Heidmar Maritime Holdings Corp. Common Stock 2026 Q2 Earnings Call

Good day to everyone, and welcome to the second quarter earnings call for Heidmar Maritime. Heidmar delivered a strong second quarter of 2026, marked by continued financial progress, accelerating fleet growth, and a sharpened strategic focus on value creation for our stakeholders. Today's results are further proof of what our asset-light, commercially driven model can deliver, the ability to scale quickly in markets that reward agility and sharp market intelligence over sheer size. At its core, Heidmar is a commercial manager, and we earn fee-based revenue operating tankers in pools or under commercial management and manage vessels on owners' behalf without putting capital into the ships themselves. That means our earnings grow with volume and market strength, not with balance sheet size.

We have the ability to add vessels quickly, move fast when markets dislocate, and put capital back into growth or shareholders' hands rather than into debt service. Turning to the results. For the three-month period ended June 30, 2026, Heidmar realized consolidated net income of $2.2 million, or $0.04 per share basic, compared to net loss of $13.7 million in the second quarter of 2025. The second quarter of 2025 comparison included a $13.6 million loss from discontinued operations. On a continuing operations basis, Heidmar recorded a net loss of $0.1 million in that quarter. So the year-on-year improvement in our core ongoing business is even more pronounced than the headline comparison suggests. Included in net income is non-cash stock-based compensation of $0.2 million, representing the amortization of share awards granted to key employees and members of the Board of Directors under the Heidmar Equity Incentive Plan.

Excluding these non-cash items, Heidmar realized adjusted net income of $2.4 million compared to adjusted net income of $0.5 million in the second quarter of 2025 on a continuing operations basis. Adjusted net income remains well above the prior year quarter and continues to demonstrate the improving underlying earnings capacity of the platform. Total revenues for the quarter were $29 million compared to $18.4 million in the first quarter of 2026 and $9.6 million in the second quarter of 2025, an increase of $19.4 million, or approximately 203% year-on-year, and an increase of $10.6 million, or approximately 58% quarter-on-quarter. This growth was driven primarily by a sharp increase in voyage and time charter revenues, which rose to $23.2 million from $6.2 million in the second quarter of 2025, alongside trade revenues, which increased to $5.8 million from $3.3 million over the same period.

Six vessels were chartered out on voyage and time charter arrangements during the quarter, compared to two vessels in the second quarter of 2025. General and administrative expenses were $5.6 million in the second quarter of 2026, compared to $4.7 million in the second quarter of 2025. The year-on-year increase was mainly attributable to higher cash bonuses paid to our employees, which totaled $1.8 million in the second quarter of 2026 compared to $1.4 million in the second quarter of 2025. Given our asset-light strategy, our people are the key to delivering services and growth, and rewarding talent is central to our continued success. As we move through the remainder of 2026, we expect G&A to remain well controlled relative to our growing revenue base.

For the first half of 2026, Heidmar generated total revenues of $47.3 million and net income attributable to shareholders of $5 million or $5.8 million on an adjusted basis, excluding non-cash stock-based compensation of $0.8 million. Underscoring the consistency of the platform's earnings power across both quarters of the year. Turning to the balance sheet. As of June 30, 2026, cash and cash equivalents stood at $28.7 million, and total assets were $99.6 million. Turning to the market, the tanker market remained highly volatile during the quarter, shaped primarily by escalating geopolitical tensions in the Middle East and in Europe, where the Ukraine-Russia war has escalated into a targeting of energy assets and shipping in general. The extreme dislocation of March, April eased somewhat following the signing of the peace MOU by the U.S. and Iran in June, however, not for long.

Continued disruption in the Straits of Hormuz and the Bab el-Mandab kept two key choke points under pressure, supporting rates even as a prolonged Hormuz closure remains a downside risk to oil demand. Combined transits through both choke points recovered only modestly from six million barrels per day trough to roughly 11 million barrels per day by May, June, still well below pre-crisis levels of 20 million barrels per day. As a result of over 80 Ukrainian attacks on Russian oil refineries in 2026, Russian seaborne product exports have halved from 2.2 million barrels per day average in 2025 to 1.1 million barrels per day in July. Also, attacks on Russian crude offtake terminals has also impacted crude exports, although most of this is not carried on mainstream tankers. Global seaborne crude volumes contracted during the quarter.

