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Earnings call · Jun 2026 (Q2 FY26)

Navios Maritime Partners Q2 FY26 earnings call NMM

Aug 20, 2026 Source

Executive summary

Navios Maritime Partners Q2 FY26 — Strong Earnings, Fleet Modernization, and Expanded Buyback

Navios Maritime Partners delivered strong Q2 FY26 results, driven by robust freight rates across all segments and strategic fleet modernization. The company announced a significant expansion of its unit repurchase program, reflecting confidence in its valuation and capital allocation strategy, while navigating persistent geopolitical disruptions impacting global trade routes and operational costs.

Highlights

5

  • Net income for Q2 FY26 was $167.9 million, with H1 FY26 net income at $274.3 million.

  • Adjusted EBITDA for Q2 FY26 increased by $70 million to $242 million compared to Q2 FY25.

  • Announced a new $200 million common unit repurchase authorization, doubling the previous program.

  • Contracted revenue backlog reached a record high of $4.4 billion, extending through 2037.

  • Fleet modernization program resulted in an average age of 8.7 years, significantly younger than the industry average of 13.7 years.

Concerns

3

  • Geopolitical conflicts (Russia-Ukraine war, Strait of Hormuz, Red Sea attacks) caused persistent disruptions to global trade flows.

  • Increased time charter and voyage expenses by $14 million in Q2 FY26, primarily due to additional insurance premiums.

  • General and administrative expenses increased by $3 million in H1 FY26 due to higher euro-dollar exchange rates.

Guidance & targets

CategoryTargetConfidence
Net Loan-to-Value (LTV)
20% to 25%
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Tanker Segment
Strong performance driven by robust market conditions and strategic repositioning with newbuild acquisitions and long-term charters.
Q2 FY26 TCE rate: $33,159 per day (+25% YoY)H1 FY26 TCE rate: $32,694 per day (+24% YoY)Contracted revenue: $2.0 billionContracted revenue from 14 vessels: $922 million (avg 5 years duration)Contracted revenue from 11 newbuilding tankers: $893 million
————
Dry Bulk Segment
Significant increase in TCE rates, with a portion of the fleet exposed to the strong spot market. Strategic rotation to larger, more fuel-efficient vessels.
Q2 FY26 TCE rate: $23,682 per day (+53% YoY)H1 FY26 TCE rate: $20,672 per day (+47% YoY)Contracted revenue: $0.3 billionMinimum contracted revenue from 4 vessels: $125 million (avg 3 years duration)Open or index-linked days (H2 2026): 25% of fleet
————
Container Segment
Stable TCE rates with focus on harvesting value from contracted backlog and maintaining flexibility for future capital allocation.
Q2 FY26 TCE rate: $31,191 per day (in line with 2025)H1 FY26 TCE rate: $31,444 per day (+2% YoY)Contracted revenue: $2.1 billionContracted revenue from 6 vessels: $194 million (avg 3 years remaining charter duration)
————

Orderbook & backlog

Total Contracted Revenue Backlog $4.4 billion Q2 FY26

grown by more than 30% (over past 5 years)

Extending through 2037.

Tanker Segment Contracted Revenue $2.0 billion Q2 FY26
Container Segment Contracted Revenue $2.1 billion Q2 FY26
Dry Bulk Segment Contracted Revenue $0.3 billion Q2 FY26
New Contracted Revenue Added (Q2 & Q3 YTD) $666 million Q3 YTD

$439 million from [indiscernible], $38 million from 2 dry bulk vessels, and $129 million from 4 container ships.

Deals & partnerships

null Sale of two 16-year old VLCCs $136.5 million

Part of strategy to capitalize on robust tanker market and reposition VLCC fleet.

null Acquisition of 7 newbuilding VLCCs $844 million

Rebuilds VLCC fleet with modern tonnage supported by long-term employment, reducing residual value exposure.

null Sale of two 18-year old Panamax vessels $22.8 million

Part of strategy to systematically rotate to larger, more fuel-efficient vessels in the dry bulk segment.

null Investment in 3 newbuilding Capesize vessels $204 million

Part of strategy to systematically rotate to larger, more fuel-efficient vessels in the dry bulk segment.

null Sale of two 19-year old 4,730 TEU container vessels $64.5 million

Focus on harvesting the value of contracted backlog and preserving flexibility for future capital allocation.

null Acquisition of 3 newbuilding VLCCs $362 million

Expected delivery in H2 2028 and 2029.

null Acquisition of 1 scrubber-fitted Capesize vessel $70 million

Expected delivery in H2 2029.

null Sale of 1 19-year old 4,730 TEU containership $34.5 million
null Delivery of 1 newbuilding Aframax/LR2 vessel about 5 years

Continues active fleet renewal.

Capital programs

Newbuilding VLCC Acquisition Program underway $844 million

Benefit:7 newbuilding VLCCs

Acquisition of 7 newbuilding VLCCs, including 1 vessel subject to ongoing discussions. These vessels are secured by period charters for an average of 6.1 years at $45,224/day net, expected to generate $700 million of revenue.

Newbuilding Capesize Acquisition Program underway $204 million

Benefit:3 newbuilding Capesize vessels

Investment in 3 newbuilding Capesize vessels. Two of these newbuildings have been fixed on 5-year charters providing a minimum of $86 million in contracted revenue in addition to profit sharing.

