C3is, Inc. Q1 FY2026 earnings call

• Overall Financial Performance: • Reported adjusted net income of $5.5 million in Q1 2026, a 358% increase from $1 million in Q1 2025 • Adjusted EBITDA was $6.9 million, a 130% increase from $3 million in Q1 2025 • Cash balance increased 82% year-over-year from end-2025 to $27 million, even after paying the $15.1 million remaining balance for the Eco Spitfire vessel • Overall fleet TCE rate increased 98.6% year-over-year to $32 thousand, net vessel book value was $76 million (excluding the two undelivered product tankers) compared to an aggregate market value of $75.5 million • Achieved 85% fleet operational utilization in Q1 2026; interest income increased 41% year-over-year to $211 thousand due to higher time deposit balances • A non-cash $2.3 million loss from warrant fair value revaluation was recorded in Q1 2026, compared to a $6.9 million gain in Q1 2025 • Shareholders' equity stood at a robust $102 million as of Q1 2026, up from $95.1 million at end-2025 • The company holds no bank debt, with no interest charged by affiliated sellers on all recent vessel acquisitions

• Fleet and Operational Updates: • C3IS's total fleet capacity has increased 387% since company inception; after both new product tankers are delivered, total capacity will reach 311 thousand deadweight tons • All existing and acquired vessels are non-Chinese built, so they are not exposed to potential US tariffs on Chinese-built vessels, and all have had required ballast weather systems installed • All vessels are unencumbered, currently employed on short-to-medium term charters and spot voyages, and chartered to high-quality counterparties including major commodity traders, industrial firms, and oil producers/refiners • The company maintains high safety and reliability standards to sustain repeat business with long-term strategic charter customers • All vessels undergo regular inspections and follow a comprehensive maintenance program to preserve fleet quality, reduce operating costs, and secure favorable charters

• Market Dynamics: • Geopolitical tensions including the Middle East conflict, Houthi attacks in the Red Sea, and US-China trade tensions have reshaped trade flows, increased ton mile demand, and driven up bunker costs across dry bulk and tanker sectors • Handysize rates have risen on higher ton mile demand from rerouted voyages; coal demand remains elevated due to its cost advantage over gas for power generation, driving export incentives for miners • Aframax tanker rates strengthened across all key routes in Q1 2026 due to tight market positioning and steady cargo flow

As of Q1 2026, C3IS owns and operates three core vessel segments: 1) Handysize dry bulk carriers: Average time charter rates for handysize vessels increased 35% year-over-year (January-April 2025 vs. January-April 2026) from $9.4 thousand to $12.7 thousand. The handysize sector has an 8.8% order book to fleet ratio as of Q1 2026, with 33% of the existing global fleet over 15 years of age. C3IS's average handysize fleet age is 15.13 years. This segment contributed an undisclosed portion of total voyage revenue. 2) Aframax tankers: Q1 2026 TCE rate for C3IS's Aframax tanker increased 106% year-over-year to $77,500. Global Aframax LR2 rates strengthened across Q1 2026, with the Carriage-USG route average rate surging 209% year-over-year to almost $110 thousand per day, and a peak daily rate of $325 thousand on that route. C3IS's Aframax tanker is 15.7 years old as of Q1 2026. The global Aframax LR2 fleet stands at 1,220 vessels, with a 17.6% order book to existing fleet ratio, 24% of vessels over 20 years old. This segment was the primary driver of TCE growth in C3IS's fleet, and contributed the majority of the company's debt revenue increase. 3) MR2 product tankers: C3IS acquired two MR2 product tankers, with the first (Clean Fury) delivered in Q2 2026, and the second expected in Q3 2026. The global MR2 product tanker segment expects net fleet growth of ~6.5% in 2026, followed by ~4.7% in 2027, with an order book to trading fleet ratio of 15.7% on a deadweight basis. 36% of the global MR2 trading fleet is over 15 years old, driving expected continued strong demolition activity. Aggregate total company voyage revenue for Q1 2026 was $11.6 million, 34% higher than Q1 2025's $8.7 million.

• Management expects a seasonal boost in iron ore trade, but notes that rising input costs from the ongoing Middle East conflict will act as a downside drag on dry bulk market performance • Higher coal prices are expected to drive increased export volumes of high-grade coal, though it remains unclear how quickly producers can ramp up production to meet elevated demand • Net MR2 product tanker fleet growth is forecast to hit ~6.5% in 2026, followed by ~4.7% in 2027, based on the current order book after accounting for expected delivery slippage and demolition activity • The company will continue pursuing a disciplined growth strategy focused on timely, selective acquisitions of high-quality non-Chinese built vessels, with a current focus on vessels suitable for short-to-medium term charters and spot voyages • The second newly acquired product tanker is expected to be delivered in Q3 2026 (corrected from the transcript typo of Q3 2020), and the remaining $39.7 million CapEx obligation for the two product tankers is due in January 2027 • Adding product tankers to the fleet is expected to enhance operational diversity, allow C3IS to capitalize on booming current charter rates in the growing tanker sector, and improve long-term competitive resilience

• Ongoing Middle East conflict and Strait of Hormuz disruption have driven surging bunker costs and tightened prompt bunker supplies, requiring customers to secure supply 10 days in advance across major hubs, increasing operational uncertainty • Potential disruption to Iranian grain supplies: No grain-carrying vessels have passed through the Persian Gulf since February 28, 2026, and Iran is expected to import half of its 42 million ton annual grain consumption, so food supply disruptions could occur in the coming weeks if the situation does not improve • Geopolitical trade policy uncertainty: Prior potential US port fees on Chinese-built/operated vessels disrupted new vessel ordering in 2025, and while fees were suspended by November 2025, ongoing uncertainty around US trade policy (including potential tariff changes) could continue to impact newbuilding activity and vessel values • Shipyards are currently operating at full capacity, leading to long delivery lead times for new vessels, which discourages newbuilding activity and can delay expansion plans • A large share of the global fleet in all segments is aging (33% of handysize vessels over 15 years, 24% of Aframax over 20 years, 36% of MR2 over 15 years), which could create long-term supply tightness but also increases maintenance costs for older vessels like those in C3IS's fleet (average handysize age 15.13 years, Aframax age 15.7 years)

There was no question and answer section held during this conference call.