Eimskipafélag Íslands (EIM) Q1 2025 earnings summary

Executive summary

• Revenue increased by 3.4% year-over-year to EUR 200.3m, with EBITDA up 7.7% to EUR 15.3m, driven by higher activity in Liner and Forwarding segments despite weather disruptions and salary increases.

• Net loss of EUR 0.8 million for Q1 2025, compared to a profit of EUR 0.5 million in Q1 2024, mainly due to higher depreciation, wage inflation, and lower affiliate contributions.

• Cash flow from operations was strong at EUR 15.9m, supported by working capital improvements.

• New segment reporting introduced: Liner Services, Forwarding Services, and Logistics & Agency, to enhance operational transparency.

Financial highlights

• Revenue: EUR 200.3m (+3.4% YoY); EBITDA: EUR 15.3m (+7.7% YoY); EBIT: EUR -1.0m; Net loss: EUR 0.8m.

• Salary expenses rose 8.6% YoY, mainly due to currency effects and overtime from weather disruptions.

• Net finance expense improved by EUR 0.5m YoY; share of profit from affiliates declined by EUR 1.7m.

• Maintenance capex was EUR 5.2m, slightly below plan due to project delays.

• Net debt at quarter-end was EUR 220.6m, with a leverage ratio of 2.23x.

Outlook and guidance

• Liner and Logistics segments expected to see seasonal volume pickup in Q2; Liner rates to remain stable or improve.

• Forwarding volumes remain pressured by geopolitical turmoil; global freight rates likely below Q1.

• Outlook for coming months is marked by uncertainty due to global US tariffs, Red Sea disruptions, and macroeconomic volatility.

• Logistics activity and utilization improved in Q2; strong cruise agency season anticipated in Q2/Q3.

• Eimskip's focus on reefer logistics and North Atlantic markets provides some resilience against economic cycles.