StealthGas Inc. Annual Report: A Simple Guide

I am breaking down StealthGas Inc.’s performance to help you decide if this company fits your investment goals.

1. What does this company do?

StealthGas Inc. transports liquefied petroleum gas (LPG). Think of them as the "delivery trucks" of the energy world. They earn money by renting ships through long-term leases for stable income, or through individual trips that depend on market rates. Their cargo—propane, butane, and other gases—is essential for heating, cooking, and manufacturing.

2. Fleet Update: Modernizing the "Delivery Trucks"

As of April 2026, StealthGas operates 28 LPG carriers. They are currently selling older ships to focus on their "Eco" fleet. These newer ships are more fuel-efficient and cheaper to run.

The company is shrinking its fleet to modernize. With two more ships for sale in 2026, they will have fewer "trucks" on the road. This strategy assumes these newer ships will earn higher daily rates and cost less to run. The company is using cash from ship sales to keep the remaining fleet compliant with environmental rules.

3. Financial Health & Performance

The Good News: As of April 2026, StealthGas has no debt. This is rare for a shipping company. It removes interest payments and protects them from rising interest rates.

Revenue Growth: The company has grown its total sales steadily:

• 2023: $143.5 million
• 2024: $167.3 million
• 2025: $173.2 million

The Profit Picture: While sales are up, profit is unpredictable. Costs like fuel, repairs, and mandatory maintenance fluctuate. For instance, they spent $3.6 million on maintenance for four ships in 2025. Because they prefer long-term leases, they enjoy predictable income but miss out on "windfall" profits when shipping rates spike.

The Catch: They haven't paid a dividend since 2009. Even though they are debt-free, they warn that future loans for expansion may come with rules that restrict their ability to pay you dividends, even if the company becomes very profitable.

4. Key Risks to Watch

• Geopolitical "Traffic Jams": Their business is sensitive to war. Conflict in the Middle East recently increased fuel costs and trapped the Eco Oracle in the Persian Gulf. This prevented the ship from working and earning money.
• "Family Ties" Conflict: A private firm owned by the Vafias family manages the company. This creates a conflict of interest. Management might prioritize their private business over your interests as a shareholder, especially regarding management fees.
• Regulatory Costs: New international rules require the company to pay for carbon emissions and install expensive equipment to stay legal.
• Seasonality: Business is seasonal. They typically earn more in winter when demand for heating fuel rises, leading to higher rates and busier ships.

5. The Bottom Line

StealthGas is in a strong position with no debt. They are growing sales while managing a smaller, more efficient fleet. However, they face significant geopolitical risks and rely heavily on a single management firm. They are betting that their modern "Eco" fleet will keep them competitive, but rising environmental costs and market volatility could limit your returns.

Investor Checklist:

• Are you looking for dividends? If so, this company’s history of no payouts since 2009 may not align with your goals.
• How do you feel about management? Consider if you are comfortable with the current arrangement where a private family firm manages the company's operations.
• What is your risk tolerance? Ensure you are comfortable with the volatility that comes with geopolitical events and the high costs of maintaining a modern, compliant fleet.