Heidmar Maritime Holdings (NASDAQ:HMR) released first-quarter financial results and hosted an earnings call on Wednesday. Read the complete transcript below.
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The full earnings call is available at https://heidmar.irwebpage.com/webcast/2026_1Q_Financial_Results.html
Summary
Heidmar Maritime Holdings Corp reported a strong financial turnaround with Q1 2026 net income of $2.8 million, compared to a net loss of $6 million in Q1 2025.
The company’s asset-light business model allowed for significant fleet growth without heavy capital investment, contributing to a 216% increase in platform revenues year-over-year.
Heidmar Maritime Holdings Corp’s future outlook is positive, with expectations of strong tanker market conditions and elevated freight rates persisting for the next 12 months due to geopolitical tensions and changes in global energy trade flows.
Operational highlights include the addition of eight vessels to their fleet in Q1 2026, expanding their presence in various key tanker segments.
Management emphasized their strategic focus on commercial management over vessel ownership, leveraging their extensive network and proprietary technology to enhance trading power and returns for stakeholders.
Full Transcript
OPERATOR
Thank you for standing by, ladies and gentlemen, and welcome to the Heidmar conference call. On the first quarter 2026 financial results. We have with us Mr. Pankaj Khanna, Chief Executive Officer. At this time all participants are in a listen only mode. There will be a presentation followed by a question and answer session at which time if you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. I must advise you that this conference call is being recorded today. Please be reminded that the company announced their results with a press release that has been distributed publicly. Before passing the floor to Mr. Khanna, I would like to remind everyone that in today’s conference call Heidmar Maritime Holdings Corp will be making forward looking statements. These statements are within the meaning of the federal securities laws. Matters discussed may be forward looking statements which are based on current management expectations that are that involve risks and uncertainties that may result in such expectations not being realized. And now I would like to turn the floor over to Mr. Khanna. Please go ahead.
Pankaj Khanna (Chief Executive Officer)
Thanks operator. Good day to everyone and welcome to the first quarter earnings call for Hymar Maritime. Hydmar delivered a strong first quarter of 2026 marked by meaningful financial progress, accelerating fleet growth and a sharpened strategic focus on value creation for our stakeholders. The results we are reporting today reflect the power of our asset light commercially driven model. One that gives us to scale rapidly in environments where tanker markets reward operational agility and market intelligence. Hydmar’s business model is built on commercial management rather than vessel ownership. We earn fee based revenues by operating tankers in pools or on commercial management and managing vessels on behalf of shipowners. Because we grew our fleet without deploying capital into physical assets, our earnings scale with volume and market conditions, not with the balance sheet, keeping us agile to add vessels quickly respond to dislocations and return capital to shareholders rather than service heavy debt. Turning to the Results for the three month period ended March 31, 2026, Heidmar realized consolidated net income of $2.8 million or $0.05 per share basic a sharp turnaround from a net loss of $6 million or $0.10 per share in the corresponding period of 2025. Included in net income is the non cash stock based compensation of $0.6 million representing the amortization of the share awards granted to key employees and members of the board of directors. Under the Heidmar Maritime Holdings Corp Equity Incentive Plan. This charge is included within GNA expenses. Excluding this non cash item, Heidmar Maritime Holdings Corp realize adjusted net income of $3.4 million or $0.06 per share compared to adjusted net income of $0.9 million in Q1 2025. This demonstrates a compelling improvement in the underlying earnings capacity of the platform for the quarter were $18.4 million compared to $5.8 million in Q1 2025, an increase of $12.6 million or more than 216% year on year. This growth was driven by record freight rates and a sharp increase in vessels employed on short term, spot and time chart avoiders 8 in Q1 2026 versus just 1 a year earlier. The quarter included the contribution of the platform supply vessel Ace supplier which commenced charter operations in April 2025. GNA expenses decreased to $3.6 million from $6.1 million in Q1 2025, a reduction of $2.5 million. This improvement reflects the significantly lower amortization of stock based compensation in the current period following the elevated charges recognized in 2025 related to equity awards granted to management. As we move through 2026, we expect GNA to remain well controlled relative to our growing revenue base. Turning to the balance sheet, as of March 31, 2026, cash and cash equivalents stood at $27.6 million, up $8.6 million from the $18.6 million at December 31, 2025. Total assets were $76.1 million and total stockholders equity strengthened to $14.2 million from $10.7 million at year end, reflecting the profitable quarter and the positive momentum building in our financial position. Net cash provided by operating activities from continuing operations was $6.6 million for the quarter, more than double the $3.1 million generated in Q1 2025. This reflects the strong improvement in underlying earnings and confirms that the business is converting revenue growth into real cash generation. Turning to the Market the tanker market