Toro Corp. (NASDAQ: TORO) reported third‑quarter 2025 results that included a net income of $1.3 million, up 30 % from the $1.0 million earned in Q3 2024. Total vessel revenues rose 1.9 % to $5.4 million, while operating expenses increased modestly to $2.2 million, reflecting higher daily costs on the newly acquired MR tankers. The company also announced a one‑time special dividend of $1.75 per share, a move that underscored its strong cash generation and debt‑free balance sheet.
Operating revenue was driven by a 2 % lift in charter rates for MR tankers and a 3 % increase in LPG carrier freight, offsetting a 5 % rise in brokerage commissions. Operating expenses grew mainly due to the acquisition‑related costs of the two MR tankers, which added $0.4 million in daily operating expenses. Despite the expense bump, EBITDA from continuing operations turned positive at $1.6 million, up from a $0.1 million loss in Q3 2024, indicating improved operational leverage.
Fleet activity in the quarter included the purchase of two MR tankers and the sale of two LPG carriers. The acquisitions expanded Toro’s medium‑range capacity, while the disposals reduced exposure to the more volatile LPG market. The transaction mix helped maintain a stable revenue base and contributed to the modest rise in vessel revenues, but also increased the company’s cash outlay and daily operating costs, which are reflected in the higher operating expenses reported.
Toro’s cash position at September 30, 2025 stood at $25.1 million, a decline from $37.2 million at the end of 2024. The reduction is largely attributable to a $60 million investment in preferred shares of Castor Maritime, which was redeemed later in the quarter. The company remains debt‑free, a key factor that gives it flexibility to fund fleet expansion and return capital to shareholders through the special dividend.
Chief Executive Officer Petros Panagiotidis highlighted the quarter as a “steady progression” of the business, noting that the fleet transactions and robust charter rates supported the earnings improvement. He emphasized the company’s focus on strategic vessel transactions and maintaining a strong balance sheet, signaling confidence in continued operational efficiency and the ability to generate cash for shareholder returns.
Investors responded positively to the earnings release, with the special dividend and solid Q3 performance driving a strong market reaction. The dividend, representing more than 25 % of the share price, was a primary catalyst, while the 30 % increase in net income and the company’s debt‑free status reinforced investor confidence in Toro’s long‑term strategy.
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