Navigator Holdings Ltd. Q1 FY2026 earnings call

Terminal Performance - Ethylene export terminal at Morgan's Point had record throughput in Q1 2026. Three new off-take contracts signed in Q1 with more expected. - Vessel Sales - Sold Navigator Saturn, Happy Falcon, Pegasus with book gains. Signed letter of intent to sell eight gas carriers in Unigas pool for ~$183 million. - Capital Return - In March, repurchased and canceled 3.5 million shares from BW Group at $1,750 per share. From Q2, capital return policy will be 35% of net income up from 30%. Board declared $0.07 per share dividend for Q1 and plans $6.3 million buybacks. - Financials - Q1 net income $36 million ($0.55 per share), EBITDA $80 million. Balance sheet strong with total liquidity less restricted cash $241 million at quarter end. - Middle East - No vessels operating in or transiting Hormuz Strait, no significant negative operational or financial impact, only commercial tailwinds.

In Q1 2026, TCE rates were just below $30,000 per day, slightly below Q4 and same period 2025. Utilization was slightly better than Q4 and within guided range. Net income was $36 million ($0.55 per share), EBITDA was $80 million. The ethylene export terminal at Morgan's Point had record throughput of over 300,000 tons in Q1, up 57% from Q4 and over two and a half times from Q1 2025, generating a profit of $2.6 million for Navigator. Vessel sales included selling Navigator Saturn, Happy Falcon, Pegasus, and signing letter of intent to sell eight gas carriers in Unigas pool for ~$183 million.

Q2 Outlook - TCE and utilization expected to be above Q1 levels. Ethylene export volumes expected to set new record in Q2. - Capital Return Policy - From Q2, capital return policy will be 35% of net income. - New Building Financing - Financing in place for first two of six ordered vessels at attractive margin of 150 basis points, expect more good news on new building financing shortly.

Middle East Uncertainty - Ongoing geopolitical uncertainty in Middle East, although no significant negative impact so far, but developments could potentially affect operations and markets in the future.

Q: About the durability of tailwinds from Middle East disruption, thoughts on customer conversations and long-term commercial success.

A: Oiven said boardrooms worldwide are looking for reliable supply chains, and the Middle East disruption has highlighted unreliability, herding customers to U.S. cargoes, with a structural shift expected.

Q: Regarding capital redeployment of liquidity from vessel sales, thoughts on where to deploy.

A: Continues strategy of consolidating markets, including handy-sized and mid-sized markets, and opportunities in infrastructure both export from North America and import into Europe, with capital also used for debt repayment and shareholder returns.

Q: Confidence in maintaining terminal throughput sustainably and technical limitations.

A: Can operate above nameplate for extended period but with technical difficulties in summer months, expecting ~130,000 tons a month, with commercial balance between ethane and ethylene.

Q: Regarding sale of Unigas vessels, working capital included.

A: Price quoted for vessels has small administrative pool value, vast majority of value on vessels.

Q: Percentage of 1.55 MTPA fully fixed for terminal contracts.

A: Vast majority still in advanced discussions with additional customers, exact percentages not disclosed