Navios Maritime Partners LP

Thank you for joining us for Navios Maritime Partners' fourth quarter 2025 earnings conference call. With us today from the company are Chairwoman and CEO, Ms. Angeliki Frangu, Chief Operating Officer, Mr. Stratos De Cipris, Chief Financial Officer, Mrs. Erit Zironi, and Chief Trading Officer, Mr. Vincent Vandervalle. As a reminder, this conference call has been webcast. To access the webcast, please go to the Investors section of Navios Partners website at www.navios-mlp.com. You'll see the webcasting link in the middle of the page, and a copy of the presentation referenced in today's earnings conference call will also be found there. Now I will review the Safe Harbor Statement. This conference call could contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Navier's partners. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of novice partners management and are subject to risks and uncertainties which could cause actual results to differ materially from the forward-looking statements. Such risks are more fully discussed in novice partners filings with the Securities and Exchange Commission. The information set forth herein should be understood in light of such risks. Navios Partners does not assume any obligation to update the information contained in this conference call. The agenda for today's call is as follows. First, Ms. Farmer will offer opening remarks. Next, Mr. De Cibis will give an overview of Navios Partners' segment data. Next, Ms. Tironi will give an overview of Navios Partners' financial results. Then, Mr. Van der Walle will provide an industry overview. And lastly, we'll open the call to take questions. Now I turn the call over to NAVIS Partners Chairwoman and CEO, Ms. Angeliki Frambois. Angeliki?

Good morning, and thank you all for joining us on today's call. I am pleased with the results for the quarter and year-end 2025. For the quarter, we reported net income of $117.3 million and a bed of $224.8 million. For the full year, we reported net income of $285.3 million and a beta of $744.6 million. Earnings per common unit were $3.99 for the quarter and $9.59 for the full year. We are also pleased to announce a 20% increase in our distribution policy to 24 cents per unit annually commencing for the first quarter of this year. We are witnessing the evolution of a new world order with new trade agreements arising out of the dust of decaying institutions. At the same time, it seems trade is now a tool of national policy, as governments prioritize exports and strategic control of supply chains. National security interests are now a dominant consideration in the decision-making metrics. In addition, conflicts and geopolitical tensions are rerouting trade, increasing voyages, distances, costs, and transit times. As political calculations increase, trade routes are no longer vacancy considerations. As you can see on slide three, our fleet has an average age of 9.6 years compared to an industry average of 13.5 years for our three segments, our fleet modernization program has created a fleet that is almost 30% younger than the average and more than 50% younger in comparison to the tanker fleet. Please turn to slide four. Navios is a leading maritime transportation company owning, operating, and chartering a modern fleet of 171 vessels across three segments and 15 asset classes. Our fleet is split into thirds by value, with about one-third in each of the tanker dry bulk and container segments. The overall value of our fleet, including our new building program, is $8.8 billion. For our fleet in the water, we have $4.1 billion in net vessel equity value. We continue to make headway in reducing our net LTV towards our target of 20-25%. At year-end, we had a net LTV of 30.9%. Our balance sheet is strong with $580 million available liquidity and credit ratings of BAE3 for Moody's and BB for Standard & Poor's. Please turn to slide five. We believe that diversification is strength when embedded in a culture of risk management. We have a business providing significant optionality in decision-making. For example, if we are unable to secure long-term charters that provide a reasonable return, we patiently wait. We allocate capital similarly, waiting for either opportunistic purchases or acquisitions that can be hedged by long-term charters. Our organization promotes a strong risk management culture. We are continuously monitoring and assessing risk. We evaluate and structure transactions with risk management professionals. We also obtain robust insurance coverage. And we have implemented many tools to manage operational risks. Please turn to slide six. At the end of 2025, our fleet gross LTV was 37.3% and net LTV was 30.9%. Our contracted revenue continues to grow and is now at $3.75 billion. Overall, we have sufficient features for the year to exceed our cash break-even. Please turn to slide seven. Revenue visibility for 2026 demonstrates a strong execution. We secure coverage for 71% of our available days with contracted revenue exceeding cash operating costs by $172.7 million. This provides significant earning visibility while preserving meaningful market exposure through the remaining 29% of our available days, representing 15,565 days that are either open or indexed to spot markets. Our portfolio positioning reflects a thoughtful approach across segments, as shown in the bottom right of the slide. Containers, 99% fixed coverage. We secured healthy rates. Tankers, 84% coverage. High visibility with selective spot exposure. Ride bikes, strategic market exposure through available days, positioned to capture upside. Importantly, we continue to actively pursue long-term charter opportunities that enhance our ending stability. In the fourth quarter of 2025 and year to date, we secured $261 million in new charter commitments. Please turn to slide eight, where we are applying our return of capital program. As I mentioned earlier, we increase our annual distribution by 20% to $0.24 per unit annually. This increase was funded primarily through savings generated from our unit repurchase program. As you can see on the right side of the slide, we reduced unit outstanding by 5.3%, deploying approximately 73 million to repurchase 1.6 million units. This provided value accretion of approximately $5.20 per unit, based on analyst estimates of NAV. Also, we currently have approximately 27 million of capacity under our original authorization. Please turn to slide nine. Navios is a proven platform and has executed its strategy through an exceptionally challenging environment. When I opened this discussion, I highlighted the unprecedented uncertainties facing our industry. geopolitical risks, regional conflicts, a shifted global tariff regime, and evolving trade patterns. Despite this complexity, we remain disciplined and focused. Over the past four years, we built a platform of excellence, growing contracted revenue by 11% to $3.8 billion, achieving a run rate of around $750 million, and expanding our fleet value, including our new building program, to $8.8 billion. Importantly, we have not sacrificed financial discipline in achieving these goals. We reduced our net loan-to-value by 31% to 30.9%. We recognize that there is more work ahead, but in an uncertain world, We believe our proven platform, combining a diversified fleet with a disciplined risk management culture, position us to continue delivering value through any market condition. I now turn this presentation over to Mr. Stratos Desipris, Navios Partners Chief Operating Officer. Stratos?

