

The rates secured on recent fixtures show the strength of their fixed income stream:

• M/V Emmanuel P: $38,000 per day for 36-38 months.
• M/V Synergy Antwerp and M/V Synergy Keelung: $35,500 per day for 36-39 months.

These fixed rates provide a substantial buffer against operating expenses, which averaged $7,386 per vessel per day for the first nine months of 2025. The daily cash flow break-even level for Q2 2025 was $13,262 per vessel per day, meaning the secured rates offer a wide margin of safety.

Euroseas Ltd. (ESEA) - Canvas Business Model: Customer Relationships

You're building a business on long-term asset value, so securing reliable, high-quality charterers is the core of your customer relationship strategy. Euroseas Ltd. focuses heavily on locking in revenue streams through period charters, which is how you translate asset ownership into predictable cash flow.

Long-term, contract-based relationships with top-tier charterers define the approach. The company employs its 22 vessels, which as of the third quarter of 2025 included 15 Feeder containerships and 7 Intermediate containerships, on period charters to secure earnings visibility. This strategy is evident in the high forward coverage achieved; for instance, after securing new deals in early 2025, charter coverage reached approximately 82% for 2025 and 45% for 2026. By November 2025, a new charter for M/V Jonathan P pushed 2025 coverage to 100%. The relationships are with charterers willing to commit significant capital for extended periods, often involving vessels of 4,250 TEU or 4,253 TEU capacity.

Direct negotiation for multi-year forward charter agreements is the mechanism for establishing these long-term ties. You see this in the recent fixtures locking in rates well into the future:

• Secured 36-39 month charters for two vessels at a gross daily rate of $35,500.
• Extended the charter for M/V Rena P for 35-37 months at a gross daily rate of $35,500.
• Fixed M/V Emmanuel P for 36-38 months at a gross daily rate of $38,000.
• Announced forward charters for five vessels with terms of 47-49 months at $35,500 per day, starting upon delivery in 2027/2028.

These multi-year agreements provide substantial revenue visibility. The M/V Emmanuel P charter alone was expected to generate more than $32.0 million in EBITDA over the minimum contracted period. Furthermore, the forward charters for the newbuildings include an option for the charterer to convert the 4-year charters to 5-year charters (59-61 months) at a rate of $32,500 per day.

The average contracted daily rate for the fleet reflected this success, increasing to about $28,700 for the remainder of 2025, and further increasing to more than $31,000 per day in 2026. For the first nine months of 2025, the average Time Charter Equivalent (TCE) rate across the fleet was $28,735 per day.

Here's a snapshot of recent charter activity that shows the firm rates being secured:

Vessel Example	Minimum Duration	Gross Daily Rate	EBITDA Impact (Min Period)
M/V Synergy Antwerp/Keelung	36 months	$35,500	Approx. $57 million (for both)
M/V Rena P	35 months	$35,500	Approx. $29.0 million
M/V Emmanuel P	36 months	$38,000	More than $32.0 million
Five Newbuilds (Forward)	47 months	$35,500	N/A

High-touch technical service via affiliated manager Eurobulk Ltd. is integral to maintaining the value proposition for these charterers. Euroseas' operations are managed by Eurobulk Ltd., which is an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company. Eurobulk is responsible for the day-to-day commercial and technical management and operations of the vessels. This internal structure helps ensure that the service level meets the expectations of top-tier charterers who rely on operational consistency.

The focus on maintaining high operational reliability (near 100% uptime) directly supports the relationship by minimizing off-hire risk for the charterer. For the three months ended June 30, 2025, the operational fleet utilization was 99.9%. For the third quarter of 2025, the operational fleet utilization stood at 99.8%. This near-perfect uptime is a concrete metric demonstrating the effectiveness of the technical management provided by Eurobulk Ltd., which is crucial when securing premium rates like the $38,000 per day achieved for M/V Emmanuel P.

Finance: review the Q4 2025 off-hire schedule against the 99.8% operational utilization target by end of next week.

