Shipping giant A.P. Moller Maersk has raised the lower end of its guidance as the company’s Q3 earnings suggest steady revenue across operating regions on a q-o-q basis—but still much lower on income metrics when compared to last year’s corresponding quarter—as per an official press release.
Specifically, Maersk raised its guidance on EBITDA from $8 billion-$9.5 billion to $9 billion to $9.5 billion, according to Morning Star.
“We have delivered a strong third quarter across our business. Our performance reflects our ability to execute and continuously improve, as well as the trust customers place in us,” said Maersk’s CEO Vincent Clerc
He also referenced two of the company’s business segments in his comments—Terminals and Logistics & Services—and mentioned their growth in volume and profitability, respectively.
Maersk’s largest segment in terms of revenue ($9.18 billion), called ‘Ocean’, drove the downwind in financial performance, with $1.79 billion in EBITDA and $567 million in EBIT. They also bought back $578 million worth of shares for the quarter, much higher than Q3 2024’s share buybacks of $46 million.
The shipping firm reported improved efficiencies from the Gemini cooperation, a deal in which Maersk and Hapag Lloyd have agreed to share their network to improve costs.
EBITDA for the quarter was recorded at $2.7 billion, lower when compared to the previous year’s Q3 figure of $4.8 billion. EBIT margins touched 9% and operating income was $1.3 billion, down from $3.3 billion, owing to pressure on margins and lower freight rates.
At the time of writing, Maersk shares were trading at 12,845 DKK ($1,985.84), down by 5.34% according to Google Finance.