ZIM Reports Financial Results for the Third Quarter of 2025
HAIFA: ZIM Integrated Shipping Services Ltd. announced on Friday its consolidated results for the three and nine months ended September 30, 2025.
Third Quarter 2025 Highlights
- Net income for the third quarter was $123 million (compared to $1,126 million in the third quarter of 2024), or diluted earnings per share of $1.024 (compared to $9.34 in the third quarter of 2024).
- Operating income (EBIT) for the third quarter was $259 million, compared to $1,235 million in the third quarter of 2024.
- Adjusted EBITDA for the third quarter was $593 million, a year-over-year decrease of 61%.
- Adjusted EBIT for the third quarter was $260 million, compared to $1,236 million in the third quarter of 2024.
- Revenues for the third quarter were $1.78 billion, a year-over-year decrease of 36%.
- Carried volume in the third quarter was 926 thousand TEUs, a year-over-year decrease of 5%.
- Average freight rate per TEU in the third quarter was $1,602, a year-over-year decrease of 35%.
- Net leverage ratio1 of 0.9x as of September 30, 2025, compared to a net leverage ratio of 0.8x as of December 31, 2024; net debt1 of $2.64 billion as of September 30, 2025, compared to net debt of $2.88 billion as of December 31, 2024.
Eli Glickman, ZIM President & CEO, stated, “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. 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. Consistent with our commitment to sharing our success with our investors, the company has declared a quarterly dividend of $0.31 per share, or a total of $37 million, distributing 30% of quarterly net income in accordance with our dividend policy. I am proud to lead a company that, since its IPO about five years ago, has distributed approximately $5.7 billion to its shareholders—more than 25 times what the company raised in its IPO in January 2021.”
Mr. Glickman added, “The current market environment has been marked by disruptions and fluctuations more frequent and acute than in the past. Amidst such uncertainty, our focus remains on controlling what we can and taking proactive steps to drive sustainable and profitable growth over the long term. We intend to build on our progress to date through continued diligent execution—further strengthening ZIM’s business resilience, both commercially and operationally, and advancing our competitive position in the industry.”
Mr. Glickman concluded, “Looking ahead, while fourth quarter market conditions have weakened, we are increasing the midpoints of our 2025 guidance ranges based on our strong performance to date. Overall, we believe our differentiated commercial strategy, enhanced fleet profile, and improved cost structure position ZIM to weather near-term volatility and deliver long-term value for shareholders.”
| Summary of Key Financial and Operational Results | ||||
| Q3-25 | Q3-24 | 9M-25 | 9M-24 | |
| Carried volume (K-TEUs)…………………… | 926 | 970 | 2,765 | 2,768 |
| Average freight rate ($/TEU)………………. | 1,602 | 2,480 | 1,622 | 1,889 |
| Total Revenues ($ in millions)…………….. | 1,777 | 2,765 | 5,419 | 6,260 |
| Operating income (EBIT) ($ in millions).. | 259 | 1,235 | 873 | 1,870 |
| Profit before income tax ($ in millions)…. | 172 | 1,133 | 602 | 1,604 |
| Net income ($ in millions)…………………… | 123 | 1,126 | 443 | 1,591 |
| Adjusted EBITDA ($ in millions)………….. | 593 | 1,531 | 1,844 | 2,725 |
| Adjusted EBIT ($ in millions)………………. | 260 | 1,236 | 872 | 1,891 |
| Net income margin (%) | 7 | 41 | 8 | 25 |
| Adjusted EBITDA margin (%)…………….. | 33 | 55 | 34 | 44 |
| Adjusted EBIT margin (%)…………………. | 15 | 45 | 16 | 30 |
| Diluted earnings per share ($)……………. | 1.02 | 9.34 | 3.66 | 13.17 |
| Net cash generated from operating activities ($ in millions)………………………. | 628 | 1,498 | 1,924 | 2,600 |
| Free cash flow1 ($ in millions)…………….. | 574 | 1,454 | 1,787 | 2,470 |
| SEP-30-25 | DEC-31-24 | |||
| Net debt ($ in millions)………………………. | 2,642 | 2,876 |
Financial and Operating Results for the Third Quarter Ended September 30, 2025
Total revenues were $1.78 billion for the third quarter of 2025, compared to $2.77 billion for the third quarter of 2024, mainly driven by the decrease in freight rates as well as a smaller decline in carried volume.
ZIM carried 926 thousand TEUs in the third quarter of 2025, compared to 970 thousand TEUs in the third quarter of 2024. The average freight rate per TEU was $1,602 for the third quarter of 2025, compared to $2,480 for the third quarter of 2024.
