• Revenue: $2 billion, a 28% increase year-over-year.

• Net Income: $296 million, a 222% increase year-over-year.

• Adjusted EBITDA: $779 million, with a margin of 39%.

• Adjusted EBIT: $463 million, with a margin of 23%.

• Total Liquidity: $3.4 billion as of March 31.

• Dividend: $0.74 per share, totaling $89 million.

• Average Freight Rate per TEU: $1,776, a 22% increase year-over-year.

• Free Cash Flow: $787 million, compared to $303 million in Q1 2024.

• Total Debt: Decreased by $150 million since prior year-end.

• Operating Capacity: 126 container ships with a total capacity of approximately 774,000 TEUs.

• Carried Volume: 944,000 TEUs, a 12% increase year-over-year.

• Transpacific Volume Growth: 11% in Q1.

• Latin America Volume Growth: 22% year-over-year in Q1.

• Cash Flow from Operating Activities: $855 million.

• 2025 Guidance: Adjusted EBITDA between $1.6 billion and $2.2 billion; Adjusted EBIT between $350 million and $950 million.

• Warning! GuruFocus has detected 5 Warning Signs with ZIM.

Release Date: May 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ZIM Integrated Shipping Services Ltd (NYSE:ZIM) reported a strong first quarter with revenue of $2 billion and net income of $296 million, representing year-over-year increases of 28% and 222%, respectively.

• The company achieved a 12% increase in carried volumes year-over-year, significantly outpacing the market growth of 4.5%.

• ZIM's fleet transformation program has improved its cost structure and enhanced profitability, with a focus on larger, more efficient vessels.

• The company declared a dividend of $0.74 per share, totaling $89 million, reflecting its commitment to returning capital to shareholders.

• ZIM has strategically positioned itself in Southeast Asia and Latin America to capture growth opportunities and diversify its business, enhancing resilience against market fluctuations.

Negative Points

• The geopolitical and macroeconomic environment remains highly uncertain, particularly with the ongoing US-China tariff discussions impacting transpacific trade.

• ZIM faces potential financial impacts from the updated USTR rule introducing port fees on Chinese-built and owned vessels, which could affect its cost structure.

• The company anticipates lower freight rates in 2025 compared to 2024, with average rates expected to be lower in the remainder of the year.

• ZIM's exposure to the transpacific market means it is vulnerable to changes in US-China trade relations and tariff policies.

• The uncertainty surrounding the reopening of the Red Sea route due to safety concerns continues to impact ZIM's operational flexibility and cost management.