Fourth Quarter Financial Highlights
On March 11, 2026, pursuant to the Company's Capital Return Policy, the Board of Directors of Navigator Holdings Limited., (NYSE:NVGS) ("Navigator Holdings", "Navigator Gas", "our", "we", "us" or the "Company") declared a cash dividend of $0.07 per share of the Company's common stock for the quarter ended December 31, 2025, payable on March 31, 2026, to all shareholders of record as of the close of business U.S. Eastern Time on March 23, 2026 (the "Dividend").
Also as part of the Company's Capital Return Policy for the quarter ended December 31, 2025, the Company expects to repurchase approximately $1.0 million of its common stock between March 13, 2026, and March 31, 2026, subject to operating needs, market conditions, legal requirements, stock price and other circumstances (the "Share Repurchases"), such that the Dividend and Share Repurchases together equal 30% of net income for the quarter ended December 31, 2025.
On December 16, 2025 the Company paid a dividend of $0.07 per share of the Company's common stock to all shareholders of record as of the close of business U.S. Eastern Time on November 25, 2025, totaling $4.6 million, and the Company repurchased 303,180 shares of common stock in the open market between November 7, 2025, and December 31, 2025, at an average price of $17.68 per share, totaling $5.4 million all as part of the Company's then Capital Return Policy for the quarter ended September 30, 2025.
The Company reported total operating revenues of $152.8 million for the three months ended December 31, 2025, compared to $144.0 million for the three months ended December 31, 2024.
Net income attributable to stockholders of the Company was $18.5 million for the three months ended December 31, 2025, compared to $21.6 million for the three months ended December 31, 2024.
EBITDA1 was $70.9 million for the three months ended December 31, 2025, compared to $68.0 million for the three months ended December 31, 2024.
Adjusted EBITDA1 was $73.4 million for the three months ended December 31, 2025, compared to $73.4 million for the three months ended December 31, 2024.
Basic earnings per share attributable to stockholders of the Company were $0.28 for the three months ended December 31, 2025, compared to $0.31 per share for the three months ended December 31, 2024, with the decrease primarily due to a decrease in net income attributable to stockholders of Navigator Holdings Ltd., offset by a lower number of shares of common stock in issue in the three months ended December 31, 2025, compared to the three months ended December 31, 2024.
Adjusted basic earnings per share1 attributable to stockholders of the Company were $0.32 per share for the three months ended December 31, 2025, compared to $0.39 per share for the three months ended December 31, 2024, driven primarily by a decrease in net income attributable to stockholders of Navigator Holdings Ltd., and adjusting for the profit on sale of vessel.
The Company reduced its debt by $33.0 million to $900.2 million during the three months ended December 31, 2025, as the Company made net repayments on loan facilities and revolving credit facilities of $33.0 million. The Company reduced its debt by $93.3 million to $933.2 million during the three months ended September 30, 2025, as the Company made net repayments on loan facilities and revolving credit facilities of $93.3 million.
At December 31, 2025 the Company's cash, cash equivalents, and restricted cash was $204.9 million, and together with available but undrawn credit facilities of $91.4 million the Company's total liquidity as of December 31, 2025 was $296.3 million, compared to $308.0 million as of September 30, 2025 and $139.8 million as at December 31, 2024.
_________________________1 EBITDA and Adjusted EBITDA, Adjusted Net Income Attributable to Stockholders of Navigator Holdings Limited., Adjusted Basic Earnings per Share and Adjusted Diluted Earnings per Share are not measurements prepared in accordance with U.S. GAAP. EBITDA represents net income before net interest expense, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA before profit/loss on sale of vessel, realized and unrealized gain/loss on non-designated derivative instruments and unrealized foreign currency exchange, write off of deferred financing costs and other income. Adjusted Basic Earnings per Share represents basic earnings per share adjusted to exclude profit/loss on sale of vessel, realized and unrealized gain/loss on non-designated derivative instruments and unrealized foreign currency exchange, write off of deferred financing costs and other income. Adjusted Diluted Earnings per Share represents Adjusted Basic Earnings per Share adjusting the weighted average number of common shares used for calculating Adjusted Basic Earnings per Share for the effects of all potentially dilutive shares. Adjusted Net Income Attributable to Stockholders of Navigator Holdings Limited. represents net income attributable to stockholders of Navigator Holdings Limited. adjusted to exclude profit/loss on sale of vessel, realized and unrealized gain/loss on non-designated derivative instruments and unrealized foreign currency exchange, write off of deferred financing costs and other income. Management believes that EBITDA, Adjusted EBITDA, Adjusted Net Income Attributable to Stockholders of Navigator Holdings Limited., Adjusted Basic Earnings per Share and Adjusted Diluted Earnings per Share are useful to investors in evaluating the operating performance of the Company. EBITDA, Adjusted EBITDA, Adjusted Net Income Attributable to Stockholders of Navigator Holdings Limited., Adjusted Basic Earnings per Share and Adjusted Diluted Earnings per Share do not represent and should not be considered alternatives to consolidated net income, earnings per share, cash generated from operations or any other GAAP measure.
