World Kinect (WKC) Q1 2026 earnings summary

Executive summary

• Delivered strong Q1 2026 results, exceeding expectations with robust performance across core businesses and effective execution in a volatile market environment, supported by portfolio simplification and focus on core operations.

• Net income attributable to shareholders was $26.2 million, reversing a net loss of $21.1 million in Q1 2025.

• Announced realignment to the World Fuel brand for most business activities, aligning with a simplified, core-focused business model.

• Maintained disciplined risk management and strong customer relationships, supporting performance across all segments.

• Continued restructuring and exit activities in the land segment, including divestitures and cost optimization.

Financial highlights

• Q1 2026 revenue was $9.7 billion, up 2% year-over-year, with gross profit of $271 million (+18%) and adjusted gross profit of $254 million (+10%).

• Adjusted net income was $39 million ($0.75 per diluted share), and adjusted EBITDA was $94 million, up 18% year-over-year.

• Operating expenses were $181 million, up 2% year-over-year, mainly due to the Universal Trip Support acquisition and higher variable compensation.

• Free cash flow was -$60 million, impacted by higher commodity prices and working capital needs; cash and cash equivalents at quarter-end were $151 million.

• Returned $86 million to shareholders in Q1 through dividends and share repurchases, including $75 million in buybacks.

Outlook and guidance

• Full-year 2026 adjusted EPS guidance raised to $2.65–$2.85 per share, up from $2.20–$2.40, reflecting Q1 overperformance and share repurchases.

• Marine gross profit expected to be lower sequentially but higher year-over-year as volatility moderates.

• Aviation gross profit anticipated to rise sequentially and year-over-year, benefiting from seasonality and the Universal Trip Support acquisition.

• Land segment gross profit expected to improve sequentially but remain down year-over-year due to ongoing business exits.

• Management expects to complete finance and accounting optimization by Q4 2026, with $8 million in additional transition costs anticipated for the year.