Newbuilding Program (Overall) underway $2.5 billion
Period spend: $190 million

Benefit:29 newbuilding vessels

Total investment for 29 newbuilding vessels delivering through 2029. $190 million paid in H1 2026. Approximately $290 million of equity remaining to be paid. Expected to generate about $1.8 billion in contracted revenue over a 5-year average.

Newbuilding Capesize Financing concluded $64.6 million

Benefit:1 newbuilding Capesize vessel

Financing concluded for a newbuilding Capesize vessel under a 10-year bareboat contract with purchase options, at a 6% fixed interest rate.

Risks & headwinds

Geopolitical Conflicts and Trade Disruptions Ongoing

War between Russian and Ukraine remains unresolved; persistent attacks in Strait of Hormuz and Red Sea.

Mitigation:Diversification of suppliers, routes, storage capacity, and transportation infrastructure; longer non-call routes may create higher ton-mile demand.

Global Slowdown or Recessionary Demand Shock Near to medium-term

Prolonged Hormuz closure could still trigger a global slowdown or recessionary demand shock.

Mitigation:Diversified fleet, disciplined risk management, strong balance sheet, and contracted revenue backlog provide resilience.

Increased Operating Expenses Ongoing

Q2 FY26 time charter and voyage expenses increased by $14 million, primarily due to additional insurance premiums.

Mitigation:Insurance premiums reimbursed by charterers; focus on time charters where increased costs can be passed through.

Currency Fluctuations Ongoing

H1 FY26 general and administrative expenses increased by $3 million mainly due to higher euro-dollar exchange rate.

Mitigation:null

What to watch in Q3 FY26

Net LTV Reduction Progress

Next quarter
Current 27.9%
Target Closer to 20-25% target

Why it matters

Achieving the target LTV will enhance financial flexibility and potentially impact capital allocation decisions.

We continue to make headway in reducing a net LTV towards a target of 20%, 25%.

Q&A highlights

Given the dry bulk fleet's spot exposure, is the plan to continue deploying vessels on index-linked charters, or will the company convert some to fixed-rate contracts?

Management confirmed a very firm dry bulk market, allowing them to fix vessels for 2.5-year durations at healthy rates. They will continue to capture spot market strength through index-linked days (25% of H2 2026 dry bulk fleet) while also securing some long-duration fixed charters when attractive.

“What we see is a very firm market. We have been able to fix even very, very okay on a 2.5-year duration at healthy rates by historical standards. So you will see some contracted revenue because it is at levels that do [indiscernible]. But we also keep -- you will have part of that on intake.”

asked by Omar Nokta · answered by Angeliki Frangou

2 min read 6 chapters

Detailed narrative

Geopolitical Impact on Global Trade

The ongoing conflicts in Ukraine, Strait of Hormuz, and Red Sea are causing persistent disruptions, leading to reassessment of critical resource exposure and potentially longer non-call routes. This trend places greater value on supply chain resilience and diversification, which could benefit the shipping industry through increased ton-mile demand. Management noted that these disruptions add significant days to voyages, directly translating to higher earnings for time charters.

Fleet Modernization and Diversification

Navios operates a modern fleet of 176 vessels across three segments (tanker, dry bulk, container) with an average age of 8.7 years, significantly younger than the industry average of 13.7 years. The company's strategy involves monetizing mature assets and investing in newbuilds, enhancing cash flow visibility and positioning for future market cycles. The overall fleet value, including the newbuilding program, stands at $10.2 billion.

Capital Allocation Strategy

The company announced a new $200 million common unit repurchase authorization, doubling the previous program, to create value for unitholders when units trade at a discount to NAV. This is balanced with investments in newbuilds, maintaining liquidity, prudent leverage, and safeguarding fleet strength. Since Q2 2024, 1.9 million common units have been repurchased for $92.6 million, resulting in $6.30 per unit of accretion.

Tanker Market Repositioning

Navios capitalized on a robust tanker market by selling two 16-year-old VLCCs for $136.5 million (18% above prior peak) and acquiring seven newbuild VLCCs for $844 million. These newbuilds are secured with long-term charters averaging 6.1 years at a net daily rate of $45,224, expected to generate $700 million in revenue, enhancing cash flow visibility and modernizing the fleet.

Dry Bulk and Container Strategy

In dry bulk, the focus is on rotating to larger, more fuel-efficient vessels, selling two Panamax vessels for $22.8 million and investing in three newbuild Capesize vessels for $204 million. Two of these Capesize newbuildings are fixed on 5-year charters for $86 million minimum revenue plus profit sharing. For containers, the strategy is to harvest value from the contracted backlog, selling two 4,730 TEU vessels for $64.5 million while maintaining $194 million in contracted revenue across six vessels.

Industry Outlook

The dry bulk market looks positive based on stable long-term demand growth and constrained supply, with new iron ore projects in the Atlantic Basin (Simandou, Vale, Liberia) expected to drive 180 million long-haul tons, creating demand for 249 Capes by 2028. The tanker market also looks positive due to a low order book, aging fleet, and sanctions reducing effective capacity by 15.3%. The container market sees continued healthy growth in non-main lane trades, favoring smaller vessels where Navios is active.

AI-generated summary of the company's earnings call. Not investment advice.