United Maritime Corporation Common Stock Q2 2026 Earnings Call

Thank you for standing by, ladies and gentlemen, and welcome to the United Maritime Corporation conference call on the second quarter and first half ended June 30th, 2026, financial results. We have with us today Mr. Stamati Tsantanis, Chairman and CEO, and Mr. Stavros Gyftakis, Chief Financial Officer of United Maritime Corporation. At this time, all participants are in a listen-only mode. There will be a question and answer session at which time, if you would like to ask a question, please press star one one on your telephone keypad, and you will then hear an automated message advising your hand is raised. Please be advised that this conference call is being recorded today, Thursday, July 30th, 2026. The archived webcast of the conference call will soon be made available on the United Maritime website, www.unitedmaritime.gr, under the investor section.

Many of the remarks today contain forward-looking statements based on current expectations. Actual results may differ materially from the results projected from those forward-looking statements. Additional information concerning factors that can cause the actual results to differ materially from those in the forward-looking statements is contained in the second quarter and first half ended June 30th, 2026 earnings release, which is available on the United Maritime website, again, www.unitedmaritime.gr. I would now like to turn the conference over to one of your speakers today, the Chairman and CEO of the company, Mr. Stamati Tsantanis. Please go ahead, sir. Welcome to United Maritime's conference call to discuss our financial results for the second quarter and six-month period ended June 30, 2026.

The second quarter marked an important milestone for United as a strategic repositioning of our fleet towards the Capesize segment has begun translating into a materially stronger earnings profile. Adjusted EPS of $0.50 this quarter against $0.02 a year ago. That's seven times higher, and it's the first evidence of what the repositioning does to our earnings power, given that in Q2, our second Capesize was ours for only three weeks. Reflecting our confidence in United's outlook, our board declared a quarterly cash dividend of $0.10 per share. At our latest closing price, that's roughly a 16% annualized yield. This represents our 15th consecutive quarterly distribution and more than $2.04 per share returned since we started.

As regards our financial results, second quarter net revenues amount to $10 million compared to $12.4 million last year, primarily reflecting fewer ownership days following our fleet repositioning initiatives. Adjusted EBITDA for the quarter was equal to $5.2 million, while adjusted earnings per share came at $0.15, up from $0.02 in the second quarter of 2025, as we discussed before. During the first six months of 2026, stronger freight markets, together with strategic repositioning of our fleet towards Capesize vessels, resulted in a meaningful improvement in profitability. We achieved adjusted EBITDA and adjusted earnings per share of $8.4 million and $0.18, respectively, compared to an adjusted EBITDA of $6 million and a loss per share of $0.40 in the prior year period.

As part of our continued repositioning towards the Capesize segment, we have entered into an agreement to sell the Exelixsea, one of our Panamax vessels. The transaction is expected to generate a gain of approximately $1.8 million upon delivery, which is currently towards the end of the third quarter. This transaction further advances the transformation of United into a company with greater earnings capacity and cash flow generation potential. It goes without saying that we will be on the lookout for additional Capesize additions in the near future. In June, we also took delivery of the Squireship, and we look forward to its first full quarter of contribution beginning in the third quarter. Importantly, the vessel's index-linked charter has already been converted to a fixed-rate charter at an attractive level, providing additional earnings visibility throughout the remainder of the year.

Accordingly, the third quarter will represent the vessel's first full quarter of earnings contribution. The acquisition of two Capesize vessels and the divestment of two Panamax/Capesize vessels, and of course, the OSV, United has substantially completed the strategic fleet repositioning announced earlier in the year. Alongside the repositioning of our operating fleet, we also completed the monetization of our participation in the offshore new building project, generating approximately $15 million of additional liquidity. This transaction further strengthens our financial flexibility to pursue future investment opportunities while maintaining our commitment to shareholder returns. Turning to our commercial strategy, the improvement in the dry bulk market translated into a meaningful increase in our Time Charter Equivalent performance. During the second quarter, our daily Time Charter Equivalent reached $18,600 per day, compared to $15,400 per day in the same quarter of 2025.

In the first six months of 2026, we achieved a daily TCE of $17,200, sharply higher than the $12,700 seen in the same period last year. Currently, three of our six vessels operate under fixed-rate charters following conversions from index-linked employment, providing increased revenue visibility over the coming quarters. Looking ahead, based on the current FFA levels, we expect our daily Time Charter Equivalent for the third quarter to be approximately $20,500 per day, with around 70% of our operating days already fixed. This would represent another sequential improvement over previous quarters and provide us with increased confidence in our earnings outlook for the remainder of the year. Overall, we're very pleased with the progress achieved during the first half of 2026. The company is entering a period where the benefits of our strategic repositioning will become increasingly evident in earnings and cash flow generation.

