ZIM Shipping Services Posts Unexpectedly Weak Q2 Results

ZIM Integrated Shipping Services reported a 94% plunge in net profit to $24 million in Q2 2025, despite a 15% drop in revenue to $1.64 billion. The Israeli shipping company's share price fell 5% on Wall Street, with a market cap of $1.78 billion. CEO Eli Glickman attributed the weak results to market disruptions and volatility, but expressed confidence in the company's ability to create long-term value despite challenging market dynamics. ZIM increased its full-year guidance for Adjusted EBITDA to $1.8-$2.2 billion and Adjusted EBIT to $550-$950 million.

ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) reported a significant decline in net profit for the second quarter of 2025, despite a decrease in revenue. The Israeli shipping company's net profit plunged by 94% to $24 million, compared to $373 million in the second quarter of 2024. Revenue fell by 15% to $1.64 billion, driven by a 15% drop in carried volume and a 12% decrease in average freight rates per TEU [1].

The company's share price fell by 5% on Wall Street, with a market capitalization of $1.78 billion. CEO Eli Glickman attributed the weak results to market disruptions and volatility, stating, "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" [1].

Despite the challenging conditions, ZIM increased its full-year guidance for Adjusted EBITDA to $1.8-$2.2 billion and Adjusted EBIT to $550-$950 million. The company's net leverage ratio remained stable at 0.8x, with net debt increasing to $3.03 billion as of June 30, 2025 [1].

ZIM's adjusted EBITDA margin for the second quarter of 2025 was 29%, compared to 40% in the same period of 2024. Adjusted EBIT margin was 9%, down from 25% in the second quarter of 2024 [1].

The company also 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 [1].

ZIM's total cash position 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 [1].

References:
[1] https://investors.zim.com/news/news-details/2025/ZIM-Reports-Financial-Results-for-the-Second-Quarter-of-2025/default.aspx