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Call participants
Chairwoman and Chief Executive Officer — Angeliki Frangou
Chief Operating Officer — Stratos Desypris
Chief Financial Officer — Erifili Tsironi
Chief Trading Officer — Vincent Vandewalle
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Takeaways
Revenue — Total revenue for 2025 decreased by 4.3% to $328 million compared to $342 million for 2024.
EBITDA — Adjusted EBITDA decreased by $17 million to $173 million, primarily due to lower revenue, higher general and administrative expenses, and increased vessel operating expenses.
Net income — Adjusted net income was $64 million compared to $94 million in Q2 2024.
Earnings per common unit — Adjusted earnings and earnings per common unit for Q2 2025 were $2.15 and $2.34 respectively.
Combined TCE rate — Combined TCE rate for 2025 decreased by 1.5% to $23,040 per day; container TCE up 3.6% to $31,316 per day; dry bulk TCE 13.9% lower at $15,470 per day compared to Q2 2024; tanker TCE 4.6% lower at $26,537 per day compared to Q2 2024. Our available days decreased by 0.8% to 13,388 days compared to Q2 2024.
Cash and cash equivalents — Including restricted cash and time deposits in excess of three months were $389 million for the period.
Net loan-to-value (LTV) — 35.3% at the end of Q2 2025, down from 45% at year-end 2022.
Vessel sales and acquisitions — Six vessels sold in 2025 for approximately $130 million; $96 million in gross proceeds from three vessels sold; two Aframax LR2 tankers ordered for $133 million, with delivery expected in 2027.
Newbuild program — 22 additional newbuilds scheduled for delivery through 2028; $1.4 billion investment in newbuilding vessels delivering through 2028, with approximately $150 million equity remaining to be paid.
Contracted revenue — $3.1 billion in total contracted revenue as of Q2 2025; contracted revenue reduced by about $150 million due to the sale of one transshipment vessel and the termination of contracts on two VLCC vessels; comprised of $1.2 billion in tankers, $200 million in dry bulk, and $1.7 billion in containerships as of Q2 2025; charters extend through 2037.
Unit repurchase and dividend — 716,575 units repurchased year-to-date in 2025, totaling $27.8 million; $0.20 annual dividend per unit paid, resulting in $1 million in total dividends; cumulative $52.8 million invested in unit repurchases through Aug. 13, 2025, since inception, with $47.2 million remaining authorized under the unit repurchase program as of Aug. 13, 2025.
OFAC sanction response — Immediate termination of two VLCC contracts after counterparty designation; vessels redeployed to the spot market, with management monitoring timing for potential long-term charters.
Open and index days — 6,858 days remain open or index-linked in 2025, approximately 25% of total available days, representing upside cash generation potential.
Interest rate management — 29% of debt and bareboat liabilities fixed at 5.5%; floating debt average margin was 1.9% as of Q2 2025; undrawn committed floating debt for newbuilds was 1.4% as of Q2 2025.
Debt profile — Long-term borrowings, including the current portion, increased to $2.2 billion as of Q2 2025; three credit facilities totaling $390 million were closed in Q2 2025.
Summary
Navios Maritime Partners(NMM 3.91%) reported lower TCE rates and reduced available days, while maintaining a strong liquidity position and disciplined capital return to unitholders. The company took swift risk management actions by terminating two VLCC charters in response to OFAC sanctions in July 2025, redeploying these vessels in the spot market and preserving future chartering flexibility. Asset sales of older vessels combined with long-term newbuild investments illustrate an ongoing fleet optimization strategy focused on newer, more efficient ships. Contracted revenue stands at $3.1 billion as of Q2 2025 and is diversified across tanker, dry bulk, and container segments, supporting earnings visibility into 2037. Debt reduction and interest rate hedging initiatives have improved the leveraged profile and contributed to risk mitigation efforts.
Chairwoman Frangou credited the risk management team for “terminate immediately, practically” the OFAC-impaired VLCC contracts, enabling prompt vessel redeployment and contract flexibility.
Management highlighted that repurchased units delivered “an additional $3.8 per unit of NAV value to unitholders through these purchases” in 2025.
Chief Trading Officer Vandewalle noted that the Baltic Dry Index average declined 30% in the first half of 2025 versus the first half of 2024, but has risen 37% since June, reaching 2,044 on Aug. 15, 2025, indicating positive momentum in dry bulk shipping rates.
Containership market resilience “surprised” management despite a record order book, prompting opportunistic vessel sales to capitalize on current high valuations.
Industry glossary
OFAC: U.S. Department of Treasury’s Office of Foreign Assets Control, which administers and enforces economic and trade sanctions.
VLCC: Very Large Crude Carrier, a type of large tanker vessel used for transporting crude oil.
TCE (Time Charter Equivalent): A standard shipping industry metric to measure daily earnings from vessel operations, net of voyage expenses.
OpEx days: Number of days vessels are owned and operational, impacting total operating expenses for the fleet.
TEU: Twenty-foot Equivalent Unit, the standard measure for container ship capacity.
