- ZIM Integrated Shipping’s second-quarter revenue was $1.64 billion, falling short of the estimated $1.76 billion, representing a 15% decrease compared to last year.
- Earnings per Share dropped significantly to 19 cents from $3.08 the previous year.
- Adjusted EBIT was $149 million, a sharp 69% decrease from the previous year, missing the estimate of $215.6 million.
- Adjusted EBITDA stood at $472 million, down by 38% compared to last year, and did not meet the expected $555.8 million.
- The Adjusted EBIT margin decreased to 9% from 25% year-over-year.
- The Adjusted EBITDA margin fell to 29% from 40% year-over-year.
- Carried volume was 895,000 Twenty-Foot Equivalent Units (TEUs), showing a reduction of 6% from last year.
- The average freight rate per TEU declined by 12% to $1,479 compared to last year.
- Updated Full-Year 2025 Guidance: Adjusted EBITDA is now expected between $1.8 billion and $2.2 billion, while Adjusted EBIT is anticipated between $550 million and $950 million.
- Company’s midpoint expectations for 2025 guidance have been increased based on performance so far, as noted by Mr. Glickman.
- Analysts’ Recommendations: 0 buys, 3 holds, and 5 sells.
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ZIM Integrated Shipping Services on Smartkarma
Analyst coverage of ZIM Integrated Shipping Services on Smartkarma by Daniel Hellberg provides a bearish outlook on the company’s performance. In one report titled “Monthly Container Shipping Tracker | Pricing Still Weak | No Signs of a Recovery | SHORT (May 2025)“, Hellberg emphasizes the continued weakness in pricing and advises investors to consider shorting container carriers despite a surge in share prices based on expectations of a volume recovery.
Furthermore, in another insightful analysis titled “ZIM Q424 Results, FY25 Guidance: Listen When Management Says ‘We’re Gonna Earn Much Less This Year'”, Hellberg highlights ZIM’s grim FY25 guidance and bleak management commentary, aligning with a very negative medium-term view of the deep-sea container shipping sector. These reports emphasize caution and a pessimistic outlook for ZIM Integrated Shipping Services in the face of challenging industry conditions.
A look at ZIM Integrated Shipping Services Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Investors eyeing the long-term prospects of ZIM Integrated Shipping Services are in for a promising outlook as indicated by the Smartkarma Smart Scores. With top marks in both Value and Dividend categories, the company demonstrates strong financial health and a commitment to rewarding shareholders. While Growth scores slightly lower, ZIM remains resilient in the face of challenges, scoring well in Resilience, ensuring stability. Momentum is also positive, indicating growing investor interest in the company’s future potential. Overall, ZIM Integrated Shipping Services appears positioned for steady growth and continued value creation for its stakeholders.
ZIM Integrated Shipping Services Ltd, a provider of shipping services globally, offers a range of essential solutions including multi-modal transport, cargo handling, and schedule management. The company’s high rankings in Value and Dividend underscore its sound financial standing and dedication to shareholder returns. Although Growth scores lower, ZIM’s resilience and momentum are notable, reflecting its ability to navigate market fluctuations and sustain positive investor sentiment. With a strong foundation in place, ZIM Integrated Shipping Services looks set to drive continued success in the shipping industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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