environment during the first quarter of 2026 was among the most constructive we have seen in recent years. Freight rates were already very strong in January and February and rose to historically record levels underpinned by heightened geopolitical tensions and sustained disruption across critical shipping lanes, most notably increased volatility in and around the states of Hormuz and the broader Gulf region. These dynamics triggered significant rerouting of crude and product cargoes in extending void distances, tightening effective vessel supply and amplifying ton mile demand across the tanker complex. The structural locations we are observing in global energy trade flows are not they reflect a fundamental reshaping of the supply chain architecture for crude oil and refined products, one that benefits well positioned operators and commercial managers such as Heidmar. Notably, the rise in oil prices has remained modest even though the Strait of Hormuz has now been closed for almost three months, removing an estimated 10 to 15% of world supply net of pipeline volumes, bypassing the strait. That restraint reflects a massive release of stocks across the OECD and China. Inventories now sit at record lows and will have to be rebuilt to provide a buffer against the next Middle east conflict. We expect this crisis to drive two lasting changes, diversification of crude supply and the build out of emergency storage. Japan today depends on the Middle east for roughly 90% of its crude imports, South Korea 70% and China and India around 55%, concentrations that are no longer tenable. As these buyers turn to the Atlantic Basin, we voyage distances lengthen and ton mile demand rises beyond higher prices. Many countries now face outright fuel shortages, LPG in India, gasoline and diesel across parts of Asia and Africa. This has underscored the need for emergency reserves, and we expect governments to build crude and product stocks to guard against the next disruption. Both trends add to tanker demand in the near term. Even when a peace accord is signed and reopened, we expect rates to firm further. With few ships positioned in the region, the hardest hit buyers in Asia and elsewhere will move quickly to restock, and we estimate three to six months for flows to normalize by then. The winter season will lift oil demand and freight rates seasonally. In short, we expect strong rates to persist for the next 12 months and beyond. We continue to execute on our growth plans. Scaling the Platform during the quarter, Hydmar added eight vessels across key tanker segments, two VLCCs, three Suisse MAXs and three misses during Q1 and continue to add in Q2. These additions expand our reach across the crude and broad tanker market, and our pipeline remains active, with further additions expected through this year and next. What sets Hydmar apart from the traditional shipping companies is fundamental. We do not own ships while owning operators can depreciation, dry docking cycles, financing costs and capital lockup. Hydmar focuses solely on commercial performance. With over 40 years of heritage as the original commercial management brand in the tanker sector, we have built unmatched relationships with charterers, oil majors and trading houses across every major trading basin. Our E Fleet Watch platform, the first digital transparency tool developed in shipping, gives owners real time visibility into their vessel’s earnings and performance, a capability that no pure asset owner can replicate at scale. This combination of deep market knowledge, a trusted owner partner network and proprietary technology is what makes Heidmar structurally different. The value of the hydemor platform compounds. As we grow, each vessel we add to our commercially managed fleet increases our collective trading power, enabling better cargo coverage, tighter voyage optimization, and stronger negotiating leverage with counterparties. This network effect means that scale directly translates into better returns for every owner in the pool or on commercial management. Beyond commercial management revenues, the platform supports other services including technical management, sale and purchase advisory, investor opportunities, asset management, and fuel services, creating multiple touch points through which we deliver value to owners across the life cycle of their assets. As we continue to grow, the platform becomes increasingly difficult to replicate and the competitive moat around our commercial model widens. Looking ahead, we remain constructive on the tanker market outlook. The fundamental drivers supporting elevated freight rates on both demand and supply remain firmly in place. We are confident in hydma’s trajectory and our ability to generate sustainable returns for our stakeholders as we scale into one of the leading commercial management platforms in the global banker industry. I thank our stakeholders, employees, vessel owners and charter partners for their continued trust and we look forward to updating you on our progress. We will now take questions.
OPERATOR
Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press Star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Thank you. Our first question comes from the line of Tate Sullivan with Maxim. Please proceed with your question.
Tate Sullivan (Equity Analyst)
Thank you very much and apologize if I break up as I’m in transit. Your 20F had great detail on the number of managed fleet April 30th. Did you comment Pankaj that since the end of first quarter or April 30th you’ve added to that list of managed vessels?
Pankaj Khanna (Chief Executive Officer)
Yes we have. We have ongoing additions as new buildings are coming in and other second hand vessels are joining as well. We did a press release I think was a week two weeks ago which added five vessels and it’s a constant process.
