ZIM Q1 Earnings & Revenues Surpass Estimates, Rise Year Over Year

ZIM Integrated Shipping Services Ltd. (ZIM) reported solid first-quarter 2025 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.

Quarterly earnings of $2.45 per share surpassed the Zacks Consensus Estimate of $1.89 and improved more than 100% on a year-over-year basis.

Revenues of $2.01 billion beat the Zacks Consensus Estimate of $1.73 billion and improved 28.5% from the year-ago quarter. The upside was due to the increase in freight rates and carried volume.

Carried volume in the first quarter increased 12% year over year to 944 thousand TEUs (twenty-foot equivalent units). Average freight rate per TEU in the first quarter increased 22% year over year to $1,776.

Eli Glickman, ZIM president and chief executive officer, stated, "ZIM began the year with positive momentum, delivering 12% carried volume growth and strong earnings in the first quarter. Drawing on our transformed fleet and enhanced cost structure, we generated Q1 revenues of $2.01 billion and net income of $296 million. Building on our proven track record of returning capital to shareholders, we declared a dividend of 74 cents per share, or $89 million, representing approximately 30% of our quarterly net income."

Adjusted EBITDA for the first quarter was $779 million, up 82.4% on a year-over-year basis. Adjusted EBITDA margins for the first quarter of 2025 rose to 39% from 27% in the year-ago quarter.

Adjusted EBIT was $463 million for the first quarter of 2025, compared with $167 million in the year-ago quarter. Adjusted EBIT margins for the first quarter of 2025 rose to 23% from 11% in the year-ago quarter.

Liquidity

ZIM exited the first quarter with cash and cash equivalents of $1.54 billion compared with $1.31 billion at the end of the previous quarter.

ZIM generated $855 million of cash from operating activities in the first quarter of 2025. Capital expenditures totaled $78 million for the reported quarter. Free cash flow was $787 million.

ZIM’s First Quarter 2025 Dividend

ZIM’s board of directors declared a regular cash dividend of approximately $89 million, or 74 cents per share, reflecting approximately 30% of first quarter 2025 net income. The dividend will be paid on June 9, 2025, to shareholders of record as of June 2, 2025.

ZIM’s 2025 Guidance

Despite the heightened level of uncertainty, ZIM reaffirmed its 2025 guidance.

For 2025, ZIM continues to expect to generate adjusted EBITDA between $1.6 billion and $2.2 billion and adjusted EBIT between $350 million and $950 million.

ZIM’s Zacks Rank

Currently, ZIM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q1 Performances of Other Transportation Companies

United Airlines

United Airlines’ UAL first-quarter 2025 earnings per share (excluding 25 cents from non-recurring items) of 91 cents surpassed the Zacks Consensus Estimate of 75 cents. In the year-ago quarter, the Chicago-based airline reported a loss of 15 cents per share. 

Operating revenues of $13.21 billion fell marginally short of the Zacks Consensus Estimate of $13.22 billion. The top line increased 5.4% year over year despite the tariff-induced slowdown in domestic air travel demand. Passenger revenues (which accounted for 89.7% of the top line) rose 4.8% year over year to $11.9 billion. UAL flights transported 40,806 passengers in the first quarter, up 3.8% year over year.

Delta Air Lines

Delta Air Lines DAL reported first-quarter 2025 earnings (excluding 9 cents from non-recurring items) of 46 cents per share, which surpassed the Zacks Consensus Estimate of 40 cents. Earnings increased 2.2% on a year-over-year basis due to low fuel costs.

Revenues in the March-end quarter were $14.04 billion, surpassing the Zacks Consensus Estimate of $13.81 billion and increasing 2.1% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) rose 3.3% year over year to $13 billion.

C.H. Robinson

C.H. Robinson Worldwide, Inc. (CHRW) reported mixed first-quarter 2025 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.

Quarterly earnings per share (EPS) of $1.17 outpaced the Zacks Consensus Estimate of $1.02 and improved 36% year over year. Total revenues of $4.04 billion missed the Zacks Consensus Estimate of $4.31 billion and fell 8.2% year over year, owing to the divestiture of CHRW’s Europe Surface Transportation business, lower volume in its North America truckload services, and lower pricing in the ocean services.

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

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