ZIM jumps as Q1 profit triples

Despite so many uncertainties affecting operations of ZIM Integrated Shipping Services Ltd. (NYSE: ZIM), the company has reaffirmed its annual guidance published positive results for the first quarter of 2025. The share price is up 10.91% on Wall Street, giving a market cap of $2.5 billion.

Revenue in the first quarter of 2025 grew 28.5% from the corresponding quarter to $2 billion, net profit jumped more than tripled to $296 million and adjusted EBITDA rose 82.4% to $779 million. The company generated $855 million from operating activities in the quarter. ZIM continues to expect annual adjusted EBITDA of $1.6-2.2 billion and EBIT (earnings before interest and taxes) of $350-950 million.

Since the start of 2025, the company’s share price has fallen 14%, but has climbed over 50% from the low it fell to last month amid the threat of US tariffs.

Earlier this year, there were reports that ZIM CEO Eli Glickman was considering acquiring control of the company, a move he did not deny but declined to confirm. His response remains similar.

“We had a phenomenal quarter with a net profit of almost $300 million, during a period of significant uncertainty in the markets, especially in relation to the US government’s decisions on taxation,” said Glickman after the reports were released.

As a company that ships products and has significant trade routes between China and the US, ZIM was seen as a potential victim of the tariff war between the two countries, and when the US and China recently announced a lull in their dispute so that efforts could be made to reach an agreement, the stock jumped. According to Glickman, in the days that have passed since then, ZIM has experienced great demand pressure, resulting from a combination of the 90-day freeze period on tariffs imposed by Trump, and the stockpiling period ahead of the US holidays (Thanksgiving and Christmas).

He said, “We think that the coming period will be a period of increased demand. The third quarter is usually stronger in the year ahead of the holidays, and the announcement from the US and China will lead to positive pressure and an increase in demand and results.”

Glickman added, “This causes the butterfly effect because pressure begins to build, and competitors have a shortage of ships and containers, and they divert ships and containers to those lines that are more profitable. This can lead to a situation where the pressure in demand will cause the price of maritime transportation to increase, and we are already seeing it.”

Published by Globes, Israel business news – en.globes.co.il – on May 18, 2025.

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