A P Moller Maersk AS (AMKBF) Q3 2025 Earnings Call Highlights: Strong Performance Amid Market ...

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EBITDA: $2.7 billion for Q3 2025. EBIT: $1.3 billion for Q3 2025. EBIT Margin: 9% for Q3 2025. Net Profit After Tax: $1.1 billion for Q3 2025. Return on Invested Capital: 9.6% for Q3 2025. Free Cash Flow: $771 million for Q3 2025. Cash and Deposits: $20.9 billion at the end of Q3 2025. Net Cash Position: $2.6 billion at the end of Q3 2025. Ocean Segment EBITDA: $567 million with a margin of 6.2% for Q3 2025. Loaded Volumes: Increased by 7% year on year for Q3 2025. Logistics and Services Revenue: $4 billion, up 2.3% year on year for Q3 2025. Logistics and Services EBIT Margin: 5.5% for Q3 2025. Terminals Revenue: $1.4 billion, up 22% year on year for Q3 2025. Terminals EBIT: $571 million with a margin of 39.4% for Q3 2025. Return on Invested Capital in Terminals: 17.2% for Q3 2025.

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Release Date: November 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

A P Moller Maersk AS (AMKBF) reported strong execution across all business segments, achieving an EBITDA of $2.7 billion and an EBIT of $1.3 billion, both up from the previous quarter. The logistics and services segment showed positive tracking with an EBIT margin increase to 5.5%, driven by asset utilization, productivity improvements, and stringent cost management. The Gemini cooperation in the Ocean segment resulted in over 90% reliability and significant cost savings, exceeding initial targets. Terminal business delivered record high revenues and profitability, supported by strong volumes and the successful implementation of Gemini. The company narrowed its full-year 2025 guidance to an underlying EBIT of $3 to $3.5 billion, reflecting confidence in sustained demand and operational improvements.

Negative Points

Freight rates in the Ocean segment declined by 31% year on year, reflecting ongoing market pressure. The logistics and services segment faced challenges with a decrease in supply chain management revenue due to weakness in lead logistics volumes. The order book to fleet ratio for the container shipping industry is at 32%, the highest since the global financial crisis, posing potential future capacity challenges. Unit costs at fixed bunker decreased only slightly, indicating limited cost reduction despite volume growth. The company faces increased costs due to trade imbalances, leading to more empty container repositioning and higher handling costs.

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Q & A Highlights

Q: Can you provide insights into the Q4 EBITA guidance and the assumptions for volume and rate? Also, will the share buyback continue next year? A: Patrick Jany, CFO, explained that the Q4 guidance implies a continuation of the current pace, with rates stabilizing and strong volume developments. The guidance indicates a higher end of the range. Regarding the share buyback, the strong balance sheet supports its continuation, assuming stable external conditions.

Q: What is driving the high order book to fleet ratio in container shipping, and how do you see it playing out? A: Vincent Clerc, CEO, noted that the order book is high at 32%, but the longer installment period and strong market growth, particularly from China, are absorbing capacity. The industry will eventually need to use traditional tools like scrapping and slow steaming to balance supply and demand.

Q: How sustainable is the strong ocean volume growth, and is there any double counting involved? A: Vincent Clerc assured that there is no double counting of volumes. The growth is attributed to the Gemini cooperation, which has unlocked significant cost efficiencies. The sustainability of this growth depends on future actions and competitive responses.

Q: Can you explain the Gemini cost savings, particularly the difference between bunker and asset turn benefits? A: Vincent Clerc explained that bunker savings are immediate and measurable, while asset turn improvements are ongoing and have potential for further optimization. The focus on reliability and efficiency has driven these savings.

Q: How do you view the potential for M&A versus share buybacks, and what is your outlook for 2026? A: Vincent Clerc emphasized that while M&A is part of Maersk's strategy, aggressive pursuit is not favored due to potential risks. The company will discuss the 2026 outlook in February, but current forecasts appear overly pessimistic given Maersk's strategic initiatives.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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