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Navios Maritime Partners (NMM)
NYSE:NMM
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Navios Maritime Partners
(NYSE:NMM)
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Rating:70Outperform
Price Target:
$65.00
â–²(17.27% Upside)
Action:ReiteratedDate:03/16/26
The score is supported primarily by an attractive valuation (low P/E and very high yield) and a constructive earnings-call outlook with strong contracted revenue coverage and ongoing capital returns. Offsetting this are weaker financial quality signals—especially volatile/negative free cash flow and rising debt—plus near-term technical weakness despite a still-positive longer-term trend.
Positive Factors
Fleet Modernization
A modern fleet with a lower average age than the industry standard enhances operational efficiency and competitiveness, supporting long-term growth.
Long-Term Revenue Contracts
Securing long-term contracts ensures stable and predictable cash flows, reducing revenue volatility and enhancing financial stability.
Strong Liquidity Position
Robust liquidity and solid credit ratings provide financial flexibility, enabling strategic investments and resilience against market fluctuations.
Negative Factors
Increased Leverage
Higher leverage can increase financial risk, potentially impacting the company's ability to invest in growth and manage economic downturns.
Declining Profit Margins
Decreasing profit margins can erode profitability, limiting the company's ability to reinvest in its business and sustain long-term growth.
Cash Flow Management Challenges
Challenges in cash flow management may affect liquidity, hindering the company's capacity to fund operations and strategic initiatives.
Navios Maritime Partners (NMM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.84B
Dividend Yield0.39%
Average Volume (3M)204.18K
Price to Earnings (P/E)5.5
Beta (1Y)1.23
Revenue Growth-1.33%
EPS Growth-33.66%
CountryUS
Employees186
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)3.40
Shares Outstanding28,546,011
10 Day Avg. Volume262,999
30 Day Avg. Volume204,177
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)0.48
Price to Sales (P/S)1.16
P/FCF Ratio-43.35
Enterprise Value/Market Cap2.12
Enterprise Value/Revenue2.91
Enterprise Value/Gross Profit4.48
Enterprise Value/Ebitda5.29
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)13.26
Revenue Forecast (FY)$1.41B
Navios Maritime Partners Business Overview & Revenue Model
Company DescriptionNavios Maritime Partners L.P. owns and operates dry cargo vessels in Asia, Europe, North America, and Australia. The company offers seaborne transportation services for a range of liquid and dry cargo commodities, including crude oil, refined petroleum, chemicals, iron ore, coal, grain, fertilizer, and containers, as well as provides its vessels under short, medium, and longer-term charters. It operates a fleet of 26 Panamax vessels, 24 Capesize vessels, four Ultra-Handymax vessels, 47 containerships, and 45 tankers. Olympos Maritime Ltd. serves as the general partner of Navios Maritime Partners L.P. The company was founded in 2007 and is based in Monaco.
How the Company Makes MoneyNMM makes money by monetizing the earning capacity of its vessel fleet through chartering and related maritime services.
1) Time charter revenue (contracted daily hire): A significant portion of NMM’s revenue is generated by leasing vessels to customers for a fixed period at an agreed daily rate ("hire"). Under time charters, the charterer typically directs where the ship trades and pays certain voyage costs (commonly including fuel/bunkers), while the vessel owner/operator (NMM) provides the vessel, crew, maintenance, insurance, and technical management. NMM’s margin in this model is largely the spread between the contracted daily hire and its operating costs (crew, repairs/maintenance, insurance, management fees, and overhead), adjusted for off-hire days.
2) Voyage/spot exposure (freight per trip): When vessels are employed on voyage charters or in the spot market, NMM earns freight linked to a specific voyage or to prevailing market rates. In these arrangements, the owner often bears more voyage-related costs (notably fuel and port/canal costs), so profitability depends on market freight rates minus those variable costs, plus fixed operating costs. Spot exposure typically increases earnings volatility versus longer-term time charters.
3) Containership chartering (if applicable based on fleet): For any container vessels in the fleet, revenue is commonly earned via charters to liner operators at contracted rates. Similar to dry bulk time charters, earnings are driven by charter rates and utilization relative to vessel operating costs.
4) Asset value and capital allocation (vessel sales/other income): Like many shipping companies, NMM may realize gains or losses from the sale of vessels when market asset values exceed or fall below book values. Such transactions can contribute to net income in periods when assets are sold, though this is not necessarily recurring operating revenue.
5) Key drivers and factors impacting earnings: NMM’s earnings are primarily influenced by (a) global shipping supply/demand (fleet capacity vs. cargo volumes), which drives charter rates; (b) fleet utilization and operational performance (minimizing off-hire and managing costs); (c) operating expenses and regulatory compliance costs; (d) financing structure and interest expense (as vessels are often debt-financed); and (e) the mix and duration of its charter portfolio (contract coverage vs. spot exposure), which affects both revenue stability and upside in strong markets.
