StealthGas Inc. Q1 FY2026 earnings call

### Capital Structure and Shareholder Activities - Completed the strategic goal of full deleveraging in July 2025, repaying $350 million in debt over 3 years to become the only known public shipping company with 0 bank debt. - Maintains an existing share repurchase program, with $21.2 million in total share buybacks completed since 2023; no buybacks were executed in Q1 2026 due to recent share price appreciation. - Debt elimination has lowered the company's cash flow breakeven, improved competitiveness, and provided full strategic agility for future expansion or market downturns.

### Fleet Operations and Charter Coverage - As of June 2026, the company holds $100 million in contracted future revenues through 2029, with 55% of 2026 remaining fleet calendar days secured by period charters, and 45% of 12-month forward calendar days secured. - Concluded 5 new period charters of 3+ months duration in the quarter, with longer average durations than the prior quarter: one 2-year charter, one 1-year charter, and three 6-month charters. - 5 vessels are scheduled for dry docking in 2026; 3 were completed in Q1 2026 (ahead of schedule, leading to higher dry docking expenses this quarter), with 2 remaining for the rest of the year. - Currently 5 operating vessels are in the spot market, and management intends to reduce this spot exposure to maintain high period coverage.

### Sale and Purchase Activity - Continues a strategy of selling older tonnage, with potential replacement by newer vessels. One vessel was delivered to buyers in March 2026, a second in May 2026, and a third (the Eco Royalty) is contracted for sale with delivery expected in September 2026. - Proceeds from the two pending sales are expected to add approximately $26 million to the company's cash position.

### Geographical Positioning - 2/3 of the fleet is positioned west of the Suez Canal (concentrated in Europe and the Mediterranean) to take advantage of higher rates and a more liquid market, compared to lower rates in the Far East where only one older vessel is currently positioned. - 4 vessels currently trade in Africa, where management is building relationships in anticipation of faster LPG demand growth driven by new under-construction storage facilities that will increase seaborne trade.

### Eco Wizard Incident Status - The Eco Wizard remains impaired after a July 2025 incident, and the company is in ongoing discussions with the vessel's insurers. Management expects the situation to be resolved within the current month or coming quarter, with an announcement forthcoming.

### Market Context - The ongoing Iran conflict and closure of the Strait of Hormuz has disrupted global LPG markets, cutting estimated Q1 2026 global LPG exports by 3%, with a steeper drop expected in Q2. U.S. LPG exports have ramped up to offset lost Middle Eastern supply, hitting a record 2.6 million barrels of propane exports in the final week of May, a 22% year-on-year increase.

StealthGas does not break out performance into multiple distinct product segments, instead reports aggregate financials for its fleet of 28 LPG/gas-carrying vessels. Aggregate Q1 2026 results: total revenue of $42.8 million, a 2% year-on-year increase (1.9% YoY) from Q1 2025's $42 million, and a 9% increase from Q4 2025's $39.4 million. Reported net income was $15.9 million (12.9% YoY increase), with adjusted net income of $15 million (down from $16 million in Q1 2025, up from $13.3 million in Q4 2025). Adjusted earnings per share was $0.40, while reported EPS was $0.43. The company's cash balance grew 32% quarter-on-quarter to $131.2 million as of March 31, 2026, with total shareholders' equity of $708 million, a 2.5% QoQ increase. All vessels except one joint venture vessel are unencumbered, with 0 bank debt on the consolidated balance sheet and total current liabilities of only $26 million.

Management did not issue explicit numerical financial guidance, but provided the following forward-looking outlooks: - Management expects to resolve the Eco Wizard insurance claim situation within the current month or the coming quarter, with a public update forthcoming. - Management expects the time charter (TC) market for European 3.5k cubic meter pressurized vessels to cool slightly over the summer months as spot vessel availability increases. - Management expects U.S. LPG exports to continue growing long-term, as recently completed terminal expansions have proven well-timed and underlying capacity expansion plans are economically sound. - The current global orderbook for most vessel sizes (with the exception of MGCs) remains at healthy low levels, and roughly 1/3 of the existing global fleet is over 20 years old and will eventually need to be scrapped, supporting a firm long-term market.

- Ongoing geopolitical conflict in Iran has closed the Strait of Hormuz, a critical chokepoint for 1/3 of global LPG supply, disrupting global trade and leading to higher insurance premiums for Middle East voyages. The company has one MGC vessel stuck in the Persian Gulf that cannot safely exit, creating operational uncertainty. - Prolonged conflict in the Middle East could lead to permanent demand destruction and the cancellation of long-term industrial investments, including new production facilities in the Middle East and PDH petrochemical plants in Asia. - Even after the Iran conflict is resolved, full normalization of supply chains will take time: vessels need to reposition, damaged production infrastructure needs repairs, and countries need to replenish strategic reserves, leaving near-term market uncertainty. - The MGC segment has a substantial remaining orderbook equal to ~40% of the current fleet, so long-term market balance will depend on sustained demand growth to absorb upcoming new vessel deliveries. - Spot market rates are volatile, and the company currently has elevated spot exposure that it intends to reduce. - Far East LPG shipping rates remain depressed, limiting the profitability of vessels positioned in that region.

There was no question and answer portion of this conference call; the presentation concluded after management's prepared remarks.