About World Kinect Corporation Headquartered in Miami, Florida, World Kinect Corporation (NYSE: WKC) is a global energy management company offering fulfillment and related services to customers across the aviation, marine, and land transportation sectors. We also supply natural gas along with a complementary suite of sustainability-related products and services. Share MIAMI--(BUSINESS WIRE)-- World Kinect Corporation(NYSE: WKC) announced today that its board of directors has declared a quarterly cash divide ...

Core Insights - World Kinect Corporation (NYSE:WKC) is recognized as one of the 10 Best Affordable Energy Stocks to Buy, indicating its potential attractiveness to investors [1] - Morgan Stanley has reduced the price target for WKC from $27 to $25, maintaining an Underweight rating due to concerns over midstream equity pullback risks and increased uncertainty in global oil and gas markets following U.S. military actions against Iran [2] - Wolfe Research has ranked WKC sixth among small and mid-cap companies for its high dividend growth and solid unlevered free cash flow yields, highlighting its strong performance metrics [3] Financial Performance - In Q4, WKC reported an EPS of $0.30, which was $0.17 below the forecasted EPS of $0.47, and revenue of $9.03 billion, missing the consensus estimate of $9.41 billion. Following this, the stock has declined by approximately 8% [4] - For FY26, WKC anticipates an EPS range of $2.20 to $2.40, suggesting expectations for future growth despite recent performance challenges [4] Company Overview - World Kinect Corporation, established in 1984, is a Florida-based energy management company operating in three segments: Aviation, Land, and Marine [4]

Business Strategy - The company is executing a plan to exit unprofitable operations within the land segment, including direct fuel transportation services and certain advisory offerings [21]. - Future focus will be on higher margin cardlock and retail activities, as well as the natural gas business, expected to improve operating leverage and cash flow [22]. - The company is actively pursuing acquisitions and strategic transactions to enhance its market position [49]. - The company is committed to integrating acquired businesses effectively to realize anticipated benefits [51]. Market Conditions - The marine segment serves a broad base of customers, providing real-time market intelligence and access to competitively priced marine fuel [23]. - The majority of marine segment activity consists of spot sales, with costs tied to spot pricing and market-based formulas [24]. - Seasonal variability affects operating results, with stronger performance in the second and third quarters for the aviation segment due to travel demand [26]. - The company anticipates macroeconomic conditions, including inflation, will impact its operations and financial performance [49]. - The company is monitoring the impact of geopolitical tensions, particularly in Eastern Europe and the Middle East, on its business [52]. Regulatory Compliance - Compliance with environmental regulations may require capital expenditures and increase operating costs, impacting demand for products and services [28]. - The company is subject to evolving climate change regulations, including GHG emissions reporting and state-level cap-and-trade programs [31]. - The European Union aims to reduce net GHG emissions by at least 55% by 2030, influencing regulatory frameworks globally [35]. - The company acknowledges risks related to compliance with environmental regulations, which could increase operating costs [52]. Financial Performance - The company expects growth in its core businesses, although specific growth rates were not disclosed [49]. - Fuel prices and working capital requirements are projected to significantly affect the company's liquidity and capital expenditures [49]. - The company emphasizes the importance of maintaining sufficient liquidity to fund working capital and strategic investments [52]. - The company is focused on mitigating financial risks associated with derivatives and physical fuel products [51]. - The company faces potential adverse conditions in the industries where its customers operate, which could impact revenue [51]. Employee Commitment - The company is committed to investing in employee growth and well-being, offering competitive compensation and professional development opportunities [48].

Core Insights - World Kinect (WKC) reported a revenue of $9.03 billion for the quarter ended December 2025, reflecting a year-over-year decline of 7.5% and an EPS of $0.30 compared to $0.62 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $9.22 billion, resulting in a surprise of -2.12%, while the EPS surprise was -36.17% against a consensus estimate of $0.47 [1] Financial Performance Metrics - The company’s performance metrics indicate a decline in operational income across various segments: - Land: Income loss of $292.2 million compared to an average estimate of $12.35 million [4] - Aviation: Income of $54.2 million versus an average estimate of $69.35 million [4] - Marine: Income of $7 million compared to an average estimate of $9.47 million [4] - Volume metrics also showed discrepancies with: - Land volume at 1,392.70 million gallons against an average estimate of 1,412.81 million gallons [4] - Aviation volume at 1,763.10 million gallons compared to an average estimate of 1,771.94 million gallons [4] Stock Performance - Over the past month, shares of World Kinect have returned -0.8%, aligning with the Zacks S&P 500 composite's -0.8% change, and the stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - World Kinect reported quarterly earnings of $0.3 per share, missing the Zacks Consensus Estimate of $0.47 per share, and down from $0.62 per share a year ago, representing an earnings surprise of -36.17% [1] - The company posted revenues of $9.03 billion for the quarter ended December 2025, missing the Zacks Consensus Estimate by 2.12%, and down from $9.76 billion year-over-year [2] - World Kinect has not surpassed consensus revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 12.8% since the beginning of the year, outperforming the S&P 500's gain of 0.5% [3] - The current consensus EPS estimate for the coming quarter is $0.35 on revenues of $8.98 billion, and for the current fiscal year, it is $2.41 on revenues of $37.47 billion [7] - The Oil and Gas - Refining and Marketing industry is currently in the bottom 15% of the Zacks industries, indicating potential challenges for stocks in this sector [8]

