Navios Maritime Partners L.P. (NMM) Earnings

Management highlights

### Fleet and Portfolio Strategy - Navios operates a modern fleet of 173 vessels across three segments, with an overall average age of 9.1 years (34% younger than the industry average of 13.7 years); the tanker fleet average age of 5.5 years is more than 60% younger than the global tanker fleet average. Total fleet value including the newbuilding program is $9.7 billion, with $4.6 billion in net vessel equity for in-water vessels. - Business diversification across three segments (one-third of total fleet value in each) and a strong risk management culture provide operational and revenue optionality. Robust insurance coverage and multiple risk mitigation tools are in place for operational risks, especially amid ongoing geopolitical conflict. - The company continues to actively renew its fleet to maintain a young profile. Year-to-date 2026, the company sold 5 older vessels for a total of $190 million, agreed to acquire 6 newbuild vessels (4 VLCCs, 2 Capesize dry bulk vessels) and took delivery of 5 newbuild vessels. All delivered newbuilds are chartered out for an average of 5 years at a weighted average net daily rate of $29,065. - There are 26 total newbuild vessels scheduled for delivery through 2029, representing $2.1 billion in total investment, with approximately $329 million in remaining equity payments required. All newbuilds are covered by long-term charters with creditworthy counterparties, generating an expected $1.5 billion in contracted revenue over an average 5-year charter term, mitigating residual value risk. ### Capital Structure and Capital Return - As of quarter end, net loan-to-value (LTV) was 28.3%, down 37% over the past 5 years and approaching the company's 20-25% target. The balance sheet holds $593 million in total available liquidity, with credit ratings of BA3 (Moody's) and BB (S&P). - 43% of total debt is fixed-rate at an average interest rate of 6.2%, and 51% of debt has no LTV covenant. The average margin on floating rate debt for the in-water fleet has been lowered to 1.8%, with an average margin of 1.5% for committed newbuilding program floating rate debt. Debt maturities are staggered with no significant balloon payments before 2030, and 55 vessels are debt-free. - The company declared a $0.06 per unit distribution for Q1 2026, representing a 20% increase from the prior level. Under the $100 million unit repurchase program, 5.8% of outstanding units have been repurchased to date, generating $5.8 per unit value accretion, with approximately $16.4 million in remaining repurchase capacity. ### Recent Strategic Transactions - Early in Q1 2026, the company sold two 16-year-old VLCCs for $136.5 million, when vessel values hit 102% above the 20-year average and 18% above the prior historical peak. - Following the outbreak of the Iranian conflict, the company executed an arbitrage transaction to purchase four newbuilding VLCCs at only 11% above 20-year average values, and immediately chartered all four out for 5 years at ~$48,000 per day, 24% above the 20-year average time charter rate. This transaction locked in $357 million in contracted revenue, expanded the VLCC fleet by ~60% with minimal risk, and reduced the overall VLCC fleet average age by almost 40%. The company holds options for four additional VLCCs. - As of quarter end, total contracted revenue backlog reached a record high of $4.1 billion, a 16% increase quarter-over-quarter. 80% of 2026 total available days are fixed-rate, with 20% open or index-linked to capture market upside. For the remaining 9 months of 2026, contracted revenue exceeds total estimated cash costs by $179 million.

Guidance

- Management expects to reach the 20-25% net LTV target by the end of 2026, following continued debt prepayment and existing deleveraging momentum. - For the dry bulk sector, management expects long-term rate benefits from constrained vessel supply (low order book, aging fleet) paired with steady long-term ton-mile demand growth from new long-haul iron ore projects expected to add 180 million tons of annual exports by 2027. - For the tanker sector, management expects a multi-year period of tight vessel supply due to a low order book, an aging existing fleet, and 15% of total global capacity removed by international sanctions on Russian and Iranian oil vessels. - For the container sector, management expects continued stable long-term demand for the smaller vessel sizes that Navios specializes in, driven by faster growth in non-mainland regional trades centered on the southern hemisphere. - In the near term, management expects high vessel utilization and elevated freight rates across most segments as long as the Strait of Hormuz remains effectively closed due to the Iranian conflict.

