Heidmar Maritime Q1 2026 Earnings Report

Heidmar Maritime EPS Results

• Actual EPS: N/A
• Consensus EPS: $0.04
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Heidmar Maritime Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Heidmar Maritime Announcement Details

• Quarter: Q1 2026
• Date: 5/26/2026
• Time: Before Market Opens
• Conference Call Date: Wednesday, May 27, 2026
• Conference Call Time: 9:00AM ET

Heidmar Maritime (NASDAQ:HMR) Inc. (NASDAQ: HMR) is a global provider of commercial and technical management services for oil and chemical tanker vessels. The company specializes in the operation of crude oil, refined products and chemical tankers under both time charter and voyage charter arrangements. Through its proprietary tanker pools, Heidmar offers owners and charterers enhanced vessel utilization and competitive freight rates by aggregating capacity and optimizing employment across global trade lanes.

Founded in 1993 and headquartered in Hamilton, Bermuda, Heidmar Maritime operates a modern, double‐hull fleet that includes a mix of very large crude carriers (VLCCs), Suezmax tankers, Aframaxes and medium range (MR) product vessels. The company’s services cover full commercial management, technical management and crewing, as well as specialized marine assurance and inspection services. Heidmar’s pool management platform, which includes the Heidmar Crude Oil Pool and the Heidmar Product Chemical Pool, enables vessel owners to benefit from scale efficiencies and access to a broad charterer base.

With regional offices in key maritime centers such as London, Singapore, Athens and Houston, Heidmar Maritime serves a diverse client roster spanning national oil companies, international trading houses and independent shipowners. The company’s management team brings decades of experience in tanker operations, risk management and chartering, supported by a technical operations group that ensures regulatory compliance and operational reliability. Heidmar remains focused on safety, environmental stewardship and delivering consistent service in the global tanker market.

Heidmar Maritime Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Heidmar reported a strong Q1 2026 turnaround, with net income of $2.8 million versus a $6.0 million loss a year ago, and adjusted net income of $3.4 million versus $0.9 million in Q1 2025.
• Positive Sentiment: Revenue surged to $18.4 million, up more than 216% year over year, driven by record freight rates and a much larger number of vessels on spot and time-charter voyages.
• Positive Sentiment: The company said its asset-light, fee-based model is allowing it to grow without heavy capital needs, and it highlighted improved cash generation, with operating cash flow rising to $6.6 million.
• Positive Sentiment: Heidmar added eight vessels in Q1 across VLCC, Suezmax, and MR segments and said it continues to add vessels in Q2, with a pipeline expected to remain active through this year and next.
• Neutral Sentiment: Management remained bullish on tanker market conditions, arguing that geopolitical disruptions and rerouting of trade flows should keep freight rates elevated for the next 12 months and support continued operating leverage.

Presentation

[Operator]

Thank you for standing by, ladies and gentlemen, and welcome to the Heidmar Conference Call on the First Quarter 2026 Financial Results. We have with us Mr. Pankaj Khanna, Chief Executive Officer. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question and answer session. At which time, if you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. I must advise you that this conference call is being recorded today. Please be reminded that the company announced their results with a press release that has been distributed publicly. Before passing the floor to Mr. Khanna, I would like to remind everyone that in today's conference call, Heidmar will be making forward-looking statements. These statements are within the meaning of the federal securities laws.

[Operator]

Matters discussed may be forward-looking statements which are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Now I would like to turn the floor over to Mr. Khanna. Please go ahead.

[Pankaj Khanna, CEO at Heidmar]

Thanks, operator. Good day to everyone, and welcome to the first quarter earnings call for Heidmar Maritime. Heidmar delivered a strong first quarter of 2026, marked by meaningful financial progress, accelerating fleet growth, and a sharpened strategic focus on value creation for our stakeholders. The results we're reporting today reflect the power of our asset-light, commercially driven model, one that enables us to scale rapidly in environments where tanker markets reward operational agility and market intelligence. Heidmar's business model is built on commercial management rather than vessel ownership. We earn fee-based revenues by operating tankers in pools or on commercial management and managing vessels on behalf of shipowners.