Full Conference Call Transcript
Angeliki Frangou: Thank you for joining us for Navios Maritime Partners Second Quarter 2025 Earnings Conference Call. With us today from the company are Chairwoman and CEO, Ms. Angeliki Frangou, Chief Operating Officer, Mr. Stratos Desypris, Chief Financial Officer, Mrs. Erifili Tsironi, and Chief Trading Officer, Mr. Vincent Vandewalle. As a reminder, this conference call is being webcast. To access the webcast, please go to the Investors section of Navios Partners’ website at www.naviosmlp.com. You’ll see the webcast 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 Navios Partners. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of Navios 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 Navios Partners’ filings with the Securities and Exchange Commission. The information set forth herein should be 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.
Frangou will offer opening remarks. Next, Mr. Desypris will give an overview of Navios Partners segment data. Next, Mrs. Tsironi will give an overview of Navios Partners financial results. Mr. Vandewalle will provide an industry overview. Lastly, we’ll open the call to take questions. Now I turn the call over to Navios Partners’ Chairwoman and CEO, Mrs. Angeliki Frangou. Angeliki?
Angeliki Frangou: Good morning, all, and thank you for joining us on today’s call. I am pleased with the results for the 2025 in which we reported revenue of $327.6 million and an EBITDA of $178.2 million and net income of $69.9 million. Earnings per common unit were $2.34 for the quarter. Global economies have been surprisingly robust given their uncertain macro environment. In addition, we are witnessing the creation and reshaping of new trade patterns with longer distances due to the war in Ukraine and Russia’s continued attacks in the Red Sea and a new and evolving world tariff regime. As a result, the shipping market generally is healthy. Please turn to Slide six.
Navios Partners is a leading publicly listed shipping company with 173 vessels. These vessels have an average age of ten years and are in three different segments and 15 asset classes. As you can see, the vessel value is approximately equal in each sector. We ended the second quarter with $389 million of cash on our balance sheet. Our net LTV as of the end of the second quarter was calculated at 35.3%, essentially unchanged from the last quarter. Please turn to Slide seven. We generated $96 million in gross sales proceeds from the sale of three vessels with an average age of 16.5 years.
We purchased two Aframax LR2 tankers for $133 million and we expect delivery of these vessels in 2027. We also took delivery of one new building Aframax LR2 target fixed for $27,446 net per day for the next five years. We recently took swift action in response to OFAC sanctions on one of our counterparties. On 07/03/2025, the U.S. Department of Treasury’s Office of Foreign Assets Control added a counterparty of Navios to its sanction list. The following day, we terminated contracts for two related VLCCs built in 2020 and 2021. That will therefore chartered out each at a daily net rate of $27,456 ending in October 2030, and February 2031.
Swift action allowed us to redeploy these vessels into a healthy spot market. We anticipate entering into long-term charters for these vessels at an appropriate time. For the remaining six months of 2025, contracted revenue exceeds estimated total cash expense by $56 million. We have 6,838 remaining open and index days, about 25% of our available days, so we have significant cash generative opportunities. Please turn to Slide eight. Where we outline our return of capital program. Under our dividend program, we paid $0.20 dividend per unit annually. In 2025, we paid a dividend of $1 million. In addition, so far this year through August 13, 2025, we repurchased 716,575 common units for $27.8 million.
Including dividends, we returned a total of $30.8 million in 2025. Under the entire unit repurchase program, we invested $52.8 million through 08/13/2025 and repurchased 1,206,530 units or about 4% of our common units outstanding at the time we commenced the program. As we show on the slide, we estimate that we effectively returned an additional $3.8 per unit of value of NAV to unitholders through these purchases. As of 08/13/2025, we had $47.2 million available under our unit repurchase program. The volume and timing of further repurchases will be subject to general market and business conditions, working capital requirements, and other investment opportunities among other factors. Please turn to Slide nine. We outline the challenges we have been addressing.
We assemble our team regularly to dive into the details of emerging information in an attempt to understand how values and risks are evolving. On the top right part of the slide, we outlined how we are addressing the uncertain market and the things we have accomplished. The $3.1 billion in contracted revenue stems from our action in past markets, where sentiment allowed us to enter into long-term charters. We are also focused on our interest rate risk. We have been hedging this risk either by entering into fixed-rate financing arrangements or through hedges that do not require posting additional collateral. At the bottom of the slide, we show how our fleet has evolved through selected metrics.
As you can see, our fleet size and age are about the same as they were at the year-end 2022. However, about 28% of our fleet was acquired in the past four and a half years. We maximize energy efficiency by maintaining a fleet of useful vessels with the latest technology. On the financial side, we focus on deleveraging and reduced net LTV from 45% at the end of 2022 to 35.3% at the end of the second quarter of 2025. I now turn the presentation over to Mr. Stratos Desypris, Navios Partners’ Chief Operating Officer. Stratos?
Stratos Desypris: Thank you, Angeliki, and good morning all. Please turn to Slide 10. Details our operating free cash flow potential for 2025. We fixed 75% of available days at the net average rate of $24,989 per day. Contracted revenue exceeds estimated total cash expense by about $56 million, and we have 6,858 remaining open or index-linked days that should provide substantial additional cash flow. So that you can perform your own sensitivity analysis. On the right side of the slide, we provide our 27,615 available days by vessel type. Please turn to Slide 11. We are constantly renewing our fleet in order to maintain the yacht profile.
Operator: Thank you. And this concludes the Navios Maritime Partners earnings call. Thank you again for your participation and you may now disconnect.
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