Thank you, Elikian. Good morning, everyone. Listen to slide 10, which details our operating free cash flow potential for 2026. We fixed 71% of available days at a net average rate of $26,865 per day. Contracted revenue exceeds estimated total cash operating costs by about $173 million, and we have 15,565 remaining open or index-linked days that should provide significant additional cash flow. Moving to slide 11, we continue to maintain a strong backlog of contracted revenue that creates visibility. During the quarter and year-to-date, we added $261 million of contracted revenue. $97 million from five container ships chartered out for an average daily rate of $29,572 for an average duration of about two years. We also contracted three dry bulk vessels, providing a minimum revenue of $93 million. These vessels were chartered out at an average net daily rate of $23,974 for an average duration of 3.6 years. Two of these vessels has also profit sharing above their base rate. Lastly, we chartered out three tanker vessels for two years at an average net daily rate of $31,944, generating $71 million in contracted revenue. Total contracted revenue amounts to $3.8 billion. $1.3 billion relates to our tanker fleet, $0.3 billion relates to our dry-bark fleet, and $2.2 billion relates to our container ships. Charters are extending through 2037 with a diverse group of quality counterparties. Slide 12 summarizes the fleet developments for Q4 and year-to-date 2026. We acquired two new buildings, scrubber-fitted Japanese cave-sized vessels, for $134.3 million. These vessels have been chartered out for about five years. The charters are based on the new BCI index with an average flow rate of about 25,000 per day, an average fixed premium over the index of about 3,000 per day, and a 50-50 profit sharing if the adjusted index and premium exceeds the floor. This traction with floor and profit sharing mechanism provides protection and stable return and participation on the upside. The vessels are expected to be delivered in the second half of 2028 and first quarter of 2029. We also sold two VLCCs with an average age of 16 years for a price of $136.5 million. The vessels are expected to be delivered in the second quarter of 2026. Finally, we took delivery of a new building Afra Maxell R2 vessel, which has been chartered out for five years at a net daily rate of $27,431. Please turn to slide 13. We are constantly renewing our fleet in order to maintain a young profile. We reduce our carbon footprint by modernizing our fleet, benefiting from newer technologies and advanced environmental-friendly features. We have 26 new building vessels delivering to our fleet through 2029, representing 1.9 billion of investment. Based on our financing, both agreed and in process, we have about 197 million equity remaining to be paid. In container ships, we have eight vessels to be delivered with a total acquisition price of about 0.9 billion. We have mitigated residual value risk with long-term charters with credit-worthy counterparties expected to generate about 0.6 billion in aggregate revenue over a five-year average charter duration. In tankage, we have 16 vessels to be delivered for a total price of approximately 0.9 billion. We chartered out 10 of these vessels for an average period of five years, which are expected to generate aggregate contracted revenue of about 0.5 billion. In dry bulk, we have two vessels to be delivered with a total purchase price of about 0.1 billion with a minimum contract revenue of about 0.1 billion. We also continue to opportunistically sell older vessels. In 2025 and 2026 year to date, we sold 14 vessels with an average age of 18 years for about 372 million. Six were dry bulk vessels, five were tankers, and three were container ships. I now pass the call to Eri Cironi, our CFO, who will take you through the financial highlights. Eri?