Eimskipafélag Íslands (EIM) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw strong Liner and Logistics volumes, but a material decline in global freight rates impacted Forwarding margins and led to a 2.9% revenue decrease and a 43% drop in net earnings year-over-year.

• EBITDA declined 9.8% to EUR 21.2m, and net earnings dropped to EUR 4.5m in Q2 2025; H1 2025 net earnings were EUR 3.7m.

• Salary costs rose 10% in Q2, while operational focus reduced other expenses by 5.1%.

• New segment structure introduced: Liner Services, Forwarding Services, and Logistics & Agency, to improve transparency.

• Total equity at EUR 296.7m as of 30 June 2025.

Financial highlights

• Q2 2025: Revenue EUR 201.1m (-2.9% YoY), EBITDA EUR 21.2m (-9.8% YoY), net earnings EUR 4.5m (-43% YoY), EBIT EUR 5.7m (-33.3% YoY).

• H1 2025: Revenue EUR 401.4m (+0.1% YoY), net earnings EUR 3.7m (-55.5% YoY), net cash from operations EUR 37.5m.

• EBITDA margin Q2 2025: 10.5%; EBIT margin: 2.8%; profit margin: 2.2%.

• Basic EPS for Q2 2025: EUR 0.0278, down from EUR 0.0470 in Q2 2024.

• Cash position at period end: EUR 29.9m; leverage ratio: 2.28x.

Outlook and guidance

• Q3 expected to follow traditional seasonality with stable Liner margins and good volume; Forwarding volume anticipated just above Q2 but at lower global freight rates.

• Import to Iceland stable; export expected to rise due to new quota year and increased salmon harvesting.

• EUR 3.4m loss from sale of Lagarfoss to be recognized in Q3, but net cash proceeds of USD 8m expected.

• Specialization in reefer logistics provides resilience against economic cycles.

• Outlook stable, but global US tariffs and Red Sea disruptions add uncertainty.