ZIM reports financial results for the second quarter of 2025

ZIM Integrated Shipping Services Ltd. announced its consolidated results for the three and six months ended June 30, 2025.

Second quarter 2025 highlights

Net income for the second quarter was $24 million (compared to $373 million in the second quarter of 2024), or diluted earnings per share of $0.194(compared to $3.08 in the second quarter of 2024).

Adjusted EBITDA for the second quarter was $472 million, a year-over-year decrease of 38%.

Operating income (EBIT) for the second quarter was $149 million, compared to $468 million in the second quarter of 2024.

Adjusted EBIT for the second quarter was $149 million, compared to $488 million in the second quarter of 2024.

Revenues for the second quarter were $1.64 billion, a year-over-year decrease of 15%.

Carried volume in the second quarter was 895 thousand TEUs, a year-over-year decrease of 6%.

Average freight rate per TEU in the second quarter was $1,479, a year-over-year decrease of 12%.

Net leverage ratio1 of 0.8x as of June 30, 2025, similar to net leverage ratio as of December 31, 2024; net debt1 of $3.03 billion as of June 30, 2025, compared to net debt of $2.88 billion as of December 31, 2024.

Eli Glickman, ZIM President & CEO, 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."

Mr. Glickman added, "Our strength lies in the quality of our modern, competitive fleet and in our agile commercial strategy, which enables us to respond quickly to changes in demand across our global trade lanes. While we view our flexibility as critical in order to act dynamically, we also continue to seek attractive opportunities that will ensure our fleet remains cost effective moving forward. Overall, we are confident that our commitment to operational excellence, combined with the growing diversification in our geographic footprint, will drive even greater business resilience in the future."

Mr. Glickman concluded, "Given our performance to date, we have increased the midpoints of our 2025 guidance ranges. We now expect full year Adjusted EBITDA between $1.8 billion and $2.2 billion and Adjusted EBIT between $550 million and $950 million. We intend to draw on our transformed fleet and improved cost structure to continue to create long-term value for our shareholders even in the face of challenging and unpredictable market dynamics."

Summary of key financial and operational results
	Q2-25	Q2-24	H1-25	H1-24
Carried volume (K-TEUs)...............................	895	952	1,839	1,799
Average freight rate ($/TEU)...........................	1,479	1,674	1,632	1,569
Total Revenues ($ in millions).........................	1,636	1,933	3,642	3,495
Operating income (EBIT) ($ in millions)..........	149	468	613	635
Profit before income tax ($ in millions)............	49	375	430	471
Net income ($ in millions)...............................	24	373	320	465
Adjusted EBITDA ($ in millions).....................	472	766	1,251	1,193
Adjusted EBIT ($ in millions)...........................	149	488	612	655
Net income margin (%)	1	19	9	13
Adjusted EBITDA margin (%).........................	29	40	34	34
Adjusted EBIT margin (%)..............................	9	25	17	19
Diluted earnings per share ($)........................	0.19	3.08	2.64	3.83
Net cash generated from operating activities ($ in millions)...................................................	441	777	1,296	1,103
Free cash flow1 ($ in millions).........................	426	712	1,213	1,015
	JUN-30-25	DEC-31-24
Net debt ($ in millions)....................................	3,031	2,876

Financial and operating results for the second quarter ended June 30, 2025
Total revenues were $1.64 billion for the second quarter of 2025, compared to $1.93 billion for the second quarter of 2024, mainly driven by the decrease in freight rates and carried volume.

ZIM carried 895 thousand TEUs in the second quarter of 2025, compared to 952 thousand TEUs in the second quarter of 2024. The average freight rate per TEU was $1,479 for the second quarter of 2025, compared to $1,674 for the second quarter of 2024.

Operating income (EBIT) for the second quarter of 2025 was $149 million, compared to $468 million for the second quarter of 2024. The decrease was driven primarily by the above-mentioned decrease in revenues.

Net income for the second quarter of 2025 was $24 million, compared to $373 million for the second quarter of 2024, also mainly driven by the above-mentioned decrease in revenues.