Financial Data and Key Metrics Changes - The fourth quarter consolidated volume was 4.2 billion gallons, down 5% year-over-year, with full-year volume totaling 16.9 billion gallons, down approximately 4% [16] - Fourth quarter gross profit was $235 million, down 9% year-over-year, and full-year gross profit was $948 million, down 8% from 2024 [16][17] - Total non-GAAP adjustments in the fourth quarter were $325 million, with significant impairments primarily within the land segment [15] Business Line Data and Key Metrics Changes - Aviation volumes in the fourth quarter were 1.8 billion gallons, down 5% year-over-year, but gross profit increased approximately 8% to $130 million due to the Universal Trip Support acquisition [17][18] - Land volumes declined 9% year-over-year in the fourth quarter, with gross profit down 32% to $71 million, driven by unfavorable market conditions and exit activities [20][21] - Marine volumes were approximately 4.1 million metric tons in the fourth quarter, flat year-over-year, while gross profit increased 2% to $35 million [23] Market Data and Key Metrics Changes - The company is focusing on North America for its land business, emphasizing higher margin activities such as cardlock and retail, as well as natural gas [8][10] - The exit from European power and energy management businesses shifts focus to core areas that deliver consistent profitability [10] Company Strategy and Development Direction - The company is reshaping its portfolio to concentrate on businesses that deliver attractive and predictable returns, enhancing financial discipline and operational efficiency [6][12] - The acquisition of Universal Weather and Aviation's trip support services is expected to strengthen the company's role in global aviation services [7] - The strategic shift in the land segment aims to enhance returns and improve profitability, with a focus on cardlock, retail, and natural gas [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the fourth quarter performance fell short of expectations due to competitive pressures and underperformance in certain business lines [12] - The outlook for 2026 reflects confidence in the structural changes made, aiming for more consistent performance and growth in core businesses [13][30] - Management expects adjusted EPS for 2026 to be in the range of $2.20-$2.40, indicating solid year-over-year growth [27] Other Important Information - The company generated $34 million of operating cash flow and $13 million of free cash flow in the fourth quarter, with full-year free cash flow totaling $227 million [28] - An incremental $150 million share repurchase authorization was approved, reflecting confidence in the business [29] Q&A Session Summary Question: Impact of Universal Trip acquisition and tank wagon business sale - The Universal Trip Support business is expected to contribute approximately $70 million in gross profit for 2026, while the tank wagon business exit will shed about 1 billion gallons of volume [34][36] Question: Seasonality in land business after exiting European operations - The seasonality in the land business is expected to improve, with the main seasonality now related to aviation demand [41][42] Question: New model for managing fuel operations with independent operators - The new hybrid model allows for better cash flow and higher margins, with opportunities for growth in the convenience store space [46][47] Question: Competitive pressure in aviation and its implications - While competitive pressure is present, management is optimistic about finding new opportunities to expand airport locations and drive additional volume [50][51] Question: Factors for rebound in marine business - The marine business is influenced by macro factors such as price and volatility, with expectations for stability in 2026 [53][54]

