CMA CGM profit collapses on ocean ‘slowdown’

Core Insights - CMA CGM reported a significant decline in net income, falling 72.6% to $749 million from $2.73 billion, with revenue decreasing 11.3% to $14.042 billion from $15.834 billion due to geopolitical tensions and a slowdown in maritime activity [1] Financial Performance - EBITDA totaled $2.995 billion, a decline of 40.5% from $4.964 billion, indicating operational challenges amid trade disruptions [2] - Maritime revenue was $9 billion, down 17.4% year-over-year, with EBITDA at $2.2 billion, a drop of 48.8%, and an EBITDA margin of 24.9%, down 15.3% [3] Operational Developments - The company has been the only global liner maintaining scheduled services through the Red Sea and Suez Canal despite ongoing disruptions, and it is expanding these services following a ceasefire in the Gaza war [3] - Average revenue per twenty-foot equivalent unit (TEU) decreased by 19.2% to $1,452, while the volume increased by 2.3% year-over-year to 6.2 million TEUs [4] - CMA CGM ordered six 1,700-TEU ships from Indian shipyards and plans to hire 1,500 Indian crew members by the end of 2026, supporting the Modi government [4] Strategic Outlook - The company maintains a cautious outlook, emphasizing its ability to adapt to market changes and redeploy assets to capture demand amid trade disruptions between China and the U.S. [6] - CMA CGM is focused on agile management and strict cost control to preserve competitiveness in an uncertain environment [7]