World Kinect (WKC) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 gross profit of $365 million and adjusted gross profit of $350 million, driven by strong execution and favorable market conditions across aviation, marine, and land segments, amid significant market volatility and geopolitical conflicts.

• Net income rebounded to $48 million ($0.94 per diluted share), reversing a prior-year loss, with adjusted net income at $66 million ($1.29 per diluted share).

• Portfolio simplification and focus on core businesses, including divestitures and Universal Trip Support acquisition, improved returns and operational discipline.

• Returned capital to shareholders through increased dividends and share repurchases.

Financial highlights

• Q2 2026 revenue rose 50% year-over-year to $13.6 billion; gross profit increased 57% to $365 million.

• Adjusted EPS for Q2 2026 was $1.29, up 119% year-over-year, the highest in company history.

• Adjusted EBITDA increased to $136 million, up 55% year-over-year.

• Free cash flow for Q2 2026 was negative $35 million, mainly due to working capital demands from higher commodity prices.

• Operating expenses rose 35% year-over-year to $233 million, driven by higher compensation, acquisition integration, and increased bad debt reserves.

Outlook and guidance

• Full-year 2026 adjusted EPS guidance raised to $3.20–$3.40 per share, up from $2.65–$2.85, reflecting strong first-half performance and share repurchases.

• Management expects continued benefit from market volatility, portfolio optimization, and cost reduction initiatives.

• Guidance assumes a more measured second half, not expecting a repeat of exceptional Q2 market conditions.

• Sufficient liquidity is expected for at least the next twelve months, supported by cash, credit facilities, and operating cash flows.

• Finance and accounting optimization expected to complete by Q4 2026, with $4.4 million in transition costs.