Shares of ZIM Integrated Shipping Services Ltd. (ZIM) tumbled 5.08% in pre-market trading on Wednesday following the release of its second-quarter 2025 financial results. The Israeli shipping company reported earnings that fell significantly short of analyst expectations, triggering a sell-off among investors.
ZIM announced quarterly earnings of $0.19 per share, missing the analyst consensus estimate of $1.01 by 81.26%. This represents a stark 93.83% decrease from earnings of $3.08 per share in the same period last year. The company's revenue also disappointed, coming in at $1.636 billion, 6.23% below the expected $1.745 billion and marking a 15.36% year-over-year decline from $1.933 billion.
The sharp decline in financial performance was attributed to reduced freight rates and lower carried volume. ZIM's net income for Q2 2025 plummeted to $24 million from $373 million in Q2 2024. Despite these challenges, the company declared a dividend of $7 million, or $0.06 per share, and updated its full-year 2025 guidance. ZIM now expects Adjusted EBITDA between $1.8 billion and $2.2 billion, and Adjusted EBIT between $550 million and $950 million. While the company's leadership expressed confidence in its long-term value creation, the market's immediate reaction suggests investors are concerned about the shipping industry's current headwinds and ZIM's ability to navigate them successfully.