Navios Maritime Partners L.P. (NMM) Earnings

Management highlights

**Overall Financial Results for Q2 2026** - Reported net income of $167.9 million, adjusted EBITDA of $242 million, and earnings per common unit of $5.78 - Declared a $0.06 per unit distribution for the quarter - Total net loan-to-value (LTV) stood at 27.9%, down 38% from prior levels and approaching the company's 20-25% target - Total available liquidity is $625 million, with a staggered debt maturity profile and no near-term refinancing cliff; 50% of total debt has no LTV covenant, and 43% is fixed-rate with an average interest rate of 6.3% - Contracted revenue backlog totaled $4.4 billion extending through 2037, with contracted revenue exceeding projected 2H 2026 cash operating costs by $151 million **Fleet Modernization & Strategic Rotation** - The overall fleet has an average age of 8.7 years, 40% younger than the industry average of 13.7 years; the tanker fleet average age is 5 years, 65% younger than the global tanker fleet average, providing competitive advantages of lower operating costs, better fuel efficiency, and higher charterer preference - 29 new building vessels are scheduled for delivery through 2029, representing $2.5 billion in total investment, with only ~$290 million in remaining equity payments outstanding - Tanker segment: Sold two 16-year-old VLCCs for $136.5 million (18% above prior peak prices for vessels of this age), and acquired seven new building VLCCs for $844 million; the new vessels have already secured 6.1-year average charters at $45,224 net daily rate, expected to generate $700 million in total revenue - Dry Bulk segment: Sold two 18-year-old Panamax vessels for $22.8 million, reinvested in three new building Capesize vessels for $204 million; two of the new Capesizes have 5-year charters secured, for $86 million in contracted revenue - Container segment: Sold two 19-year-old 4,730 TEU vessels for $64.5 million, maintaining 194 million in contracted revenue across the remaining six vessels with 3 years average charter duration **Capital Return Program Updates** - Announced a new $200 million common unit repurchase authorization, doubling the size of the prior $100 million program; this new authorization is incremental to any remaining capacity under the original program - Since the program launched in Q2 2024, the company has repurchased 1.9 million units for $92.6 million, reducing outstanding units by ~6% from 30.2 million to 28.3 million, generating $6.30 per unit of accretion - Capital allocation for buybacks considers relative value versus alternative investments, maintaining balance sheet strength and adequate liquidity, and prudent leverage targets

Guidance

- Management expects ongoing geopolitical disruptions (Strait of Hormuz, Red Sea) will keep vessel utilization high and freight rates elevated in the near term - Over the medium term, structural supply constraints are expected to support shipping rates across all three segments: dry bulk has a low current order book and an aging fleet, while tanker supply is further reduced by 15.3% of total capacity being sidelined via OFAC/EU/UK sanctions - Tanker rates are expected to remain elevated long-term due to needed restocking of strategic and commercial crude/product reserves - Dry bulk rates are expected to benefit from rising long-haul iron ore demand from new projects in Guinea, Brazil, and Liberia, which will add ton-mile demand faster than new vessel supply can enter the market - Management continues to target a net LTV of 20-25% and does not expect to change capital allocation priorities after reaching this target - The company maintains 6,250 open or index-linked days for full-year 2026, preserving upside participation in any further spot market strengthening while retaining a strong contracted earnings base

Segment performance

Navios Maritime Partners operates across three product segments: Tankers, Dry Bulk, and Container Ships. For Q2 2026, total company revenue was $410.2 million, a 25% increase from Q2 2025. Total contracted revenue backlog reached a record $4.4 billion, broken down by segment as: 1) Tankers: $2.0 billion in contracted revenue (45.5% of total backlog), with a Q2 2026 time charter equivalent (TCE) rate of $33,159 per day, a 25% increase year-over-year (YoY). 922 million in total contracted revenue has been secured across 14 tanker vessels, with an average charter duration of 5 years. 2) Dry Bulk: $0.3 billion in contracted revenue (6.8% of total backlog), with a Q2 2026 TCE rate of $23,682 per day, a 53% increase YoY. 125 million in minimum contracted revenue has been secured across 4 vessels, with an average charter duration of 3 years. 24% of the segment's available days are open or index-linked, providing upside from spot market strength. 3) Container Ships: $2.1 billion in contracted revenue (47.7% of total backlog), with a Q2 2026 TCE rate of $31,191 per day, flat YoY. 194 million in contracted revenue is secured across 6 vessels, with an average remaining charter duration of 3 years. For the first half of 2026, all three segments posted TCE increases: Dry Bulk +47% to $20,632/day, Tankers +24% to $32,694/day, and Container Ships +2% to $31,444/day.

Risks & headwinds

- Ongoing geopolitical conflicts (Russia-Ukraine war, attacks in Strait of Hormuz and Red Sea) create persistent global trade disruptions, and a prolonged closure of key shipping chokepoints could trigger a global economic slowdown or recessionary demand shock that would negatively impact all shipping markets - Geopolitical disruptions increase operating costs including fuel, insurance, and crewing, though most of these costs are passed through to charterers under the company's predominantly time-charter business model - Sanctions on Russian and Iranian oil have reduced available tanker capacity, but any future changes to sanction regimes or unexpected shifts in trade flows could alter current supply-demand dynamics - Counterparty credit risk exists for long-term contracted revenue, though management mitigates this by focusing on high-quality, blue-chip counterparties and maintaining diversification across sectors and counterparties - The shipping industry is inherently cyclical, with rapid changes in market conditions that can impact earnings and asset values

Analyst Q&A

• Q: With the dry bulk market currently firm, is the company moving to fix more open days on longer-term charters? /

  A: Management confirms the company has already fixed additional dry bulk vessels, including a 21-year-old Capesize fixed for two years at historically healthy rates. Fixed terms average around two years, with some open/index exposure retained to capture ongoing spot market upside, reflecting confidence in the market's strength for the foreseeable future.

• Q: Is the new $200 million share buyback authorization incremental to the remaining capacity of the original $100 million program? /

  A: The new $200 million authorization is additional to remaining capacity from the original program. The company had already bought back ~6% of outstanding units under the initial program, and is doubling its buyback capacity to continue returning value to unitholders.

• Q: What is the timeline for reaching the 20-25% net LTV target, and will capital allocation change after hitting this target? Is it reasonable to expect buybacks to exceed $10 million per quarter under the new program? /

  A: Management confirmed the buyback program has been doubled as announced, with all capital allocation decisions guided by the priority of maintaining a flexible, low-stress balance sheet that can operate across all market conditions. The company is continuing progress toward the 20-25% net LTV target, with no changes to the target framework announced.

• Q: How does the company manage counterparty concentration and credit risk in its $4.4 billion long-term contracted backlog? /

  A: Risk management is a core priority, with diversification across three sectors and a focus exclusively on high-quality, blue-chip, highly rated counterparties (major oil companies, leading grain handlers, top container lines) across diversified end-markets. Contracted revenue is split roughly 50-50 between tankers and container ships, with no excessive concentration to any single counterparty or segment, and counterparty quality is vetted extensively to ensure performance through all market conditions.

• Q: How should investors balance the benefits of longer ton-mile demand from shifted trade routes against higher associated operating costs? /

  A: Longer voyage routes reduce effective vessel supply available to the market, supporting higher overall freight rates. Since the company primarily operates on time charters, most incremental costs (fuel, insurance, etc.) are passed through to charterers, so operators like Navios capture the benefit of higher rates from increased ton-mile demand without absorbing higher operating costs.