Financial Data and Key Metrics Changes - Q4 consolidated volume was 4.2 billion gallons, down 5% year-over-year, with full-year volume totaling 16.9 billion gallons, down approximately 4% [16] - Q4 gross profit was $235 million, down 9% year-over-year, and full-year gross profit was $948 million, down 8% from 2024 [16][17] - Adjusted operating expenses in Q4 were $186 million, down 6% year-over-year, and for the full year, adjusted operating expenses declined approximately 7% to $718 million [24][25] Business Line Data and Key Metrics Changes - Aviation Q4 volumes were 1.8 billion gallons, down 5% year-over-year, but gross profit increased approximately 8% year-over-year to $130 million due to the Universal Trip Support acquisition [17][18] - Land Q4 volumes declined 9% year-over-year, with gross profit at $71 million, down 32% year-over-year, driven by unfavorable market conditions and exit activities [20][21] - Marine Q4 volumes were approximately 4.1 million metric tons, flat year-over-year, while Q4 gross profit increased 2% year-over-year to $35 million [23] Market Data and Key Metrics Changes - The company is focusing on North America for its land business, particularly in higher margin areas such as cardlock and retail activities, as well as natural gas [8][10] - The exit from European power and energy management businesses allows the company to concentrate on core areas that deliver consistent profitability [10][12] Company Strategy and Development Direction - The company is reshaping its portfolio to focus on businesses that deliver attractive and predictable returns, with a commitment to operational excellence and disciplined capital allocation [6][7] - The acquisition of Universal Weather and Aviation's trip support services is expected to enhance capabilities in flight support and strengthen the global aviation services role [7] - The strategic shift in the land segment aims to improve profitability and transparency regarding long-term growth potential [9][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that Q4 performance fell short of expectations due to competitive pressures and underperformance in certain business lines [12] - The outlook for 2026 reflects confidence in structural changes that simplify the business and enhance focus on core growth areas [13] - Management expects adjusted operating income to nearly double in the refocused land business, despite lower volumes and gross profit [23] Other Important Information - Total non-GAAP adjustments in Q4 were $325 million, primarily due to non-cash intangible and asset impairments [15] - The company generated $34 million of operating cash flow and $13 million of free cash flow in Q4, with full-year free cash flow at $227 million [28] Q&A Session Summary Question: Can you discuss the scale of revenues and operating income from the Universal Trip acquisition? - The gross profit for the Universal Trip Support business is approximately $70 million, with the impact on 2026 expected to be around that figure [35] Question: What impact should we expect from the sale of the tank wagon business? - The company is shedding about 1 billion gallons worth of volume and expects to receive about $100 million from the transaction [36] Question: How will the exit from European businesses affect seasonality in land? - The seasonality in land is expected to improve significantly with the exit of the UK land business, making the business more balanced [41][43] Question: Can you elaborate on the new model of owning and managing fuel operations? - The new hybrid model allows for better cash flow and higher margins by owning the fuel and partnering with independent operators for convenience stores [47][48] Question: What are the expectations for the marine business rebound? - The marine business is stable but relies on macro factors such as price and volatility, which are currently low [53][54]

Financial Data and Key Metrics Changes - The fourth quarter consolidated volume was 4.2 billion gallons, down 5% year-over-year, with full-year volume totaling 16.9 billion gallons, down approximately 4% [18] - Fourth quarter gross profit was $235 million, down 9% year-over-year, and full-year gross profit was $948 million, down 8% from 2024 [18][19] - Total non-GAAP adjustments in the fourth quarter were $325 million, primarily due to $247 million of non-cash intangible and other asset impairments [17] Business Line Data and Key Metrics Changes - Aviation volumes in the fourth quarter were 1.8 billion gallons, down 5% year-over-year, but gross profit increased approximately 8% to $130 million due to the Universal Trip Support acquisition [19] - Land volumes declined 9% year-over-year in the fourth quarter, with gross profit down 32% to $71 million, driven by unfavorable market conditions and strategic exits [22] - Marine volumes were approximately 4.1 million metric tons in the fourth quarter, flat year-over-year, while gross profit increased 2% to $35 million [25] Market Data and Key Metrics Changes - The company is focusing on North America for its land business, particularly in higher margin areas such as cardlock and retail activities, as well as natural gas [10] - The exit from European power and energy management businesses shifts focus to core businesses that deliver more consistent profitability [11] Company Strategy and Development Direction - The company is reshaping its portfolio to concentrate on businesses that deliver attractive and predictable returns, enhancing efficiency and financial discipline [6][8] - A renewed focus on core business and operational excellence is expected to drive sustainable growth, with significant changes in the land segment aimed at improving profitability [10][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the fourth quarter performance fell short of expectations due to competitive pressures and underperformance in certain business lines [13] - The outlook for 2026 reflects confidence in structural changes that simplify the business and enhance focus on core growth areas [15] Other Important Information - The company generated $34 million of operating cash flow and $13 million of free cash flow in the fourth quarter, with full-year free cash flow totaling $227 million [30] - An incremental $150 million share repurchase authorization was approved, reflecting confidence in the business [31] Q&A Session Summary Question: Impact of Universal Trip acquisition and tank wagon business sale - The Universal Trip Support business is expected to contribute approximately $70 million in gross profit in 2026, while the tank wagon business exit will shed about 1 billion gallons of volume [36][38] Question: Seasonality in land business post-exits - The seasonality in the land business is expected to improve with the exit of non-core activities, while aviation will still experience seasonal demand fluctuations [44][46] Question: New business model for fuel management - The new model involves owning or leasing sites and partnering with independent operators, which is expected to improve cash flow and margins [48][49] Question: Competitive pressure in aviation - While competitive pressure is anticipated, the company is exploring new opportunities to expand airport locations to offset margin pressures [51] Question: Marine business rebound factors - The marine business is influenced by macro factors such as price and volatility, with expectations for stability in 2026 unless market conditions improve [55]

Fourth Quarter 2025 Earnings Call February 19, 2026 © Copyright 2026 World Kinect Corporation. Proprietary & Confidential. All Rights Reserved. 1 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 t ...