Before passing the call to Stavros for an overview of our financials, let me briefly comment on the dry bulk market. The market remained particularly constructive through the second quarter of 2026. The Capesize market, in particular, continued the strong momentum established earlier in the year, with the BCI averaging approximately $36,000 per day, almost double the level recorded during the second quarter of 2025. The Panamax market also strengthened considerably, reflecting favorable fundamentals across the broader dry bulk sector, averaging about $19,200 versus $11,800 in the same period last year. The improvement in freight rates has been driven by a healthy balance between supply and demand. On the demand side, iron ore bauxite continued to underpin Capesize employment. Iron ore trade has grown sharply since last year, with second quarter China imports up by 6%.

Vale second quarter production was the highest since 2018, while the Simandou project in Guinea is accelerating its export volumes at a fast rate that exceeds initial expectations. Despite the high inventories in China, demand for high-quality imported iron ore remains strong, driven by environmental regulations as well as steel capacity normalization and modernization. bauxite has emerged as one of the strongest structural demand drivers for Capesize vessels. Exports from Guinea have continued to expand, rising more than 15% in the first six months of the year, supported by robust Chinese import demand and sustained activity in the alumina sector. We believe this trade will remain an important structural driver of Capesize demand over the coming years. Coal trade has also been supportive both for the Panamax and the Capesize markets, with global seaborne volume up 2.5% year-on-year during the first half of the year.

The crisis in Hormuz has brought energy security concerns to the forefront, while warm weather and structurally higher energy demand provide a positive backdrop. Over the next quarters, even as the outlook for seaborne coal is subject to uncertainty, the reduced domestic production in China and any potential relaxation of Indonesia's strict export policy could prove important as we enter the period of seasonal strength for restocking. Lastly, on the Panamax, grain trade has also provided support, particularly through increased soya bean shipments to China following the trade agreements with the U.S. Loadings over the first four months grew by double-digit percentages, while China imports jumped by nearly 10%. On the supply side, 2026 has seen low new building deliveries in the dry bulk segment, especially in Capesizes, while dry dockings, slower sailing speeds, and environmental regulations continue to constrain effective fleet growth.

The long-term picture also remains favorable as the dry bulk order book is low by historical standards as the world fleet grows older. Stricter environmental regulations and the lower efficiency of older vessels are placing a ceiling on supply over the next years, while limited shipyard availability acts as a constraint to runaway fleet growth. Taken together, we continue to believe that the medium-term supply-demand balance remains favorable for dry bulk shipping, particularly in the Capesize segment, where United has strategically increased its exposure. On that note, I will turn the call over to Stavros for an overview of our financial performance before returning to me with some concluding remarks. Stavro, please go ahead. Thank you, Stamati.

Welcome to everyone joining us today. I will now review United's financial performance for the second quarter and first half of 2026, together with the key developments that further strengthened the company's earnings profile, financial flexibility, and ability to return capital to shareholders. For the second quarter of 2026, the company generated net revenues of $10 million, slightly lower than the same period of 2025, primarily reflecting fewer ownership days following our fleet repositioning initiatives. Despite lower revenues, stronger freight markets and improved commercial performance enabled us to maintain adjusted EBITDA at $5.2 million while delivering a significant improvement in profitability. Net income amounted to $1.2 million, while adjusted net income reached $1.5 million, compared to $1 million and $0.2 million respectively during the second quarter of last year.

Our improved profitability was primarily driven by stronger commercial performance, with fleet Time Charter Equivalent increasing by 21% year-over-year to $18,654 per day. These stronger earnings and cash flow generation supported the declaration of our 15th consecutive quarterly cash dividend, consistent with our disciplined approach to returning capital to shareholders. The same positive trend was evident during the first half of the year. Net revenues amounted to $17.9 million, while adjusted EBITDA increased by approximately 40% to $8.4 million, compared to $6 million during the first six months of 2025. Importantly, the company returned to profitability, reporting net income of $1 million and adjusted net income of $1.7 million, compared to a net loss of $3.5 million and an adjusted net loss of $4.2 million in the prior year period.

Fleet TCE increased by 35% to $17,200 per day, reflecting both the stronger overall market environment and the initial benefits of our strategic fleet repositioning. At the same time, we maintained a competitive operating cost structure with average daily OPEX at approximately $6,400 per vessel. This continued cost discipline, combined with stronger charter rates, translated into improved operating leverage, profitability, and cash generation during the period. Turning to our balance sheet, we further strengthened our financial flexibility during the quarter through the execution of our capital redeployment strategy. The successful monetization of our investment in the offshore energy construction vessel project generated approximately $15.1 million of liquidity. In addition, the agreed sale of the Exelixsea is expected to contribute approximately $8.5 million of net cash proceeds upon completion, which is currently anticipated towards the end of the third quarter.

