Costamare (CMRE) Is Up 9.2% After Surging Profitability in Q3 – Has the Narrative Shifted?

• Costamare Inc. recently reported its third quarter 2025 financial results, posting US$225.17 million in revenue and US$97.91 million in net income for the period ended September 30, 2025.
• While revenue was largely unchanged year over year, net income saw a significant increase, highlighting a shift in profitability for the quarter.
• With net income growth outpacing revenue, we'll examine the implications of Costamare's improved profit margins on its investment outlook.

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Costamare Investment Narrative Recap

To be a shareholder in Costamare, you have to believe in the resilience of the shipping market and the company's ability to sustain strong contracted revenues, even as global charter rates fluctuate. The latest earnings report, with stable revenue but rising net income, suggests improved operational efficiency. However, this does not fundamentally change the most important short-term catalyst: whether current charter rate strength can endure, nor does it materially alter the risk of an unexpected market downturn affecting contracted revenue stability. Among recent announcements, Costamare's quarterly dividend declaration for Q3 2025 is most relevant here. Consistent dividends can reinforce confidence in cash flow quality, especially as high utilization and long-term charters remain key drivers for near-term performance. Yet, in contrast, investors should also be mindful of the possibility that even well-structured revenue contracts might not fully insulate results if shipping market conditions shift and...

Read the full narrative on Costamare (it's free!)

Costamare's outlook projects $448.3 million in revenue and $285.2 million in earnings by 2028. This reflects a 40.1% annual revenue decline and a decrease in earnings of $29.8 million from the current $315.0 million.

Uncover how Costamare's forecasts yield a $11.15 fair value, a 21% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided two fair value estimates for Costamare, ranging from US$9.99 to US$11.15 per share. With earnings visibility underpinned by contracted revenues, your own outlook on shipping market sustainability could have a significant impact on how you see the stock.

Explore 2 other fair value estimates on Costamare - why the stock might be worth as much as $11.15!

Build Your Own Costamare Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Costamare research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.
• Our free Costamare research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Costamare's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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