[Pankaj Khanna, CEO at Heidmar]

Because we grow our fleet without deploying capital into physical assets, our earnings scale with volume and market conditions, not with the balance sheet, keeping us agile to add vessels quickly, respond to dislocations, and return capital to shareholders rather than service heavy debt. Turning to the results. For the three-month period ended March 31, 2026, Heidmar realized consolidated net income of $2.8 million, or $0.05 per share basic, a sharp turnaround from a net loss of $6 million, or $0.10 per share in the corresponding period of 2025. Included in net income is the non-cash stock-based compensation of $0.6 million, representing the amortization of the share awards granted to key employees and members of the Board of Directors under the Heidmar Equity Incentive Plan. This charge is included within G&A expenses.

[Pankaj Khanna, CEO at Heidmar]

Excluding this non-cash item, Heidmar realized adjusted net income of $3.4 million, or $0.06 per share, compared to adjusted net income of $0.9 million in Q1 2025. This demonstrates a compelling improvement in the underlying earnings capacity of the platform. Total for the quarter were $18.4 million, compared to $5.8 million in Q1 2025, an increase of $12.6 million or more than 216% year-on-year. This growth was driven by record freight rates and a sharp increase in vessels employed on short-term spot and time charter voyages. Eight in Q1 2026 versus just one a year earlier. The quarter included the contribution of the platform supply vessel, Ace Supplier, which commenced charter operations in April 2025. G&A expenses decreased to $3.6 million from $6.1 million in Q1 2025, a reduction of $2.5 million.

[Pankaj Khanna, CEO at Heidmar]

This improvement reflects the significantly lower amortization of stock-based compensation in the current period, following the elevated charges recognized in 2025 related to equity awards granted to management. As we move through 2026, we expect G&A to remain well controlled relative to our growing revenue base. Turning to the balance sheet. As of March 31, 2026, cash and cash equivalents stood at $27.6 million, up $8.6 million from the $18.6 million at December 31, 2025. Total assets were at $76.1 million, and total stockholders' equity strengthened to $14.2 million from $10.7 million at year-end, reflecting the profitable quarter and the positive momentum building in our financial position. Net cash provided by operating activities from continuing operations was $6.6 million for the quarter, more than double the $3.1 million generated in Q1 2025.

[Pankaj Khanna, CEO at Heidmar]

This reflects the strong improvement in underlying earnings and confirms that the business is converting revenue growth into real cash generation. Turning to the market. The tanker market environment during the first quarter of 2026 was among the most constructive we have seen in recent years. Freight rates were already very strong in January and February and rose to historically record levels, underpinned by heightened geopolitical tensions and sustained disruption across critical shipping lanes, most notably increased volatility in and around the Strait of Hormuz and the broader Gulf region. These dynamics triggered significant rerouting of crude and product cargoes, extending voyage distances, tightening effective vessel supply and amplifying ton-mile demand across the tanker complex. The structural implications we are observing in global energy trade flows are not transient.

[Pankaj Khanna, CEO at Heidmar]

They reflect a fundamental reshaping of the supply chain architecture for crude oil and refined products, one that benefits well-positioned operators and commercial managers such as Heidmar. Notably, the rise in oil prices has remained modest, even though the Strait of Hormuz has now been closed for almost three months, removing an estimated 10%-15% of world supply, net of pipeline volumes bypassing the strait. That restraint reflects a massive release of stocks across the OECD and China. Inventories now sit at record lows and will have to be rebuilt to provide a buffer against the next Middle East conflict. We expect this crisis to drive two lasting changes: diversification of crude supply and the build-out of emergency storage. Japan today depends on the Middle East for roughly 90% of its crude imports, South Korea 70%, and China and India around 55%, concentrations that are no longer tenable.

[Pankaj Khanna, CEO at Heidmar]

As these buyers turn to the Atlantic basin, voyage distances lengthen, and ton-mile demand rises. Beyond higher prices, many countries now face outright fuel shortages, LPG in India, gasoline and diesel across parts of Asia and Africa. This has underscored the need for emergency reserves. We expect governments to build crude and product stocks to guard against the next disruption. Both trends add to tanker demand in the near term. Even when a peace accord is signed and it's reopened, we expect rates to firm further, with few ships positioned in the region. The hardest hit buyers in Asia and elsewhere will move quickly to restock. We estimate three to six months for flows to normalize. By then, the winter season will lift oil demand and freight rates seasonally. In short, we expect strong rates to persist for the next 12 months and beyond.