Together, these transactions are expected to generate approximately $23.6 million of liquidity, materially strengthening our financial flexibility and providing additional capacity both to pursue future investment opportunities and to continue returning capital to shareholders. As of June 30, 2026, cash equivalents and restricted cash stood at $12.1 million. This balance already reflects the proceeds from the offshore investment but does not yet include the cash expected from the sale of the Exelixsea. Shareholders' equity stood at $53.3 million, while total debt, including finance lease and other financial liabilities, amounted to approximately $95.4 million. The book value of our fleet reached $143.5 million, reflecting the successful completion of United's strategic expansion into the Capesize segment. Before I conclude, I'd like to briefly step back and put this quarter into perspective. The strategic initiatives we have executed over the past several months have materially strengthened our financial profile.

Today, we have a larger proportion of higher-earnings assets, improved earnings visibility, enhanced free cash flow generation potential, and greater financial flexibility. At the same time, we have maintained a disciplined balance sheet and continued returning capital to shareholders through our quarterly dividend. Looking ahead, with our repositioned fleet now largely in place and a constructive dry bulk market backdrop, United is very well positioned to translate these strategic initiatives into continued earnings and cash flow growth while preserving the flexibility to pursue additional value-enhancing opportunities and continue delivering attractive returns for our shareholders. With that, I will now turn the call back to Stamatis for his concluding remarks. Stamatis, please go ahead. Thank you, Stavros.

The first half of 2026 has been a defining period for United. Over the past several months, we have executed a series of strategic initiatives that have fundamentally strengthened the company's platform, positioning us with a more capable fleet, greater exposure to the Capesize market, and a stronger foundation for long-term value creation. Perhaps most importantly, we are now beginning to see these strategic decisions translate into improved operating and financial performance. While the full earnings contribution from our recent initiatives will become increasingly evident over the coming quarters, the progress achieved so far reinforces our confidence that we have positioned United for a new phase of sustainable earnings growth. Throughout this transformation, we have remained committed to disciplined capital allocation.

Since initiating our dividend, we have returned more than $2 per share to shareholders through cash distributions while also executing share repurchases, all without issuing new public equity. No dilution. This balanced approach to growth, financial discipline, and shareholder returns will continue to differentiate United going forward. Looking ahead, United enters the second half of the year from a position of strength. With a strategically repositioned fleet, improving commercial coverage, and a constructive outlook for the dry bulk market, we are confident in our ability to continue creating long-term value for our shareholders. On behalf of the board of directors and the entire United team, I would like to thank you, our shareholders, customers, employees, and business partners for the continued trust and support. Thank you. Operator, we are now happy to take any questions. Please take the call. Thank you.

As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. Please stand by while we compile the Q&A roster. Our first question will come from the line of Tate Sullivan with Maxim Group. Please go ahead. Hi, thank you.

Good to talk to you again today. The press release for United Maritime shows, I think, that you fixed a portion of the ships for the rest of the year, not just 3Q at fixed rates. Are you considering fixing some rates into 2027 already, or have you already done that, please?

Well, Tate, hello again. By the time that when we initially considered fixing the ships, the forward rate looked at very compelling levels. Right now, of course, we see that the market has gone up even further, we are in close discussions internally to potentially fix some additional coverage for 2027. I must remind everybody here on the call that the benefit of the Capesizes is only starting to show on its full scale. Second half of the year will be much greater, reflecting in the financials. To answer your question, yes, we will be looking into fixing some coverage for 2027, especially on days where you see big jumps on the forward curve, as we see today.

Okay. Great. Can you remind, on the dividend policy, with the sale of the Panamax ship, creating the $1.8 million gain for this current quarter, the third quarter, are you looking, that could fund two quarters of dividends. Is it a variable dividend policy that you're looking at cash flow from operations to evaluate the dividend?

We want to have a consistent profitability, we expect to have very strong consistency on our profitability going forward, that is going to lead into a very consistent, strong dividend for United. As you can see right now, the forward yield of the company, if you annualize that, we're talking about 16%. That, we believe is very generous, considering especially for the size of the company yielding 16%, I think that's kind of spectacular. A lot of our peers don't even pay dividend, or they pay a couple of cents here and there for the full year. We will continue having the dividend as part of our top priorities, we will also continue to increase the cash generation and profit-making of the company going forward, which will, in its turn, lead to higher dividends. Yes. The last thank you for taking the questions is focusing with the sale, the Panamax.

Did you imply earlier that you're focusing potential Capesize acquisitions as opposed to looking at other size ships?

For the time being, yes. We find some secondhand Capesize opportunities to be quite compelling, given where the rates are if we're able to pin them down. The answer is yes, we will be seeking for additional secondhand quality vintage Capesizes for United in order to drive up the earnings capacity of the company very, very substantially. Of course, I remind everyone that this is a company that has never really done any public offerings since its IPO in 2022. We try to keep the accretion on a per share basis as our top priority, and of course, the dividends.

Okay. Thank you very much. Thanks for the call. Thanks, Tate.

Thank you. Thank you. I'm showing no further questions in the queue at this time.

This concludes today's conference call. Thank you all for participating. You may now disconnect. Speakers, please stand by.