Euroseas Ltd. (ESEA) - Canvas Business Model: Channels

You're looking at how Euroseas Ltd. gets its services-container transportation-to the customer and how it manages its market presence as of late 2025. The channels are primarily focused on securing long-term, high-rate employment for its fleet.

The operational fleet size for the third quarter of 2025 involved an average of 22.0 vessels owned and operated, which earned an average time charter equivalent rate of $29,284 per day. Euroseas Ltd. expects its fleet to grow to 25 vessels with a total carrying capacity of approximately 78,300 TEU after the delivery of newbuildings in the second half of 2027 and the first half of 2028.

Direct chartering to major global container liner companies

The core channel involves securing multi-year time charters directly with charterers, often major liner companies, to ensure high revenue visibility. This strategy locks in rates well above the company's estimated 12-month forward cash flow breakeven of $12,000 per vessel per day.

Forward charter coverage demonstrates the success of this direct channel:

• For the first quarter of 2026, 100% of available days were secured at an average rate of approximately $30,345 per day.
• For 2026, 67% of days were secured at $31,600 per day (based on Q2 2025 data).
• For the first quarter of 2027, coverage stands at 52% at an average rate of around $33,500 per day.
• For the first quarter of 2028, coverage stands at 30% at an average rate of around $35,500 per day.

Specific recent direct chartering examples include:

Vessel Name	Type	Charter Duration	Gross Daily Rate	Commencement/Reference Period
M/V Rena P	Intermediate	Minimum 35 to maximum 37 months	$35,500	Expected to commence August 21, 2025
M/V Emmanuel P	Intermediate	3 years	$38,000	Secured in Q2 2025

The company announced multi-year forward charters for five of its vessels, including its four vessels under construction, as of November 18, 2025.

Shipbrokers for sourcing and negotiating charter contracts

While direct negotiation occurs, shipbrokers are instrumental in sourcing and finalizing the employment contracts that form the backbone of Euroseas Ltd.'s revenue. The charter market for the company's ship types remained strong, supported by tight capacity.

The average time charter equivalent rate for the nine months ended September 30, 2025, was $28,735 per day across an average of 22.6 vessels.

Charter pool arrangements for spot market exposure (less common)

Euroseas Ltd. employs its vessels on spot and period charters and through pool arrangements. The reliance on period charters, as evidenced by the high forward coverage, suggests pool arrangements for spot market exposure are a secondary or less common channel for the majority of the fleet.

The third quarter of 2025 saw total net revenues of $56.9 million.

Investor relations for capital market access (NASDAQ: ESEA)

The NASDAQ Capital Market listing under the ticker ESEA serves as the primary channel for accessing equity capital and communicating financial performance to investors. This channel supports capital allocation decisions, including fleet expansion and shareholder returns.

Key financial metrics related to capital market access as of late 2025:

• Stock Price (December 2, 2025): $61.675 USD.
• Market Capitalization (December 2, 2025): $449,026,638.
• Shares Outstanding (December 2, 2025): 7,279,939.
• Analyst Average Price Target: $75.14 USD.
• Q3 2025 Net Income: $29.7 million.
• Q3 2025 Adjusted EBITDA: $38.8 million.
• Quarterly Dividend Declared (Q3 2025): $0.70 per share.

The company has also used the channel to return capital via share repurchases, totaling about $10.5 million for approximately 466,374 shares under a plan renewed in May 2025.

Euroseas Ltd. (ESEA) - Canvas Business Model: Customer Segments

You're looking at the core groups that pay Euroseas Ltd. to move their goods or invest in the company's assets. Honestly, in the chartering business, the customer is usually another shipping entity, not the end cargo owner directly, but the demand drivers are those cargo owners.

Major global container liner companies (e.g., Maersk, CMA CGM)

These large operators are your primary charterers, needing flexible capacity to cover their fixed liner services. They charter vessels like Euroseas Ltd.'s Intermediate class, which currently has 7 vessels in the fleet, to supplement their owned fleets. The demand from these top-tier charterers keeps rates firm, as evidenced by the $35,500 gross daily rate secured for the 4,250 TEU M/V Rena P for 35-37 months starting August 21, 2025. This fixture is similar to charters on other 4,250 TEU vessels in the fleet.

