Core Insights - World Kinect (NYSE:WKC) reported Q2 2025 adjusted earnings per share of $0.59, exceeding analyst expectations of $0.48, while GAAP revenue was $9.04 billion, falling short of the $9.32 billion forecast and down 18% from Q2 2024 [1][2] - The quarter was impacted by significant one-off items, including $405 million in impairment and restructuring charges, reflecting a strategic overhaul, particularly in the Land segment [1][6] Financial Performance - Non-GAAP EPS for Q2 2025 was $0.59, a 23% increase from $0.48 in Q2 2024 [2] - GAAP revenue decreased to $9.04 billion from $10.97 billion in Q2 2024, representing an 18% decline [2] - Gross profit was reported at $232 million, down 5% from $245 million in Q2 2024 [2] - Adjusted EBITDA increased by 7% to $87 million compared to $81 million in the previous year [2] - Free cash flow fell sharply to $13 million, a 75% decrease from $53 million in Q2 2024 [2][7] Business Overview and Strategy - World Kinect focuses on delivering fuel and energy solutions across aviation, land transportation, and marine shipping, managing logistics for both conventional and sustainable products [3][10] - The company is prioritizing portfolio reshaping and operational efficiency, expanding into renewable energy, and optimizing global supply chains [4][11] Segment Performance - The Aviation segment showed strong results with an 8% year-over-year increase in gross profit and a 1.7% rise in volumes, while Land and Marine segments faced significant challenges [5][8] - The Land segment's gross profit dropped 17%, impacted by recent asset sales, including the divestment of the UK Land business, which resulted in an $82 million pre-tax loss [5][12] - Marine segment gross profit decreased by 26%, affected by a one-time tax settlement and weak sector demand [6][13] Impairments and Restructuring - The company reported over $430 million in impairment and restructuring costs for the first half of 2025, with $367 million related to goodwill in the Land segment [6][14] - Restructuring costs of $6 million were recognized as part of a global finance and accounting transformation initiative aimed at improving efficiency [7][14] Shareholder Returns - The board declared an 18% increase in the quarterly dividend, reflecting a commitment to returning capital to shareholders despite the challenging quarter [9][16] Future Outlook - The company anticipates that restructuring and asset sales will improve adjusted margins and streamline operations, although it did not upgrade margin or profit targets for the year [17][18]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ___________ COMMISSION FILE NUMBER 001-09533 WORLD KINECT CORPORATION Florida 9800 N.W. 41st Street, Miami, Florida 33178 59-2459427 (Address of Pr ...

World Kinect (WKC) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +22.92%. A quarter ago, it was expected that this company that services ships, jets and trucks would post earnings of $0.45 per share when it actually produced earnings of $0.48, delivering a surprise of +6.67%. Over ...

Financial Data and Key Metrics Changes - In Q2 2025, total volume decreased by 3% year over year to $4.2 billion, while consolidated gross profit declined by 5% to $232 million, falling below the previous guidance range [13][14] - Adjusted operating income increased by 11% year over year, indicating improved overall operating performance despite the decline in gross profit [14] - Operating expenses were $173 million, down 10% year over year and below the guidance range [18][19] - Operating cash flow was $28 million, and free cash flow was $13 million, contributing to a year-to-date operating cash flow of $143 million and free cash flow of $113 million [20][24] Business Line Data and Key Metrics Changes - Aviation segment volume increased by 2% year over year to 1.9 billion gallons, with gross profit rising by 8% to $138 million, driven by strong performance in Europe [14][15] - Land segment volume decreased by 7% year over year, with gross profit down 17% to $67 million, primarily due to the sale of UK and Brazil operations and lower volumes in North America [15][16] - Marine segment volumes also declined by 7% year over year, with gross profit decreasing approximately 26%, impacted by an unfavorable transaction tax settlement and weaker performance in certain locations [17][18] Market Data and Key Metrics Changes - The company noted strong demand for commercial and business aviation fuel and services, particularly in Europe, which is expected to continue into Q3 [6][10] - The land segment faced challenges due to global economic uncertainty and demand weakness in North America, prompting a strategic exit from underperforming activities [7][8] Company Strategy and Development Direction - The company is focused on streamlining its portfolio to reduce complexity and enhance execution in high-value areas, including divesting underperforming assets [7][10] - A balanced approach to capital deployment is being maintained, with an increase in quarterly dividends reflecting confidence in cash flow generation capabilities [9][20] - The company aims to concentrate on core markets that offer predictable earnings contributions and sustainable value creation [8][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic headwinds but expressed confidence in the ability to generate consistent cash flow and drive long-term value [10][24] - The company expects sequential improvement in land performance in Q3, although year-over-year gross profit will remain lower due to previous portfolio changes [17][22] - Management highlighted the importance of operational discipline and cost management in navigating the current market complexities [19][23] Other Important Information - The company generated $64 million in returns to shareholders through share repurchases and dividends in the first half of the year [20][24] - The balance sheet remains strong with $415 million in net debt and over $1 billion in available liquidity, allowing for potential strategic investments [21] Q&A Session Summary Question: Regarding land disappointment and potential asset divestitures - Management indicated that there are still parts of the land business that could be optimized or divested, focusing on activities that are not scalable or profitable [30][32] Question: Insights on third-quarter expectations for each business segment - Aviation is expected to benefit from government activity, while Marine may see profit declines due to ongoing market conditions. Land is anticipated to have lower gross profit due to recent exits from unprofitable markets [36][44] Question: Investment opportunities and strategies moving forward - The company is looking for both organic and inorganic growth opportunities, particularly in aviation and land, as valuations improve and interest rates decrease [56][58] Question: Impact of tax settlement on Marine segment guidance - Without the tax settlement, Marine gross profit would have been within the guidance range [59]

Second Quarter 2025 Earnings Call July 31, 2025 www.world-kinect.com Copyright © 2025 World Kinect Corporation. All rights reserved. Disclaimer and Cautionary Note Regarding Forward-Looking Statements Certain statements, including comments about World Kinect Corporation's expectations regarding future plans, performance and acquisitions are forward-looking statements that are subject to a range of uncertainties and risks that could cause World Kinect's actual results to materially differ from the forward-lo ...