Other Highlights and Developments
Fleet Operational Update
The average daily time charter equivalent ("TCE") rate across the fleet was $30,647 for the three months ended December 31, 2025, compared to $28,341 for the three months ended December 31, 2024, and $30,966 for the three months ended September 30, 2025.
Utilization across the fleet was a normalized 90.0% for the three months ended December 31, 2025, compared to 92.2% for the three months ended December 31, 2024 and 89.3% for the three months ended September 30, 2025.
The Company is closely monitoring the evolving geopolitical situation in the Middle East. As of March 11, 2026, the Company does not have any vessels operating in, or transiting through the area and the Company to date has not experienced any significant operational or financial impact. The Company will continue to monitor the situation and will take appropriate measures to protect the safety of our crew and assets.
U.S. ethylene export markets reached 201,000 metric tons ("mts") during the fourth quarter of 2025, down from 270,000 mts during the third quarter of 2025, however in line with the quarterly average through 2025 of 204,000 mts. During the fourth quarter of 2025 about 84% of the exported tons had European destinations, with 11% going to Asia and 5% to the Middle East. In December 2025, Navigator Triton loaded the inaugural ethylene export from Energy Transfer's Nederland port.
Total ethane exports from the U.S. finished 2025 strong, with the highest quarterly throughput during the fourth quarter of 2025 of around 3,080,000 mts. This against a quarterly average of around 2,633,000 mts per quarter through 2025, with the second quarter of 2025 being the lowest with 2,192,000 mts exported. The increase during the fourth quarter of 2025 was partly due to additional export capacity coming on stream in August 2025 from the terminal at Beaumont, operated by Enterprise Products Partners.
For the three months ended December 31, 2025, we had an average of 28 vessels engaged under time charters, 20 vessels on spot voyage charters and contracts of affreightment ("COAs"), and 9 vessels operating in the independently managed Unigas Pool. As at December 31, 2025, for the 12-month period commencing January 1, 2026, approximately 37% of our available days are covered by time charter contracts. For the same forward-looking 12-month period, our midsize vessels are exclusively on time charter contracts, about 70% of our fully and semi-refrigerated vessels are on time charter contracts, and about 30% of our of our ethylene-capable vessels are expected to be employed in the spot voyage market.
The handysize 12-month forward-looking market assessment for semi-refrigerated vessels increased from the end of the third quarter of 2025 compared to the end of the fourth quarter of 2025 by $21,000 per calendar month ("pcm") to $956,000 pcm.
The handysize 12-month forward-looking market assessment for fully refrigerated vessels increased from the end of the third quarter of 2025 to the end of the fourth quarter of 2025 by $4,000 pcm to $775,000 pcm.
The handysize 12-month forward-looking market assessment for ethylene-capable vessels reduced from the end of the third quarter of 2025 to the end of the fourth quarter of 2025 by $70,000 pcm to $1,026,000 pcm.
Ethylene Export Terminal
We own a 50% share in an ethylene export marine terminal at Morgan's Point, Texas (the "Ethylene Export Terminal") through a joint venture (the "Export Terminal Joint Venture").
The Ethylene Export Terminal throughput for the three months ended December 31, 2025, was 191,707 metric tons, compared to 159,183 metric tons for the three months ended December 31, 2024, and 270,594 metric tons for the three months ended September 30, 2025.
Our share of the results of our equity investment in the Ethylene Export Terminal was a gain of $0.9 million for the three months ended December 31, 2025, compared to a gain of $5.6 million for the three months ended December 31, 2024, and a gain of $3.3 million for the three months ended September 30, 2025.
Steady U.S. ethylene prices were supporting exports to Europe, which reached their highest level in 2025. U.S.–China tariff tensions affected trade in the fourth quarter of 2025, with volumes reverting to Europe whilst Asia-bound shipments slow down. We expect throughput for the first quarter of 2026 to be at or above the levels seen during the fourth quarter of 2025 supported by strong demand from Europe.
Our Ethylene Export Terminal, owned by the Export Terminal Joint Venture, includes an ethylene cryogenic storage tank with a capacity of 30,000 tons, and has the capacity to export approximately 1.55 million tons of ethylene per year and load ethylene-capable gas carriers at rates of 1,000 tons per hour. Since January 2026, two new offtake contracts related to the Ethylene Export Terminal's available ethylene volumes have been signed by new customers, and we continue to expect that additional capacity will be contracted during 2026. Until further offtake contracts are signed, volumes will be sold and made available on a spot contract basis.
Capital Return Policy
Under the Capital Return Policy and subject to operating needs and other circumstances, the Company intends to pay a quarterly cash dividend of $0.07 per share of common stock (the "Fixed Element") and return additional capital in the form of further cash dividends and/or share repurchases, such that the Fixed Element and, if any, the variable element, together equal at least 30% of net income for the applicable quarter. Any acquisition of the Company's common stock under the Capital Return Policy may be made via open market transactions, privately negotiated transactions or any other method permitted under U.S. securities laws and the rules of the U.S. Securities and Exchange Commission.
