Maersk (MAERSK) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw increased momentum and earnings ramp-up, with strong market demand, higher volumes, and improved cost control, though profitability was below Q2 2023 due to lower rates and higher costs in Ocean; EBITDA reached $2.1 billion and EBIT $1 billion.

• Ocean segment benefited from higher freight rates and volume growth, with EBIT margin at 5.6% and capacity utilization at 97%.

• Logistics & Services EBIT rebounded sequentially to 3.5%, with revenue up 7.3% year-over-year and strong performance in ground freight, warehousing, air, and first mile.

• Terminals delivered one of the highest EBITDA levels ever at $408 million, with revenue up 15% year-over-year, EBIT margin 32.4%, and ROIC at 12.2%.

• Guidance for 2024 was revised upwards, reflecting robust container demand and ongoing supply chain disruptions, with higher expected EBITDA, EBIT, and free cash flow.

Financial highlights

• Q2 2024 revenue was $12.8 billion, down 1.7% year-over-year; EBITDA $2.1 billion (down 26–40%), EBIT $963 million (down 40%), and net profit $833 million (down 44%).

• Sequential recovery to positive free cash flow of $397 million, up from negative $151 million in Q1.

• Total cash and deposits: $19.7 billion; net cash position: $3.6 billion.

• Ocean revenue was $8.4 billion (down 3.8% YoY), Logistics & Services $3.6 billion (up 7.3%), Terminals $1.1 billion (up 15%).

• Gross capex increased 22% YoY to $904 million, mainly for Ocean investments.

Outlook and guidance

• 2024 container volume growth outlook raised to 4–6% (previously 2.5–4.5%).

• Red Sea disruption expected to persist through year-end, supporting elevated rates; Q4 volumes remain uncertain.

• Guidance for 2024: underlying EBITDA $9–$11 billion, EBIT $3–$5 billion, free cash flow at least $2 billion.

• CapEx for 2024/2025 expected at $10–$11 billion due to vessel prepayments and higher working capital.

• ROIC (LTM) at 2.0%, below the >7.5% target.