Financial Performance - Fourth quarter 2025 gross profit was $235 million, a decrease of 9% compared to $259 million in Q4 2024[6] - GAAP net loss for Q4 2025 was $280 million, or $5.11 per diluted share, compared to a loss of $101 million, or $1.77 per diluted share in Q4 2024[6] - Adjusted net income for Q4 2025 was $17 million, or $0.30 per diluted share, down 52% from $0.62 per diluted share in Q4 2024[6] - Full year 2025 gross profit totaled $948 million, an 8% decline from $1,026 million in 2024[6] - Total revenue for the year ended December 31, 2025, was $36,916.6 million, a decrease of 12.0% compared to $42,168.0 million in 2024[30] - Gross profit for the year ended December 31, 2025, was $947.8 million, down from $1,026.4 million in 2024, reflecting a gross margin of 2.7%[30] - Net loss attributable to World Kinect for the year ended December 31, 2025, was $614.4 million, compared to a net income of $67.4 million in 2024[30] - Basic earnings per share for the year ended December 31, 2025, was $(10.99), a significant decline from $1.14 in 2024[30] - Total revenue for the three months ended December 31, 2025, was $9,029.0 million, a decrease of 7.5% compared to $9,760.5 million for the same period in 2024[34] - The company reported a net loss of $279.5 million for the three months ended December 31, 2025, compared to a loss of $101.2 million in the same period of 2024[32] - Gross profit for the total company was $235.4 million for the three months ended December 31, 2025, down from $258.9 million in 2024, reflecting a gross margin decline[34] - The company reported a comprehensive loss attributable to World Kinect of $540.7 million for the year ended December 31, 2025, compared to a comprehensive income of $125.3 million in 2024[30] Operating Expenses - Operating expenses for Q4 2025 increased by 123% to $511 million, compared to $229 million in Q4 2024[7] - Restructuring and exit-related costs for Q4 2025 were recorded at $77 million, primarily due to exits from non-core business activities[6] - Operating expenses for the year ended December 31, 2025, totaled $1,512.5 million, up from $815.7 million in 2024, primarily due to goodwill and asset impairments[30] - The company incurred goodwill and other asset impairment charges of $246.5 million for the three months ended December 31, 2025, compared to $25.3 million in 2024[32] - The company incurred $689.6 million in goodwill and other asset impairments for the year ended December 31, 2025, compared to $29.0 million in 2024[39] - Restructuring and exit costs for the year ended December 31, 2025, totaled $103.1 million, up from $7.1 million in 2024[39] Cash Flow and Assets - The company generated $293 million of operating cash flow and $227 million of free cash flow in 2025[6] - Cash and cash equivalents decreased to $193.5 million as of December 31, 2025, from $382.9 million in 2024[28] - Total current assets decreased to $3,500.5 million as of December 31, 2025, from $3,959.2 million in 2024[28] - Total liabilities decreased to $4,556.1 million as of December 31, 2025, compared to $4,775.8 million in 2024[28] - Total cash and cash equivalents at the end of the period were $193.5 million, down from $382.9 million at the end of the previous year[32] - The net cash provided by operating activities for the year ended December 31, 2025, was $292.9 million, compared to $259.9 million in 2024[39] - Free cash flow for the year ended December 31, 2025, was $227.3 million, an increase from $191.7 million in 2024[39] Segment Performance - The Aviation segment generated revenue of $4,746.2 million for the three months ended December 31, 2025, slightly up from $4,737.8 million in 2024, while the Land segment revenue decreased by 18.2% to $2,414.1 million[34] - The Land segment has substantially completed its strategic repositioning, with additional non-core business exits planned for 2026[6] - The Land segment reported an operating loss of $292.2 million for the three months ended December 31, 2025, compared to an operating income of $11.7 million in 2024[34] - The consolidated total sales volume for the three months ended December 31, 2025, was 4,240.8 million gallons, a decrease of 5.2% from 4,472.4 million gallons in 2024[36] Future Outlook - For 2026, the company expects adjusted diluted EPS to be in the range of $2.20 to $2.40[13] - The company completed the acquisition of Universal Weather and Aviation's Trip Support Services division, enhancing its aviation service capabilities[6] - Adjusted EBITDA for the year ended December 31, 2025, was $717.5 million, while for 2024 it was $230.3 million, indicating a significant increase[39] - Acquisition and divestiture related expenses were $0.8 million for both the three months ended December 31, 2025, and 2024[39] - The company experienced a loss on the sale of business of $0.4 million for the three months ended December 31, 2025, compared to a gain of $111.3 million in 2024[39] - Integration costs for the year ended December 31, 2025, were $1.0 million, consistent with the previous year[39]