Navios Maritime Partners LP Q1 FY2025 earnings call

• Revenue for the first quarter of 2025 was $304.1 million, EBITDA was $147.6 million, and net income was $41.7 million. Earnings per common unit were $1.38.
• The economic environment has been uncertain due to U.S. tariff proclamations, revisions, pauses, and exceptions, as well as wars in Ukraine and the Middle East. However, the spot rate market has generally been healthy.
• The company has a contract backlog of $3.4 billion and contracted revenue is $12.5 million larger than total cash expenses for the remaining nine months of 2025.
• They sold three vessels with an average age of 19.1 years for around $35 million and received newbuilding vessels with employment. For example, two aframax/LR2 tankers were fixed at an average rate of $26,349 net per day for five years and two LNG dual fuel 7,700 TEU containerships were fixed at an average rate of $41,753 net per day for 12 years.
• Their net LTV as of the end of Q1 was 35.2% slightly up from last quarter. 30% of their long-term debt has a fixed interest rate of 5.5%.
• They continue to renew their fleet, modernizing it to reduce carbon footprint and maintain a young profile. They have 21 additional newbuilding vessels delivering to their fleet through 2028, representing $1.4 billion of investment.

Navios Maritime Partners has three main segments: tanker, dry bulk, and containerships. The total contracted revenue amounts to $3.4 billion. Of this, $1.4 billion relates to the tanker fleet, $0.2 billion to the dry bulk fleet, and $1.8 billion to the containerships. In the first quarter of 2025, revenue was $304.1 million, EBITDA was $147.6 million, and net income was $41.7 million. Earnings per common unit were $1.38 for the quarter.

• The company has a contract backlog of $3.4 billion. Contracted revenue is $12.5 million larger than total cash expenses for the remaining nine months of 2025.
• They have 14,117 remaining open/index days which should provide substantial additional cash flow.
• They are focused on returning capital to shareholders through a dividend program and buyback, with $58.9 million available under the unit repurchase program as of May 1, 2025.

• Uncertainty due to U.S. tariff proclamations, revisions, pauses, and exceptions, as well as wars in Ukraine and the Middle East. These have led to market volatility.
• Interest rate risks, but they are managing this through fixed cost financing and hedging arrangements. 30% of their long-term debt has a fixed interest rate of 5.5%.
• Potential impact on maritime transportation from the evolving tariff regime and geopolitical tensions.

Q: How is Navios thinking about capital allocation, including buybacks and fleet renewals in the current uncertain environment?

A: Angeliki Frangou stated they need to be patient and focused on what they can control. They have built liquidity, contracted revenue, and a modernized fleet. They are looking at returning capital to shareholders through dividends and buybacks but are monitoring the new environment closely. They are open to opportunities but need to be flexible as the situation evolves.

Q: How are vessel values and acquisition opportunities being viewed in the different segments currently?

A: Angeliki Frangou mentioned that tanker vessel values are in a good level. The spot market in dry bulk was healthy despite uncertainty. They are open to new opportunities but need to follow how the market and geopolitical situation develop, being flexible and not rushing into decisions