StealthGas (NASDAQ:GASS) reported its fourth-quarter and full-year 2025 results, highlighting what management described as a “very successful year” despite geopolitical volatility and an operational setback tied to a medium gas carrier (MGC) that has been out of service since an incident last July.
Full-year profitability and a softer fourth quarter
Chairman Michael Jolliffe said the company maintained high profitability in 2025, posting adjusted net income of $65.6 million for the year, which he called the second-highest annual result in the company’s history. He added that StealthGas has been able to deliver “high profits consistently for the last four years.”
Konstantinos Sistovaris, who reviewed the financials, said fourth-quarter operational utilization fell to 89% due to dry dockings and increased off-hire days related to spot exposure, “especially on a couple of the larger vessels.” While fleet days rose 3% year over year, the lower utilization weighed on revenue. He added that operating expenses were $12.7 million for the quarter and “well contained,” while G&A, depreciation, and interest expense declined, with interest costs reduced by $1.4 million after the company extinguished its debt.
On a GAAP basis, the company posted net income of $12.8 million for the fourth quarter, compared with $14.2 million in the prior-year quarter, and earnings per share of $0.34 (or $0.36 adjusted).
Balance sheet: debt eliminated and liquidity increased
A major theme of the call was StealthGas’ balance sheet transformation. Jolliffe said the company completed its strategic deleveraging in 2025 by repaying $86 million in bank debt, bringing total repayments over the past three years to $350 million. He said StealthGas is “one of the very few, if not the only, quoted shipping company” to reach zero bank debt.
Sistovaris said that as of December 31, 2025, the company held $99 million in cash with no restricted cash. He noted that during the year StealthGas repaid $86 million of debt, invested about $8 million related to joint venture vessels, and received $25 million net from the sale of two vessels. Two additional vessels were held for sale at year-end, expected to be delivered in the following months, with anticipated proceeds of about $29 million.
He reported that vessel book value stood at $491 million, reflecting vessel sales and an adjustment related to the MGC pending final treatment. On liabilities, he said debt is now zero and total liabilities were about $21 million, all current. Shareholders’ equity rose by $63.8 million over 12 months to $690 million.
Sistovaris also provided an estimate for cash flow break-even of $6,500 to $7,000 per vessel per day, arguing the lower break-even improves competitiveness and provides downside protection even in a weaker rate environment.
Capital allocation: share repurchases and fleet actions
Management discussed ongoing shareholder returns through buybacks and continued portfolio management through vessel sales. Jolliffe said the company repurchased $1.8 million of shares earlier in 2025, bringing total buybacks since the program began in 2023 to $21.2 million. No shares were repurchased in the fourth quarter because the share price had appreciated, he said.
On fleet renewal activity, Jolliffe said the company has been “more active on the selling front,” having sold four vessels. In December, StealthGas agreed to sell the 2015-built Echo Universe, with delivery “most likely in April,” and expects to book a profit at that time. He also said the company expected to deliver the Echo Invictus to its buyers during the current month (as referenced on the call).
Contract coverage and vessel utilization
Management emphasized its preference for longer-duration employment when available and a limited spot market exposure. Jolliffe said the company had $104 million in contracted revenues and had secured 48% of fleet calendar days one year forward as of March 2026.
Providing more detail, management said StealthGas concluded five new period charters of three months or longer, mostly shorter-term deals, along with an “unusually long” three-year charter with a major European petrochemical company. At the time of the call, the company had two active vessels trading spot and intended to keep spot exposure low. For the remainder of 2026, management said it had secured about $66 million in revenues from period charters.
StealthGas expects five vessels to undergo dry docking during 2026, with two in the first quarter.
Market commentary: exports, geopolitics, and rate conditions
CEO Harry Vafias outlined demand and supply developments across the LPG market and discussed geopolitical risks. He said global LPG exports grew 6% last year and U.S. propane exports rose close to 6%, with the U.S. accounting for about 47% of global exports. He pointed to U.S. terminal expansion projects that he said would ease bottlenecks, citing Enterprise projects expected to come online within the year at Neches River and the Houston Channel.
Vafias cautioned that while exports are production-driven, it may be challenging for demand to keep pace with increased supply, referencing an inventory build in late 2025. He also noted planned Middle East expansions in Qatar and the UAE that he said could add 20 million tons by the end of the decade.
Geopolitics were a recurring topic. Jolliffe said the Suez Canal had reopened following de-escalation, but warned that renewed attacks could change vessel positioning. He also flagged risks around Iran and the Straits of Hormuz, calling it a vital trade route for LPG and noting that escalation could disrupt trade. Both executives said conflicts can lead to rate spikes, though Jolliffe said outcomes are difficult to predict.
On trade flows, Vafias said India’s LPG imports rose 12% last year and that imports from the U.S. increased materially after a deal made earlier in 2025, while China’s LPG imports saw no growth and U.S. share of Chinese imports fell from 60% to roughly 30% amid trade tensions.
Commercially, management said spot markets strengthened through the fourth quarter on winter demand and tighter tonnage availability, while time charter levels remained firm. Management reiterated that rates east of Suez remain substantially below western markets and said StealthGas had no plans to increase its presence in the Asian pressurized market. They also cited an aging global fleet—estimating roughly a third of vessels are over 20 years old—while noting scrapping has remained limited.
Regarding the MGC incident, Jolliffe said the vessel remains in dock in Latvia and is being assessed by technical teams while discussions with insurers continue. He said the company had impaired the vessel’s book value, adding that there has been no profit-and-loss impact so far because the vessel is insured. Vafias said management expected more concrete information “within the next couple of months.”
In closing remarks, Vafias said the company remains optimistic for the short term as winter-season market conditions “hold firm,” while acknowledging the potential for volatility tied to geopolitical developments. He said StealthGas ended the year with $29 million in free cash, which he said had “currently” grown to $110 million.
About StealthGas (NASDAQ:GASS)
StealthGas Inc is an international shipping company specializing in the seaborne transportation of liquefied petroleum gases (LPG), including propane, butane and ammonia. The company operates a fleet of modern pressurized LPG carriers with capacities ranging from approximately 2,500 to 9,100 cubic meters, providing safe and efficient carriage of petrochemical gases worldwide.
Founded in 2005 and incorporated in the Republic of the Marshall Islands, StealthGas is headquartered in Athens, Greece, with additional commercial and operational offices in major shipping centers across Europe and Asia.
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