Tate Sullivan (Equity Analyst)
That was great detail on there and great comments on multiple countries building strategic energy reserves too. And just on the platform supply vessel, is that a fixed rate or is that an index rate that will vary based on some index you can point to? No, it’s a fixed rate contract. Great. Thank you very much for all the great thanks. Appreciate it.
OPERATOR
As a reminder, if you would like to ask a question, press Star one on your telephone Keypad. Our next question comes from one of Laura Marr with B. Riley. Please proceed with your question. Hi, good morning. Thank you for taking the question. My first question. Thank you. Is, are elevated rates keeping tanker owners from joining the hydra pool and staying in the time charter market?
Pankaj Khanna (Chief Executive Officer)
Not necessarily. At this point, owners are interested more in the spot market than they are in the time charter market. But it’s a split. Of course, everybody’s hedging their bets. Some people are looking at the forward markets and saying, you know, one year rates have never been at these kind of levels. So some are taking that opportunity. But there are plenty of people who are on the spot market. But we have a constant flow of vessels coming in where owners are buying at elevated rates and are looking to basically play the spot market at the earnings that there are. The expectation in the market is that when the States open the spot market rates will explode. Let’s use a term like that. But basically we expect that rates will increase substantially. So this is what people are positioning themselves for.
Laura Marr (Equity Analyst)
Great, thanks. And then maybe just one more. You had a year over year step up in EBITDA margins. With rising rates and more vessels added to the platform, can we expect continued positive operating leverage on the HiBar platform?
Pankaj Khanna (Chief Executive Officer)
Yes, as I mentioned in the remarks that the GNA levels are pretty stable and at this point we have to pass to add another 20 vessels without affecting the GNA. So I mean, I’m conservative with 20, maybe 30, maybe 40, but basically the EBITDA margins should stay strong and elevated. The GNA will not change substantially going forward.
OPERATOR
Great, thanks. Our next question comes from the line of George Berman with Cabot Lodge Securities. Please proceed with your question.
George Berman (Equity Analyst)
Good morning, gentlemen, and thanks for taking my call. First and foremost, I want to congratulate you to a great quarter. Apparently, judging from the stock price performance, it was unexpected. The forecast that revenues, earnings, additional shipping should lead to another good second quarter here. Are you planning to continue the at the market stock offering or is that finished by now?
Pankaj Khanna (Chief Executive Officer)
Look, we have kept the flexibility to have the ELOC live, but at the same time, as you will see from the press release, we have not really used it because we don’t believe that these levels are reflective of the company’s valuation. And we have always maintained that we are not there to dilute the shareholders, including ourselves, for no valid reason. We are not in the market to buy vessels. We are not looking to create another vessel owner. So unless there is an accretive transaction that requires capital, we do not see any need to raise Capital.
George Berman (Equity Analyst)
Okay, great. And then there are a lot of smaller, younger shipping companies formed right now, particularly with the high rates persisting in all the different markets. What would be your sort of pitch to a ship owner smaller in size to utilize your services, taking advantage of your vast network of offices all over the important points.
Pankaj Khanna (Chief Executive Officer)
Look, I think the most important point is kyc. I mean I know your client. If you want to go and work with Aramco as a new company, it may take you 12 months to clear their KYC requirements and that is if Aramco decides to work with you. And I just use them as an example. So I mean that is one very key point where heitmar is KYC cleared by all companies and traders in the world. But besides that, because of our market intelligence and relationships we are able to realize TCE’s as in earnings and which are higher than most other people can do by themselves, especially the small owners. And we have proven that time and time again. For one Chinese owner who’s a one ship owner, we fixed the ship at $490,000 per day at the peak of the prices. There’s no way he could have fixed with that charger by himself. So we have proven time and time again the value of hydmaier as a platform for the small ship owners, but it’s also applicable for the big ship owners if they don’t have scale in a particular size sector. Again, Hydemar can offer them that scale so they can realize the best results in that sector. So I think our platform is useful for both the big ship owners and the small ship owners.
George Berman (Equity Analyst)
Great. Good luck for the future and thanks for taking my call.
Pankaj Khanna (Chief Executive Officer)
Thanks Rick.
OPERATOR
We have reached the end of the question and answer session. Mr. Connor, I’d like to turn the floor back over to you for closing comments.
Pankaj Khanna (Chief Executive Officer)
Thanks everyone. It was a great quarter and we expect to hope an even better quarter for the second quarter. So thank you and have a good day.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.
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