Exhibit 99.1 World Kinect Corporation Reports Second Quarter 2025 Results MIAMI—July 31, 2025—World Kinect Corporation (NYSE: WKC) today reported financial results for the second quarter of 2025. Second Quarter 2025 Highlights Year-Over-Year Segment Profitability Second Quarter 2025 – Goodwill and other asset impairments, Restructuring, and U.K. land fuels sale 1 • Gross profit of $232 million • GAAP net loss of $339 million, or $6.06 per diluted share • Adjusted net income of $33 million, or $0.59 per dilu ...

Core Viewpoint - World Kinect (WKC) is anticipated to report flat earnings of $0.48 per share for the quarter ended June 2025, with revenues expected to decline by 10.7% to $9.8 billion compared to the previous year [1][3]. Earnings Expectations - The earnings report could lead to a stock price increase if the actual results exceed expectations, while a miss could result in a decline [2]. - The consensus EPS estimate has been revised down by 9.93% over the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for World Kinect is lower than the consensus estimate, resulting in an Earnings ESP of -4.83% [12]. - The stock currently holds a Zacks Rank of 5, suggesting a strong sell, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, World Kinect had an earnings surprise of +6.67%, reporting $0.48 per share against an expectation of $0.45 [13]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [14]. Conclusion - World Kinect does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but other factors should also be considered when evaluating the stock ahead of its earnings release [17].

[PART I. Financial Information](index=3&type=section&id=PART%20I.%20Financial%20Information) This section presents the unaudited financial statements, management's analysis of operations, market risk disclosures, and internal controls for the period [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for World Kinect Corporation for the three months ended March 31, 2025, show a shift from net income to a net loss compared to the prior year, driven by decreased revenue, lower gross profit, and increased operating expenses from asset impairments and restructuring. Despite this, operating cash flows remained positive and slightly increased, while cash used in investing and financing activities decreased **Consolidated Financial Highlights (Q1 2025 vs. Q1 2024):** | Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | Change (Millions) | Change (%) | | :-------------------------------- | :----------------- | :----------------- | :---------------- | :--------- | | Revenue | $9,452.5 | $10,951.4 | $(1,498.9) | -13.7% | | Gross Profit | $230.4 | $254.1 | $(23.7) | -9.3% | | Net Income (Loss) attributable to World Kinect | $(21.1) | $27.4 | $(48.5) | -177.0% | | Net cash provided by operating activities | $114.4 | $110.2 | $4.2 | 3.8% | - Total assets decreased to **$6,589.1 million** as of March 31, 2025, from $6,731.8 million at December 31, 2024[6](index=6&type=chunk) - Total equity decreased to **$1,928.3 million** as of March 31, 2025, from $1,955.9 million at December 31, 2024[6](index=6&type=chunk)[9](index=9&type=chunk) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The company's balance sheet as of March 31, 2025, shows a slight decrease in total assets and liabilities compared to December 31, 2024, with cash and cash equivalents increasing while accounts receivable and accounts payable decreased **Condensed Consolidated Balance Sheet Highlights (Millions):** | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $456.4 | $382.9 | | Accounts receivable, net | $2,245.8 | $2,432.6 | | Total current assets | $3,829.9 | $3,959.2 | | Total assets | $6,589.1 | $6,731.8 | | Accounts payable | $2,529.7 | $2,726.5 | | Total current liabilities | $3,342.3 | $3,437.8 | | Total liabilities | $4,660.9 | $4,775.8 | | Total equity | $1,928.3 | $1,955.9 | [Condensed Consolidated Statements of Income and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) For the three months ended March 31, 2025, the company reported a net loss attributable to World Kinect of $21.1 million, a significant decline from a net income of $27.4 million in the prior-year period, primarily due to decreased revenue, lower gross profit, and increased operating expenses including asset impairments and restructuring charges **Condensed Consolidated Statements of Income and Comprehensive Income (Millions, except per share data):** | Metric | Q1 2025 | Q1 2024 | | :------------------------------------- | :------ | :------ | | Revenue | $9,452.5 | $10,951.4 | | Gross profit | $230.4 | $254.1 | | Total operating expenses | $237.0 | $190.8 | | Income (loss) from operations | $(6.6) | $63.3 | | Net income (loss) attributable to World Kinect | $(21.1) | $27.4 | | Basic earnings (loss) per common share | $(0.37) | $0.46 | | Diluted earnings (loss) per common share | $(0.37) | $0.45 | - Total operating expenses increased by **$46.2 million**, or **24%**, primarily attributable to **$44.5 million** in asset impairment charges and **$15.0 million** in restructuring charges in Q1 2025[7](index=7&type=chunk)[96](index=96&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) The company's total equity decreased from $1,955.9 million at December 31, 2024, to $1,928.3 million at March 31, 2025, primarily due to a net loss, cash dividends declared, and common stock repurchases, partially offset by other comprehensive income **Changes in Shareholders' Equity (Millions):** | Item | Q1 2025 Impact | | :------------------------------------- | :------------- | | Net income (loss) | $(21.1) | | Cash dividends declared | $(9.6) | | Purchases of common stock | $(10.1) | | Other comprehensive income (loss) | $10.0 | | Balance as of December 31, 2024 | $1,955.9 | | Balance as of March 31, 2025 | $1,928.3 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended March 31, 2025, net cash provided by operating activities increased slightly to $114.4 million, while net cash used in investing activities decreased to $5.8 million, and net cash used in financing activities significantly decreased to $32.4 million, leading to a net increase in cash and cash equivalents of $73.5 million **Condensed Consolidated Statements of Cash Flows (Millions):** | Cash Flow Activity | Q1 2025 | Q1 2024 | | :----------------------------------- | :------ | :------ | | Net cash provided by operating activities | $114.4 | $110.2 | | Net cash provided by (used in) investing activities | $(5.8) | $(16.9) | | Net cash provided by (used in) financing activities | $(32.4) | $(64.3) | | Net increase (decrease) in cash and cash equivalents | $73.5 | $17.1 | | Cash and cash equivalents, end of period | $456.4 | $321.3 | - The increase in operating cash flows was principally due to increased cash provided by RPA activity and transaction tax refunds, offset by cash used in derivative activities and a decrease in net income[121](index=121&type=chunk) - The decrease in net cash used in investing activities was primarily driven by lower capital expenditures and cash received from the net repayment of notes receivable[122](index=122&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on the company's accounting policies, financial instruments, debt, equity, and segment information, highlighting recent divestitures, restructuring efforts, and ongoing legal and tax contingencies [Note 1. Basis of Presentation, New Accounting Standards, and Significant Accounting Policies](index=7&type=section&id=Note%201.