Navios Maritime Partners Q1 Earnings Call Highlights

Key Points

• Navios Maritime Partners posted stronger Q1 2026 results, with revenue up 17% to $357 million, net income of $106.3 million, and EBITDA of $212.7 million. Management also declared a quarterly distribution of $0.06 per unit.
• The company emphasized a major fleet renewal and expansion strategy, including four new VLCCs on five-year charters and two Capesize newbuildings, while selling older VLCCs. These moves helped raise contracted revenue and cut the average age of the VLCC fleet.
• Navios’ contracted revenue backlog hit a record $4.1 billion, with 73% of available days fixed for the remaining nine months of 2026. Executives said disruption around the Strait of Hormuz has tightened shipping markets and boosted rates, though they warned a prolonged closure could hurt global demand.

Navios Maritime Partners NYSE: NMM reported higher first-quarter 2026 earnings and revenue, while management emphasized fleet renewal, a growing contracted revenue backlog and the potential market impact of disruptions around the Strait of Hormuz.

Chairwoman and Chief Executive Officer Angeliki Frangou said the company generated net income of $106.3 million and EBITDA of $212.7 million in the quarter. Earnings per common unit were $3.64, and the company announced a quarterly distribution of $0.06 per unit.

Frangou said the quarter unfolded against what she described as a “New World Order” in which trade is increasingly shaped by national security considerations and governments’ efforts to control strategic supply chains. She said the Iranian conflict had focused global attention on the Strait of Hormuz, which she called “a vital artery” for LNG, crude oil, refined products and fertilizers.

“We expect this conflict to have lasting implications on trade as countries and companies look to reduce their exposure to these choke points and diversify supply routes to safer areas,” Frangou said, adding that it was too early to assess the long-term impact.

Revenue Rises as Charter Rates Improve

Chief Financial Officer Erifyli Tsironi said total revenue for the first quarter rose 17% to $357 million from $304 million in the same period of 2025. The increase was driven by a higher combined time charter equivalent rate despite fewer available days.

The company’s combined TCE rate increased 21% to $25,679 per day, while available days fell 3% to 13,104. Tsironi said TCE rates improved across all three segments:

• Dry bulk TCE increased 39% to $17,632 per day.
• Tanker TCE increased 23% to $32,209 per day.
• Container TCE increased 4% to $31,696 per day.

Adjusted EBITDA increased by $51 million to $204 million compared with the first quarter of 2025, primarily due to the $53 million increase in revenue, partially offset by a $2 million increase in general and administrative expenses. Adjusted net income rose by $50 million to $98 million. Tsironi said adjusted earnings per common unit were $3.35, while earnings per common unit were $3.64.

Fleet Renewal and VLCC Transaction Highlight Strategy

Navios owns, operates and charters a fleet of 173 vessels across tanker, dry bulk and container shipping. Frangou said the fleet is divided roughly into thirds by value among the three segments, with total fleet value, including the newbuilding program, at $9.7 billion. The in-the-water fleet has $4.6 billion in net vessel equity value.

Frangou highlighted the company’s fleet modernization program, saying the fleet’s average age is 9.1 years, compared with an industry average of 13.7 years across its segments. The tanker fleet’s average age is 5.5 years, which she said is more than 60% younger than the global tanker fleet.

During the year to date, Chief Operating Officer Efstratios Desypris said Navios agreed to acquire four newbuilding VLCCs for $482 million, with delivery expected in the second half of 2028. The vessels have been chartered out for about five years at a net rate of $47,763 per day.

Frangou said the company sold two VLCCs with an average age of 16 years for $136.5 million after observing firming vessel values. She said the prices were 102% above the 20-year average and 18% above the prior historical peak value. After the Iranian conflict began, Navios then moved to acquire the four VLCC newbuildings and secure five-year charters, which Frangou said created $357 million in contracted revenue and reduced the average age of its VLCC fleet by almost 40% to 5.9 years.

