StealthGas NASDAQ: GASS reported higher first-quarter revenue and continued to emphasize its debt-free balance sheet, growing cash position and charter coverage during its first-quarter 2026 earnings call.
Chairman Michael Jolliffe said revenue rose to $42.8 million in the quarter, up 2% from $42 million in the first quarter of 2025 and 9% from $39.4 million in the prior quarter. Adjusted net income was $15 million, compared with $16 million a year earlier and $13.3 million in the previous quarter. Adjusted earnings per share were $0.40.
Jolliffe said the company has maintained “a very flexible capital structure” after completing its strategic deleveraging goal last July. He noted that StealthGas repaid $350 million of debt over the prior three years and now has zero bank debt. The company has also repurchased $21.2 million of shares since 2023, though it did not repurchase shares during the first quarter as the stock price appreciated.
Revenue Visibility and Fleet Activity
StealthGas said it had about $100 million in contracted revenue as of June, with charters extending as far as 2029. Jolliffe said 45% of fleet calendar days one year forward are secured by period charters, while 55% of fleet days for the remainder of 2026 are already fixed, representing about $52 million in revenue for the rest of the year.
The company concluded five new period charters of three months or longer during the period following its prior update. Jolliffe said one charter was for two years, one for one year and three for six months. Despite that activity, he said spot exposure had increased entering the summer months, with five operating vessels in the spot market. “Our intention is to reduce the spot exposure,” he said.
StealthGas also continued to sell older tonnage. Jolliffe said the company entered into a contract in March to sell the Eco Royalty, with delivery expected in September. Two other vessels previously agreed for sale were delivered to buyers in March and May.
The company also addressed the Eco Wizard, which remains non-operational following an incident last July. Jolliffe said discussions with the vessel’s insurers are progressing but declined to disclose details. He said the company expects the matter to be resolved “within the current month or coming quarter.”
Profitability Supported by Firm Market
Constantinos Christovaris of investor relations said StealthGas operated a fleet that was “almost similar” to the prior-year period at 28 vessels, but revenue-earning days declined by 8.5%. He attributed the decrease to dry dock timing, when vessels are off hire, and the inclusion of the non-operational Eco Wizard.
Despite fewer revenue-earning days, revenue increased 1.9% year over year. Christovaris said vessels continued to operate in a firm market, with larger vessel sizes reporting improved results.
Voyage expenses increased by $1 million, including additional insurance premiums related to the Middle East conflict. Operating expenses were $13.8 million, only slightly higher than a year earlier. Dry docking costs increased significantly because three of the five vessels scheduled for dry docking in 2026 were dry docked in the first quarter, compared with one vessel in the prior-year period.
The company also recorded a $2.5 million gain from the sale of one vessel, with the sale agreement signed last year and delivery completed in March. Interest costs fell by $1.4 million year over year because the company no longer pays interest following its debt elimination.
Net income for the quarter was $15.9 million, up 12.9% year over year. Earnings per share were $0.43, while adjusted earnings were $15 million, or $0.40 per share. Christovaris said the quarter ranked among the company’s five best in terms of profit, though it was not a record.
Cash Position Grows as Debt Remains Zero
StealthGas ended the quarter with $131.2 million in cash, up 32% from $99 million three months earlier. Christovaris said the increase came from the sale of one vessel and $18 million in operating cash flow. He said proceeds from two vessel sales — one delivered in May and one expected in September — are expected to add about $26 million to the company’s cash position.
The book value of vessels in the fleet was $475 million as of March 31, down 3.4% due to one vessel being moved to held-for-sale status and regular depreciation. Current assets were $79.7 million and mostly included the book value and related expenses of the MGC vessel pending resolution with insurers.
Total liabilities were $26 million, all current, and the company had no debt. Shareholders’ equity increased by $17.2 million during the quarter to $708 million.
Christovaris said the elimination of debt has lowered the company’s cash flow breakeven and improved its flexibility. He added that the company is in a stronger negotiating position with banking partners if it chooses to expand.
Market Outlook Shaped by Middle East Conflict
Chief Executive Harry Vafias said the LPG market is being influenced by the conflict involving Iran and the closure of the Straits of Hormuz. He said about one-third of LPG supply comes from the Middle East, with most of it passing through the straits. StealthGas has one MGC vessel inside the Persian Gulf that had gone to load LPG in Saudi Arabia before the conflict began. Jolliffe said the company has not attempted to exit the vessel because it does not consider passage safe, and the vessel remains on time charter.
Vafias said global LPG exports fell an estimated 3% in the first quarter and that second-quarter data could show a steeper drop. He said many vessels previously trading in the Middle East have repositioned to the U.S., with some returning to the Far East via the Cape of Good Hope, increasing ton-miles.
U.S. LPG exports have continued to rise, Vafias said, with propane exports surpassing 2.6 million barrels in the last week of May, a 22% year-over-year increase. He said terminal expansions in the U.S. have proven well-timed and that the company expects LPG exports to continue growing.
In shipping markets, Vafias said European pressurized vessel rates remained firm in the first quarter due to relatively tight tonnage availability, though the time-charter market may “take somewhat of a breather” over the summer. He said ordering remains slow and the orderbook is healthy, while roughly one-third of the fleet is over 20 years old.
For Handysize vessels, Vafias said first-quarter inefficiencies supported a firm freight environment, with rates continuing to firm into the second quarter. He said no new vessels were ordered in that size segment and the orderbook remains close to 10% over the next few years.
The MGC market tightened significantly after the Middle East conflict began, Vafias said, with spot rates near all-time highs. However, he noted that the MGC orderbook remains substantial at close to 40%, making long-term demand growth important to absorb fleet expansion.
Vafias said StealthGas intends to invest in fleet renewal once the Eco Wizard matter is resolved. He said the company’s cash had increased to $155 million as of the call and described StealthGas as positioned with “a fully flexible balance sheet with zero debt and a growing cash pile.”
About StealthGas NASDAQ: GASS
StealthGas Inc is an international shipping company specializing in the seaborne transportation of liquefied petroleum gases (LPG), including propane, butane and ammonia. The company operates a fleet of modern pressurized LPG carriers with capacities ranging from approximately 2,500 to 9,100 cubic meters, providing safe and efficient carriage of petrochemical gases worldwide.
Founded in 2005 and incorporated in the Republic of the Marshall Islands, StealthGas is headquartered in Athens, Greece, with additional commercial and operational offices in major shipping centers across Europe and Asia.
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