Significant partnerships: null
Navios Maritime Partners Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The call conveyed a solid operational and financial performance for Q4 2025 with notable revenue and TCE improvements, strong quarterly profitability, increased distributions and active capital returns via buybacks. The company emphasized fleet modernization, high contracted revenue coverage (71%) and improved liquidity. Offsetting items include a net LTV that remains above target (30.9%), modest full-year profitability headwinds from higher depreciation and interest costs, rising operating expenses, delivery and financing commitments for newbuilds, and material industry geopolitical risks. On balance the positives (strong quarter, distribution increase, contracted coverage, active buybacks and fleet renewal) outweigh the negatives, though execution risks and market/geopolitical uncertainty remain.Q4-2025 Updates
Positive Updates
Strong Quarterly and Annual Profitability
Reported Q4 2025 net income of $117.3 million and EBITDA of $224.8 million; FY 2025 net income of $285.3 million and EBITDA of $744.6 million; Q4 earnings per common unit $3.99 and FY earnings per common unit $9.59.
Revenue and TCE Rate Improvements (Quarter)
Q4 2025 total revenue increased 10% to $366 million (from $333 million). Fleet combined TCE rate rose 10% in Q4 to $25,567/day. Sector TCE changes in Q4: dry bulk +15% to $19,588/day, tankers +9% to $29,158/day, containers +2% to $31,315/day.
Distribution Increase and Share Repurchase
Announced a 20% increase in distribution policy to $0.24 per unit annually starting Q1; repurchased ~1.6 million units (~5.3% of outstanding) using ~$73 million, delivering estimated value accretion of ~$5.20 per unit based on analyst NAV estimates.
High Revenue Visibility and Contracted Coverage
Contracted revenue backlog grew to roughly $3.75–$3.8 billion with 71% of available days fixed for 2026; contracted revenue exceeds estimated cash operating costs by ~$172.7 million, providing meaningful earnings visibility while leaving ~29% of days (~15,565 days) open or index-linked.
Fleet Modernization and Scale
Owns/operates 171 vessels across tanker, dry bulk and container segments with fleet average age 9.6 years (industry average 13.5 years). Fleet value including newbuilds ~$8.8 billion; net vessel equity value ~$4.1 billion; 26 newbuilds on order through 2029 representing ~$1.9 billion of investment.
Active Chartering and New Contracted Revenue
Secured $261 million in new charter commitments year-to-date including: 5 containerships (~$97M, net avg $29,572/day, ~2-year avg), 3 dry bulk (~$93M, net avg $23,974/day, ~3.6-year avg with profit sharing on two), and 3 tankers (~$71M, net avg $31,944/day, 2-year avg).
Improving Liquidity and Diversified Funding
Available liquidity ~$580 million (cash and equivalents $413M plus $167M revolver capacity). Completed $300M senior unsecured bond issuance and additional financings ($325M total in Dec '25–Jan '26) diversifying funding sources; 43% of debt fixed post-bond with average fixed rate ~6.2%.
Asset Recycling and Balance Sheet Discipline
Sold 14 older vessels (avg age 18 years) in 2025/2026 YTD for ~$372M; sold 11 vessels in year for $190M (adding ~$145M cash after debt repayment). Net LTV reduced to 30.9% and management highlighted a 31% reduction in net loan-to-value over recent periods.
Negative Updates
Net LTV Still Above Target
Net loan-to-value was 30.9% at year-end, above the stated target range of 20%–25%, although management is actively reducing LTV and targeting further improvement.
Full-Year Profitability Pressures
Adjusted EBITDA for FY 2025 decreased by $4 million to $728 million and adjusted net income decreased by $46 million (to ~$296M), driven by higher depreciation/amortization (~+$30M) and increased interest/finance costs (~+$10M).
Rising Operating and SG&A Costs
Q4 OpEx daily rate increased ~3% to $7,153/day with full-year OpEx daily at ~$7,009; general and administrative expenses increased (FY +$7M) due in part to forex movements and fleet expansion.
Interest Rate and Debt Cost Considerations
New $300M bond carries a fixed 7.75% coupon; long-term borrowings increased to ~$2.2 billion following newbuilding deliveries. Although ~43% of debt is fixed, higher interest expense contributed to lower adjusted net income.
Segment Weakness — Dry Bulk Full-Year
Dry bulk combined TCE for full year 2025 declined ~3% to ~$16,408/day (despite Q4 outperformance), indicating some weakness across the year in that segment.
Available Days and Utilization Slightly Lower
Available days in Q4 decreased ~2% to 13,390 days versus Q4 2024, partially constraining revenue opportunity despite higher TCE rates.
Industry and Geopolitical Risks
Ongoing geopolitical tensions (Red Sea, Strait of Hormuz, sanctions on Russian/Venezuelan/Iranian exports) are increasing voyage distances, insurance and operating complexity. Sanctions have reduced available tanker capacity (management cited ~15% reduction due to sanctioned vessels) and created volatility in trading patterns and demand.
