ZIM Integrated Shipping Services Ltd. reported strong financial results for the first quarter of 2025, with key gains in revenue, profitability, and carried volume. The company posted total revenues of $2.01 billion, up from $1.56 billion in the same quarter of 2024, driven primarily by higher freight rates and an increase in carried volume.
ZIM transported 944,000 TEUs in Q1 2025, compared to 846,000 in Q1 2024. The average freight rate per TEU rose to $1,776, up from $1,452 in the prior-year period. Operating income reached $464 million, compared to $167 million in Q1 2024. Net income climbed to $296 million, a substantial increase from $92 million in the same period last year.
Adjusted EBITDA rose to $779 million, compared to $427 million in Q1 2024, while Adjusted EBIT increased to $463 million from $167 million. Margins also improved, with Adjusted EBITDA and EBIT margins rising to 39% and 23% respectively, from 27% and 11% a year earlier. The company generated $855 million in net cash from operating activities and reported free cash flow of $787 million, up from $303 million in Q1 2024.
The company's cash position increased from $3.14 billion at the end of 2024 to $3.37 billion as of March 31, 2025. Capital expenditures for the quarter totaled $78 million, compared to $24 million in Q1 2024. ZIM's net debt declined to $2.49 billion, down from $2.88 billion at year-end, bringing the net leverage ratio down to 0.6x from 0.8x.
ZIM declared a dividend of $0.74 per share, or approximately $89 million, representing 30% of quarterly net income. The dividend is payable on June 9, 2025, to shareholders of record as of June 2, 2025, subject to board discretion and Israeli law.
President and CEO Eli Glickman highlighted the company's operational flexibility and resilient cost structure, noting that ZIM continues to adapt its network in response to shifts in global cargo flows. He acknowledged the uncertain operating environment but reaffirmed the company's full-year 2025 guidance of Adjusted EBITDA between $1.6 billion and $2.2 billion and Adjusted EBIT between $350 million and $950 million.
Glickman emphasized the company's strategic investments in a modern fleet, including vessels powered by LNG, and its ability to respond quickly to changing market dynamics. He concluded that ZIM remains well-positioned for long-term profitable growth.
To view the full report, click here.
For more information:
Elana Holzman
ZIM Integrated Shipping Services Ltd.
Tel: +972 4 865 2300
Email: [email protected]
www.investors.zim.com