Cargo owners requiring feeder and intermediate vessel sizes (1,000-4,300 TEU)

This segment drives the need for Euroseas Ltd.'s specific fleet profile. As of Q3 2025, the fleet consists of 22 vessels, with 15 Feeder containerships and 7 Intermediate containerships, totaling 67,494 TEU capacity. The newbuild program specifically targets the 4,300 TEU size, with two such vessels scheduled for 2028 delivery. The market for these sizes is structurally tight, with feeder newbuilding deliveries projected at only 2.12% of the total fleet in 2025.

Here's a look at the secured forward revenue from these chartering customers:

Charter Period	Secured Coverage (%)	Average Daily Rate (USD)
Remainder of 2025	About 88%	Varies (Q3 2025 Avg Rate: $29,284/day)
2026	75%	About $31,300
2027	52%	About $33,500
2028	29%	About $35,500

Global trade routes requiring smaller vessels for regional or port-to-port service

The employment strategy of Euroseas Ltd. involves deploying vessels on various routes in Europe, Asia, and America, capable of docking at hard-to-reach ports. The demand for feeder vessels, like the 1,732 TEU M/V Jonathan P, shows sustained interest even for older tonnage, as seen by its $20,000 daily rate contract secured in late 2024 for 11-13 months. The company's strategy is to select segments with lower supply-side growth, which directly benefits regional routes where large mainline vessels cannot call.

Financial investors seeking exposure to the containership sector

These are the shareholders and lenders providing the capital base. Euroseas Ltd. actively manages its capital structure for these stakeholders. As of September 30, 2025, Total Outstanding Bank Debt stood at $224 million, against Cash and Other Current Assets of $126.4 million. Book Shareholders' Equity was approximately $427 million as of the same date.

The company returned capital via dividends and share repurchases:

• Quarterly dividend declared for Q3 2025 was $0.70 per share, reflecting an annualized yield of approximately 5%.
• 466,374 shares were repurchased for about $10.5 million under the plan as of November 2025.
• The Market Capitalization on August 13, 2025, was $395.6 million, with 7.0 million Shares Outstanding.

The company has 4 vessels under construction totaling 17,200 TEU to be delivered by 2028, financed through a combination of debt and equity, which is a key investment focus for this segment.

Euroseas Ltd. (ESEA) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Euroseas Ltd. (ESEA)'s operational costs as of late 2025. This is where the revenue gets spent, so understanding these figures is key to seeing the true cost base of running their fleet.

Vessel Operating Expenses (OpEx) and Daily Costs

The day-to-day running costs, which include crew, insurance, and stores, are tightly managed. For the third quarter of 2025, the total daily vessel operating expenses, which include management fees and general and administrative expenses but exclude drydocking costs, averaged $7,246 per vessel per day. That figure was essentially flat compared to the same period in 2024, which averaged $7,247 per vessel per day. For the first nine months of 2025, the average was slightly higher at $7,386 per vessel per day, compared to $7,452 per vessel per day for the same nine months in 2024. This slight decrease in the nine-month average is partly due to the lower daily operating costs of newer vessels delivered recently.

The cost structure is broken down further by component:

• The prompt specifies Vessel operating expenses (OpEx) at $7,246 per vessel per day (Q3 2025).
• General and administrative (G&A) expenses were reported at an average of $694 per vessel per day (Q2 2025).
• Related party management fees for the first nine months of 2025 were $5.9 million, up from $5.3 million in the prior year period, reflecting fleet growth and an inflation adjustment to the daily fee from 810 Euros to 840 Euros, effective January 1, 2025.

Debt Service and Financing Costs

Financing the fleet and the ongoing newbuilding program requires significant cash flow allocation. As of September 30, 2025, Euroseas Ltd. reported total outstanding debt, excluding unamortized loan fees, of $224 million. The all-in cost of this debt was approximately 5.9%, based on a 2% margin over the 3-month off rate of 3.87% at that time. Total interest and other financing costs for the third quarter of 2025 amounted to $3.7 million.

