Q2 2026 AP Moeller - Maersk A/S Earnings Call Transcript
Key Points
- Strong Q2 2026 results with EBITDA of $3 billion and EBIT of $1.6 billion, driven by higher spot rates and volumes in Ocean.
- Upgraded full-year guidance: underlying EBIT now expected at $4.5-$6.5 billion, up from previous guidance, with positive free cash flow.
- Gemini network efficiencies delivered ocean cost benefits of approximately $950 million, exceeding the upper end of the prior guidance range.
- Logistics and Services delivered strong revenue growth of 15% and EBIT margin improvement to 5.1%, marking the ninth consecutive quarter of year-on-year margin improvement.
- Terminals segment showed robust performance with revenue growth of 11%, EBIT margin of 31.6%, and a strong ROIC of 14.8%, supported by new investments like the Da Nang greenfield terminal.
- Ocean unit costs increased due to higher bunker prices (up 44% year-on-year) and container handling costs from congestion, partially offsetting rate gains.
- Logistics and Services' Solutions segment underperformed with EBIT margin declining to 1.7% due to warehouse white space and slow pipeline conversion.
- Working capital build-up from higher receivables and bunker inventory reduced cash conversion to 75% in the quarter.
- Persistent port congestion and trade imbalances are creating operational challenges, leading to higher costs and potential rate volatility.
- The gradual return to the Red Sea is expected to have minimal pricing impact but may exacerbate congestion in the short term, adding uncertainty to the outlook.
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Welcome, everyone, and thank you for joining us on this earnings call today as we present our second quarter results for 2026. My name is Vincent Klerk. I'm the CEO of AP Mull & Maersk.
And with me in the room today is our CFO, Robert Ernie.
Let me start with the overall highlights for the second quarter. At the macro level, market demand continued unabated despite the disruptions from the war in the Gulf, driven by Far East exports on almost all trade lanes.
Exports from the Far East grew for the third consecutive years, while the backhaul volumes were stagnant or negative.
This has led to significantly more imbalanced trade flows and increased congestions in various regions, including Europe, the East Coast of South America, West Africa and the Middle East, as volume levels are challenging the limits of ports and landside infrastructures in these regions.
These bottlenecks quickly translated into significant and
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