“We expanded our VLCC fleet by almost 60% with minimal risk in a volatile time,” Frangou said, noting that the company also has options for four more VLCCs.

Navios also agreed to acquire two scrubber-fitted Japanese newbuilding Capesize vessels for $134.3 million. Desypris said those vessels are chartered for five years at a rate linked to the BCI index, with an average floor rate of $25,000 per day, an average fixed premium of about $3,000 per day over the index and 50% profit sharing above the floor rate.

Backlog Reaches Record $4.1 Billion

Desypris said contracted revenue backlog rose 16%, or about $549 million, to a record $4.1 billion. The backlog includes $1.7 billion from tankers, $2.1 billion from containerships and $300 million from dry bulk, with charters extending through 2037.

For the remaining nine months of 2026, Navios has 73% of available days fixed at a net average rate of $27,859 per day. Desypris said contracted revenue exceeds estimated total cash operating costs by $179.2 million, with 10,838 open or index-linked days providing potential upside.

Frangou said that for the full year, 80% of available days are fixed and 20% are open or indexed. She noted that about 40% of the dry bulk fleet is open or indexed because period charter rates had been weak for a prolonged period until recently.

Balance Sheet, Buybacks and Capital Allocation

Frangou said Navios ended the quarter with $593 million of available liquidity and a net loan-to-value ratio of 28.3%, moving toward the company’s target range of 20% to 25%. Tsironi said cash and cash equivalents, including restricted cash and time deposits over three months, totaled $421 million as of March 31, while the company had $172 million available under three facilities.

Long-term borrowings, including the current portion and senior unsecured bond net of deferred fees, increased by $12 million to $2.2 billion following the delivery of two newbuildings during the quarter. Tsironi said 43% of debt is fixed at an average interest rate of 6.2%, while 51% carries no loan-to-value covenant.

Frangou said the company returned about $1.7 million to unitholders through distributions in the first quarter, a 20% increase from the prior level. Year to date, Navios repurchased 240,502 units for $15.6 million. Under its $100 million unit repurchase program, the company has bought back 5.8% of units outstanding and has about $16.4 million of remaining authorization.

In response to a question from Omar Nokta of Clarksons Securities about capital deployment, Frangou said Navios remains focused on reducing leverage, returning capital through dividends and buybacks, and redeploying cash into transactions that create net asset value. She said the company would use different strategies across sectors depending on where opportunities emerge.

Executives See Shipping Markets Supported by Disruption

Chief Trading Officer Vincent Vandewalle said the effective closure of the Strait of Hormuz had created “a major energy and shipping shock,” affecting about 20% of worldwide crude, product and LNG flows. He said the disruption tightened tanker availability and pushed freight rates sharply higher, with VLCC rates reaching $602,000 per day at one point and remaining elevated.

Vandewalle said the disruption also supported dry bulk and container markets through higher fuel costs, security-of-supply concerns, Red Sea diversions and changing cargo patterns. However, he warned that a prolonged Hormuz closure could still trigger a global slowdown or recessionary demand shock that could affect all shipping markets.

During the question-and-answer session, Frangou said Navios is watching the Strait of Hormuz situation closely and will reassess strategy as conditions change. She said the company’s backlog provides stability while its diversified fleet allows it to act quickly when opportunities arise.

About Navios Maritime Partners NYSE: NMM

Navios Maritime Partners L.P. NYSE: NMM is a dry bulk shipping company that owns and operates a fleet of Capesize, Panamax and Supramax vessels. The partnership charters its vessels under medium- and long-term contracts to a diverse group of charterers, providing seaborne transportation for major bulk cargoes such as iron ore, coal, grain and fertilizers. Through this asset-light model, Navios Maritime Partners seeks to generate stable cash flows while retaining flexibility to capitalize on market opportunities.

Formed in November 2007 and sponsored by Navios Maritime Holdings Inc, the partnership leverages the operating platform and commercial management capabilities of the Navios group.

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