C3is Stock Plunges 6% on Q2 Loss, CEO Touts 'Tariff-Proof' Fleet
Net loss of $5.3M driven by non-cash warrant charge, masking an adjusted profit as management highlights its debt-free balance sheet.
Shares of maritime shipping operator C3is Inc. (CISS) dropped nearly 6% in after-hours trading on Tuesday after the company . The market's bearish reaction overshadowed management's message of strategic resilience amid global trade volatility.
The headline loss was entirely attributable to a non-cash accounting item—a $6.4 million . Excluding this charge, C3is actually posted an adjusted net income of $1.1 million for the quarter, generated from $10.7 million in voyage revenues. This suggests the company's core vessel operations remain profitable.
During the earnings call, CEO Diamantis Andriotis moved to reassure investors by focusing on the company's unique strategic advantages. He emphasized that C3is operates a "tariff-proof" fleet, stating that none of its vessels were built in Chinese shipyards. Management believes this insulates the company from the newly-imposed U.S. tariffs and represents a "significant positive shift for our fleet."
Furthermore, Andriotis highlighted the company's pristine balance sheet, noting that C3is is "fully delevered," a rare position in the capital-intensive shipping industry. totaling $59.2 million since its inception "without resorting to bank loans." This financial discipline, he argued, "provides a strong foundation for our future growth."
Despite the CEO's optimistic framing of the company’s debt-free status and strategic fleet, investors were more focused on the reported net loss. The after-hours decline compounded a difficult year for the stock, which has fallen over 69% year-to-date, reflecting persistent investor concerns and a challenging environment for the seaborne dry bulk trade.