The timing and amount of any dividends and share repurchases under the Capital Return Policy will be determined by Navigator's Board of Directors and management and will depend on market conditions, legal requirements, stock price and alternative uses of capital, financial results and earnings, restrictions in our debt agreements, required capital expenditures and the provisions of Marshall Islands law affecting the payment of dividends to shareholders, as well as other factors. The Capital Return Policy does not oblige Navigator to pay any dividends or repurchase any of its shares and the Capital Return Policy, including dividends and repurchases of shares of common stock, may be suspended, discontinued or modified by the Company at any time, for any reason.
Financing
On March 2, 2026, the Company entered into a $133.8 million senior secured pre- and post-delivery term loan (the "March 2026 Senior Secured Term Loan") with ABN AMRO Bank N.V., Credit Agricole Corporate & Investment Bank and, Nordea Bank Abp, filial i Norge to partially finance the construction of Navigator Parsec and Navigator Pleione, and has and will use cash on hand to pay the remainder of the construction costs. The March 2026 Senior Secured Term Loan matures five years after delivery of the second vessel, however the borrower has the option to extend the facility for a further 12 months. The facility is non-amortizing for the pre-delivery tranche and then amortizes for the post-delivery tranche, with a balloon repayment of $100.3 million on the five-year maturity date (if the 12-month extension is not taken). The facility bears interest at a rate of Term SOFR plus 150 basis points.
Vessel Sales
On December 28, 2025, Happy Falcon, a 2002-built 3,770 cbm semi-refrigerated small gas carrier was redelivered from the Unigas Pool which decreased the number of our vessels operating in the Unigas Pool from nine to eight. The Happy Falcon was held for sale at December 31, 2025, and was subsequently sold to an independent third party on January 28, 2026, for net proceeds of $4.0 million, generating a profit on sale of approximately $1.8 million.
The Navigator Saturn, a 2000-built 22,085 cbm ethylene-capable semi-refrigerated handysize gas carrier was held for sale at December 31, 2025, and was subsequently sold to an independent third party on January 28, 2026, for net proceeds of $15.9 million, generating a profit on sale of approximately $10.3 million.
On January 6, 2026, following the natural cessation of the Company's PT Navigator Khatulistiwa ("PTNK") business in Indonesia in February 2025, Navigator Pluto was sold back to an entity under common control of the Company in order to continue operating within the group's ordinary fleet.
Legal Updates
In February 2025, as part of an investigation into allegations of corruption, Muhamad Kerry Adrianto and certain other business partners and executives of PT Pertamina (Persero), Indonesia's state-owned energy company ("Pertamina"), were arrested by Indonesian authorities. The allegations relate to the mismanagement of crude oil and oil refinery products at Pertamina between 2018 and 2023. The legal proceedings linked with the investigation by local authorities relating to nine individuals concluded in February 2026, with all nine defendants being found guilty. Mr. Adrianto was given a custodial sentence of 15 years, a fine of around $60,000 and an order to pay compensation of approximately $173 million. On March 5, 2026, Mr. Adrianto lodged an appeal to his sentence with the High Court in Indonesia and we continue to monitor developments.
Mr Adrianto served as a director of PTNK, our Indonesian joint venture, until September 2025 when he was replaced as a director of PTNK.
We continue to believe that the events surrounding Mr. Adrianto will not have a material impact on the Company or our operations.
Unaudited Results of Operations for the Three Months Ended December 31, 2025 compared to the Three Months Ended December 31, 2024
`
Three months ended December 31, 2024
Three months ended December 31, 2025
Percentagechange
(in thousands, except percentage change)
Operating revenues
$
130,269
$
139,479
7.1
%
Operating revenues, Unigas Pool
13,762
13,355
(3.0
)%
Total operating revenues
144,031
152,834
6.1
%
Brokerage commission
1,672
1,977
18.2
%
Voyage expenses
19,187
21,281
10.9
%
Vessel operating expenses
45,957
47,615
3.6
%
Depreciation and amortization
32,645
32,547
(0.3
)%
General and administrative costs
9,401
9,390
(0.1
)%
Total net operating expenses
108,862
112,810
3.6
%
Operating Income
35,169
40,024
13.8
%
Unrealized (loss)/gain on non-designated derivative instruments
(278
)
75
(127.0
)%
Interest expense
(12,381
)
(13,110
)
5.9
%
Interest income
1,184
1,256
6.1
%
Net Other income/(loss)
—
(2,500
)
—
Unrealized foreign exchange loss
(2,847
)
(154
)
(94.6
)%
Loss on repayment of senior bonds
(1,456
)
—
—
Write off of deferred financing costs
(829
)
—
—
Income before taxes and share of result of equity method investments
18,562
25,591
37.9
%
Income taxes
(1,324
)
(7,346
)
455.0
%
Share of result of equity method investments
5,620
862
(84.7
)%
Net income
22,858
19,107
(16.4
)%
Net income attributable to non-controlling interest
(1,272
)
(629
)
(50.5
)%
Net income attributable to stockholders of Navigator Holdings Ltd.
