Q1 2025 AP Moeller - Maersk A/S Earnings Call Transcript
Key Points
- A P Moller Maersk AS (AMKAF) achieved an EBITDA of $2.7 billion and an EBIT of $1.3 billion for Q1 2025, demonstrating solid financial performance.
- The Logistics & Services segment showed significant year-on-year improvement in EBIT margin to 4.1%, with a target to reach 6% during 2025.
- The Terminals business delivered strong results with a return on invested capital of 14.5%, driven by high volumes and increased revenue per move.
- The company maintained a strong balance sheet with a net cash position of $5.2 billion, allowing for continued investment and shareholder returns.
- The new Gemini network has introduced greater flexibility and reliability in fleet operations, allowing for efficient capacity management and cost savings.
- A P Moller Maersk AS (AMKAF) revised its container market volume growth outlook to a range of minus 1% to plus 4% due to increased macroeconomic and geopolitical uncertainties.
- The Ocean segment experienced a continuously declining rate environment, impacting profitability despite high vessel utilization.
- The Fulfilled by Maersk business within Logistics & Services is still delivering negative EBITDA, requiring further measures to improve profitability.
- The company faces challenges from the ongoing US-China trade tensions, which have led to a 30% to 40% drop in China-US trade volumes.
- There is uncertainty regarding the reopening of the Red Sea, which could impact supply chain routes and operational costs.
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Welcome, everyone, and thank you for joining us on this earnings call today as we present our results for the first quarter of 2025. My name is Vincent Clerc, I'm the CEO of AP AP Moeller - Maersk; and with me in the room today is our CFO, Patrick Jany.
We start with the highlights from the first quarter just past. The quarter saw solid delivery across all of our businesses within an increasingly volatile environment. Specifically, on the back of good asset utilization, operational improvement and proactive cost measures, we generated an EBITDA of $2.7 billion and an EBIT of $1.3 billion for the quarter.
In Logistics & Services, we remain on track as reflected in the significant year-on-year improvement in the EBIT margin to 4.1%, owing to continued operational improvement and cost management. On our Ocean business, we saw continued decline in rates in line with our expectation and demonstrated solid profitability, as vessel utilizations remain
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