Segment performance

Overall Q1 2026 total revenue was $357 million, a 17% increase year-over-year (YoY), driven by a 21% combined YoY increase in time charter equivalent (TCE) rates to $25,679 per day, partially offset by a 3% decrease in available days to 13,104. Adjusted EBITDA was $204 million, up $51 million YoY, while adjusted net income was $98 million, up $15 million YoY. Reported net income was $106.3 million and reported EBITDA was $212.7 million, with earnings per common unit of $3.64. By segment: 1. Dry Bulk: TCE rate increased 39% YoY to $17,632 per day. Total contracted backlog is $300 million, accounting for 7.3% of the total $4.1 billion record backlog. Approximately 40% of the dry bulk fleet remains open or index-linked to capture spot market upside. 2. Tankers: TCE rate increased 23% YoY to $32,209 per day. Total contracted backlog is $1.7 billion, accounting for 41.5% of the total record backlog. After recent transactions, the average age of the VLCC sub-segment was reduced by almost 40% to 5.9 years. 3. Container: TCE rate increased 4% YoY to $31,696 per day. Total contracted backlog is $2.1 billion, accounting for 51.2% of the total record backlog. The entire container fleet is fixed on long-term charters, providing stable cash flow.

Risks & headwinds

- Geopolitical and macroeconomic risk: A prolonged closure of the Strait of Hormuz could trigger a global slowdown or recessionary demand shock that would negatively impact all shipping markets. The long-term impact of the ongoing Iranian conflict and shifting global trade patterns remains uncertain, and management is closely monitoring developments. - Supply and demand volatility: While current spot rates are sharply elevated, market conditions can shift quickly if geopolitical tensions resolve or demand patterns change. - Sanctions risk: Ongoing sanctions on Russian and Iranian oil have reduced available tanker capacity, but further escalation or expansion of sanctions could create new operational disruptions or change market dynamics. - Fleet renewal execution risk: The newbuilding program requires remaining equity contributions and scheduled deliveries through 2029, with execution dependent on yard availability and construction timelines.

Analyst Q&A

• Q: Given stronger-than-expected cash inflow, how will management balance capital deployment between deleveraging, adding new vessels, and increasing shareholder returns? /

  A: Navios remains committed to its disciplined strategy, prioritizing reaching the 20-25% net LTV target, which is almost complete. The company follows a total return policy that combines dividends and buybacks for investors while also redeploying capital into high-value transactions to grow net asset value (NAV). Management will continue to use flexible, sector-specific strategies: for example, it sold older VLCCs at peak pre-conflict prices, then acquired de-risked new VLCC newbuilds locked into long-term charters after the conflict started, and keeps a large portion of the dry bulk fleet open to capture upside from the current strong spot market.

• Q: With the four new VLCC newbuilds successfully locked into long-term charters, what is the outlook for exercising the remaining VLCC options, and can the same de-risked charter structure be repeated? /

  A: Management will stick to its disciplined approach for the options. There is already market interest in the additional vessels, and the company will only exercise the options if it can secure attractive long-term charters on terms similar to the initial transaction, to maintain the low-risk structure that worked for the first four vessels.

• Q: Given the strong current market, will management continue to prioritize fixed long-term charters, or will it retain more spot market exposure, especially in dry bulk with its positive outlook? /

  A: Management will continue to opportunistically add long-term charters whenever attractive deals are available, regardless of sector. The large portion of open dry bulk tonnage reflects a wait-and-see approach that allowed the company to capture recent spot upside, and attractive two to three year charters have recently emerged in the sector, so management has already added significant backlog this quarter. Management is closely monitoring how the Strait of Hormuz situation will reshape long-term trade patterns to adjust strategy accordingly.

• Q: How active will asset sales be going forward, which segments/age bands will be targeted, and what is the core goal of the sales program? /

  A: Asset sales will continue as part of the ongoing continuous fleet rejuvenation strategy. Most sales will target older vessels, typically 16+ years old, across all segments, when market valuations reach attractive levels relative to historical benchmarks. Proceeds are redeployed into younger, higher-return new vessels to continue reducing the fleet's average age, which has already been cut by one-third over the last three years, during which the company has sold over 50 older vessels.

• Q: What second-order impacts of a prolonged Hormuz disruption does management see across non-tanker segments? /

  A: The prolonged disruption has created a large global oil deficit that will require replenishment once the strait reopens, supporting long-term shipping demand. Additionally, natural gas supply shortages have driven increased demand for coal as a substitute, which lifts dry bulk shipping demand, alongside increased movement of fertilizers and other affected commodities. The main downside risk is that prolonged disruption could trigger a global recession that cuts overall commodity demand, and management continues to monitor this closely, with the large existing backlog providing stability to weather any downturn.