Wallenius Wilhelmsen (WAWI) investor relations material

Executive summary

• Adjusted EBITDA for Q1 2026 was USD 389m, down 3% quarter-on-quarter, reflecting softer shipping results offset by strong logistics performance; net profit was USD 177m, stable QoQ.

• Shipping demand, especially from Asia, remains robust, but tight charter-in markets and higher fuel costs are increasing capacity costs and pressuring margins.

• Direct commercial impact from the Middle East conflict is limited, but higher fuel costs are expected to impact Q2 results before recovery through BAF clauses.

• The company revised its full-year adjusted EBITDA outlook to USD 1.6bn, citing higher fuel and capacity costs, but expects to recoup most of these costs over time.

Financial highlights

• Q1 2026 revenue was USD 1,253m, down 1% QoQ and 3% YoY, mainly due to lower shipping and government services revenues.

• Adjusted EBITDA margin was 31% in Q1; EPS was USD 0.38, up 1% QoQ but down 29% YoY.

• Net profit reached USD 177m, stable QoQ but down 28% YoY.

• Net debt increased to USD 2,065m, mainly due to dividend payment; liquidity reserves at USD 1,437m after dividend and debt repayments.

• Operating cash flow was USD 322m, with a cash conversion ratio of 83%.

Outlook and guidance

• Full-year adjusted EBITDA guidance revised to USD 1.6bn due to higher fuel and capacity costs, with expectations of normalization over time.

• Strong shipping demand and high utilization expected to continue through 2026, but cost pressures from fuel and charters will persist.

• Full cost recovery of higher fuel costs is expected in subsequent quarters via BAF clauses.