$
21,586
$
18,478
(14.4
)%
The following table presents selected operating data for the three months ended December 31, 2025 and 2024, which we believe are useful in understanding the basis of movements in our operating revenues.
Three months ended December 31, 2024
Three months ended December 31, 2025
Fleet Data*:
Weighted average number of vessels
47.0
48.0
Ownership days
4,324
4,416
Available days
4,250
4,284
Earning days
3,920
3,857
Fleet utilization
92.2
%
90.0
%
Average daily Time Charter Equivalent**
$
28,341
$
30,647
* Fleet Data - Our eight owned smaller vessels in the independently managed Unigas Pool at December 31, 2025 are excluded.
** Non-GAAP Financial Measure - Time charter equivalent - TCE is a measure of the average daily revenue performance of a vessel. TCE is not calculated in accordance with U.S. GAAP. For all charters, we calculate TCE by dividing total operating revenues (excluding revenue from the Unigas Pool), less any voyage expenses, by the number of earning days for the relevant period. Under a time charter, the charterer pays substantially all of the vessel's voyage-related expenses, whereas for voyage charters, also known as spot market charters, we pay all voyage expenses and charge our customers for these costs through our sales invoicing. TCE is a shipping industry performance measure used primarily to compare period-to-period changes in a company's performance despite changes in the mix of charter types (i.e., voyage charters, time charters and contracts of affreightment) under which the vessels may be employed. We include average daily TCE, as we believe it provides additional meaningful information. Our calculation of TCE may not be comparable to that reported by other companies.
The following table represents a reconciliation of operating revenues to TCE. Operating revenues are the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
Three months ended December 31, 2024
Three months ended December 31, 2025
Average daily time charter equivalent***:
(in thousands, except earning days and average daily time charter equivalent rate)
Operating revenues
$
130,269
$
139,479
Voyage expenses
19,187
21,281
Operating revenues less voyage expenses
$
111,082
$
118,198
Earning days
3,920
3,857
Average daily time charter equivalent
$
28,341
$
30,647
*** Operating revenues and voyage expenses of our eight owned vessels in the independently managed Unigas Pool are excluded. On December 28, 2025, Happy Falcon, a 2002-built 3,770 cbm semi-refrigerated small gas carrier was redelivered from the Unigas Pool which decreased the number of our vessels operating in the Unigas Pool from nine to eight.
Operating Revenues. Operating revenues, net of address commissions, were $139.5 million for the three months ended December 31, 2025, an increase of $9.2 million or 7.1% compared to $130.3 million for the three months ended December 31, 2024. This increased was primarily due to:
an increase of approximately $9.1 million attributable to an increase in average monthly TCE rates, which increased to an average of approximately $30,647 per vessel per day ($932,171 per vessel per calendar month) for the three months ended December 31, 2025, compared to an average of approximately $28,341 per vessel per day ($862,035 per vessel per calendar month) for the three months ended December 31, 2024;
a decrease of approximately $2.9 million attributable to a decrease in fleet utilization, which decreased to 90.0% for the three months ended December 31, 2025, compared to 92.2% for the three months ended December 31, 2024;
an increase of approximately $0.9 million or 0.8%, attributable to a net 34-day increase in vessel available days for the three months ended December 31, 2025, compared to the three months ended December 31, 2024. This increase was primarily a result of the operations of the additional three German-built 17,000 cubic meter capacity, ethylene-capable liquefied gas vessels (the "Purchased Vessels") during the three months ended December 31, 2025, compared to the three months ended December 31, 2024; and
an increase of approximately $2.1 million, primarily attributable to an increase in invoiced pass-through voyage expense for the three months ended December 31, 2025, compared to the three months ended December 31, 2024.
Operating Revenues, Unigas Pool. Operating revenues, Unigas Pool was $13.4 million a decrease of 3.0% for the three months ended December 31, 2025, compared to $13.8 million for the three months ended December 31, 2024, in part due to decreased utilization across the pool fleet, and represents our share of the operating revenues earned from our nine vessels operating within the independently managed Unigas Pool, based on agreed pool points.
Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 2.5% of operating revenues, were $2.0 million for the three months ended December 31, 2025, compared to $1.7 million for the three months ended December 31, 2024.
Voyage Expenses. Voyage expenses increased by $2.1 million or 10.9% to $21.3 million for the three months ended December 31, 2025, from $19.2 million for the three months ended December 31, 2024. These voyage expenses are effectively pass-through costs, corresponding to an increase in operating revenues of the same amount.
Vessel Operating Expenses. Vessel operating expenses increased by $1.7 million or 3.6% to $47.6 million for the three months ended December 31, 2025, from $46.0 million for the three months ended December 31, 2024. Average daily vessel operating expenses increased by $160 per vessel per day, or 1.79%, to $9,080 per vessel per day for the three months ended December 31, 2025, compared to $8,920 per vessel per day for the three months ended December 31, 2024, with the increase driven by increased crew costs and higher maintenance costs incurred during the three months ended December 31, 2025 compared to three months ended December 31, 2024.
