Cmb.Tech (NYSE:CMBT) Q4 2025 Earnings call February 26, 2026 08:00 AM ET Speaker0Good afternoon, and welcome to the CMB.TECH Earnings Conference Call for the fourth quarter of 2025. My name is Alexander Saverys, and I'm joined here by my colleagues, Joris, Enya, and Ludovic. We will touch upon our classic topics. We'll start with our financial highlights. We will then give you a market update, and finish with a conclusion and a Q&A. For the financial highlights, I'd like to hand it over to Ludovic.Speaker7T ...

This presentation contains and will contain forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, TCE rates and Navios Partners' expected cash flow generation, future contracted revenues, future distributions and its ability to make distributions going forward, opportunities to reinvest cash accretively in a fleet renewal program or otherwise, potential capital gains, its ...

Financial Data and Key Metrics Changes - Adjusted EPS for Q3 2025 was $6.75 per share, compared to $6.50 per share in Q3 2024, reflecting a slight increase [9] - Adjusted net income decreased by $2.7 million to $124.1 million in Q3 2025 from $126.8 million in Q3 2024, primarily due to increased operating costs and decreased dividend income [10] - Adjusted EBITDA increased by 1.5% to $181.6 million in Q3 2025 from $178.9 million in Q3 2024 [13] Business Line Data and Key Metrics Changes - Vessel operating expenses increased by $2.4 million to $52.3 million in Q3 2025, attributed to a higher average number of vessels in the fleet [11] - Daily operating cost slightly increased to $6,927 per vessel per day in Q3 2025 from $6,860 in Q3 2024 [11] - Revenues from the container segment decreased by $4.3 million due to lower contracted charter rates [10] Market Data and Key Metrics Changes - Demand for mid-size and larger vessels remains strong, with new charters secured as far out as 2028 [5] - The charter market is robust, with the idle fleet at an all-time low [4] - Contracted charter backlog improved to $4.1 billion, with a 4.3-year average charter duration [13] Company Strategy and Development Direction - The company is selectively extending its new building program at below-market prices and has secured multi-year employment for new orders [5] - The company is also investing in the dry bulk cape-sized market segment, expecting outsized returns due to supply constraints [7] - A quarterly dividend increase to $0.90 per share was announced, consistent with the policy of yearly increases [7] Management's Comments on Operating Environment and Future Outlook - The ongoing war in Ukraine and the situation in the Middle East continue to impact operations, but trade tensions between the U.S. and China have eased, allowing trade to resume [4] - The company anticipates that conventional fuels will remain prevalent in the medium term despite long-term decarbonization goals [5] - Management expressed uncertainty about the strength of the market in 2026, noting that the opening of the canal will be a crucial factor [23] Other Important Information - The company completed a $500 million unsecured bond offering with a 6.85% coupon, enhancing its financial flexibility [6] - As of September 30, 2025, cash stood at $596 million, with total liquidity at $971 million [14] Q&A Session Questions and Answers Question: What is driving the strong demand for charters despite lower trade and tariffs? - Management noted that while tariffs have not changed overall production capacity, goods have been redirected, leading to increased demand for mid-sized ships outside traditional markets [22] Question: What triggered the investment in the Cape-sized vessel? - The company aims to grow its investment in the dry bulk market, which currently represents less than 5% of overall assets, and is focusing on selectively expanding in the second-hand market [25] Question: What is the outlook for the share repurchase program? - Management confirmed that the share buyback program continues, albeit at a smaller pace, as they believe the stock is undervalued [27]

Investment Rating - The report maintains a cautious outlook on container shipping, downgrading the sector due to structural headwinds and demand uncertainty beyond August [9][10]. Core Insights - The report highlights that US tariffs have limited direct impact on the bulk and tanker markets, while the Baltic Dry Index (BDI) increased by 2% week-on-week, driven by higher Panamax earnings [9][10]. - The report suggests a buy rating for Maersk, a hold for SITC, and a reduction for several other companies in the container shipping sector, indicating a selective investment approach [9][10]. Summary by Sections US Tariff Updates - The Trump administration delayed the 10% baseline tariff and set various tariffs for key trading partners, with significant implications for trade dynamics [2]. - Tariffs on copper and other commodities are set to take effect, which may influence demand in the bulk market [4][53]. Container Shipping Trends - The Shanghai Containerized Freight Index (SCFI) dropped 1.7% week-on-week, marking the fifth consecutive week of decline, although rates to the US showed some recovery [33][34]. - The report notes that while front-loading may temporarily boost cargo flows, significant demand uncertainty looms due to potential tariff impacts [3][9]. Baltic Dry Index and Dry Bulk Market - The BDI rose 2% week-on-week, with Panamax rates increasing by 14% due to strong demand in the Atlantic basin, while Capesize rates fell by 12% due to weak iron ore demand [52][58]. - The report anticipates a 3% growth in the dry bulk fleet but expects flattish demand, leading to a softening of freight rates in the coming years [58]. Freight Rates and Market Dynamics - Container shipping freight rates have shown variability, with the SCFI composite index reflecting a significant year-on-year decline of 43.3% [50]. - The report indicates that bunker prices and time charter rates are also trending, with specific rates for different vessel types being monitored closely [50][57].