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Mar 31, 2025
World Kinect Q1 2025 Earnings Report
World Kinect Corporation reported its first quarter 2025 financial results, including a decrease in revenue and net income, alongside strategic divestiture and restructuring activities.
Key Takeaways
World Kinect Corporation reported a decrease in revenue and net income for the first quarter of 2025. The company's gross profit was $230 million, with a GAAP net loss of $21 million. Despite the net loss, the company generated $114 million in operating cash flow and repurchased $10 million of common stock. Strategic actions included the sale of its U.K. land fuels business and the initiation of cost management actions.
Gross profit for Q1 2025 was $230 million, a decrease of 9% compared to the previous year.
The company reported a GAAP net loss of $21 million, or $0.37 per diluted share, a significant decline from a net income of $27 million in the prior year.
Adjusted net income was $27 million, or $0.48 per diluted share, showing a slight increase in adjusted EPS.
Operating cash flow generated was $114 million, indicating strong cash generation despite the net loss.
Revenue by Segment
Forward Guidance
The company is focused on streamlining its Land portfolio and cost structure, aiming for broader financial goals and maintaining a strong balance sheet to navigate market dynamics while investing in core capabilities.
Positive Outlook
- Continued progress in streamlining the Land portfolio with the U.K. Land business divestiture.
- Initiative to streamline operating model and enhance organizational efficiency and effectiveness.
- Undertook cost management actions in response to current and projected business needs.
- Delivering strong operating and free cash flow.
- Well-positioned with a strong balance sheet to navigate market dynamics and invest in core capabilities.
Challenges Ahead
- Expected additional estimated pre-tax loss of $65 million from the U.K. land fuels business sale.
- Recognition of restructuring charges of $15.0 million, principally related to severance costs.
- Lower profit contribution from the liquid fuel business in North America due to industry trends and reduced demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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