ZIM Q3 results down amid shareholder pressure

ZIM Integrated Shipping Services (NYSE: ZIM) reported net income of $123 million on revenue of $1.78 billion for the third quarter. Adjusted EBITDA for the third quarter was $593 million, representing a 61% decline year over year.

The volume of cargo transported in the third quarter was 926,000 TEU, representing a 5% decrease year-on-year. The average freight rate per TEU in the third quarter was $1,602, down 35% compared to the corresponding quarter.

The company narrowed its annual revenue guidance range from $1.8 to $2.2 billion to $2.0 to $2.2 billion.

Eli Glickman, CEO of ZIM, told Globes today that ZIM’s results were much better than those of competitors who released their quarterly financial statements. He added: “These are certainly results worthy of pride.”

ZIM was negatively impacted at the beginning of the fourth quarter by port charges on China-built ships calling at U.S. ports. The tariffs were suspended following the summit between the leaders of the two countries, but remained in effect for two weeks in October.

For two years, shipping companies including ZIM have avoided going through the Suez Canal and the Bab el-Mandab Strait, the southern entrance to the Red Sea, and have sailed around the Cape of Good Hope instead, significantly lengthening the journey, for fear of attacks by Houthi rebels in Yemen. There has been improvement in this regard recently, and Glickman believes that more and more shipping lines, including ZIM, will return to crossing the Red Sea, subject to the approval of charter ship owners and insurance companies.

In accordance with its dividend policy, ZIM declared a dividend of $37 million ($0.31 per share). Glickman confirms: “Since the float in January 2021, and in less than five years, we have distributed $5.7 billion, more than 25 times the amount raised in the float.”

A group of shareholders in Israel is seeking to appoint three directors on its behalf at a shareholders meeting next month. The shareholders stated in a letter to the company that they believe that changing the composition of the board of directors would “help preserve and serve the interest of all shareholders in the company, including through actions to improve it, create shareholder value and narrow the persistent and unusual gap between the value of the company’s assets, shareholders’ equity and cash balance on the one hand, and the market value of its shares on the other hand.”

Later in the week, it was reported that two veteran ZIM directors, Yair Kaspi and Yoav Siba, would step down from their positions, and ZIM announced that they would be replaced by Yair Avidan and Yoram Torpowitz, but it appears that the saga is far from over. The company is scheduled to soon publish a revised announcement for its shareholders meeting.

What do you have to say to anxious shareholders?

ZIM Chairman, Yair Sirosi: “As a board of directors, we are taking all necessary steps, as we have done so far, to ensure that shareholders will feel that they are receiving a significant amount of value from the company. We are certainly thinking and weighing what we can do in terms of the value of the company.”

What about the allegations that there is a gap between ZIM’s market capitalization and the value of its assets

“All shipping companies are trading at a discount, they are part of the industry. Even a big company like Maersk is trading with 50% equity, and if we add the net debt ratio and the fact that we are from Israel, we are somewhat similar to our competitors. However, we are certainly aware of the issue of company value and profitability, and we want investors to make money. So far, they have not treated us poorly at all.”

After releasing its financial statements, ZIM’s stock price remained fairly steady on the New York Stock Exchange, at $16.74, giving the company a market capitalization of $2.026 billion.

Published by Globes, Israel Business News – en.globes.co.il – on November 20, 2025.

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