%20Basis%20of%20Presentation,%20New%20Accounting%20Standards,%20and%20Significant%20Accounting%20Policies) World Kinect Corporation is a global energy management company. The financial statements are unaudited, prepared under U.S. GAAP, and do not include all disclosures required for complete annual statements. The company is evaluating new accounting standards for income taxes (ASU 2023-09) and expense disaggregation (ASU 2024-03), which are effective in future fiscal years. No significant changes to accounting policies were reported - World Kinect Corporation is a global energy management company offering fulfillment and related services across the aviation, marine, and land-based transportation sectors, also supplying natural gas and power and sustainability-related products[11](index=11&type=chunk) - The company is evaluating ASU 2023-09 (Income Taxes) and ASU 2024-03 (Expense Disaggregation Disclosures), which are effective for fiscal years beginning after **December 15, 2024**, and **December 15, 2026**, respectively[15](index=15&type=chunk)[16](index=16&type=chunk) - No significant changes in the company's accounting policies from those disclosed in its 2024 10-K Report[20](index=20&type=chunk) [Note 2. Accounts Receivable](index=8&type=section&id=Note%202.%20Accounts%20Receivable) The company's net accounts receivable decreased to $2.2 billion as of March 31, 2025, from $2.4 billion at December 31, 2024. The allowance for expected credit losses increased slightly to $24.4 million. The company utilizes Receivable Purchase Agreements (RPAs) to sell qualifying accounts receivable, selling $2.8 billion in Q1 2025, down from $3.0 billion in Q1 2024 **Accounts Receivable and Allowance for Credit Losses (Millions):** | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Accounts receivable, net | $2,245.8 | $2,432.6 | | Allowance for expected credit losses | $24.4 | $23.7 | - **95%** of accounts receivable were outstanding less than 60 days as of March 31, 2025[23](index=23&type=chunk) **Receivable Purchase Agreements (RPAs) Activity (Millions):** | Metric | Q1 2025 | Q1 2024 | | :-------------------------------- | :------ | :------ | | Aggregate face value of receivables sold | $2,800.0 | $3,000.0 | | Fees recognized | $8.1 | $10.2 | [Note 3. Acquisitions and Divestitures](index=9&type=section&id=Note%203.%20Acquisitions%20and%20Divestitures) The company completed the sale of its U.K. land fuels business (Watson Fuels) on April 9, 2025, for estimated proceeds of $42.8 million, recognizing a $44.5 million asset impairment charge in Q1 2025. This follows the May 2024 sale of the Avinode Group, which resulted in a $96.0 million pre-tax gain - Sale of WFL (UK) Ltd. (Watson Fuels disposal group) closed on **April 9, 2025**, for total estimated proceeds of **$42.8 million**, with **$23.6 million** collected in cash at closing[27](index=27&type=chunk) - An asset impairment charge of **$44.5 million** was recognized in Q1 2025 with respect to the Watson Fuels disposal group assets[27](index=27&type=chunk)[49](index=49&type=chunk) - The sale of Avinode Group and aviation FBO software products was completed on **May 1, 2024**, for cash proceeds of **$200.1 million**, resulting in a pre-tax gain of **$96.0 million**[28](index=28&type=chunk) [Note 4. Derivative Instruments](index=9&type=section&id=Note%204.%20Derivative%20Instruments) World Kinect uses various derivative instruments, including fair value hedges, cash flow hedges, and non-designated derivatives, to manage exposure to commodity price, foreign currency, and interest rate risks. As of March 31, 2025, the company held gross derivative assets of $518.9 million and gross derivative liabilities of $436.1 million. Non-designated commodity contracts generated a net gain of $5.5 million in Q1 2025, a significant improvement from a $72.0 million loss in Q1 2024 - The company's risk management program includes Fair Value Hedges, Cash Flow Hedges, and Non-designated Derivatives to mitigate commodity price, foreign currency exchange rate, and interest rate risks[29](index=29&type=chunk)[30](index=30&type=chunk) **Gross Fair Value of Derivative Instruments (Millions):** | Metric | March 31, 2025 | December 31, 2024 | | :--------------------------------- | :------------- | :---------------- | | Total Gross Derivative Assets | $518.9 | $499.6 | | Total Gross Derivative Liabilities | $436.1 | $401.6 | **Realized and Unrealized Gains (Losses) on Non-designated Derivatives (Millions):** | Derivative Type | Q1 2025 | Q1 2024 | | :---------------------- | :------ | :------ | | Commodity contracts (net) | $5.5 | $(72.0) | | Foreign currency contracts (net) | $(5.2) | $(2.6) | [Note 5. Fair Value Measurements](index=13&type=section&id=Note%205.%20Fair%20Value%20Measurements) The company measures certain assets and liabilities at fair value on a recurring basis, primarily commodity and foreign currency contracts, using Level 1 and Level 2 inputs. As of March 31, 2025, total assets at fair value were $538.7 million and total liabilities at fair value were $436.1 million. A nonrecurring asset impairment charge of $44.5 million was recognized in Q1 2025 for the Watson Fuels asset group, measured using Level 2 inputs **Recurring Fair Value Measurements (March 31, 2025, Millions):** | Category | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Total | | :-------------------------- | :------------- | :------------- | :------------- | :---- | | Assets: Commodities contracts | $160.3 | $337.8 | $7.3 | $505.4 | | Assets: Foreign currency contracts | — | $13.5 | — | $13.5 | | Liabilities: Commodities contracts | $195.4 | $215.4 | $4.1 | $414.9 | | Liabilities: Foreign currency contracts | — | $21.2 | — | $21.2 | - A nonrecurring asset impairment charge of **$44.5 million** was recognized in Q1 2025 for the Watson Fuels asset group within the land segment, with its fair value determined based on estimated sale proceeds (Level 2 measurement)[49](index=49&type=chunk) [Note 6. Supplier Financing Programs](index=15&type=section&id=Note%206.