Financial Data and Key Metrics Changes - In Q3 2025, the company generated revenue of $1.8 billion, a decrease of 36% year-over-year, primarily due to lower freight rates and volume [4][13] - Net income for Q3 was $123 million, down from $1.1 billion in the same quarter last year [20] - Adjusted EBITDA was $593 million with a margin of 33%, and adjusted EBIT was $260 million with a margin of 15%, compared to 55% and 45% respectively in Q3 2024 [19][20] - Total liquidity remained at $3 billion as of September 30, 2025 [4] Business Line Data and Key Metrics Changes - The average freight rate per TEU in Q3 was $1,602, down from $2,480 in Q3 2024 [14] - Carried volume in Q3 was 926,000 TEUs, a 4.5% decline year-over-year, but a 3.5% increase sequentially [20] - Revenues from non-containerized cargo totaled $78 million, down from $145 million in Q3 2024, attributed to lower volume and rates [14] Market Data and Key Metrics Changes - Trans-Pacific volume decreased by 1.5% year-over-year but increased by 17% sequentially [21] - Latin America trade volumes grew by 2.4% year-over-year [21] - The company noted ongoing geopolitical and trade tensions affecting the shipping industry [4] Company Strategy and Development Direction - The company is focusing on diversifying its network, particularly in Southeast Asia and Latin America, to capture new trade opportunities as global trade patterns evolve [7][8] - A significant charter agreement for 10 LNG dual-fuel vessels is expected to enhance operational flexibility and sustainability [9][10] - The company aims to maintain a modern fleet, with approximately 60% of its capacity being new builds and 40% LNG-powered [10] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the fourth quarter, expecting weaker performance than initially projected [5][6] - The reopening of the Suez Canal is anticipated to improve fleet efficiency but may also increase supply pressure on freight rates [12][25] - The company remains confident in its strategy and competitive position despite ongoing market volatility [10][11] Other Important Information - The board declared a dividend of $0.31 per share, totaling approximately $37 million, representing 30% of Q3 net income [5] - Total dividends distributed since the IPO amount to approximately $5.7 billion, reflecting a strong commitment to returning capital to shareholders [5][48] Q&A Session Summary Question: Management buyout discussions - Management stated that there are no comments on the potential management buyout, and the board will decide on any related matters [28][30] Question: Return to the Red Sea - Management confirmed plans to return to the Red Sea and Suez Canal as soon as insurance approvals are obtained [32][44] Question: Dividend policy during negative net income - Management reiterated the dividend policy of distributing 30% of net profit quarterly, with the possibility of special dividends at the board's discretion [39][42] Question: Cost expectations for 2026 - Management indicated that costs would likely remain under pressure due to the current market dynamics and the need to redeliver older vessels [34][35] Question: Route profitability and capacity adjustments - Management noted that profitability varies by route and emphasized the importance of reliability in service as they expand into new markets [66][68]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated revenue of $1.8 billion, a decrease of 36% year-over-year, primarily due to lower freight rates and volumes [4][13] - Net income for Q3 was $123 million, down from $1.1 billion in the same quarter last year [20] - Adjusted EBITDA was $593 million with a margin of 33%, and adjusted EBIT was $260 million with a margin of 15%, compared to 55% and 45% respectively in Q3 2024 [19][20] - Total liquidity remained strong at $3 billion as of September 30, 2025 [4] Business Line Data and Key Metrics Changes - The average freight rate per TEU in Q3 was $1,602, down from $2,480 in Q3 2024 [14] - Carried volume in Q3 was 926,000 TEUs, a 4.5% decline year-over-year, but a 3.5% increase sequentially [20] - Revenues from non-containerized cargo totaled $78 million, down from $145 million in Q3 2024, attributed to lower volume and rates [14] Market Data and Key Metrics Changes - Trans-Pacific volume decreased by 1.5% year-over-year but increased by 17% sequentially [21] - Latin America trade volumes grew by 2.4% year-over-year, indicating ongoing opportunities in that region [21] Company Strategy and Development Direction - The company is focusing on diversifying its network, particularly in Southeast Asia and Latin America, to capture new trade growth as manufacturers diversify production away from China [7][8] - A significant charter agreement for 10 LNG dual-fuel vessels is expected to enhance operational flexibility and support long-term growth [9][10] - The company is preparing for a potential return to the Suez Canal, which could improve fleet efficiency but also increase supply pressure on freight rates [12][25] Management Comments on Operating Environment and Future Outlook - The management highlighted ongoing geopolitical and trade tensions as significant challenges, but expressed confidence in the company's ability to navigate these headwinds [4] - The fourth quarter is expected