LIKE many other carriers Israel’s ZIM saw a drastic downturn in key metrics during 2Q 2025 but the first half overall was mildly positive.
Net income for the second quarter was USD 24 million (compared to USD 373 million in the second quarter of 2024), or diluted earnings per share of USD 0.194 (compared to USD 3.08 in the second quarter of 2024), the company reported yesterday [20 August].
Adjusted EBITDA for the second quarter was USD 472 million, a year-over-year decrease of 38%, while operating income (EBIT) for the second quarter was USD 149 million, compared to USD 468 million in the second quarter of 2024. Adjusted EBIT for the second quarter was USD 149 million, compared to USD 488 million in the second quarter of 2024.
Revenues for the second quarter were USD 1.64 billion, a year-over-year decrease of 15%. Carried volume in the second quarter was 895 thousand TEUs, a year-over-year decrease of 6%. Average freight rate per TEU in the second quarter was USD 1,479, a year-over-year decrease of 12%.
Net leverage ratio1 of 0.8x as of June 30, 2025, similar to net leverage ratio as of December 31, 2024; net debt1 of USD 3.03 billion as of June 30, 2025, compared to net debt of USD 2.88 billion as of December 31, 2024.
"Amid market disruptions and volatility, we continued to leverage our upscaled capacity and improved cost structure in Q2,” Eli Glickman, ZIM President & CEO, stated. “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.
"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,” Mr Glickman said.
"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 USD 1.8 billion and USD 2.2 billion and Adjusted EBIT between USD 550 million and USD 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."
Looking at the H1 2025 results, total revenues were USD 3.64 billion compared to USD 3.49 billion for the first half of 2024, primarily driven by the increase in freight rates and carried volume.
ZIM carried 1,839 thousand TEUs in the first half of 2025, compared to 1,799 thousand TEUs in the first half of 2024. The average freight rate per TEU was USD 1,632 for the first half of 2025, compared to USD 1,569 for the first half of 2024.
Operating income (EBIT) for the first half of 2025 was USD 613 million, compared to USD 635 million for the first half of 2024. The decrease in operating income for the first half of 2025 was primarily driven by the increase in depreciation and operating expenses, offset by the above-mentioned increase in revenues.
Net income for the first half of 2025 was USD 320 million, compared to USD 465 million for the first half of 2024, mainly driven by the above-mentioned factors driving the change in EBIT, as well as the accounting of income taxes.
Adjusted EBITDA was USD 1.25 billion for the first half of 2025, compared to USD 1.19 billion for the first half of 2024. Adjusted EBIT was USD 612 million for the first half of 2025, compared to USD 655 million for the first half of 2024. Adjusted EBITDA and Adjusted EBIT margins for the first half of 2025 were 34% and 17%, respectively. This compares to 34% and 19% for the first half of 2024.
Net cash generated from operating activities was USD 1.30 billion for the first half of 2025, compared to USD 1.10 billion for the first half of 2024.
Separately, ZIM has declined to comment on Israeli finance media reports that Mr Glickman and Ray Shipping’s Abraham Ungar are proposing a private buyout of the company.
Last week the company said it as aware of the rumours in the market regarding a possible acquisition proposal, but “as a matter of policy, the Company does not comment on market rumours or speculation.”