Eimskipafélag Íslands (EIM) Q4 2024 earnings summary

Executive summary

• Q4 2024 saw a strong rebound with solid results across all segments, especially in Trans-Atlantic liner services and international forwarding, following a slow start to the year.

• Revenue for 2024 reached EUR 847.1 million, up 3.6% year-over-year, but EBITDA declined to EUR 97.8 million from EUR 123.4 million in 2023 due to higher operating expenses and inflationary pressures.

• Net earnings for 2024 were EUR 30.0 million, down from EUR 54.5 million in 2023, reflecting a challenging first half and gradual improvement in the second half.

• Over 60% of annual EBITDA was generated in the second half of 2024, reflecting significant improvement as the year progressed.

• The company maintained a strong liquidity position with EUR 28.7 million in cash and continued investments in fleet, infrastructure, and operational efficiency.

Financial highlights

• Q4 revenue: EUR 227.2m (+14.1% YoY); full-year revenue: EUR 847.1m (+3.6% YoY).

• Q4 EBITDA: EUR 27.1m (+19.5% YoY); full-year EBITDA: EUR 97.8m (-20.7% YoY).

• Q4 net earnings: EUR 7.3m (-13.4% YoY); full-year net earnings: EUR 30.0m (-44.9% YoY).

• Operating expenses rose by EUR 54.7m to EUR 749.3m in 2024; EBITDA margin fell to 11.5% from 15.1% in 2023.

• Equity at year-end: EUR 316.9m (+1.5% YoY); equity ratio: 47.7% (down from 50.4% in 2023).

Outlook and guidance

• Positive outlook for liner services in Q1 2025, with strong Trans-Atlantic volumes and stable export from Iceland, but uncertainty remains due to US tariffs and Red Sea disruptions.

• Faroe Islands and Norway expected to see robust volumes, though some uncertainty remains for fresh ground fish and US tariffs.

• International forwarding volumes expected to be stable, but global freight rates may be lower; market uncertainty persists due to Red Sea diversions and potential US tariffs.

• New reporting segments to be introduced in 2025 for improved operational transparency.

• The company remains focused on operational efficiency, cost control, and sustainable growth.