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Dec 31, 2024

ZIM Q4 2024 Earnings Report

ZIM reported a significant turnaround in Q4 2024, with strong revenue growth and a return to profitability driven by higher freight rates and record carried volume.

Key Takeaways

ZIM delivered an exceptional Q4 2024, with revenue surging 80% YoY to $2.17 billion. The company returned to profitability, reporting net income of $563 million compared to a loss in Q4 2023. Adjusted EBITDA grew 409% to $967 million, reflecting improved operating conditions and cost efficiencies. Record carried volume of 982K TEUs and higher freight rates contributed to the strong performance.

Total revenue increased 80% YoY to $2.17 billion.

Net income surged to $563 million from a net loss of $147 million in Q4 2023.

Adjusted EBITDA grew 409% YoY to $967 million.

Carried volume reached a record 982K TEUs, up 25% YoY.

Total Revenue
$2.17B
Previous year: $1.21B
+79.9%
EPS
$4.66
Previous year: -$1.23
-478.9%
Adjusted EBITDA
$967M
Previous year: $190M
+408.9%
Adjusted EBITDA Margin
45%
Previous year: 16%
+181.3%
Carried Volume (TEUs)
982K
Previous year: 786K
+24.9%
Gross Profit
$731M
Cash and Equivalents
$1.31B
Free Cash Flow
$1.09B
Total Assets
$11.4B

ZIM

ZIM

ZIM Revenue by Segment

Forward Guidance

ZIM expects a volatile 2025 with headwinds from geopolitical uncertainties and macroeconomic conditions. The company projects adjusted EBITDA between $1.6 billion and $2.2 billion, with adjusted EBIT ranging from $350 million to $950 million.

Positive Outlook

  • Projected adjusted EBITDA between $1.6 billion and $2.2 billion for FY 2025.
  • Adjusted EBIT expected to range from $350 million to $950 million.
  • Continued fleet transformation, with 40% of vessels LNG-fueled.
  • Expanded presence in Latin America and U.S. trade routes.
  • Optimized cost structure to maintain operational efficiency.

Challenges Ahead

  • Geopolitical uncertainty affecting global shipping routes.
  • Red Sea trade disruptions expected to persist into mid-2025.
  • Macroeconomic volatility may impact freight demand.
  • Potential cost pressures from fuel and charter rates.
  • Intense competition in the container shipping industry.