%20Supplier%20Financing%20Programs) The company participates in supplier finance programs, with outstanding obligations of $129.1 million as of March 31, 2025, a decrease from $168.8 million at December 31, 2024. These obligations are included in Accounts payable **Outstanding Obligations under Supplier Finance Programs (Millions):** | Date | Amount | | :---------------- | :----- | | March 31, 2025 | $129.1 | | December 31, 2024 | $168.8 | [Note 7. Debt, Interest Income, Expense, and Other Finance Costs](index=15&type=section&id=Note%207.%20Debt,%20Interest%20Income,%20Expense,%20and%20Other%20Finance%20Costs) Total debt slightly decreased to $879.0 million as of March 31, 2025. The company's debt primarily consists of a term loan ($449.1 million) and Convertible Senior Notes due 2028 ($341.5 million net carrying amount). Net interest expense decreased to $22.9 million in Q1 2025 from $28.9 million in Q1 2024 **Outstanding Debt (Millions):** | Debt Type | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | Term loan | $449.1 | $455.3 | | Convertible Notes (net) | $341.5 | $340.9 | | Total debt | $879.0 | $880.8 | | Long-term debt | $792.3 | $796.8 | - The fair value of the Convertible Notes was approximately **$403.3 million** as of March 31, 2025[52](index=52&type=chunk) **Interest Income, Expense, and Other Financing Costs, net (Millions):** | Metric | Q1 2025 | Q1 2024 | | :------------------------------------- | :------ | :------ | | Interest income | $3.7 | $2.0 | | Interest expense and other financing costs | $(26.6) | $(30.9) | | Interest expense and other financing costs, net | $(22.9) | $(28.9) | [Note 8. Commitments and Contingencies](index=16&type=section&id=Note%208.%20Commitments%20and%20Contingencies) The company is involved in various legal and tax proceedings, including an investigation by the Finnish energy regulatory authority regarding an erroneous bid submission in 2023, and significant tax assessments in South Korea totaling approximately $23.3 million. While reserves for general claims are not material, an unfavorable resolution of these matters could have a material adverse effect on financial statements - An investigation by the Finnish energy regulatory authority was initiated in **December 2023** regarding an erroneous bid submission in the Finnish power market, which led to **$48.8 million** in extraordinary losses in Q4 2023[54](index=54&type=chunk) - The South Korean branch of a subsidiary received tax assessments totaling approximately **$23.3 million** (KRW 34.3 billion) for allegedly failing to issue VAT invoices and report certain transactions during 2011-2014[56](index=56&type=chunk) - As of March 31, 2025, reserves for claims and other matters where losses are probable and estimable were not material[57](index=57&type=chunk) [Note 9. Shareholders' Equity](index=17&type=section&id=Note%209.%20Shareholders'%20Equity) The Board declared quarterly cash dividends of $0.17 per common share for both Q1 2025 ($9.6 million) and Q1 2024 ($10.1 million). Accumulated other comprehensive income (loss) improved from $(91.0) million at January 1, 2025, to $(81.0) million at March 31, 2025, primarily due to positive foreign currency translation adjustments **Cash Dividends Declared (Millions):** | Period | Per Common Share | Total | | :-------------------------- | :--------------- | :---- | | Q1 2025 | $0.17 | $9.6 | | Q1 2024 | $0.17 | $10.1 | **Accumulated Other Comprehensive Income (Loss) (Millions):** | Metric | January 1, 2025 | March 31, 2025 | | :------------------------------------- | :-------------- | :------------- | | Balance | $(91.0) | $(81.0) | | Other comprehensive income (loss) before reclassifications | — | $11.7 | | Foreign currency translation adjustments | — | $12.6 | [Note 10. Revenue from Contracts with Customers](index=18&type=section&id=Note%2010.%20Revenue%20from%20Contracts%20with%20Customers) Total revenue for Q1 2025 was $9,452.5 million, a decrease from $10,951.4 million in Q1 2024. This decline was observed across all major geographic areas (Asia Pacific, EMEA, LATAM, North America) and segments (Aviation, Land, Marine) **Revenue from Contracts with Customers (Millions):** | Geographic Area | Q1 2025 | Q1 2024 | | :---------------- | :------ | :------ | | Asia Pacific | $1,149.6 | $1,445.1 | | EMEA | $1,999.0 | $2,358.5 | | LATAM | $1,287.2 | $1,604.2 | | North America | $4,992.3 | $5,620.2 | | Total revenue | $9,452.5 | $10,951.4 | **Revenue by Segment (Millions):** | Segment | Q1 2025 | Q1 2024 | | :-------- | :------ | :------ | | Aviation | $4,654.2 | $5,144.2 | | Land | $2,865.4 | $3,416.6 | | Marine | $1,932.9 | $2,390.5 | [Note 11. Income Taxes](index=19&type=section&id=Note%2011.%20Income%20Taxes) For Q1 2025, the company recognized an income tax benefit of $6.8 million, a significant change from an income tax expense of $3.3 million in Q1 2024. The effective income tax rate for Q1 2025 was 24.3%, up from 11.0% in Q1 2024, influenced by a reduction in income before taxes and changes in the mix of worldwide earnings, partially offset by increased net discrete tax expenses. The company is also facing a material tax audit in Denmark with proposed assessments of approximately $138.0 million **Income Tax Provision and Effective Rate (Millions, except rates):** | Metric | Q1 2025 | Q1 2024 | | :-------------------------- | :------ | :------ | | Provision for income taxes | $(6.8) | $3.3 | | Effective income tax rate | 24.3% | 11.0% | - The Q1 2025 provision includes a net discrete income tax expense of **$0.5 million**, primarily a **$2.6 million** valuation allowance against deferred tax assets of a foreign subsidiary[64](index=64&type=chunk) - A tax audit in Denmark has proposed tax assessments for 2015-2021 of approximately **$138.0 million** (DKK 951.5 million), excluding interest, which could be material[67](index=67&type=chunk) [Note 12. Business Segments](index=19&type=section&id=Note%2012.