Strong finish: Ocean lines raise profit outlook by 200%

ONE carriers shake off war-ravaged fuel prices that hurt earnings

(Photo: ONE)

Ocean Network Express (ONE) reported Q1 FY2026 revenue of US$4.539 billion and a net profit of $31 million, while lifting its full-year profit forecast sharply to $900 million from the prior $300 million guidance.

For the April–June period, the joint venture of three Japan-based container carriers posted revenue of $4.54 billion, up from $4.05 billion in the year-ago fiscal quarter. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose to $707 million from $616 million, while EBITDA margin improved to 15.6% from 15.2%.

That compares to EBITDA margin of 22.7% for competitors CMA CGM of France and 16.8% for Maersk (OTC: AMKBY)

Earnings before interest and taxes (EBIT) totaled $76 million against $38 million, while EBIT margin was better at 1.7% versus 0.9%.

But higher fuel costs from the effects of the Iran war undercut net profit that tumbled to $31 million from $86 million. Container volumes grew 3.257 million twenty foot equivalent units (TEUs) from 3.165 million TEUs in Q1 FY2025.

The average freight rate was higher at $1,300/TEU compared to $1,199/TEU y/y, and up from $1,154 in Q4 FY2025.

The ONE consortia includes Nippon Yusen Kaisha (NYK), Mitsui O.S.K. Lines (MOL), and Kawasaki Kisen Kaisha (“K” Line).

The Singapore-based company said higher bunker fuel costs weighed heavily on profitability. Average bunker price reached $666 per ton, up from $535 a year ago and $440 in Q4 FY2025.

Despite higher fuel and operating costs from Middle East disruptions, ONE improved yields and maintained high vessel utilization as demand recovered through May–June.

Chief Executive Till Ole Barrelet highlighted improved yields, strong utilization, and operational agility as central to performance, while noting continued geopolitical uncertainty.

Read more articles by Stuart Chirls here.

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.