Depreciation and Amortization. Depreciation and amortization decreased by $0.1 million to $32.5 million for the three months ended December 31, 2025, compared to $32.6 million for the three months ended December 31, 2024. Depreciation and amortization included amortization of capitalized drydocking costs of $11.7 million for the three months ended December 31, 2025 and the three months ended December 31, 2024.
General and Administrative Costs. General and administrative costs remained unchanged at $9.4 million for the three months ended December 31, 2025, compared to $9.4 million for the three months ended December 31, 2024.
Unrealized Loss on Non-Designated Derivative Instruments. The unrealized loss of $0.1 million on non-designated derivative instruments for the three months ended December 31, 2025 relates to a non-cash fair value loss on interest rate swaps that are used to hedge a number of our variable rate secured term loan and revolving credit facilities, as a result of a decrease in forward U.S Dollar SOFR interest rates. This is compared to an unrealized loss of $0.3 million for the three months ended December 31, 2024.
Interest Expense. Interest expense increased by $0.7 million, or 5.9%, to $13.1 million for the three months ended December 31, 2025, from $12.4 million for the three months ended December 31, 2024. This is primarily a result of an increase in the average amount of debt outstanding offset by lower U.S. dollar SOFR rates and lower margins paid by the Company for the three months ended December 31, 2025, compared to the three months ended December 31, 2024.
Net Other Income/loss. During the three months ended December 31, 2025, the Company recorded an impairment of preferred securities of $2.5 million reflecting an assessment of expected future cashflows from the securities, following U.S. GAAP.
Unrealized Foreign Exchange Loss. The unrealized foreign exchange loss of $0.2 million for the three months ended December 31, 2025, relates to losses on foreign currency cash balances held, driven primarily by the Indonesian Rupiah weakening against the U.S. dollar during the three months ended December 31, 2025, compared to an unrealized foreign exchange loss of $2.8 million for the three months ended December 31, 2024.
Income Taxes. Income taxes relate to taxes on our subsidiaries and businesses incorporated around the world, including those incorporated in the United States of America. Income taxes were an expense of $7.3 million for the three months ended December 31, 2025, compared to an expense of $1.3 million for the three months ended December 31, 2024, primarily related to movements in current and deferred taxes in relation to our equity investment in the Ethylene Export Terminal. Following the natural cessation of the Company's PTNK business in Indonesia on expiry of the last remaining time charter contract on February 15, 2025, Navigator Aries was sold to an entity under common control of the Company on October 1, 2025, in order to continue operating within the group's ordinary fleet. On January 6, 2026, Navigator Pluto was sold to an entity under common control of the Company in order to continue operating within the group's ordinary fleet. The Company no longer asserts indefinite reinvestment of earnings in PTNK and recovery of the investment in PTNK is expected to occur through taxable transactions which required the Company to recognize an associated deferred tax liability of $9.5 million at December 31, 2025.
Share of Result of Equity Method Investments. The share of the result of the Company's 50% ownership in the Export Terminal Joint Venture was an income of $0.9 million for the three months ended December 31, 2025, compared to an income of $5.6 million for the three months ended December 31, 2024, due to higher deficiency payments received in the three months ended December 31, 2024, compared to three months ended December 31, 2025. Volumes exported through the Ethylene Export Terminal were 191,707 tons for the three months ended December 31, 2025, compared to 159,183 tons for the three months ended December 31, 2024.
Non-Controlling Interests. On September 30, 2022, the Company entered into the Navigator Greater Bay Joint Venture. The joint venture was owned 60% by the Company and 40% by Greater Bay Gas. On October 14, 2025, the Company increased its ownership interest in the Navigator Greater Bay Joint Venture from 60% to 75.1% through the acquisition of an additional 15.1% interest for total cash consideration of $16.8 million. The Navigator Greater Bay Joint Venture continues to be accounted for as a consolidated subsidiary in our consolidated financial statements, with the proportion owned by Greater Bay Gas accounted for as a non-controlling interest. Net income attributable to Greater Bay Gas of $0.6 million is presented as part of the non-controlling interest in our financial results for the three months ended December 31, 2025, compared to net income of $0.9 million for the three months ended December 31, 2024.
Unaudited Results of Operations for the Twelve Months Ended December 31, 2025 compared to the Twelve Months Ended December 31, 2024
Twelve months ended December 31, 2024
Twelve months ended December 31, 2025
Percentagechange
(in thousands, except percentage change)
Operating revenues
$
511,667
$
538,457
5.2
%
Operating revenues, Unigas Pool
55,012
48,504
(11.8
)%
Total operating revenues
566,679
586,961
3.6
%
Brokerage commission
7,012
7,333
4.6
%
Voyage expenses
72,144
77,269
7.1
%
Vessel operating expenses
175,034
191,290
9.3
%
Depreciation and amortization
132,725
134,497
1.3
%
General and administrative costs
36,580
36,353
(0.6
)%
Profit from sale of vessels
—
(25,206
)
—
Total net operating expenses
423,495
421,536
(0.5
)%
Operating Income
143,184
165,425
15.5
%
Realized loss on non-designated derivative instruments
—
(1,228
)
—
Unrealized loss on non-designated derivative instruments
(7,483
)
(4,678
)
(37.5
)%
Interest expense
(56,141
)
(55,778
)
(0.6
)%
Interest income
6,244
5,822
(6.8
)%
Unrealized foreign exchange loss
(1,968
)
(1,274
)
(35.3
)%
Write off of deferred financing costs
(829
)
(266
)
—
Other income
—
2,301
—
Loss on repayment of senior bonds
(1,456
)
—
Income before taxes and share of result of equity method investments
81,551
110,324
35.3
%
Income taxes
(4,365
)
(12,487
)
186.1
%
Share of result of equity method investments
16,911
8,036
(52.5
)%
Net income
94,097
105,873
12.5
%
Net income attributable to non-controlling interest
(8,526
)
(5,751
)
(32.5
)%
Net income attributable to stockholders of Navigator Holdings Ltd.
