World Kinect(US:WKC)2025-10-24 16:02Financial Performance - Consolidated revenue for the three months ended September 30, 2025 was $9.4 billion, a decrease of $1.1 billion, or 10%, compared to the same period in 2024[116]. - Gross profit for the three months ended September 30, 2025 was $249.6 million, a decrease of $18.5 million, or 7%, compared to the same period in 2024[117]. - Total operating expenses for the three months ended September 30, 2025 were $186.8 million, a decrease of $9.1 million, or 5%, compared to the same period in 2024[118]. - Net income attributable to World Kinect for the three months ended September 30, 2025 was $25.7 million, compared to $33.5 million in 2024[116]. - Consolidated revenue for the nine months ended September 30, 2025 was $27.9 billion, a decrease of $4.5 billion, or 14%, compared to the same period in 2024[131]. - Total operating expenses for the nine months ended September 30, 2025 were $1.0 billion, an increase of $414.5 million, or 71%, compared to the same period in 2024[133]. - Net income attributable to World Kinect for the nine months ended September 30, 2025 was $(334.7) million, compared to $169.2 million in 2024[131]. Segment Performance - Revenue in the aviation segment for the three months ended September 30, 2025 was $4.9 billion, a decrease of $350.3 million, or 7%, compared to the same period in 2024[121]. - Revenue in the land segment for the three months ended September 30, 2025 was $2.5 billion, a decrease of $616.0 million, or 20%, compared to the same period in 2024[125]. - Revenue in the marine segment for the three months ended September 30, 2025 was $2.0 billion, a decrease of $132.8 million, or 6%, compared to the same period in 2024[128]. - For the nine months ended September 30, 2025, the aviation segment revenue was $14.2 billion, a decrease of $1.5 billion, or 9%, compared to the same period in 2024[136]. - The aviation segment gross profit increased by $31.2 million, or 9%, to $396.4 million for the nine months ended September 30, 2025, driven by higher contributions from operated airport locations in Europe[137]. - The land segment revenue was $7.8 billion for the nine months ended September 30, 2025, a decrease of $2.0 billion, or 21%, compared to the same period in 2024, primarily due to lower average fuel prices[140]. - The land segment gross profit decreased by $52.2 million, or 19%, to $227.8 million for the nine months ended September 30, 2025, impacted by unfavorable market conditions[141]. - The marine segment revenue was $5.8 billion for the nine months ended September 30, 2025, a decrease of $1.0 billion, or 15%, compared to the same period in 2024, due to lower average prices and decreased volume[143]. - The marine segment gross profit decreased by $34.0 million, or 28%, to $88.2 million for the nine months ended September 30, 2025, primarily due to lower bunker fuel prices[145]. Impairments and Charges - The company recognized asset impairment charges of $3.1 million and wrote off accounts receivable totaling $4.4 million during the three months ended December 31, 2024[102]. - A goodwill impairment charge of $359.0 million was recognized, representing a partial impairment of goodwill in the land reporting unit[167]. - The land segment underwent a reassessment leading to downward revisions in long-term forecasts due to macroeconomic pressures and underperformance against financial expectations[110]. Cost Savings and Restructuring - The company expects to achieve approximately $30 million in annualized compensation-related savings from restructuring actions taken in the first quarter of 2025[103]. - A total of $80 million in cost savings is anticipated over a five-year period from 2026 through 2030 as part of the global finance and accounting optimization initiative[104]. Acquisitions and Sales - The company completed the sale of its U.K. land fuels business for total proceeds of $42.8 million in April 2025[102]. - The company entered into a definitive agreement to acquire Universal Weather and Aviation's Trip Support Services division for approximately $220 million, with $160 million payable at closing[157]. Cash Flow and Financing - For the nine months ended September 30, 2025, net cash provided by operating activities was $258.7 million, an increase of $119.1 million compared to $139.6 million for the same period in 2024[159]. - Net cash used in investing activities for the nine months ended September 30, 2025 was $4.8 million, a decrease from net cash provided of $98.9 million in the same period of 2024, primarily due to capital expenditures of $44.2 million[160]. - Net cash used in financing activities was $163.7 million for the nine months ended September 30, 2025, compared to $162.6 million in the same period of 2024, mainly due to net repayments of debt of $80.7 million[161]. - The company believes that its cash and cash equivalents, along with available funds from its Credit Facility, are sufficient to fund working capital and capital expenditure requirements for at least the next twelve months[149]. Economic and Market Conditions - Inflation in the U.S. decelerated in 2024 as supply chains stabilized, following significant increases driven by supply chain disruptions and labor shortages[112]. - The company anticipates that a significant or prolonged period of trade uncertainty or high inflation could adversely impact its results[114]. - There have been no material changes to the company's exposures to commodity price, interest rate, or foreign currency risk since December 31, 2024[168].