ZIM Integrated Shipping Services posted stronger-than-expected earnings for the first quarter of 2025, beating analyst estimates on both revenue and profits, and pushing its share price up by 3% in pre-market trading.

The Israeli shipping giant reported adjusted earnings per share (EPS) of $2.45, significantly above analysts’ expectations of $1.74. Revenue for the quarter reached $2.01 billion, exceeding forecasts of $1.82 billion and marking a 28% increase compared to the same period last year.

The company shipped 944,000 twenty-foot equivalent units (TEUs) in the first quarter, a 12% increase from Q1 2024. The average freight rate per TEU climbed 22% to $1,776, highlighting a broad recovery in global shipping demand amid easing supply chain bottlenecks.

“ZIM started 2025 with strong momentum, driven by 12% growth in carried volume and robust profitability,” said CEO Eli Glickman. “Leveraging our enhanced fleet and improved cost structure, we generated $2.01 billion in revenue and a net profit of $296 million this quarter.”

The Haifa-based company reaffirmed its full-year guidance, projecting adjusted EBITDA between $1.6 billion and $2.2 billion, and adjusted EBIT between $350 million and $950 million.

ZIM to dedicate ships for Israel's 'national needs' (credit: ZIM)
ZIM to dedicate ships for Israel's 'national needs' (credit: ZIM)

ZIM has undergone significant restructuring in recent years

ZIM also announced a quarterly dividend of $0.74 per share, equivalent to approximately 30% of the company’s net profit for the quarter. Despite acknowledging ongoing uncertainty in the global operational environment, Glickman expressed confidence in the company’s long-term profitability, citing strategic fleet investments and a leaner cost base.

Founded in 1945 and formerly state-owned, ZIM has undergone significant restructuring in recent years and is now traded on the New York Stock Exchange (NYSE: ZIM). Its performance is often viewed as a barometer for global trade trends, particularly in East-West shipping routes.

The company’s positive results come amid broader signs of recovery in the global maritime sector following a prolonged slump exacerbated by pandemic-era disruptions, inflation, and geopolitical instability. Analysts say ZIM’s performance suggests container shipping may be entering a new cycle of profitability—albeit one tempered by volatility.

While challenges remain, including fluctuating fuel costs and geopolitical risks in key shipping lanes, ZIM’s outlook appears optimistic. The company's emphasis on fleet modernization, including investment in LNG-powered vessels and digital logistics infrastructure, positions it well to navigate an evolving trade environment.