ZIM Reports Strong Q1 Results Amid Red Sea Crisis, Declares Dividend

Israeli container shipping company ZIM (NYSE: ZIM) reported strong first-quarter results today, with net income more than tripling to $296 million compared to $92 million in the same period last year.

The company’s performance comes as it navigates the ongoing Red Sea crisis, where Houthi militants continue to enforce a blockade of Israel-linked ships.

The Haifa-based carrier saw significant growth across key metrics, with revenues reaching $2.01 billion, marking a 28% increase year-over-year. The company achieved a 12% growth in carried volume, handling 944,000 TEUs during the quarter. Average freight rates also showed strong improvement, rising 22% to $1,776 per TEU.

ZIM’s President & CEO Eli Glickman highlighted the company’s strategic response to market challenges, noting their efforts to adapt to changing cargo flows from China and Southeast Asian markets to the United States.

The company reported its net leverage ratio improving to 0.6x as of March 31, 2025, compared to 0.8x at the end of 2024.

“Despite the heightened level of uncertainty, we have reaffirmed our 2025 outlook,” stated Glickman, projecting Adjusted EBITDA between $1.6 billion and $2.2 billion. The company’s strategy includes significant investment in fleet modernization, with approximately 40% of its capacity now LNG-fueled.

The strong quarterly performance has enabled ZIM to declare a cash dividend of $0.74 per ordinary share, totaling approximately $89 million, which represents 30% of the quarter’s net income. The dividend will be paid on June 9, 2025, to shareholders of record as of June 2, 2025.

The market responded positively to the earnings report, with ZIM’s share price surging as much as 12% during intra-day trading.

Founded in 1945, ZIM has established itself as a leading global container liner shipping company, operating in more than 100 countries and serving approximately 33,000 customers across 330 ports worldwide.

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