Adjusted EBITDA for the second quarter of 2025 was $472 million, compared to $766 million for the second quarter of 2024. Adjusted EBIT was $149 million for the second quarter of 2025, compared to $488 million for the second quarter of 2024. Adjusted EBITDA and Adjusted EBIT margins for the second quarter of 2025 were 29% and 9%, respectively. This compares to 40% and 25% for the second quarter of 2024, respectively.

Net cash generated from operating activities was $441 million for the second quarter of 2025, compared to $777 million for the second quarter of 2024.

Financial and Operating Results for the Six Months Ended June 30, 2025
Total revenues were $3.64 billion for the first half of 2025, compared to $3.49 billion for the first half of 2024, primarily driven by the increase in freight rates and carried volume.

ZIM carried 1,839 thousand TEUs in the first half of 2025, compared to 1,799 thousand TEUs in the first half of 2024. The average freight rate per TEU was $1,632 for the first half of 2025, compared to $1,569 for the first half of 2024.

Operating income (EBIT) for the first half of 2025 was $613 million, compared to $635 million for the first half of 2024. The decrease in operating income for the first half of 2025 was primarily driven by the increase in depreciation and operating expenses, offset by the above-mentioned increase in revenues.

Net income for the first half of 2025 was $320 million, compared to $465 million for the first half of 2024, mainly driven by the above-mentioned factors driving the change in EBIT, as well as the accounting of income taxes.

Adjusted EBITDA was $1.25 billion for the first half of 2025, compared to $1.19 billion for the first half of 2024. Adjusted EBIT was $612 million for the first half of 2025, compared to $655 million for the first half of 2024. Adjusted EBITDA and Adjusted EBIT margins for the first half of 2025 were 34% and 17%, respectively. This compares to 34% and 19% for the first half of 2024.

Net cash generated from operating activities was $1.30 billion for the first half of 2025, compared to $1.10 billion for the first half of 2024.

Liquidity, cash flows and capital allocation
ZIM's total cash position (which includes cash and cash equivalents and investments in bank deposits and other investment instruments) decreased by $270 million from $3.14 billion as of December 31, 2024 to $2.87 billion as of June 30, 2025. Capital expenditures totaled $24 million for the second quarter of 2025, compared to $66 million for the second quarter of 2024. Net debt position as of June 30, 2025, was $3.03 billion compared to $2.88 billion as of December 31, 2024, an increase of $155 million. ZIM's net leverage ratio as of June 30, 2025, was 0.8x, similar to its net leverage ratio as of December 31, 2024.

Second quarter 2025 dividend
In accordance with the Company's dividend policy, the Company's Board of Directors declared a regular cash dividend of approximately $7 million, or $0.06 per ordinary share, reflecting approximately 30% of second quarter 2025 net income. The dividend will be paid on September 9, 2025, to holders of record of ZIM ordinary shares as of September 2, 2025.

All future dividends are subject to the discretion of Company's Board of Directors and to the restrictions provided by Israeli law.

Use of non-IFRS measures in the Company's 2025 guidance
A reconciliation of the Company's non-IFRS financial measures included in its full-year 2025 guidance to corresponding IFRS measures is not available on a forward-looking basis. In particular, the Company has not reconciled Adjusted EBITDA and Adjusted EBIT because the various reconciling items between such non-IFRS financial measures and the corresponding IFRS measures cannot be determined without unreasonable effort due to the uncertainty regarding, and the potential variability of, the future costs and expenses for which the Company adjusts, the effect of which may be significant, and all of which are difficult to predict and are subject to frequent change.

Full-year 2025 guidance
The Company revised its full year guidance and now expects to generate Adjusted EBITDA between $1.8 billion and $2.2 billion and Adjusted EBIT between $550 million and $950 million. Previously, the Company expected to generate Adjusted EBITDA between $1.6 billion and $2.2 billion and Adjusted EBIT between $350 million and $950 million.

Conference call details
Management will host a conference call and webcast (along with a slide presentation) to review the results and provide a corporate update today at 8:00 AM ET. The call (and slide presentation) will be available via live webcast through ZIM's website. Following the conclusion of the call, a replay of the conference call will be available on the Company's website.