Navigator Holdings Ltd. Q4 FY2025 earnings call

Financial Performance - Q4 2025

• Revenues: $153 million, same as previous quarter, up 6% y-o-y. Adjusted EBITDA: $73 million, down from Q3 but similar to same period prior. - Balance sheet: strong with total liquidity position less restricted cash of $246 million at quarter-end, significantly higher than same date prior year. - Capital return: increased capital return to 30% of net income from 25%, and fixed dividend from $0.05 to $0.07 per share. - Financing: attractive financing for two of six new buildings at lowest ever margins for Navigator Holdings Ltd..

Commercial Side - Q4 2025

• Average TC rates: $30,647 per day, 8% above same period prior year; utilization: 90%, almost same as last quarter but below year prior. - Throughput at ethylene export terminal: 192,000 tons, below Q3 but 20% higher y-o-y; European demand driving U.S. ethylene exports, Asian demand emerging; two ethylene offtake contracts signed. - Fleet: continued sale of older tonnage with Navigator Saturn and Happy Falcon sold in January.

Governance - Recognition

• Navigator Holdings Ltd. ranked number 1 in Webber's ranking of stock exchange listed shipping companies on governance.

In Q4 2025, revenues were $153 million, same as previous quarter and up 6% compared to same period previous year. Adjusted EBITDA was $73 million, down from $77 million in Q3 and similar to same period previous year. Main driver of revenue increase was 8% higher charter time charter equivalent rates partially offset by lower utilization. Commercial side: average TC rates were $30,647 per day during Q4, 8% above same period previous year; utilization was 90%, almost same as last quarter but below year prior. Throughput at joint venture ethylene export terminal was about 192,000 tons for the quarter, below Q3 but 20% higher than same period previous year. Fleet renewal: sold older tonnage like Navigator Saturn and Happy Falcon in January.

Forward-looking Guidance

• Expect TC rates and utilization to remain or exceed those achieved in Q4 2025. - Exports out of Morgan's Point to strengthen towards or above record export volumes seen in Q3 2025. - Target to complete finance for remaining two Ethylene Panda vessels in March or latest April 2026 and two ammonia vessels within second quarter 2026. - Full year 2026 estimated all-in cash breakeven at $20,970 per day per vessel, still below average TCE revenue for 2025. - OpEx guidance for 2026 across vessel segments remains materially unchanged from previous call; full year vessel OpEx and net interest expense guidance materially unchanged but slightly lower in total due to fleet size reduction through vessel sales.

Geopolitical Risks

• War in the Middle East creates uncertainty, but Navigator Holdings Ltd. has no vessels inside the Hormuz Strait and limited impact. - Disruption in global energy markets with shut-in of significant portion of Middle East exports of oil products, LNG and LPG, but Handysize segment relatively less affected due to low percentage of global volumes originating from Arabian Gulf. - Potential for VLGCs ballasting to U.S. impacting other segments, but limited impact on Navigator Holdings Ltd. as it operates in different trades.

Q: Chris Robertson at Deutsche Bank asked about impact from Middle East situation on larger segments and ethylene export volume impact.

A: Øyvind Lindeman said VLGCs impact limited as Navigator Holdings Ltd. doesn't compete in same trades; March ethylene volumes looking strong with international demand outweighing U.S. domestic production reduction.

Q: Spiro Dounis from Citi asked about chartering strategy and fleet renewal.

A: Øyvind Lindeman said chartering strategy is between 30%-50% cover, and Mads Peter Zacho said selling older vessels would free up capital for capital return.

Q: Omar Nokta from Clarksons Securities asked about ethylene export mix evolution and new build financing.

A: Øyvind Lindeman said ethylene export mix expected to evolve with more to Asia, and Gary Chapman said expecting to close financing for remaining new build vessels with similar good terms.

Q: Climent Molins from Value Investor's Edge asked about interest from customers for ethylene export terminal and Q1 contribution.

A: Øyvind Lindeman said increased interest in U.S. ethylene, and Randall Giveans said March terminal volumes strong with bleed into April.

Q: Question about new build financing updates and force majeure clauses.

A: Gary Chapman updated on new build financing timing and Øyvind Lindeman said time charters not affected by Hormuz Straits closure as ships can take different routes.

Q: Question about ethylene offtake agreements and terminal performance in 2026.

A: Answer was about combination of spot and long-term commitments and terminal performance in 2026 expected to be better than 2025.