to trend weaker than originally projected, but the company has refined its full-year guidance based on strong year-to-date performance [5][6] - The outlook for container shipping remains cautious, with supply growth expected to outpace demand in the near future [22][23] Other Important Information - The company has declared a dividend of $0.31 per share, totaling approximately $37 million, representing 30% of Q3 net income [5] - Since the IPO, the company has distributed approximately $5.7 billion in dividends, reflecting a strong commitment to returning capital to shareholders [5][48] Q&A Session Summary Question: Management buyout discussions - The management did not provide comments on the potential management buyout, stating that the board will decide on such matters [30] Question: Return to the Red Sea - The management confirmed plans to return to the Red Sea and Suez Canal as soon as insurance approvals are obtained [32][44] Question: Dividend policy during negative net income - The management reiterated the dividend policy of distributing 30% of net profit quarterly, with the possibility of special dividends [40][42] Question: EBIT guidance adjustments - The management explained the reduction in the upper end of EBIT guidance due to changes in depreciation and amortization estimates [45] Question: Cost savings and network resizing - The management is considering resizing the network and focusing on maintaining efficient vessels while letting go of older, less efficient ones [53][54] Question: Route profitability and capacity adjustments - The management indicated that profitability varies by route and emphasized the importance of reliability in service as they expand into new markets [66][70]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated revenue of $1.8 billion, a decrease of 36% year-over-year, primarily due to lower freight rates and volumes [12][13] - Net income for Q3 was $123 million, down from $1.1 billion in the same quarter last year [18] - Adjusted EBITDA was $593 million with a margin of 33%, and adjusted EBIT was $260 million with a margin of 15%, compared to 55% and 45% respectively in Q3 2024 [18] - Total liquidity remained strong at $3 billion as of September 30, 2025 [4] Business Line Data and Key Metrics Changes - The company carried 926,000 TEUs in Q3, a 4.5% decline year-over-year, but a 3.5% increase sequentially [18] - Average freight rate per TEU in Q3 was $1,602, down from $2,480 in Q3 2024 [13] - Revenues from non-containerized cargo totaled $78 million, down from $145 million in Q3 2024, attributed to lower volumes and rates [13] Market Data and Key Metrics Changes - Trans-Pacific volume decreased by 1.5% year-over-year but increased by 17% sequentially [19] - Latin America trade volumes grew by 2.4% year-over-year, indicating ongoing opportunities in that region [19] Company Strategy and Development Direction - The company is focusing on diversifying its network, particularly in Southeast Asia and Latin America, to capture new trade opportunities as global trade patterns evolve [7][8] - A strategic emphasis is placed on maintaining a modern fleet, with approximately 60% of capacity being new builds and 40% LNG-powered vessels [10] - The company is preparing for a potential return to the Suez Canal, which could improve fleet efficiency but also increase supply pressure on freight rates [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing geopolitical and trade tensions impacting the shipping industry, emphasizing the need for agility [4] - The fourth quarter is expected to trend weaker than originally projected, but the company has refined its full-year guidance based on year-to-date performance [6][20] - The outlook for container shipping remains cautious, with supply growth expected to outpace demand in the near future [22] Other Important Information - The Board of Directors declared a dividend of $0.31 per share, totaling approximately $37 million, consistent with the company's dividend policy [5] - The company has distributed a total of approximately $1.1 billion in dividends throughout 2024 and 2025 [5] Q&A Session Summary Question: Management buyout discussions and board changes - The board is managing the process of board member changes, with two resignations and two new appointments [25] Question: Return to the Red Sea and market share opportunities - The company is awaiting insurance approval to return to the Red Sea and Suez Canal, viewing it as an opportunity to capture market share [26] Question: Dividend policy in light of potential negative net income - The company maintains a policy of distributing 30% of net profit quarterly, with the potential for special dividends [30] Question: Cost expectations for 2026 - The company anticipates continued redelivery of vessels due to elevated charter market costs and a downward trend in operated tonnage [27] Question: Route profitability and capacity adjustments - The company is diversifying routes but profitability varies based on market conditions, with a focus on maintaining reliable service [43][45] Question: Future rate recovery and supply-demand dynamics - The company expects pressure on rates due to new capacities entering the market, with potential stabilization linked to vessel retirements [46][47]

