Eimskip: Management Financial Report - Fourth quarter and full year 2024 results

Core Insights - The overall financial results for the company in 2025 were disappointing despite stable volumes in Liner and Forwarding and solid performance in Logistics services [5] Q4 2025 Results - Revenue for Q4 2025 was EUR 201.4 million, a decrease of EUR 25.8 million or 11.4% compared to Q4 2024 [1] - Operating expenses were EUR 188.6 million, down EUR 11.4 million or 5.7% year over year, primarily due to lower global freight rates and reduced fuel consumption [2] - EBITDA for Q4 2025 was EUR 12.7 million, a significant decrease of 53% from EUR 27.1 million in Q4 2024 [2] Annual Performance 2025 - Total revenue for the year was EUR 807.5 million, a decline of EUR 39.6 million or 4.7% [6] - Total expenses for the year amounted to EUR 737.8 million, a decrease of EUR 11.5 million or 1.5% [6] - Salary expenses increased by EUR 11.8 million or 7.8%, largely due to contractual wage increases and currency effects [6] - EBITDA for the year was EUR 69.7 million, down from EUR 97.8 million in 2024 [6] - Net earnings for the year were EUR 9.3 million, compared to EUR 30 million in 2024 [6] Cost Drivers - Significant wage increases, rising supplier costs, and declining unit prices in the sailing system were the main contributors to the EBITDA decline [3][9] - Cost-saving measures implemented included reductions in the vessel fleet, changes to the sailing system, and workforce efficiency initiatives [3][14] Liquidity and Financial Ratios - Liquidity remained strong at the end of the period despite lower cash flow from operations compared to the previous year [4] - The leverage ratio at year-end was 3.17, up from 2.28 at year-end 2024, while the long-term target range is 2-3 [7] - The equity ratio was 46.7%, aligning with the company's long-term target of approximately 40% [7] Market Dynamics - Volume in Liner decreased by 6.1% during Q4, with a notable increase in imports to Iceland driven by vehicle imports, offset by a decline in exports due to lower industrial cargo volumes [10][11] - International forwarding experienced a substantial decline in global freight rates but still delivered acceptable results [12] - The company adapted to shifts in global supply chains, successfully transitioning some services to domestic trucking [13] Strategic Initiatives - A new company strategy, Eimskip 3.0, was developed with strong employee participation, focusing on enhancing operations and performance [15][16] - Mitigation measures are expected to deliver annual savings of EUR 13.5 million, with additional initiatives underway to support long-term performance [14]