%20Business%20Segments) The company operates in three segments: aviation, land, and marine. For Q1 2025, the aviation segment reported an operating income of $56.2 million, while the land segment incurred an operating loss of $45.3 million, and the marine segment reported an operating income of $14.8 million. Overall, consolidated income from operations was $25.7 million before unallocated corporate expenses **Segment Operating Income (Loss) (Millions):** | Segment | Q1 2025 | Q1 2024 | | :-------- | :------ | :------ | | Aviation | $56.2 | $44.0 | | Land | $(45.3) | $18.5 | | Marine | $14.8 | $26.8 | | Total Operating Income - segment profit (loss) | $25.7 | $89.2 | **Segment Revenue (Millions):** | Segment | Q1 2025 | Q1 2024 | | :-------- | :------ | :------ | | Aviation | $4,654.2 | $5,144.2 | | Land | $2,865.4 | $3,416.6 | | Marine | $1,932.9 | $2,390.5 | **Total Assets by Reportable Segment (Millions):** | Segment | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | Aviation segment | $2,466.6 | $2,548.2 | | Land segment | $2,989.1 | $2,970.6 | | Marine segment | $833.5 | $929.6 | | Total reportable segment assets | $6,289.2 | $6,448.5 | [Note 13. Earnings Per Common Share](index=22&type=section&id=Note%2013.%20Earnings%20Per%20Common%20Share) For Q1 2025, the company reported a basic and diluted loss per common share of $(0.37), a significant decrease from basic EPS of $0.46 and diluted EPS of $0.45 in Q1 2024, primarily due to the net loss attributable to World Kinect **Earnings Per Common Share (per share amounts):** | Metric | Q1 2025 | Q1 2024 | | :------------------------------------- | :------ | :------ | | Basic earnings (loss) per common share | $(0.37) | $0.46 | | Diluted earnings (loss) per common share | $(0.37) | $0.45 | - The net loss attributable to World Kinect was **$(21.1) million** in Q1 2025, compared to net income of $27.4 million in Q1 2024[72](index=72&type=chunk) [Note 14. Restructuring and Exit Activities](index=22&type=section&id=Note%2014.%20Restructuring%20and%20Exit%20Activities) In Q1 2025, the company initiated a company-wide transformation, recognizing $15.0 million in restructuring charges, primarily severance costs, with an expectation of approximately $30 million in annualized compensation-related savings. This follows 2024 actions to exit certain operations, including the sale of the U.K. land fuels business - Restructuring charges of **$15.0 million** were recognized during Q1 2025, composed principally of severance costs, with an expectation of approximately **$30 million** in annualized compensation-related savings[73](index=73&type=chunk)[84](index=84&type=chunk) **Accrued Restructuring and Exit Activity Charges (Millions):** | Segment | Accrued charges as of Dec 31, 2024 | Restructuring and exit activity charges (Q1 2025) | Paid during the period (Q1 2025) | Accrued charges as of Mar 31, 2025 | | :---------- | :--------------------------------- | :------------------------------------------ | :------------------------------- | :--------------------------------- | | Aviation | — | $2.2 | $(0.5) | $1.6 | | Land | $1.7 | $7.3 | $(3.3) | $5.7 | | Marine | — | $0.4 | $(0.2) | $0.3 | | Corporate | $0.3 | $5.2 | $(1.0) | $4.5 | | Consolidated | $2.0 | $15.0 | $(4.9) | $12.1 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights World Kinect's global energy management business, ongoing restructuring and divestiture efforts (including the Watson Fuels sale), and segment-specific performance. The company experienced a consolidated revenue decline and operating loss in Q1 2025, attributed to lower fuel prices, reduced demand, and significant asset impairment and restructuring charges. Liquidity remains sufficient, supported by cash, credit facilities, and operating cash flows - World Kinect Corporation is a global energy management company primarily engaged in the distribution of fuel and related products and services in the aviation, land, and marine transportation industries[82](index=82&type=chunk) - The company initiated a company-wide transformation in Q1 2025, resulting in **$15.0 million** in restructuring charges and expected annualized compensation-related savings of approximately **$30 million**[84](index=84&type=chunk) - Consolidated revenue for Q1 2025 decreased by **14%** to **$9.5 billion**, and gross profit decreased by **9%** to **$230.4 million**, leading to an operating loss of **$6.6 million**[94](index=94&type=chunk)[95](index=95&type=chunk) - The company believes its cash and cash equivalents, available funds from its Credit Facility, and cash flows from operations are sufficient to fund working capital and capital expenditure requirements for at least the next twelve months[112](index=112&type=chunk) [Business Overview](index=25&type=section&id=Business%20Overview) World Kinect Corporation is a global energy management company focused on fuel distribution and related services across aviation, land, and marine transportation, also supplying natural gas and power and sustainability-related products - The company is a global energy management company offering fulfillment and related services across the aviation, marine, and land-based transportation sectors, and supplies natural gas and power in the United States and Europe[82](index=82&type=chunk) [Restructuring and Exit Activities](index=25&type=section&id=Restructuring%20and%20Exit%20Activities) The company is undergoing a company-wide transformation, initiating cost management actions in Q1 2025, resulting in $15.0 million in restructuring charges and expected annualized compensation savings of approximately $30 million. This follows 2024 actions to exit certain operations, including the sale of the U.K. land fuels business (Watson Fuels) for $42.8 million - In Q1 2025, the company began a company-wide transformation initiative, recognizing **$15.0 million** in restructuring charges, primarily severance costs, with an expectation of approximately **$30 million** in annualized compensation-related savings[84](index=84&type=chunk) - In 2024, the company took actions to exit certain operations, including rationalization of assets in its North American land business and disposal of operations in Brazil[83](index=83&type=chunk) - The sale of WFL (UK) Ltd. (U.K. land fuels business) closed in **April 2025** for total estimated proceeds of **$42.8 million**[83](index=83&type=chunk) [Reportable Segments](index=25&type=section&id=Reportable%20Segments) The company operates in aviation, land, and marine segments. The aviation segment has seen growth and higher returns, benefiting from working capital management and divesting Avinode Group. The land segment is focused on improving asset utilization and realigning operations, including recent divestitures. The marine segment is positioned for moderate earnings in stable markets and additional value in volatile conditions - Aviation segment has benefited from growth in fuel and related service offerings, enhanced logistics, and geographic expansion, achieving higher returns since **2023** through working capital management[86](index=86&type=chunk) - The land segment focuses on