$
85,571
$
100,122
17.0
%
The following table presents selected operating data for the twelve months ended December 31, 2025, and 2024, which we believe are useful in understanding the basis for movement in our operating revenues.
Twelve months ended December 31, 2024
Twelve months ended December 31, 2025
Fleet Data* :
Weighted average number of vessels
47.0
48.6
Ownership days
17,202
17,723
Available days
16,670
17,215
Earning days
15,248
15,317
Fleet utilization
91.5
%
89.0
%
Average daily Time Charter Equivalent**
$
28,826
$
30,110
* Fleet Data - Our eight owned smaller vessels in the independently managed Unigas Pool at December 31, 2025 are excluded. On December 28, 2025, Happy Falcon, a 2002-built 3,770 cbm semi-refrigerated small gas carrier was redelivered from the Unigas Pool which decreased the number of our vessels operating in the Unigas Pool from nine to eight.
** Non-GAAP Financial Measure - Time charter equivalent ("TCE") is a measure of the average daily revenue performance of a vessel. TCE is not calculated in accordance with U.S. GAAP. For all charters, we calculate TCE by dividing total operating revenues (excluding collaborative arrangements and revenues from the Unigas Pool), less any voyage expenses (excluding collaborative arrangements), by the number of earning days for the relevant period. TCE rates exclude the effects of the collaborative arrangements, as earning days and fleet utilization, on which TCE rates are based, are calculated for our owned vessels, and not an average of all pool vessels. Under a time charter, the charterer pays substantially all of the vessel voyage related expenses, whereas for voyage charters, also known as spot market charters, we pay all voyage expenses. TCE is a shipping industry performance measure used primarily to compare period-to-period changes in a company's performance despite changes in the mix of charter types (i.e., spot charters, time charters and contracts of affreightment) under which the vessels may be employed between the periods. Our calculation of TCE may not be comparable to that reported by other companies.
The following table represents a reconciliation of operating revenues to TCE. Operating revenues are the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
Twelve months ended December 31, 2024
Twelve months ended December 31, 2025
Average daily time charter equivalent***:
(in thousands, except earning daysand average daily time charter equivalent rate)
Fleet Data:
Operating revenues
$
511,667
$
538,457
Voyage expenses
(72,144
)
(77,269
)
Operating revenues less voyage expenses
439,523
$
461,188
Earning days
15,248
15,317
Average daily time charter equivalent
$
28,826
$
30,110
*** Operating revenues and voyage expenses of our eight owned vessels in the independently managed Unigas Pool are excluded.
Operating Revenues. Operating revenues, net of address commissions, were $538.5 million for the twelve months ended December 31, 2025, an increase of $26.8 million or 5.2% compared to $511.7 million for the twelve months ended December 31, 2024. This increased was primarily due to:
an increase of approximately $20.2 million attributable to an increase in average monthly time charter equivalent rates, which increased to an average of approximately $30,110 per vessel per day ($915,832 per vessel per calendar month) for the twelve months ended December 31, 2025, compared to an average of approximately $28,826 per vessel per day ($876,776 per vessel per calendar month) for the twelve months ended December 31, 2024;
a decrease in operating revenues of approximately $12.9 million attributable to a decrease in fleet utilization, which declined to 89.0% for the twelve months ended December 31, 2025, compared to 91.5% for the twelve months ended December 31, 2024;
an increase in operating revenues of approximately $14.4 million or 3.0% driven by a 545-day increase in vessel available days for the twelve months ended December 31, 2025, due to the acquisition of the Purchased Vessels, compared to the twelve months ended December 31, 2024; and
an increase in operating revenues of approximately $5.1 million, primarily attributable to an increase in pass-through voyage costs for the twelve months ended December 31, 2025, compared to the twelve months ended December 31, 2024.
Operating Revenues, Unigas Pool. Operating revenues, Unigas Pool was $48.5 million for the twelve months ended December 31, 2025, a decrease of 11.8% compared to $55.0 million for the twelve months ended December 31, 2024, and represents our share of the revenue earned from our nine vessels operating within the Unigas Pool, based on agreed pool points.
Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 2.5% of operating revenue, were $7.3 million for the twelve months ended December 31, 2025, compared to $7.0 million for the twelve months ended December 31, 2024.