[Pankaj Khanna, CEO at Heidmar]

We continue to execute on our growth plans, scaling the platform during the quarter. Heidmar added eight vessels across key tanker segments, two VLCCs, three Suezmaxes, and three MRs during Q1 and continue to add in Q2. These additions expand our reach across the crude and product tanker markets. Our pipeline remains active, with further additions expected through this year and next. What sets Heidmar apart from the traditional shipping companies is fundamental. We do not own ships. While asset-owning operators carry depreciation, dry docking cycles, financing costs, and capital lockup, Heidmar focuses solely on commercial performance. With over 40 years of heritage as the original commercial management brand in the tanker sector, we have built unmatched relationships with charterers, oil majors, and trading houses across every major trading basin.

[Pankaj Khanna, CEO at Heidmar]

Our eFleetWatch platform, the first digital transparency tool developed in shipping, gives owners real-time visibility into their vessels' earnings and performance, a capability that no pure asset owner can replicate at scale. This combination of deep market knowledge, a trusted owner partner network, and proprietary technology is what makes Heidmar structurally different. The value of the Heidmar platform compounds as we grow. Each vessel we add to our commercially managed fleet increases our collective trading power, enabling better cargo coverage, tighter voyage optimization, and stronger negotiating leverage with counterparties. This network effect means that scale directly translates into better returns for every owner in the pool or on commercial management. Beyond commercial management revenues, the platform supports other services including technical management, sale and purchase advisory, investor opportunities, asset management, and fuel services, creating multiple touchpoints through which we deliver value to owners across the life cycle of their assets.

[Pankaj Khanna, CEO at Heidmar]

As we continue to grow, the platform becomes increasingly difficult to replicate and the comparative moat around our commercial model widens. Looking ahead, we remain constructive on the tanker market outlook. The fundamental drivers supporting elevated freight rates on both demand and supply remain firmly in place. We are confident in Heidmar's trajectory and our ability to generate sustainable returns for our stakeholders as we scale into one of the leading commercial management platforms in the global tanker industry. I thank our stakeholders, employees, vessel owners, and charterer partners for their continued trust, and we look forward to updating you on our progress. We will now take questions.

[Operator]

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Thank you. Our first question comes from the line of Tate Sullivan with Maxim. Please proceed with your question.

[Tate Sullivan, Analyst at Maxim]

Well, thank you very much, and apologize if I break up as I'm in transit. Your 20F had great detail on the number of your managed fleet. April 30th, could you comment on, Pankaj, that since the end of first quarter or April 30th, you've added to that list of managed vessels?

[Pankaj Khanna, CEO at Heidmar]

Yes, we have ongoing additions as new buildings are coming in and other secondhand vessels are joining as well. We did a press release, I think it was a week, two weeks ago, which added five vessels and it's a constant process.

[Tate Sullivan, Analyst at Maxim]

Okay. That was great detail on there and great comments on multiple countries building strategic energy reserves too. Just on the platform supply vessel, is that a fixed rate or is that an index rate that will vary based on some index you can point to?

[Pankaj Khanna, CEO at Heidmar]

No, it's a fixed rate contract.

[Tate Sullivan, Analyst at Maxim]

Great. Thank you very much, Khanna.

[Pankaj Khanna, CEO at Heidmar]

Thanks, Tate. Appreciate it.

[Operator]

As a reminder, if you would like to ask a question, press star one on your telephone keypad. Our next question comes from the line of Laura Maher with B. Riley. Please proceed with your question.

[Laura Maher, Analyst at B. Riley]

Hi, good morning. Thank you for taking the question. My first question is, are elevated rates keeping tanker owners from joining the Heidmar pool and staying in the time charter market?