improving asset utilization and realigning its operational platform, including exiting certain operations in North America and Brazil in **2024**, and the Watson Fuels sale in **April 2025**[88](index=88&type=chunk) - The marine business traditionally benefits from elevated fuel prices and volatility, and a constrained credit environment, positioned to generate moderate earnings in stable markets and additional value in volatile markets[89](index=89&type=chunk) [Macroeconomic Environment](index=26&type=section&id=Macroeconomic%20Environment) The company faces ongoing uncertainty from U.S. trade policy, which can lead to volatility in global markets and impact demand. While inflation decelerated in 2024, a significant or prolonged period of trade uncertainty or high inflation, along with higher interest rates, could adversely affect results by increasing costs and interest expense - Significant uncertainty remains regarding the impact of U.S. trade policy on international trade and demand for global transportation services, potentially leading to volatility in financial and commodity markets[90](index=90&type=chunk) - Inflation decelerated in **2024**, but a prolonged period of trade uncertainty or high inflation, along with higher interest rates, could adversely impact the company's results of operations[90](index=90&type=chunk)[92](index=92&type=chunk) - The company mitigates the impact of increases in fuel prices through comprehensive hedging programs and financial derivative contracts[91](index=91&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Consolidated revenue for Q1 2025 decreased by 14% to $9.5 billion, leading to a 9% decrease in gross profit to $230.4 million and a shift from operating income to an operating loss of $6.6 million. This was primarily driven by lower average fuel prices and volumes across all segments, coupled with increased operating expenses from asset impairments and restructuring charges [Consolidated Results of Operations](index=27&type=section&id=Consolidated%20Results%20of%20Operations) Consolidated revenue for Q1 2025 decreased by 14% to $9.5 billion, and gross profit decreased by 9% to $230.4 million. The company reported an operating loss of $6.6 million, a significant decline from an operating income of $63.3 million in Q1 2024, primarily due to increased operating expenses from asset impairments and restructuring charges. Net non-operating expense decreased by $11.3 million due to lower interest expense and higher foreign currency exchange gains **Consolidated Results of Operations (Millions, except per share amounts):** | Metric | Q1 2025 | Q1 2024 | | :-------------------------------- | :------ | :------ | | Revenue | $9,452.5 | $10,951.4 | | Gross profit | $230.4 | $254.1 | | Total operating expenses | $237.0 | $190.8 | | Income (loss) from operations | $(6.6) | $63.3 | | Net income (loss) attributable to World Kinect | $(21.1) | $27.4 | | Basic earnings (loss) per common share | $(0.37) | $0.46 | - The **$1.5 billion** decrease in revenue was attributable to decreases in the land (**$551.2 million**), marine (**$457.6 million**), and aviation (**$490.0 million**) segments[94](index=94&type=chunk) - Operating expenses increased by **$46.2 million**, or **24%**, primarily due to **$44.5 million** in asset impairment charges and **$15.0 million** in restructuring charges[96](index=96&type=chunk) [Aviation Segment Results of Operations](index=28&type=section&id=Aviation%20Segment%20Results%20of%20Operations) Aviation segment revenue decreased by 10% to $4.7 billion in Q1 2025, primarily due to lower average jet fuel prices, despite a 2% increase in volumes. Gross profit increased by 7% to $115.7 million, and income from operations rose by 28% to $56.2 million, benefiting from higher profit contribution from European airport locations and physical inventory business, and lower operating expenses post-Avinode sale **Aviation Segment Results of Operations (Millions, except price per gallon):** | Metric | Q1 2025 | Q1 2024 | | :-------------------------- | :------ | :------ | | Revenue | $4,654.2 | $5,144.2 | | Gross profit | $115.7 | $108.4 | | Income (loss) from operations | $56.2 | $44.0 | | Aviation segment volumes (gallons) | 1,700.2 | 1,673.1 | | Aviation segment average price per gallon | $2.50 | $2.86 | - The increase in gross profit was primarily attributable to higher profit contribution from operated airport locations in Europe, physical inventory business, and business and general aviation activities[100](index=100&type=chunk) - Operating expenses decreased primarily due to lower compensation and general and administrative expenses associated with the Avinode sale[101](index=101&type=chunk) [Land Segment Results of Operations](index=28&type=section&id=Land%20Segment%20Results%20of%20Operations) Land segment revenue decreased by 16% to $2.9 billion in Q1 2025, driven by lower average fuel prices and a 6% decrease in volumes due to the sale of the Brazil fuel business and asset rationalization. Gross profit declined by 19% to $79.0 million, and the segment reported an operating loss of $45.3 million, a significant drop from a $18.5 million income in Q1 2024, primarily due to lower profit contribution and increased operating expenses from asset impairments and restructuring **Land Segment Results of Operations (Millions, except price per gallon):** | Metric | Q1 2025 | Q1 2024 | | :-------------------------- | :------ | :------ | | Revenue | $2,865.4 | $3,416.6 | | Gross profit | $79.0 | $97.3 | | Income (loss) from operations | $(45.3) | $18.5 | | Land segment volumes (gallons) | 1,494.3 | 1,598.1 | | Land segment average price per gallon | $1.92 | $2.14 | - The decrease in revenue was driven by lower average fuel prices (**10% decrease**) and a decrease in total volumes (**6% decrease**), primarily attributable to the sale of the Brazil fuel business and asset rationalization in North America[103](index=103&type=chunk) - Operating expenses increased due to asset impairment charges recognized in connection with the Watson Fuels sale and restructuring charges during Q1 2025[105](index=105&type=chunk) [Marine Segment Results of Operations](index=29&type=section&id=Marine%20Segment%20Results%20of%20Operations) Marine segment revenue decreased by 19% to $1.9 billion in Q1 2025, driven by lower average fuel prices and a 14% decrease in volumes due to reduced demand and market uncertainty. Gross profit declined by 26% to $35.7 million, and income from operations decreased by 45% to $14.8 million, primarily due to lower bunker fuel prices, reduced volatility, and lower margins in resale and physical businesses **Marine