Voyage Expenses. Voyage expenses increased by $5.1 million or 7.1% to $77.3 million for the twelve months ended December 31, 2025, from $72.1 million for the twelve months ended December 31, 2024. These voyage expenses are effectively pass-through costs, corresponding to an increase in operating revenues of the same amount.
Vessel Operating Expenses. Vessel operating expenses increased by $16.3 million or 9.3% to $191.3 million for the twelve months ended December 31, 2025, from $175.0 million for the twelve months ended December 31, 2024. Average daily vessel operating expenses increased by $565 per vessel per day, or 6.6%, to $9,105 per vessel per day for the twelve months ended December 31, 2025, compared to $8,540 per vessel per day for the twelve months ended December 31, 2024. The increase is driven by higher crew and maintenance costs incurred during the twelve months ended December 31, 2025, compared to the twelve months ended December 31, 2024.
Depreciation and Amortization. Depreciation and amortization increased by $1.8 million to $134.5 million for the twelve months ended December 31, 2025, from $132.7 million for the twelve months ended December 31, 2024, primarily related to the acquisition of the Purchased Vessels. Depreciation and amortization included amortization of capitalized drydocking costs of $23.1 million and $22.7 million for the twelve months ended December 31, 2025 and 2024, respectively.
General and Administrative Costs. General and administrative costs decreased by $0.2 million or 0.6% to $36.4 million for the twelve months ended December 31, 2025, from $36.6 million for the twelve months ended December 31, 2024.
Profit from Sale of Vessels. Profit from sale of vessels for the twelve months ended December 31, 2025, was $25.2 million related to the sales of Navigator Venus and Navigator Gemini in May 2025 and September 2025 respectively.
Realized Loss on Non-Designated Derivative Instruments. The realized loss of $1.2 million on non-designated derivative instruments for the twelve months ended December 31, 2025 relates to the termination and settlement of interest rate swaps that hedged the September 2020 Secured Term Loan and Revolving Credit Facility which was repaid during the twelve months ended December 31, 2025.
Unrealized Loss on Non-Designated Derivative Instruments. The unrealized loss of $4.7 million on non-designated derivative instruments for the year ended December 31, 2025, relates to a non-cash fair value loss on interest rate swaps that are used to hedge a number of our variable rate secured term loan and revolving credit facilities, as a result of a decrease in forward U.S Dollar SOFR interest rates. This is compared to an unrealized loss of $7.5 million for the year ended December 31, 2024.
Interest Expense. Interest expense decreased by $0.4 million, or 0.6%, to $55.8 million for the twelve months ended December 31, 2025, from $56.1 million for the twelve months ended December 31, 2024. This is primarily a result of a decrease in U.S. dollar SOFR rates and lower average margins paid by the Company, offset by higher outstanding interest-bearing debt across the majority of the twelve months ended December 31, 2025, compared to the twelve months ended December 31, 2024.
Unrealized Foreign Exchange loss. The unrealized foreign exchange loss of $1.3 million for the twelve months ended December 31, 2025, relates to losses on foreign currency cash balances held, primarily driven by the Indonesian Rupiah weakening against the U.S. dollar during the period, compared to an unrealized loss of $2.0 million for the twelve months ended December 31, 2024.
Write off of Deferred Financing Costs. The write off of deferred financing costs of $0.3 million for the twelve months ended December 31, 2025 relates to the write off of the unamortized portion of the deferred financing costs of our $210 million secured term loan and revolving credit facility which was repaid during the twelve months ended December 31, 2025.
Net Other Income. In March 2025, the Company received $4.8 million in other income from a third party relating to a claim for damages caused to Navigator Aries in 2016. The amount received is the final settlement and no further amounts in relation to this matter are anticipated offset by an impaired of the preferred securities held by $2.5 million.
Income Taxes. Income taxes relate to taxes on our subsidiaries and businesses incorporated around the world including those incorporated in the United States of America. Income taxes were an expense of $12.5 million for the twelve months ended December 31, 2025, compared to an expense of $4.4 million for the twelve months ended December 31, 2024, primarily related to movements in current and deferred taxes in relation to our equity investment in the Ethylene Export Terminal. Following the natural cessation of the Company's PTNK business in Indonesia on expiry of the last remaining time charter contract on February 15, 2025, Navigator Aries was sold to an entity under common control of the Company on October 1, 2025, in order to continue operating within the group's ordinary fleet. On January 6, 2026, Navigator Pluto was sold to an entity under common control of the Company in order to continue operating within the group's ordinary fleet. The Company no longer asserts indefinite reinvestment of earnings in PTNK and recovery of the investment in PTNK is expected to occur through taxable transactions which required the Company to recognize an associated deferred tax liability of $9.5 million at December 31, 2025.
Share of Result of Equity Method Investments. The share of the result of the Company's 50% ownership in the Export Terminal Joint Venture was income of $8.0 million for the twelve months ended December 31, 2025, compared to income of $16.9 million for the twelve months ended December 31, 2024. Throughput rates increased to 815,971 tons for the twelve months ended December 31, 2025, compared to 732,378 tons for the twelve months ended December 31, 2024. While throughput rates increased, a narrower price differential between the U.S. and China limited arbitrage opportunities more extensively in the twelve months ended December 31, 2025, than in the twelve months ended December 31, 2024.
