ZIM Integrated Shipping Services Ltd. Q3 FY2025 earnings call

• Navigated volatile rate environment with resilience, maintaining service reliability and optimizing cost base.
• Board declared a dividend of 31¢ per share ($37 million), representing 30% of Q3 net income; total dividends in 2025 were $9.09 per share ($1.1 billion), and since IPO, total dividends are ~$5.7 billion.
• Fleet strategy: Continued investment in modern vessels, secured charter agreement for 10 LNG dual-fuel vessels (scheduled for delivery 2027-2028), actively manage operated fleet to align with market conditions, redelivered vessels in Q3.
• Regional diversification: Focus on Southeast Asia and Latin America to capture new trade flows, expand network flexibility, reduce dependence on single trade lane.
• Suez Canal: Preparing operational plan for return, expecting improved fleet efficiency but also potential pressure on freight rates.

In Q3 2025, ZIM generated revenue of $1.8 billion. Adjusted EBITDA was $593 million, and adjusted EBIT was $260 million. The average freight rate per TEU in Q3 was $1,602, with carried volume of 900,000 TEUs (4.5% lower year over year, 3.5% higher sequentially). Non-containerized cargo (car carrier services) totaled $78 million in Q3 2025, down from $145 million in 2024 due to lower volume and rates. Revenue for the first nine months of 2025 was $5.4 billion, down 13% year over year.

• Fourth quarter trending weaker than originally projected. Refined 2025 guidance: Adjusted EBITDA expected between $2 billion and $2.2 billion (increased lower end by $200 million), adjusted EBIT expected between $700 million and $900 million (narrowed range). Midpoints increased based on year-to-date performance.
• Assumptions: Freight rates softened since August guidance, but operated capacity, carried volume, and bunker rates unchanged.

• Geopolitical and trade tensions driving uncertainty in shipping industry.
• Supply growth outpacing demand, leading to continued pressure on freight rates.
• High degree of uncertainty related to global trade and geopolitical environment impacting financial outlook.

Q: Comment on market chatter regarding management buyout and board composition changes.

A: Eli Glickman stated board is managing board member changes, two members resigned, two new members added; no comment on management buyout exploration.

Q: View on return through Red Sea and potential market share grab.

A: Eli Glickman said waiting for insurance company approval to return through Red Sea, looking to take shorter route than Cape of Good Hope to grab market share.

Q: Dividend policy, income outlook, and EBITDA/EBIT guidance changes.

A: Eli Glickman explained dividend policy of distributing 30% of quarterly net profit, board may declare special dividend; Xavier Destriau discussed EBIT guidance narrowing and reasons for EBITDA guidance changes.

Q: Cost savings, CapEx, and leverage related to chartered vs owned vessels.

A: Xavier Destriau discussed cost savings through network agility, limited cash CapEx, and importance of efficient tonnage in long-term charters; explained asset base and redelivery potential of chartered vessels.

Q: Route profitability, rate recovery outlook.

A: Xavier Destriau noted route profitability varies with market dynamics, diversification into Southeast Asia and Latin America, and mentioned challenges from order book and Suez Canal reopening affecting rate recovery prospects.