Nordic American Tankers Limited reported QQ3 2025 results reflecting a mix of operational profitability and non-operating headwinds. Revenue for Q3 2025 stood at $45.69 million, up 13.78% QoQ from Q2 2025 but down 12.20% YoY versus Q3 2024. Gross profit was $29.14 million with a robust gross margin of 63.79%, signaling a favorable cost of revenue structure or mix during the quarter. EBITDA reached $22.11 million, yielding an EBITDA margin of about 48.39%, while operating income was $6.78 million (operating margin 14.85%). Despite a solid operational backdrop, the quarter produced a net loss of $2.78 million, as total other income/expenses net was negative $9.57 million and interest expense was $9.82 million, which together overwhelmed the pre-tax result and drove the bottom line into negative territory (EPS -$0.0131). The discrepancy between strong gross profitability and a negative net income underscores the material impact of non-operating items and financing costs in QQ3 2025.
Compared with QA3 2024, revenue declined modestly, while gross margin expanded meaningfully (Q3 2024 gross margin ~42.4% vs. Q3 2025 ~63.8%), but net income performance deteriorated YoY due to higher non-operating charges and financing costs. The quarterly rhythm shows QoQ improvement in revenue and gross profit but a meaningful swing in net income driven by non-operating items. The company's fleet size remains 24 Suezmax vessels, anchoring a relatively leveraged asset-light profile with significant exposure to shipping cycles and macro oil demand.
Looking ahead, management commentary (not captured in the provided transcript) is expected to emphasize fleet utilization, charter rate stability, and financing costs as key drivers of profitability. In the near term, a sustained high level of other expenses or higher interest expense could negate operating earnings, while any improvement in freight rates or reduction in financing charges could lift the bottom line. Investors should monitor freight rate trends, vessel utilization, refinancing activity, and the cyclicality of the oil cargo market as the key determinants of Nordic American Tankers’ earnings trajectory.