Hapag-Lloyd (HLAG) Q1 2026 earnings summary

Executive summary

• Q1 2026 results were unsatisfactory due to adverse weather in Europe and the US, operational disruptions, and increased costs from Middle East conflicts, though Q2 is showing improvement.

• Significant extra costs arose from the Middle East conflict, with weekly additional expenses of EUR 50–60 million, partially offset by surcharges.

• The merger agreement with ZIM was approved by shareholders and is expected to close in Q4 2026, pending regulatory approvals.

• The Gemini Cooperation maintained industry-leading schedule reliability despite operational challenges.

• Network operations are stabilizing, but elevated transport costs are expected to persist.

Financial highlights

• Group revenue declined to $4.9 billion (EUR 4.2 billion), down 8–16.8% year-over-year, mainly due to weaker Liner shipping performance and lower freight rates.

• Group EBITDA was $494 million (EUR 422 million), with an EBIT loss of $157 million (EUR -134 million); net loss was $256 million (EUR -219 million).

• Liner shipping revenue fell to $4.8 billion (EUR 4.1 billion), with EBIT at -$174 million (EUR -149 million); average freight rate dropped 9.5% to $1,330/TEU.

• Free cash flow remained positive at $405 million (EUR 346 million); operating cash flow was $500 million.

• Cash balance declined to $3.8 billion (EUR 3.3 billion); total liquidity reserve at $6.9 billion (EUR 6.0 billion).

Outlook and guidance

• 2026 EBITDA guidance: $1.1–3.1 billion (EUR 0.9–2.6 billion); EBIT guidance: $-1.5–0.5 billion (EUR -1.3–0.4 billion).

• Earnings outlook for 2026 remains unchanged, but uncertainty is higher than in previous years due to volatile freight rates and geopolitical risks.

• Expectation of a normal peak season, with spot rates showing upward momentum into May and higher bunker and energy costs anticipated.

• Recovery in Atlantic and Middle East volumes expected to drive solid volume growth for the remainder of the year.

• No ZIM acquisition effects included in guidance pending regulatory approval.