Eimskipafélag Íslands (EIM) Q4 2024 earnings summary

Executive summary

• Q4 2024 delivered strong results, continuing a rebound from a slow start, with group-wide improvements and solid performance in both liner and forwarding operations, especially in Trans-Atlantic services.

• Over 60% of annual EBITDA was generated in the second half of 2024, reflecting significant improvement as the year progressed.

• The company optimized its sailing system, reducing sailed miles and bunker consumption, and increased reliability.

• Net earnings for Q4 were EUR 7.3m, down 13.4% year-over-year, with full-year net earnings at EUR 30.0m, a 44.9% decrease from 2023.

• The company maintained a healthy cash position and continued investments in fleet and infrastructure.

Financial highlights

• Q4 revenue: EUR 227.2m (+14.1% YoY); full-year revenue: EUR 847.1m (+3.6% YoY).

• Q4 EBITDA: EUR 27.1m (+19.5% YoY); full-year EBITDA: EUR 97.8m (-20.7% YoY).

• Q4 net earnings: EUR 7.3m (-13.4% YoY); full-year net earnings: EUR 30.0m (-44.9% YoY).

• Expenses increased 13.4% in Q4 and 7.9% for the year, mainly due to higher third-party service costs.

• Share of earnings from affiliates in 2024 was EUR 15.7m.

Outlook and guidance

• Positive outlook for liner services in Q1 2025, with strong Trans-Atlantic volumes and stable export from Iceland, but uncertainties remain regarding US tariffs and Red Sea disruptions.

• Faroe Islands and Norway expected to see robust volumes, though some uncertainty remains for fresh ground fish and US tariffs.

• International forwarding volumes expected to be stable, but global freight rates may be lower; market uncertainty persists due to Red Sea diversions and potential US tariffs.

• New reporting segments to be introduced in 2025 for improved operational transparency.