However, the combination of sourcing crude from alternative long-haul sources and tanker scarcity kept freight rates elevated across most crude tanker segments. Oil prices did not escalate to over $100 per barrel that many projected, as non-OPEC supply grew approximately 1 million barrels per day year-on-year, mostly from the Americas, and commercial and strategic inventories were drawn down across the board. However, now stocks in certain countries are at critically low levels, some at two-decade lows. During the third quarter to date, the resumption of hostilities in the Middle East has reduced the flow of oil through the Straits of Hormuz to a trickle. A new shuttle tanker trade has developed whereby owners willing to take risks are carrying crude oil at astronomical rates from the terminals inside the Arabian Gulf to just outside the Straits, to be discharged in ship-to-ship operations to other vessels.

Continuing Houthi threats and attacks on tankers transiting the Red Sea have also redirected crude flows from Yanbu to Ain Sokhna and via pipeline to Sidi Kerir in the Mediterranean, driving strong demand for Suezmaxes and Aframaxes in the region, with the Mediterranean and Black Sea Suezmax earnings at historical highs and rates elevated across the board as a result. VLCCs are now lifting oil from Sidi Kerir and taking it to Asia via the Cape of Good Hope, which is a 15,000-mile voyage to China versus only 6,700 miles via the Gulf of Aden. Notably, Suezmaxes have on average outperformed VLCCs during the period, and Aframaxes are also trading at historical highs, reinforcing our view that in periods of geopolitical disruption, effective tanker supply, not cargo volumes, become the primary driver of short-term rates outcomes.

As we enter the seasonally stronger winter demand months of the fourth quarter and the first quarter, we expect rates to remain high and potentially strengthen further depending on how the geopolitical situation evolves. Turning to company developments. Scaling the platform remained the central storyline of the quarter, and it continues to define our trajectory heading into the second half of the year. We added seven vessels across key tanker segments during the second quarter, building on the eight vessels taken in the first quarter. Taken together, that is 15 vessels added to the platform in the first half of 2026 alone, with our pipeline remaining active and further additions expected through the remainder of this year and into next.

We are also pleased to regain compliance with the Nasdaq continued listing rule on June 2, 2026, following 10 consecutive business days with our closing bid price at or above $1 per share, resolving the deficiency notice we received on April 22, 2026. Our scaling efforts have only accelerated since the quarter ended. On July 1, 2026, we completed the acquisition of Q-Shipping B.V., a Netherlands-based ship management and crewing enterprise, for approximately €0.2 million, funded from existing cash reserves with no regulatory approvals or post-closing conditions required. The transaction added nine vessels to our managed fleet, bringing our total managed fleet to approximately 60 vessels under commercial management and 20 under technical management, and gives Heidmar an operating presence in the Netherlands and Turkey, along with dedicated crewing capability in Ukraine. This is exactly the kind of disciplined move we favor.

A small investment with real strategic value, delivering overnight operational presence with minimal capital and immediate upside. We only expect to be immediately accretive to management fee revenue. Together with our first half fleet, we have added 24 vessels to the Heidmar platform in under two quarters, evidence that our asset-light model lets us scale the business without a proportional increase in overhead. The Q-Shipping B.V. integration is already showing results, with the takeover of three additional vessels expected during the third quarter of 2026. Our global footprint now spans eight locations, supported by a team of more than 75 onshore employees and over 500 seafarers. Alongside this growth, we continue to invest in enhancing our commercial and operational platforms through the use of artificial intelligence, further strengthening the efficiency and scalability of our asset-light model.

These upcoming AI-driven enhancements will bring together data and workflows across chartering, operations, and finance into a more unified operational view, automating recurring, time-consuming tasks that have traditionally required manual handling and giving teams faster, clearer visibility into performance across the fleet. As these capabilities come online, AI is set to become a core part of how Heidmar operates, allowing us to enhance performance and extract more value from every vessel we manage as we leverage every relationship we hold. The fundamental difference between Heidmar and traditional shipping companies is this: We don't own ships. Asset owning operators are weighed down by vessel depreciation, dry docking, financing costs, and locked-up capital. We carry none of that, freeing us to focus entirely on commercial performance.