Hapag-Lloyd reported sharply higher third-quarter earnings on Thursday, a day after raising its full-year outlook as robust spot freight rates fueled better-than-expected fourth-quarter trading.
The German container shipping company posted third-quarter group profit of $999 million, compared with $172 million a year earlier. Earnings before interest, taxes, depreciation and amortization, or EBITDA, nearly doubled to $1.73 billion from $866 million, while earnings before interest and taxes, or EBIT, rose to $1.09 billion from $228 million. Revenue increased to $6.88 billion from $5.46 billion.
Hapag-Lloyd (HLAG.DE), which partners with Maersk (OTC: AMKBY) on Gemini services, now expects 2026 EBITDA of $4.6 billion to $5.0 billion, up from its previous forecast of $3.9 billion to $4.4 billion. It also raised its EBIT outlook to $2.0 billion to $2.4 billion from $1.25 billion to $1.75 billion. The executive board approved the upgrade on Nov. 11, citing continued strength in spot freight rates.
The carrier also said it expects to receive regulatory approvals for its purchase of Zim in the first quarter of 2027.
The third-quarter improvement came primarily from higher freight rates rather than increased cargo volumes. The company’s average freight rate rose to $1,808 per twenty-foot equivalent unit, or TEU, from $1,413 a year earlier. Volumes were broadly unchanged at 3.38 million TEUs, compared with 3.40 million TEUs in the prior-year quarter.
“We delivered a strong third quarter, driven by significantly higher spot rates, robust demand and high capacity utilization,” Chief Executive Rolf Habben Jansen said in an earnings statement. He added that geopolitical tensions and operational disruptions continued to put pressure on unit costs.
Liner shipping revenue increased to $6.72 billion from $5.36 billion, with segment EBIT rising to $1.05 billion from $219 million. Hapag-Lloyd said the Middle East conflict and weather-related disruptions affected operations and costs, even as transport volumes remained resilient.
The smaller Terminal & Infrastructure business also expanded. Quarterly revenue rose to $197 million from $131 million, while EBIT increased to $34 million from $9 million. The company attributed the improvement to investments in terminal capacity and stronger performance at its Latin American terminals.
Despite the strong third quarter, group profit for the first nine months remained below the prior-year level at $827 million, compared with $946 million. Nine-month revenue increased to $17.64 billion from $16.05 billion, while EBIT rose to $1.10 billion from $905 million.
Hapag-Lloyd cautioned that its upgraded outlook remains subject to considerable uncertainty because of volatile freight rates and persistent geopolitical challenges.
Why it matters: The guidance upgrade signals that management expects favorable rate conditions to continue supporting earnings into year-end, but pressure on unit costs and the company’s explicit geopolitical warning temper that confidence.
Read more articles by Stuart Chirls here.
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