[Pankaj Khanna, CEO at Heidmar]

Not necessarily. At this point, owners are interested more in the spot market than they are in the time charter market. It's split, of course, everybody's hedging their bets. Some people are looking at the forward markets and saying, one year rates have never been at these kind of levels. Some are taking that opportunity, but there are plenty of people who are on the spot market. We have a constant flow of vessels coming in where owners are buying at elevated rates and are looking to basically play the spot market, at the earnings that there are. The expectation in the market is that when the straits open, the spot market rates will explode. Let's use a term like that. Basically, we expect that rates will increase substantially. This is what people are positioning themselves for.

[Laura Maher, Analyst at B. Riley]

Great, thanks. Maybe just one more. You had a year-over-year step-up in EBITDA margins. With rising rates and more vessels added to the platform, can we expect continued positive operating leverage on the Heidmar platform?

[Pankaj Khanna, CEO at Heidmar]

Yes. As I mentioned in the remarks that the G&A levels are pretty stable. At this point, we have the capacity to add another 20 vessels without affecting the G&A. I'm conservative of 20, maybe 30, maybe 40, but basically, the EBITDA margins should stay strong and elevated. The G&A will not change substantially going forward.

[Laura Maher, Analyst at B. Riley]

Great. Thanks.

[Pankaj Khanna, CEO at Heidmar]

Thanks.

[Operator]

Our next question comes from the line of George Berman with Cabot Lodge Securities. Please proceed with your question.

[George Berman, Analyst at Cabot Lodge Securities]

Good morning, gentlemen, and thanks for taking my call. First and foremost, I want to congratulate you to a great quarter. Apparently, judging from the stock price performance, it was unexpected. The forecasted revenues, earnings, additional shipping should lead to another good second quarter here. Are you planning to continue the at the market stock offering or is that finished by now?

[Pankaj Khanna, CEO at Heidmar]

Look, we have kept the flexibility to have the ELOC live, but at the same time, as you will see from the press release, we have not really used it because we don't believe that these levels are reflective of the company's valuation. We have always maintained that we are not there to dilute the shareholders, including ourselves, for no valid reason. We are not in the market to buy vessels. We're not looking to create another vessel owner. Unless there's an accretive transaction that requires capital, we do not see any need to raise capital.

[George Berman, Analyst at Cabot Lodge Securities]

Okay, great. There are a lot of smaller, younger shipping companies formed right now, particularly with the high rates persisting in all the different markets. What would be your sort of pitch to a ship owner, smaller in size, to utilize your services, taking advantage of your vast network of offices all over the important points?

[Pankaj Khanna, CEO at Heidmar]

Look, I think the most important point is KYC. Know your client. If you want to go and work with Aramco as a new company, it may take you 12 months to clear their KYC requirements, and that is if Aramco decides to work with you. I just use them as an example. That is one very key point where Heidmar is KYC cleared by all oil companies and traders in the world. Besides that, because of our market intelligence and relationships, we are able to realize TCEs as in earnings, which are higher than most other people can do by themselves, especially the small owners. We have proven that time and time again. For one Chinese owner who's a one-ship owner, we fixed the ship at $490,000 per day at the peak of the crisis.

[Pankaj Khanna, CEO at Heidmar]

There's no way he could have fixed with that charter by himself. We have proven time and time again the value of Heidmar as a platform for the small ship owners, but it's also applicable for the big ship owners. If they don't have scale in a particular size sector, again, Heidmar can offer them that scale, so they can realize the best results in that sector. I think our platform is useful for both the big ship owners and the small ship owners.

[George Berman, Analyst at Cabot Lodge Securities]

Great. Good luck for the future, and thanks for taking my call.

[Pankaj Khanna, CEO at Heidmar]

Thanks, George.

[Operator]

We have reached the end of the question and answer session. Mr. Khanna, I'd like to turn the floor back over to you for closing comments.

[Pankaj Khanna, CEO at Heidmar]

Thanks, everyone. It was a great quarter. We expect to hope an even better quarter for Q2. Thank you and have a good day.

[Operator]

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.

Participants

Analysts

• George Berman, Analyst at Cabot Lodge Securities
• Laura Maher, Analyst at B. Riley
• Pankaj Khanna, CEO at Heidmar
• Tate Sullivan, Analyst at Maxim