- ZIM Integrated Shipping reported third-quarter revenue of $1.78 billion, aligning closely with expectations of $1.77 billion, but down 36% from the previous year.
- The company’s earnings per share (EPS) for the quarter were $1.02, significantly lower than the previous year’s $9.34.
- Adjusted EBIT for the quarter was $260 million, down 79% from last year, but slightly above the estimated $246.2 million.
- Adjusted EBITDA totaled $593 million, marking a 61% decline year-over-year, yet exceeding the expected $559.8 million.
- The adjusted EBIT margin decreased to 15% from 45% the previous year, while the adjusted EBITDA margin fell to 33% from 55%.
- Carried volume was 926 K-TEUs, experiencing a decrease of 4.5% compared to the previous year.
- The average freight rate per TEU was down 35% year-over-year, settling at $1,602.
- The company updated its full-year 2025 guidance, anticipating an Adjusted EBITDA between $2.0 billion and $2.2 billion, alongside an Adjusted EBIT between $700 million and $900 million.
- Efforts to adapt the Transpacific network and diversify the geographic footprint were highlighted as strategic measures for capturing new growth opportunities.
- Despite weakened fourth-quarter market conditions, ZIM increased its midpoints for 2025 guidance ranges, reflecting strong performance thus far.
- Analyst recommendations include 0 buys, 3 holds, and 5 sells.
ZIM Integrated Shipping Services on Smartkarma
Analysts on Smartkarma have differing views on ZIM Integrated Shipping Services. Daniel Hellberg believes that the recent go-private rumors surrounding ZIM are unlikely to materialize in the near-term. Despite reports of management potentially considering a buyout, Hellberg thinks a bid from non-Israeli sources is improbable.
On the other hand, Baptista Research takes a more bullish stance, highlighting ZIM’s resilience during challenging market conditions. ZIM’s second-quarter results showcased solid revenue and profitability, driven by a modernized fleet and improved cost structure. Baptista Research questions if a takeover of ZIM is inevitable given the company’s performance amidst market disruptions.
A look at ZIM Integrated Shipping Services Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
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
According to Smartkarma Smart Scores, ZIM Integrated Shipping Services is set for a promising long-term outlook. The company scores high in both value and dividend factors, indicating strong financial health and investor-friendly returns. Although growth and momentum scores are more moderate, ZIM Integrated Shipping Services shows resilience in its industry, reflecting its ability to weather challenges and maintain stability. With a focus on providing shipping services globally, ZIM Integrated Shipping Services is positioned to continue offering multi-modal solutions, cargo handling, tariff management, and schedule information to its wide range of clients.
ZIM Integrated Shipping Services Ltd, a provider of shipping services, has received favorable ratings across various key factors. With a top score in value and dividend categories, the company demonstrates solid financial performance and commitment to rewarding shareholders. While growth and momentum scores are not as high, ZIM Integrated Shipping Services exhibits resilience in navigating market conditions. Serving clients worldwide, the company offers a suite of services including multi-modal solutions, cargo handling, tariff management, and schedule information, reinforcing its position as a reliable player 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
