ZIM Integrated Shipping Services Ltd (NYSE:ZIM) reported a third-quarter sales decline of 36% year over year (Y/Y) to $1.78 billion, beating the consensus of $1.77 billion.
Details
Revenue declined due to lower freight rates and a smaller decline in carried volume.
The cargo shipping company’s carried volume in the quarter was 926,000 TEUs, down 5% Y/Y. The average freight rate per TEU was $1,602 (-35% Y/Y).
Adjusted EBITDA declined 61% Y/Y to $593 million, with margins of 33% vs. 55% in the prior year quarter.
The Haifa, Israel-based company generated EPS of $1.02, vs. $9.34 last year, beating the consensus of 76 cents.
Cash Flow Position
Operating cash flow for the year was $628 million, compared to $1.5 billion a year ago.
Capital expenditures were $67 million during the quarter, up from $50 million a year ago.
As of September 30, 2025, net debt stood at $2.64 billion
ZIM’s net leverage ratio was 0.9x as of September-end, compared to 0.8x as of December 31, 2024.
Management Commentary
”Our business resilience was evident in the third quarter, during which we delivered solid earnings while navigating a volatile rate environment, influenced by a complex geopolitical landscape, frequent changes in tariff policies and an ongoing global trade war,” said Eli Glickman, ZIM president & CEO.
”With larger, more modern, cost-effective capacity, we continued to capitalize on our agile fleet deployment strategy, which enables ZIM to respond quickly to developments in market conditions, now facing downward pricing pressure. In addition to adapting our Transpacific network based on prevailing demand trends, we have diversified our geographic footprint to capture new growth opportunities,” he added.
”The current market environment has been marked by disruptions and fluctuations more frequent and acute than in the past. Amidst such uncertainty, our focus remains on controlling what we can and taking proactive steps to drive sustainable and profitable growth over the long term.”
Dividend
The Board of Directors declared a regular cash dividend of 31 cents, payable on December 8, to shareholders of record as of December 1, 2025.
2025 Outlook
ZIM now expects to generate Adjusted EBITDA of $2.0 billion-$2.2 billion (vs. $1.8 billion-$2.2 billion prior) and Adjusted EBIT of $700 million-$900 million (vs. $550 million-$950 million prior).
Price Action: ZIM shares are down 0.12% at $16.74 at the last check on Thursday.
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