ZIM Integrated Shipping Services (NYSE:ZIM) shares are trading lower on Wednesday after the company reported second-quarter results.
Earnings Snapshot
The company reported adjusted EPS of 64 cents, significantly above the analyst estimate of a loss per share of 33 cents.
Revenue rose 9% year over year to $1.781 billion, also exceeding the $1.599 billion consensus estimate. This is led by higher freight rates and increased carried volume.
Adjusted EBITDA rose 4% year over year to $491 million in the second quarter.
Carried volume increased 3% year over year to 922,000 TEUs. The average freight rate per TEU rose 8% year-over-year to $1,590.
The company generated operating cash flow of $395 million and free cash flow of $386 million in during the quarter. As of June 30, 2026, net cash stood at $2.46 billion.
Adjusted EBITDA reached $491 million, compared with $472 million a year earlier. Adjusted EBITDA and adjusted EBIT margins were 28% and 10%, respectively.
Fleet Update
ZIM currently operates 115 containerships with a total capacity of 707,000 TEUs and 13 car carriers, down from 123 containerships with 767,000 TEUs and 14 car carriers as of its second-quarter 2025 earnings release.
Nine containerships totaling about 35,000 TEUs are due for charter expiration during the remainder of 2026, while 13 vessels totaling about 28,000 TEUs are scheduled to expire in 2027. Despite this flexibility to manage capacity, ZIM expects its operating capacity to remain stable in 2026.
ZIM has charter agreements covering 40 vessels with approximately 286,000 TEUs of capacity, mostly newbuilds. These include four 8,000-TEU scrubber-fitted vessels for delivery in the second half of 2026- first half of 2027 and ten 11,500-TEU dual-fuel LNG vessels for delivery in 2027- 2028.
Also, the company four secondhand 9,000-TEU vessels for delivery in 2027-2028, and 20 newbuild vessels ranging from 3,000 to 5,000 TEUs for delivery in 2027-2028, with five- or 7.5-year charters and some extension options.
ZIM Stock Price Activity: ZIM Integrated Shipping shares were down 6.04% at $26.77 on Wednesday, according to Benzinga Pro data.
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