ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) has reported unexpectedly weak results for the second quarter of 2025. The share price is currently down 5% on Wall Street, giving a market cap of $1.78 billion.
In the first quarter, the Israeli shipping company reported revenue growth and tripled its net profit to $296 million. But in the second quarter, net profit plunged 94% to just $24 million, or earnings per share of $0.19, way below the analysts' expectations of $1.30.
ZIM's revenue in the second quarter fell 15% to $1.64 billion, below the analysts' expectations of $1.74 billion. Among the reasons for the fall was a decrease of 12% in the average TEU price for a container to $1,479.
Eli Glickman, ZIM President & CEO, said, "Amid market disruptions and volatility, we continued to leverage our up-scaled capacity and improved cost structure in Q2. In this highly uncertain market environment, our focus is controlling what we can to position ZIM for sustainable and profitable growth over the long term."
He added, "Our strength lies in the quality of our modern, competitive fleet and in our agile commercial strategy, which enables us to respond quickly to changes in demand across our global trade lanes. While we view our flexibility as critical in order to act dynamically, we also continue to seek attractive opportunities that will ensure our fleet remains cost effective moving forward. Overall, we are confident that our commitment to operational excellence, combined with the growing diversification in our geographic footprint, will drive even greater business resilience in the future. "Given our performance to date, we have increased the midpoints of our 2025 guidance ranges. We now expect full year Adjusted EBITDA between $1.8 billion and $2.2 billion and Adjusted EBIT between $550 million and $950 million. We intend to draw on our transformed fleet and improved cost structure to continue to create long-term value for our shareholders even in the face of challenging and unpredictable market dynamics." Earlier this month there were reports that Glickman and other senior executives at ZIM may join forces with automotive and shipping tycoon Rami Ungar in an acquisition attempt.
Published by Globes, Israel business news - en.globes.co.il - on August 20, 2025.
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