Segment Results of Operations (Millions, except price per metric ton):** | Metric | Q1 2025 | Q1 2024 | | :-------------------------- | :------ | :------ | | Revenue | $1,932.9 | $2,390.5 | | Gross profit | $35.7 | $48.4 | | Income (loss) from operations | $14.8 | $26.8 | | Marine segment volumes (metric tons) | 3.7 | 4.3 | | Marine segment average price per metric ton | $519.49 | $552.04 | - The decrease in gross profit was principally due to lower bunker fuel prices, reduced volatility, and lower margins in resale and physical businesses as a result of increasing market uncertainty[107](index=107&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company believes its cash, Credit Facility, and operating cash flows are sufficient to fund working capital and capital expenditures for the next twelve months. Liquidity is influenced by customer receipts, supplier payments, and fuel prices. Key liquidity sources include $350.0 million Convertible Notes due 2028 and a $1.5 billion revolving Credit Facility, which has covenants that can impact availability - The company believes its cash and cash equivalents as of March 31, 2025, and available funds from its Credit Facility, together with cash flows generated by operations, are sufficient to fund working capital and capital expenditure requirements for at least the next twelve months[112](index=112&type=chunk) - Key liquidity sources include **$350.0 million** aggregate principal amount of 3.250% Convertible Senior Notes due 2028 and a revolving credit facility of up to **$1.5 billion** under the Fourth Amended and Restated Credit Agreement[113](index=113&type=chunk)[114](index=114&type=chunk) - Availability under the Credit Facility is limited by covenants, including a consolidated total leverage ratio of not more than **4.75 to 1**[114](index=114&type=chunk)[115](index=115&type=chunk) [Cash Flows](index=31&type=section&id=Cash%20Flows) For Q1 2025, net cash provided by operating activities increased slightly to $114.4 million, driven by RPA activity and tax refunds, offset by derivative activities. Net cash used in investing activities decreased to $5.8 million due to lower capital expenditures and notes receivable repayments. Net cash used in financing activities significantly decreased to $32.4 million, primarily due to lower deferred acquisition payments and net debt repayments, despite common stock repurchases **Major Categories of Cash Flows (Millions):** | Cash Flow Activity | Q1 2025 | Q1 2024 | | :----------------------------------- | :------ | :------ | | Net cash provided by operating activities | $114.4 | $110.2 | | Net cash provided by (used in) investing activities | $(5.8) | $(16.9) | | Net cash provided by (used in) financing activities | $(32.4) | $(64.3) | - The **$4.1 million** increase in operating cash flows was principally due to increased cash provided by RPA activity and the collection of transaction tax refunds[121](index=121&type=chunk) - Net cash used in financing activities decreased primarily due to lower payments of deferred consideration for acquisitions (**$0.4 million** in Q1 2025 vs. **$50.7 million** in Q1 2024) and net repayments under the Credit Facility[123](index=123&type=chunk) [Critical Accounting Estimates](index=31&type=section&id=Critical%20Accounting%20Estimates) The company's critical accounting estimates, including impairment assessments of goodwill, long-lived assets, and equity investments, remain unchanged from the 2024 10-K Report. The land reporting unit is considered at risk as of March 31, 2025, due to its fair value not exceeding its carrying amount by more than 10% - There have been no material changes to the Critical Accounting Estimates disclosed in the 2024 10-K Report[125](index=125&type=chunk) - The land reporting unit is considered at risk as of March 31, 2025, as its fair value does not exceed its carrying amount by more than **10%**[126](index=126&type=chunk) **Goodwill Balances by Reporting Unit (March 31, 2025, Millions):** | Reporting Unit | Goodwill Balance | | :------------- | :--------------- | | Land | $831.9 | | Aviation | $354.5 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the company's exposures to commodity price, interest rate, or foreign currency risk since December 31, 2024 - No material changes to the company's exposures to commodity price, interest rate, or foreign currency risk since **December 31, 2024**[129](index=129&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2025. There were no material changes in internal control over financial reporting during the three months ended March 31, 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of **March 31, 2025**[132](index=132&type=chunk) - There were no changes in internal control over financial reporting that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting during the three months ended **March 31, 2025**[133](index=133&type=chunk) [PART II. Other Information](index=33&type=section&id=PART%20II.%20Other%20Information) This section details legal proceedings, equity security sales, director trading plans, and required exhibits [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal and tax proceedings, including ongoing tax audits in the U.S. and foreign jurisdictions (e.g., Denmark, South Korea) and claims arising in the ordinary course of business. While no current proceedings are expected to have a material adverse effect, an unfavorable resolution of any matter could be material to a specific reporting period - The company is under review by the IRS and various other domestic and foreign tax authorities regarding income tax and indirect tax matters[136](index=136&type=chunk) - The company is a party to various claims, complaints, and proceedings arising in the ordinary course of business, including environmental, commercial, governmental contract, and personal injury claims[137](index=137&type=chunk) - No current claim, complaint, or proceeding is expected to have a material adverse effect on the company's business or financial condition, but an adverse resolution could be material for a particular reporting period[139](index=139&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased 351 thousand shares of common stock at an average price of $28.38 per share, totaling approximately $10.0 million. As of March 31, 2025, approximately $227.0 million remained available under the existing stock repurchase authorizations **Issuer Purchases of Equity Securities (Q1 2025):** | Metric | Value | | :-------------------------------- | :---- | | Total Number of Shares Purchased | 351 thousand | | Average Price Paid Per Share | $28.38 | | Approximate Dollar Value of