Why Is ZIM (ZIM) Up 3.4% Since Last Earnings Report?

A month has gone by since the last earnings report for ZIM Integrated Shipping Services (ZIM). Shares have added about 3.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is ZIM due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for ZIM Integrated Shipping Services Ltd. before we dive into how investors and analysts have reacted as of late.

Q2 Earnings & Revenues Miss

ZIM Integrated Shipping Services Ltd. reported disappointing second-quarter 2025 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.

Quarterly earnings of 19 cents per share lagged the Zacks Consensus Estimate of $1.50 and declined 93.8% on a year-over-year basis.

Revenues of $1.63 billion lagged the Zacks Consensus Estimate of $1.76 billion and declined 15.3% from the year-ago quarter. The downside was due to the decrease in freight rates and carried volume.

Carried volume in the second quarter decreased 6% year over year to 895 thousand TEUs (twenty-foot equivalent units). Average freight rate per TEU in the second quarter decreased 12% year over year to $1,479.

Eli Glickman, ZIM's president and chief executive officer, stated, “Amid market disruptions and volatility, we continued to leverage our upscaled capacity and improved cost structure in Q2. In this highly uncertain market environment, our focus is controlling what we can to position ZIM for sustainable and profitable growth over the long term."

Adjusted EBITDA for the second quarter was $472 million, down 38% on a year-over-year basis. Adjusted EBITDA margins for the second quarter of 2025 fell to 29% from 40% in the year-ago quarter.

Adjusted EBIT was $149 million in the second quarter of 2025 compared with $488 million in the year-ago quarter. Adjusted EBIT margins in the second quarter of 2025 fell to 9% from 25% in the year-ago quarter.

Despite the disappointing aforesaid quarterly numbers, ZIM increased the midpoints of its 2025 guidance ranges. For 2025, ZIM now expects to generate adjusted EBITDA between $1.8 billion and $2.2 billion (prior view: $1.6 billion and $2.2 billion) and adjusted EBIT between $550 million and $950 million (prior view: $350 million and $950 million).

Liquidity

ZIM exited the second quarter with cash and cash equivalents of $1.18 billion compared with $1.54 billion at the end of the previous quarter.

ZIM generated $441 million of cash from operating activities in the second quarter of 2025. Capital expenditures totaled $24 million for the reported quarter. Free cash flow was $426 million.

ZIM’s Second-Quarter 2025 Dividend

ZIM’s board of directors declared a regular cash dividend of approximately $7 million, or 6 cents per ordinary share, reflecting almost 30% of second-quarter 2025 net income. The dividend will be paid on Sept. 9, 2025, to shareholders of record as of Sept. 2, 2025.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 1243.33% due to these changes.

VGM Scores

Currently, ZIM has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock has a score of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, ZIM has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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