World Kinect (WKC) Q1 2025 earnings summary

Executive summary

• Q1 2025 gross profit was $230 million, with a GAAP net loss of $21 million or $0.37 per diluted share, mainly due to asset impairments and restructuring charges; adjusted net income was $27 million, or $0.48 per diluted share.

• Revenue declined 14% year-over-year to $9.5 billion, with decreases across all segments.

• Aviation segment outperformed with gross profit up 7% year-over-year, while Land and Marine segments declined due to divestitures and market headwinds.

• Completed sale of U.K. and Brazil Land businesses, incurring a $44.5 million impairment charge and $15 million in restructuring charges, with further pre-tax losses expected in Q2.

• Transformation initiatives and cost reductions are underway, targeting $30 million in annualized savings.

Financial highlights

• Revenue was $9.5 billion (down $1.5 billion year-over-year); gross profit was $230 million (down 9% year-over-year).

• Net loss was $21 million, or $(0.37) per diluted share, versus net income of $27 million in Q1 2024; adjusted net income was $27 million.

• Adjusted EBITDA was $80 million, down 6% year-over-year; adjusted diluted EPS was $0.48, up 2%.

• Operating cash flow was $114 million, up 4% year-over-year; free cash flow was $99 million, up 7%.

• Cash and cash equivalents were $456 million as of March 31, 2025.

Outlook and guidance

• Q2 2025 gross profit guidance is $235–$244 million; adjusted operating expenses projected at $175–$179 million.

• Full-year adjusted effective tax rate expected at 22%–24%.

• Management expects continued restructuring and operational efficiencies through 2025, with sufficient liquidity for at least the next twelve months.

• Additional pre-tax loss of $65 million from the U.K. land fuels business sale, including $55 million in cumulative translation losses, will be recognized in Q2 2025.