Why Is ZIM (ZIM) Down 9.1% Since Last Earnings Report?

A month has gone by since the last earnings report for ZIM Integrated Shipping Services (ZIM). Shares have lost about 9.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is ZIM due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

ZIM Beats on Q4 Revenues

ZIM Integrated Shipping Services Ltd. reported fourth-quarter 2025 loss per share of 58 cents, which was narrower than the Zacks Consensus Estimate of a loss of $1.01. In the year-ago reported quarter, ZIM reported earnings per share of $4.66.

Revenues of $1.48 billion beat the Zacks Consensus Estimate of $1.41 billion but declined 31.5% from the year-ago quarter. The downside was due to the decrease in freight rates and carried volume.

Carried volume in the fourth quarter decreased 9% year over year to 898 thousand TEUs (twenty-foot equivalent units). Average freight rate per TEU in the fourth quarter decreased 29% year over year to $1,333.

Adjusted EBITDA for the fourth quarter was $327 million, down 66% on a year-over-year basis. Adjusted EBITDA margins for the fourth quarter of 2025 fell to 22% from 45% in the year-ago quarter.

Adjusted EBIT was $13 million in the fourth quarter of 2025 compared with $658 million in the year-ago quarter. Adjusted EBIT margins in the fourth quarter of 2025 fell to 1% from 30% in the year-ago quarter.

Liquidity

ZIM exited the fourth quarter with cash and cash equivalents of $1.05 billion compared with $1.29 billion at the end of the previous quarter.

ZIM generated $375 million of cash from operating activities in the fourth quarter of 2025. Free cash flow was $232 million.

ZIM’s Fourth-Quarter 2025 Dividend

ZIM’s board of directors declared a regular cash dividend of almost $106 million, or $0.88 per ordinary share. The dividend will be paid on March 26, 2026, to shareholders of record as of March 20, 2026.

For 2025, ZIM has made dividend payments amounting to total $240 million, or $1.99 per share, reflecting almost 50% of 2025 net income.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, ZIM has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

ZIM has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Free: See Our Top Stock And 4 Runners Up

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ZIM Integrated Shipping Services Ltd. (ZIM): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research