Company Guidance
The company guided that it has strong 2026 revenue visibility with roughly 71% of available days fixed (leaving 15,565 days, ~29%, open or index-linked), having secured contracted revenue of about $3.8 billion (slide reference $3.75B) that exceeds estimated total cash operating costs by roughly $172.7 million, fixed days at a net average of $26,865/day, and $261 million of new charter commitments YTD; it reiterated a 20% increase in the annual distribution to $0.24 per unit (funded mainly by unit repurchases), noted net LTV at 30.9% with a target range of 20–25%, available liquidity of $580 million ($413M cash + $167M revolver), fleet metrics of 171 vessels with average age 9.6 years (vs industry 13.5) and fleet value including newbuilds of $8.8 billion (net vessel equity ~$4.1B), a newbuilding program of 26 vessels costing ~$1.9B with ~$197M equity to pay, and continued capital returns after repurchasing 1.6 million units for ~$73 million (reducing outstanding units by 5.3% and leaving ~$27M authorization capacity), all while targeting to exceed cash breakeven and maintain buybacks/dividends as LTV and market opportunities permit.Navios Maritime Partners Financial Statement Overview
Summary
Strong industry profitability and positive operating cash flow, but net income has been trending down since the 2021–2023 peak, total debt rose in 2025, and free cash flow has been volatile and negative in most years—limiting balance-sheet flexibility and shareholder-return capacity through the cycle.Income Statement
Revenue expanded sharply from 2020 to 2022 and has remained high through 2025, but growth has largely flattened more recently (2024–2025). Profitability is strong for the industry, with high gross and EBITDA margins and solid operating profitability. The main weakness is a downward trend in net income and net margin from the 2021–2023 peak into 2024–2025, indicating earnings normalization after an exceptionally strong cycle.78
Positive
Balance Sheet
The balance sheet is supported by a sizable equity base and moderate leverage overall (debt-to-equity generally around the mid-0.4x to mid-0.6x range). Return on equity remains positive but has stepped down meaningfully from earlier peak levels, consistent with softer earnings. A key watch item is the notable increase in total debt in 2025 versus 2024, which reduces flexibility if industry conditions weaken.72
Positive
Cash Flow
Operating cash generation is consistently positive and generally tracks earnings, but free cash flow is volatile and has been negative in most years (2021, 2022, 2024, 2025), including a very large outflow in 2024. While the free cash flow deficit improved in 2025 versus 2024, free cash flow still did not cover net income, suggesting heavy reinvestment and/or capital intensity that can pressure shareholder returns and deleveraging capacity.46
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.34B | 1.33B | 1.31B | 1.21B | 713.17M |
| Gross Profit | 867.45M | 882.00M | 859.39M | 829.32M | 534.96M |
| EBITDA | 739.98M | 736.77M | 717.24M | 684.77M | 430.61M |
| Net Income | 285.33M | 359.87M | 424.97M | 567.66M | 505.86M |
Balance Sheet | |||||
| Total Assets | 5.93B | 5.67B | 5.15B | 4.90B | 3.62B |
| Cash, Cash Equivalents and Short-Term Investments | 413.45M | 282.45M | 287.38M | 157.81M | 159.47M |
| Total Debt | 2.37B | 1.42B | 1.31B | 1.39B | 1.14B |
| Total Liabilities | 2.59B | 2.57B | 2.38B | 2.55B | 1.85B |
| Stockholders Equity | 3.28B | 3.11B | 2.77B | 2.34B | 1.74B |
Cash Flow | |||||
| Free Cash Flow | -35.99M | -523.65M | 95.30M | -104.24M | -1.71M |
| Operating Cash Flow | 504.99M | 483.48M | 560.32M | 506.34M | 277.17M |
| Investing Cash Flow | -348.05M | -782.13M | -253.01M | -316.24M | -106.25M |
| Financing Cash Flow | -53.76M | 349.26M | -233.22M | -184.45M | -32.20M |
Navios Maritime Partners Technical Analysis
Positive
55.43
Price Trends
62.42
Positive
56.98
Positive
50.18
Positive
Market Momentum
0.42
Positive
49.79
Neutral
76.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NMM, the sentiment is Positive. The current price of 55.43 is below the 20-day moving average (MA) of 66.89, below the 50-day MA of 62.42, and above the 200-day MA of 50.18, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 76.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NMM.
Navios Maritime Partners Risk Analysis
Navios Maritime Partners disclosed 81 risk factors in its most recent earnings report. Navios Maritime Partners reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Navios Maritime Partners Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $1.35B | 3.00 | 24.76% | 6.16% | 7.13% | 23.37% | |
81 Outperform | $2.03B | 3.51 | 13.56% | 3.64% | 3.82% | -13.73% | |
72 Outperform | $2.02B | 5.21 | 16.86% | 2.94% | -29.82% | -16.77% | |
70 Outperform | $1.84B | 5.47 | 8.85% | 0.39% | -1.33% | -33.66% | |
69 Neutral | $935.66M | 13.01 | -0.49% | 4.04% | -24.58% | -110.22% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $2.54B | 26.26 | 3.46% | 1.59% | -13.87% | -82.48% |
* Industrials Sector Average
NMM
Navios Maritime Partners
64.62
24.67
61.73%
CMRE
Costamare
16.77
9.55
132.21%
DAC
Danaos
111.70
33.35
42.56%
GNK
Genco Shipping
21.60
8.65
66.78%
GSL
Global Ship Lease
37.80
16.13
74.46%
SBLK
Star Bulk Carriers
22.33
6.19
38.34%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.