Hapag-Lloyd (HLAG) investor relations material

Executive summary

• Achieved solid FY 2025 results with 8% volume growth to 13.5 million TEU, outperforming the market despite declining freight rates and operational disruptions.

• Successfully integrated Gemini network, achieving 90% schedule reliability and strong customer satisfaction, supporting further growth and cost savings.

• Expanded terminal portfolio with new operations in Le Havre and Damietta, and signed agreements for future hubs in Brazil and Veracruz.

• Signed merger agreement with ZIM, aiming for completion by end of 2025 or early 2026, targeting $300–500 million in annual synergies and a global Top 5 position.

• Significant investments in fleet modernization, efficiency, and decarbonization, with 32–350,000 TEUs on order and 50% alternative propulsion ships targeted by 2030.

Financial highlights

• Group revenues increased by 2% to USD 21.1 billion in 2025, driven by 8% volume growth, outperforming market growth.

• EBITDA declined to USD 3.6 billion (-28% YoY), EBIT to USD 1.1 billion (-62% YoY), and net profit to USD 1.0 billion (-60% YoY), at the upper end of guidance but below prior year.

• Terminal segment revenues rose 18% to USD 514 million, with EBITDA stable at USD 152 million and EBIT at USD 66 million.

• Operating cash flow was USD 2.9 billion; free cash flow USD 1.4–1.45 billion after USD 1.7–1.8 billion in investments.

• Year-end cash balance stood at USD 4.1 billion, with total liquidity reserves of USD 7.0 billion.

Outlook and guidance

• 2026 group EBITDA guidance set at USD 1.1–3.1 billion, EBIT between USD -1.5 and +0.5/1.5 billion, reflecting high uncertainty due to Middle East conflict and volatile markets.

• Expect a soft Q1 due to weather disruptions and increased costs, but underlying demand remains robust.

• Guidance assumes Red Sea remains closed for 2026, with upper end requiring strong volume growth, normal peak season, and full cost recovery.

• Cost-saving program targeting USD 1 billion in 2026 remains on track, with full run-rate savings expected by end of 2026.

• Earnings in 2026 anticipated to be lower than 2025 due to volatile freight rates and Middle East conflict.