ZIM Integrated Shipping Services (ZIM) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $1.93 billion, up 48% year-over-year, with net income of $373 million, reversing a prior year loss.

• Adjusted EBITDA was $766 million (40% margin), and adjusted EBIT was $488 million (25% margin), both sharply higher year-over-year.

• Carried volume hit a record 952,000 TEUs in Q2, up 11% year-over-year, outpacing global market growth.

• Double-digit volume growth target for 2024 reaffirmed, supported by fleet renewal and commercial agility.

• Dividend of $0.93 per share ($112 million), representing 30% of Q2 net income, was declared.

Financial highlights

• H1 2024 revenue totaled $3.5 billion, up 30% year-over-year; Q2 net income was $373 million.

• Average freight rate per TEU was $1,674, up 40% year-over-year and 15% from Q1.

• Free cash flow in Q2 was $712 million; net cash from operating activities was $777 million.

• Adjusted EBITDA and EBIT margins for Q2 were 40% and 25%, compared to 21% and -11% last year.

• Net debt increased to $3.25 billion as of June 30, 2024, from $2.31 billion at year-end 2023.

Outlook and guidance

• Full-year 2024 guidance raised: Adjusted EBITDA $2.6–$3.0 billion (previously $1.15–$1.55 billion), Adjusted EBIT $1.45–$1.85 billion (previously $0–$400 million).

• Management expects a stronger second half of 2024, citing Red Sea supply pressures and favorable demand.

• Guidance assumes continued strength in spot rates through at least Q3.

• Double-digit volume growth target for 2024 reaffirmed.