PennantPark (PNNT) Q2 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 8, 2026 astatine 12:11 PM CDT 20 min read

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DATE

Friday, May 8, 2026 astatine 12 p.m. ET

CALL PARTICIPANTS

• Chairman and Chief Executive Officer — Arthur Penn

• Senior Partner — Jose Briones

• [Unspecified Finance Department Representative]

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Full Conference Call Transcript

Arthur Penn: Good afternoon, everyone, and convey you for joining PennantPark Investment Corporation's 2nd fiscal 4th 2026 net call. I americium joined contiguous by Jose Briones, Senior Partner astatine PennantPark. Rick Alordo, our CFO, is incapable to beryllium with america contiguous owed to a anterior commitment. Jose, delight commencement disconnected by disclosing immoderate wide league telephone accusation and see a treatment astir forward-looking statements.

Jose Briones: Thank you, Art. I would similar to punctual everyone that today's telephone is being recorded and is the spot of PennantPark Investment Corporation. Any unauthorized broadcast of this telephone successful immoderate signifier is strictly prohibited. An audio replay of the telephone volition beryllium disposable connected our website. I would besides similar to telephone your attraction to the customary harmless harbor disclosure successful our property merchandise regarding forward-looking information. Our remarks contiguous whitethorn see forward-looking statements and projections. Please notation to our astir caller SEC filings for important factors that could origin existent results to disagree materially from these projections. We bash not undertake to update our forward-looking statements unless required by law.

To get copies of our latest SEC filings, delight sojourn our website astatine pennantpark.com oregon telephone america astatine (212) 905-1000. At this time, I would similar to crook the telephone backmost to our Chairman and Chief Executive Officer, Arthur Penn.

Arthur Penn: Thanks, Jose. I volition statesman with an overview of our 2nd 4th results including a reappraisal of the portfolio. I volition past stock our position connected the existent marketplace situation and however we judge PNNT is positioned going forward. Jose volition travel up with a elaborate reappraisal of our fiscal results aft which we volition unfastened up the telephone for questions. For the 4th ended March 31, halfway NII was $0.14 per share. As of March 31, our portfolio totaled $1.2 billion. During the quarter, we continued to originate charismatic concern opportunities and invested a full of $108 million, including six caller level investments, astatine a median debt-to-EBITDA of 3.0x, involvement sum of 3.4x, and loan-to-value of lone 28%.

Our portfolio remains conservatively positioned, with median leverage of 4.7x, median involvement sum of 2.0x, and median loan-to-value of 45%. We ended the 4th with 4 nonaccrual investments representing 2.7% of the portfolio astatine outgo and 1.3% astatine marketplace value. Our PSLF associated task portfolio continues to beryllium a important contributor to our halfway NII. At March 31, the JV portfolio totaled $1.3 billion, and implicit the past 12 months, PNNT's mean NII output connected invested superior successful the JV was 15.8%. The JV has the capableness to summation its portfolio to $1.5 billion. We expect that with this further growth, the JV concern volition heighten PNNT's net momentum into the future.