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CEO Eli Glickman highlighted that new capacity deployed on the Asia to U.S. East Coast trade route, successful expedited services to the U.S. West Coast, and expanded presence in Latin America helped drive market share gains.
Shares of ZIM Integrated Shipping Services (ZIM) rallied over 4% in Wednesday’s pre-market session after the company’s fourth-quarter earnings and revenue topped Wall Street estimates.
Revenue for the fourth quarter (Q4) rose 80% year over year (YoY) to $2.17 billion, surpassing a Street estimate of $1.99 billion, according to FinChat data. Earnings per share (EPS) stood at $4.66 compared to an analyst estimate of $3.22.
The company reported a net income of $563 million compared to a net loss of $147 million in the same period a year ago.
Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) for the fourth quarter jumped by 409% to $967 million.
The quarter witnessed a 25% YoY rise in carried volume to 982 thousand 20-foot equivalent units (TEUs). The average freight rate per TEU improved by 71% to $1,886.
CEO Eli Glickman highlighted that new capacity deployed on the Asia to U.S. East Coast trade route, successful expedited services to the U.S. West Coast, and expanded presence in Latin America helped drive market share gains.
"We enter 2025 with a more resilient business and modern cost- and fuel-efficient capacity, 40% of which is LNG-fueled. While acknowledging that our industry is highly volatile, exacerbated by current uncertainty related to geopolitics, international political dynamics, and economic, fiscal, and monetary policies, we are confident in our agile approach and competitive position in the industry,” he said.
For 2025, the company expects adjusted EBITDA between $1.6 billion and $2.2 billion and adjusted earnings before interest and tax (EBIT) between $350 million and $950 million. The outlook assumes trade conditions in the Red Sea will not normalize until the second half of the year at the earliest.
On Stocktwits, retail sentiment climbed further into the ‘extremely bullish’ territory (82/100), accompanied by significant retail chatter.
The company's Board of Directors declared a regular cash dividend of approximately $382 million, or $3.17 per ordinary share. ZIM said the dividend will be paid on April 3, 2025, to holders of record of its ordinary shares as of March 24, 2025.
User comments on Stocktwits reflected a positive take on the stock following the earnings.
ZIM shares have lost nearly 13% in 2025 but are up over 74% over the past year.
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