Operating income (EBIT) for the third quarter of 2025 was $259 million, compared to $1,235 million for the third quarter of 2024. The decrease was driven primarily by the above-mentioned decrease in revenues.
Net income for the third quarter of 2025 was $123 million, compared to $1,126 million for the third quarter of 2024, also mainly driven by the above-mentioned decrease in revenues.
Adjusted EBITDA for the third quarter of 2025 was $593 million, compared to $1,531 million for the third quarter of 2024. Adjusted EBIT was $260 million for the third quarter of 2025, compared to $1,236 million for the third quarter of 2024. Adjusted EBITDA and Adjusted EBIT margins for the third quarter of 2025 were 33% and 15%, respectively. This compares to 55% and 45% for the third quarter of 2024, respectively.
Net cash generated from operating activities was $628 million for the third quarter of 2025, compared to $1,498 million for the third quarter of 2024.
Financial and Operating Results for the Nine Months Ended September 30, 2025
Total revenues were $5.42 billion for the first nine months of 2025, compared to $6.26 billion for the first nine months of 2024, primarily driven by the decrease in freight rates.
ZIM carried 2,765 thousand TEUs in the first nine months of 2025, compared to 2,768 thousand TEUs in the first nine months of 2024. The average freight rate per TEU was $1,622 for the first nine months of 2025, compared to $1,889 for the first nine months of 2024.
Operating income (EBIT) for the first nine months of 2025 was $873 million, compared to $1,870 million for the first nine months of 2024. The decrease was primarily driven by the above-mentioned decrease in revenues as well as the increase in depreciation.
Net income for the first nine months of 2025 was $443 million, compared to $1,591 million for the first nine months of 2024, mainly driven by the above-mentioned factors driving the change in EBIT, as well as the accounting of income taxes.
Adjusted EBITDA was $1.84 billion for the first nine months of 2025, compared to $2.72 billion for the first nine months of 2024. Adjusted EBIT was $872 million for the first nine months of 2025, compared to $1,891 million for the first nine months of 2024. Adjusted EBITDA and Adjusted EBIT margins for the first nine months of 2025 were 34% and 16%, respectively. This compares to 44% and 30% for the first nine months of 2024.
Net cash generated from operating activities was $1.92 billion for the first nine months of 2025, compared to $2.60 billion for the first nine months of 2024.
Liquidity, Cash Flows and Capital Allocation
ZIM’s total cash position (which includes cash and cash equivalents and investments in bank deposits and other investment instruments) decreased by $135 million from $3.14 billion as of December 31, 2024 to $3.01 billion as of September 30, 2025. Capital expenditures totaled $67 million for the third quarter of 2025, compared to $50 million for the third quarter of 2024. Net debt position as of September 30, 2025, was $2.64 billion compared to $2.88 billion as of December 31, 2024, a decrease of $234 million. ZIM’s net leverage ratio as of September 30, 2025, was 0.9x, compared to a net leverage ratio of 0.8x as of December 31, 2024.
Third Quarter 2025 Dividend
In accordance with the Company’s dividend policy, the Company’s Board of Directors declared a regular cash dividend of approximately $37 million, or $0.31 per ordinary share, reflecting approximately 30% of third quarter 2025 net income. The dividend will be paid on December 8, 2025, to holders of record of ZIM ordinary shares as of December 1, 2025.
All future dividends are subject to the discretion of Company’s Board of Directors and to the restrictions provided by Israeli law.
Use of Non-IFRS Measures in the Company’s 2025 Guidance
A reconciliation of the Company’s non-IFRS financial measures included in its full-year 2025 guidance to corresponding IFRS measures is not available on a forward-looking basis. In particular, the Company has not reconciled Adjusted EBITDA and Adjusted EBIT because the various reconciling items between such non-IFRS financial measures and the corresponding IFRS measures cannot be determined without unreasonable effort due to the uncertainty regarding, and the potential variability of, the future costs and expenses for which the Company adjusts, the effect of which may be significant, and all of which are difficult to predict and are subject to frequent change.
Updated Full-Year 2025 Guidance
The Company has updated its full year 2025 guidance and now expects to generate Adjusted EBITDA between $2.0 billion and $2.2 billion and Adjusted EBIT between $700 million and $900 million. Previously, the Company expected to generate Adjusted EBITDA between $1.8 billion and $2.2 billion and Adjusted EBIT between $550 million and $950 million.