Non-Controlling Interest. On September 30, 2022, the Company entered into the Navigator Greater Bay Joint Venture. The joint venture was owned 60% by the Company and 40% by Greater Bay Gas. On October 14, 2025, the Company increased its ownership interest in the Navigator Greater Bay Joint Venture from 60% to 75.1% through the acquisition of an additional 15.1% interest for total cash consideration of $16.8 million. The Navigator Greater Bay Joint Venture continues to be accounted for as a consolidated subsidiary in our consolidated financial statements, with the proportion owned by Greater Bay Gas accounted for as a non-controlling interest. Net income attributable to Greater Bay Gas of $5.7 million is presented as part of the non-controlling interest in our financial results for the twelve months ended December 31, 2025, compared to net income of $5.5 million for the twelve months ended December 31, 2024.
Reconciliation of Non-GAAP Financial Measures
The following table shows a reconciliation of Net Income to EBITDA and Adjusted EBITDA for the three and twelve months ended December 31, 2025 and 2024:
Three months ended December 31, 2024
Three months ended December 31, 2025
Twelve months ended December 31, 2024
Twelve months ended December 31, 2025
(in thousands)
Net Income
$
22,858
$
19,107
$
94,097
$
105,873
Net interest expense
11,197
11,853
49,897
49,956
Income taxes
1,324
7,346
4,365
12,487
Depreciation and amortization
32,645
32,547
132,725
134,497
EBITDA2
68,024
70,853
281,084
302,813
Realized loss on non-designated derivative instruments
—
—
—
1,228
Unrealized loss/(gain) on non-designated derivative instruments
278
(75
)
7,483
4,678
Unrealized foreign exchange loss
2,847
154
1,968
1,274
Write off of deferred financing costs
829
—
829
266
Profit from sale of vessels
—
—
—
(25,206
)
Net Other loss/(income)
—
2,500
—
(2,301
)
Loss on repayment of senior bonds
1,456
—
1,456
—
Adjusted EBITDA2
$
73,434
$
73,432
$
292,820
$
282,752
______________________2 EBITDA and Adjusted EBITDA, Adjusted Net Income Attributable to Stockholders of Navigator Holdings Limited., Adjusted Basic Earnings per Share and Adjusted Diluted Earnings per Share are not measurements prepared in accordance with U.S. GAAP. EBITDA represents net income before net interest expense, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA before profit/loss on sale of vessel, realized and unrealized gain/loss on non-designated derivative instruments and unrealized foreign currency exchange, write off of deferred financing costs and other income. Adjusted Basic Earnings per Share represents basic earnings per share adjusted to exclude profit/loss on sale of vessel, realized and unrealized gain/loss on non-designated derivative instruments and unrealized foreign currency exchange, write off of deferred financing costs and other income. Adjusted Diluted Earnings per Share represents Adjusted Basic Earnings per Share adjusting the weighted average number of common shares used for calculating Adjusted Basic Earnings per Share for the effects of all potentially dilutive shares. Adjusted Net Income Attributable to Stockholders of Navigator Holdings Limited. represents net income attributable to stockholders of Navigator Holdings Limited. adjusted to exclude profit/loss on sale of vessel, realized and unrealized gain/loss on non-designated derivative instruments and unrealized foreign currency exchange, write off of deferred financing costs and other income. Management believes that EBITDA, Adjusted EBITDA, Adjusted Net Income Attributable to Stockholders of Navigator Holdings Limited., Adjusted Basic Earnings per Share and Adjusted Diluted Earnings per Share are useful to investors in evaluating the operating performance of the Company. EBITDA, Adjusted EBITDA, Adjusted Net Income Attributable to Stockholders of Navigator Holdings Limited., Adjusted Basic Earnings per Share and Adjusted Diluted Earnings per Share do not represent and should not be considered alternatives to consolidated net income, earnings per share, cash generated from operations or any other GAAP measure.
The following table shows a reconciliation of Net Income attributed to stockholders of Navigator Holdings Ltd. to Adjusted Net Income attributable to stockholders of Navigator Holdings Ltd., for the three and twelve months ended December 31, 2025 and 2024:
Three months ended December 31, 2024
Three months ended December 31, 2025
Twelve months ended December 31, 2024
Twelve months ended December 31, 2025
(in thousands except earnings per share and number of shares)
Net income attributable to stockholders of Navigator Holdings Ltd.
$
21,586
$
18,478
$
85,571
$
100,122
Realized loss on non-designated derivatives instruments
—
—
—
1,228
Unrealized loss /(gain) on non-designated derivative instruments
278
(75
)
7,483
4,678
Unrealized foreign exchange loss
2,847
154
1,968
1,274
Write off of deferred financing costs
829
—
829
266
Profit from sale of vessels
—
—
—
(25,206
)
Net Other loss/(income)
—
2,500
—
(2,301
)
Loss on repayment of senior bonds
1,456
—