Investor Presentation Q3 2025 FINANCIAL RESULTS November 20 , 2025 Disclaimer Forward - Looking Statements Investor Presentation 2 Q3 2025 : Strategic Focus Delivers Solid Financial Results Heightened market volatility The following information contains, or may be deemed to contain forward-looking statements (as defined in the U.S . Private Securities Litigation Reform Act of 1995). In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expect," ...

Core Viewpoint - ZIM Integrated Shipping Services Ltd. has faced accumulating headwinds, leading to a bearish outlook earlier in the year, despite recent recovery in shipping rates [1]. Group 1: Company Analysis - ZIM has been under scrutiny due to various challenges impacting its performance in the shipping industry [1]. - The recent recovery in shipping rates may indicate a potential turnaround for ZIM, although the overall market conditions remain uncertain [1]. Group 2: Industry Perspective - The shipping industry is characterized by cyclical trends, which can offer significant returns during economic recovery phases [1]. - A diversified investment strategy that includes exposure to cyclical sectors, along with fixed-income investments, is essential for balancing risk in the current market environment [1].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings and revenues for ZIM Integrated Shipping Services in its upcoming quarterly report, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - ZIM is expected to report quarterly earnings of $1.67 per share, reflecting a significant year-over-year decrease of 82.1% [3]. - Revenues are projected to be $1.93 billion, down 30.1% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - ZIM's Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -24.32%, suggesting a bearish sentiment among analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a strong predictor being a positive Earnings ESP combined with a favorable Zacks Rank [10][12]. - ZIM currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat [12]. Historical Performance - In the last reported quarter, ZIM was expected to post earnings of $1.5 per share but only achieved $0.19, resulting in a surprise of -87.33% [13]. - Over the past four quarters, ZIM has beaten consensus EPS estimates three times [14]. Industry Context - Another company in the shipping industry, Star Bulk Carriers, is expected to report earnings of $0.28 per share, indicating a year-over-year decline of 60.6% [18]. - Star Bulk Carriers has a Zacks Rank of 4, making it difficult to predict an earnings beat, similar to ZIM's situation [20].

Core Insights - ZIM Integrated Shipping Services' stock closed at $15.41, reflecting a +1.05% increase from the previous day, outperforming the S&P 500's gain of 0.21% [1] - Over the past month, ZIM's shares have risen by 19.89%, significantly exceeding the Transportation sector's gain of 3.32% and the S&P 500's gain of 4.36% [1] Earnings Expectations - The upcoming earnings report for ZIM is scheduled for November 20, 2025, with an expected EPS of $1.67, indicating an 82.12% decline compared to the same quarter last year [2] - Quarterly revenue is anticipated to be $1.93 billion, down 30.11% from the previous year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $3.78 per share, representing a -78.79% change from the prior year, while revenue is expected to be $7.15 billion, down 15.15% [3] Analyst Estimates - Recent changes to analyst estimates for ZIM are crucial as they reflect the evolving business landscape, with positive revisions indicating analyst optimism about profitability [4] - The Zacks Rank system, which incorporates estimate changes, has shown a strong track record of outperforming the market [5] Zacks Rank and Valuation - ZIM currently holds a Zacks Rank of 3 (Hold), with a 5.38% decrease in the consensus EPS estimate over the last 30 days [6] - The company is trading at a Forward P/E ratio of 4.03, which is a discount compared to the industry average Forward P/E of 12.12 [7] Industry Context - The Transportation - Shipping industry, to which ZIM belongs, has a Zacks Industry Rank of 55, placing it in the top 23% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Core Insights - ZIM Integrated Shipping Services has attracted attention from income-focused investors due to its significant dividend yield [1] Company Analysis - The company is viewed as undervalued and has strong fundamentals and cash flows, making it appealing for long-term value investing [1] - The analyst expresses a preference for sectors like Oil & Gas and consumer goods, indicating a focus on industries that are currently out of favor but have potential for substantial returns [1] Investment Strategy - The analyst emphasizes a long-term value investing approach while also exploring deal arbitrage opportunities in various companies [1] - There is a noted aversion to investing in high-tech businesses and certain consumer goods, with a preference for more traditional products [1]

Core Insights - ZIM Integrated Shipping Services has attracted attention from income-focused investors due to its significant dividend yield [1] Company Analysis - The company is viewed as undervalued and has strong fundamentals and cash flows, making it appealing for long-term value investing [1] - The analyst expresses a preference for sectors like Oil & Gas and consumer goods, indicating a focus on companies that are currently out of favor but have potential for substantial returns [1] Investment Strategy - The analyst emphasizes a long-term value investing approach while also exploring deal arbitrage opportunities in various sectors [1] - There is a noted aversion to investing in high-tech businesses and certain consumer goods, suggesting a preference for more traditional and understandable investments [1]

Core Viewpoint - The company emphasizes providing actionable and clear investment ideas through independent research, aiming to help members outperform the S&P 500 and avoid significant losses during market volatility [1] Investment Strategy - The service offers at least one in-depth article per week focused on investment ideas, promoting a proactive investment approach [1] - The company claims a proven method that has historically assisted members in navigating both equity and bond market fluctuations effectively [1]