Shares Purchased | $10.0 million | | Approximate Dollar Value of Shares that May Yet Be Purchased | $227.0 million | - The company has two stock repurchase programs, approved in **March 2020** and **September 2024**, authorizing a total of **$400.0 million** in common stock repurchases, with no expiration date[140](index=140&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) A director, Jorge Benitez, adopted a Rule 10b5-1 trading plan on March 6, 2025, for the sale of up to 13,000 shares of common stock, expiring by March 6, 2026. No other officers or directors adopted or terminated such plans in Q1 2025 - On **March 6, 2025**, director Jorge Benitez adopted a Rule 10b5-1 trading plan for the sale of up to **13,000 shares** of common stock, expiring by **March 6, 2026**[141](index=141&type=chunk) - No other officers or directors adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended **March 31, 2025**[142](index=142&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the 10-Q Report, including certifications from the CEO and CFO (Exhibits 31.1, 31.2, 32.1) and XBRL formatted financial statements (Exhibits 101, 104) - Exhibits include certifications from the Chief Executive Officer (**31.1**) and Chief Financial Officer (**31.2**) pursuant to Rule 13a-14(a) or Rule 15d-14(a), and under Section 906 of the Sarbanes-Oxley Act of 2002 (**32.1**)[143](index=143&type=chunk) - XBRL formatted financial statements (Condensed Consolidated Balance Sheets, Income, Equity, Cash Flows, and Notes) are filed as Exhibit **101**, with the cover page interactive file as Exhibit **104**[143](index=143&type=chunk) [SIGNATURES](index=35&type=section&id=SIGNATURES) This section provides the official signatures of the company's executive officers for the quarterly report [Signatures](index=35&type=section&id=Signatures) The Quarterly Report on Form 10-Q was signed on behalf of World Kinect Corporation by Michael J. Kasbar, Chairman and Chief Executive Officer, and Ira M. Birns, President and Chief Financial Officer, on April 25, 2025 - The report was signed by Michael J. Kasbar, Chairman and Chief Executive Officer, and Ira M. Birns, President and Chief Financial Officer[146](index=146&type=chunk) - The signing date for the report was **April 25, 2025**[146](index=146&type=chunk)

Financial Data and Key Metrics Changes - The first quarter consolidated volume was 4.2 billion gallons, down 5% year over year [21] - Consolidated gross profit declined 9% from last year's first quarter to $230 million [21] - Adjusted operating expenses were $178 million in the first quarter, down 6% year over year [30] - Interest expense was $23 million in the first quarter, down over 20% year over year [31] - The adjusted effective tax rate in the first quarter was 15%, lower than the full-year guidance range of 22% to 25% [32] Business Line Data and Key Metrics Changes - Aviation volume was 1.7 billion gallons, up 2% year over year, with gross profit of $116 million, a 7% increase [23] - Land volumes decreased 6% year over year, with adjusted gross profit of $79 million, a 19% decline [25] - Marine volumes were down 14% year over year, with gross profit declining about 26% [27] Market Data and Key Metrics Changes - The North American liquid land fuel business was negatively impacted by market trends and broader economic conditions [9] - Volume in Singapore, the world's largest bunker fuel hub, dropped to its lowest level in nearly two years [28] Company Strategy and Development Direction - The company is focused on streamlining its portfolio and reducing fixed costs to improve profitability and reduce earnings volatility [8] - Recent divestments of the Brazilian and UK land businesses are part of the strategy to concentrate on core business activities [10][11] - The company aims to leverage its expertise in last half-mile distribution solutions for sustainable growth [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds but expressed confidence in achieving strategic and operational objectives [8] - The company expects profit improvement from restructuring actions by the second half of 2025 [10] - Despite uncertainty in some markets, management anticipates second quarter consolidated gross profit to be in the range of $235 to $244 million [29] Other Important Information - The company generated operating cash flow of $114 million and free cash flow of $99 million in the first quarter [32] - The company repurchased $10 million of shares during the first quarter [32] Q&A Session Summary Question: Details on the UK sale and its impact on land volumes - The UK land business generated an operating loss in 2024, and its sale is expected to improve Land's operating margin [40][41] Question: Clarification on land segment performance and future expectations - The company expects to perform better than the previous year's weak second quarter, despite ongoing economic uncertainty [62] Question: Insights on restructuring actions and expected savings - A $15 million charge was taken for restructuring, expected to result in about $30 million of annualized cost savings [85] Question: M&A opportunities in the current environment - The pipeline for acquisitions remains stable, with some opportunities arising from more reasonable seller expectations [90]

Financial Performance - For the quarter ended March 2025, World Kinect (WKC) reported revenue of $9.45 billion, down 13.7% year-over-year, and EPS of $0.48, slightly up from $0.47 in the same quarter last year [1] - The reported revenue was below the Zacks Consensus Estimate of $10.27 billion, resulting in a revenue surprise of -7.99%, while the EPS exceeded the consensus estimate of $0.45, yielding an EPS surprise of +6.67% [1] Key Metrics - World Kinect's stock has returned -16.3% over the past month, compared to a -5.1% change in the Zacks S&P 500 composite [3] - The company currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Segment Performance - Aviation volume was reported at 1,700.2 million gallons, exceeding the average estimate of 1,646.91 million gallons, with revenue of $4.65 billion, above the $4.41 billion estimate, but showing a year-over-year decline of -9.5% [4] - Land segment revenue was reported at $2.87 billion, significantly below the $3.68 billion estimate, reflecting a year-over-year decline of -16.1% [4] - Marine segment revenue was $1.93 billion, also below the $2.22 billion estimate, with a year-over-year decline of -19.1% [4] - Income from operations in the Aviation segment was $56.20 million, surpassing the estimate of $42.91 million, while Land reported a loss of -$45.30 million against an expected profit of $15.38 million [4]