Here's a look at the debt obligations:

Metric	Amount
Total Outstanding Debt (as of 9/30/2025)	$224 million
Scheduled Debt Repayments (Next 12 Months from 9/30/2025)	Approx. $20.4 million
Expected Loan Repayments (Q4 2025)	Approx. $5.4 million
Total Interest & Financing Costs (Q3 2025)	$3.7 million

Capital Expenditures for Growth and Maintenance

Growth is funded through capital expenditures, primarily for the newbuilding program, while maintenance requires scheduled drydocking. For the newbuilding program as of September 30, 2025, advances paid totaled $35.9 million, with roughly $200 million in payment obligations still outstanding on those vessels. The average contracted rate for these newbuilds stands at $35,500 per day.

Fleet maintenance is a lumpy but necessary cost. For instance, in the third quarter of 2025, one vessel completed its special survey with drydock for a total cost of $2.7 million. To give you context on the scale, for the full year 2024, total drydocking expenses were $10.5 million, covering five vessels passing their special survey with drydock.

You should track these maintenance costs:

• Drydocking Cost (Q3 2025, one vessel) - $2.7 million
• Total Drydocking Expenses (Full Year 2024) - $10.5 million
• Capitalized Interest on Newbuilding Program (First Half 2025) - $0.1 million

If onboarding takes 14+ days, churn risk rises. The daily cash flow breakeven level for Euroseas Ltd. in Q3 2025, which includes drydocking expenses, interest expenses, and loan repayments (excluding balloons), was $13,073 per vessel per day.

Euroseas Ltd. (ESEA) - Canvas Business Model: Revenue Streams

You're looking at how Euroseas Ltd. converts its fleet operations into hard cash, and the third quarter of 2025 shows a strong mix of core operating income and strategic asset realization. The foundation of the revenue is the daily rate earned from chartering out the fleet. For the third quarter of 2025, Euroseas Ltd. reported total net revenues of $56.9 million.

The core operational revenue stream is driven by the Time Charter Equivalent (TCE) revenue. During Q3 2025, the company operated an average of 22.0 vessels, earning an average TCE rate of $29,284 per day. This operational performance is bolstered by securing future income through long-term contracts. For the four vessels under construction, Euroseas Ltd. has locked in contracted revenue from newbuilds at up to $35,500 per day on delivery, with charter periods lasting 47-49 months.

Beyond the steady charter income, Euroseas Ltd. realizes significant, though less frequent, income from strategic asset management. This includes one-time capital gains from strategic vessel sales. For instance, the company recorded a gain on the sale of the M/V Marcos V of approximately $9.3 million, which was recognized upon the vessel's delivery in October 2025. To be fair, the results for the first nine months of 2025 also included a $10.2 million gain on the sale of M/V "Diamantis" back in January 2025.

The commitment to shareholder returns is a direct result of this revenue generation. Euroseas Ltd. declared a quarterly dividend payment of $0.70 per share for Q3 2025. This distribution reflects an annualized yield of approximately 5% based on recent price levels.

Here's a look at the key revenue-generating metrics from the third quarter and the forward-looking contract strength:

Metric	Value	Period/Context
Total Net Revenues	$56.9 million	Q3 2025
Average TCE Rate	$29,284 per day	Q3 2025 (Average across 22.0 vessels)
Newbuild Contracted Rate (Up to)	$35,500 per day	On delivery for four vessels
Gain on Sale of M/V Marcos V	$9.3 million	Recognized October 2025
Quarterly Dividend Declared	$0.70 per share	Q3 2025

The revenue visibility is significantly enhanced by these forward contracts, which lock in future cash flows well into the next decade. You can see the secured rates for the newbuilds and the Synergy Oakland below:

• Four newbuilds chartered at $35,500 per day for 47-49 months minimum.
• The M/V Synergy Oakland is chartered for 34-38 months at $33,500 per day, commencing May 14, 2026.
• These charters lock in a minimum of $183 million of EBITDA across the five vessels during their minimum charter periods.