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Jun 30, 2024
World Kinect Q2 2024 Earnings Report
Reported a mixed Q2 2024, with strong aviation performance offset by land business challenges and the sale of Avinode.
Key Takeaways
World Kinect Corporation reported effectively flat revenue year-over-year, but experienced a decrease in gross profit and adjusted EBITDA. Net income increased significantly due to an after-tax gain on the sale of Avinode. The Aviation segment performed well, while the Land segment faced unfavorable market conditions.
Revenue remained effectively flat at $11.0 billion compared to the same period last year.
Net income increased by 262% to $108.3 million, including an after-tax gain on sale of $86.9 million.
Adjusted EBITDA decreased by 18% to $80.9 million.
Land business faced unusually unfavorable market conditions, while the Aviation business performed very well.
Forward Guidance
World Kinect is focused on streamlining its Land portfolio, controlling expenses, and managing working capital to drive future performance and shareholder value.
Positive Outlook
- Aviation business is poised with strong momentum heading into the second half of the year.
- Sale of Avinode Group has further increased liquidity.
- Company is focused on streamlining the Land portfolio for increased ratability and improved operating leverage.
- Continued focus on expense control.
- Continued focus on working capital management.
Challenges Ahead
- Land business faced unusually unfavorable market conditions this quarter.
- Lower profit contribution from natural gas business due to oversupplied market conditions and lower market volatility.
- Marine gross profit decreased due to reduced market volatility year-over-year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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