AMKBY - A.P. Moller - Maersk AS (AMKBY) Q1 2025 Earnings Call Transcript
2025-05-08 16:06:04 ET
A.P. Moller - Maersk AS (AMKBY)
Q1 2025 Results Conference Call
May 08, 2025 05:00 AM ET
Company Participants
Vincent Clerc - Chief Executive Officer
Patrick Jany - Chief Financial Officer
Conference Call Participants
Muneeba Kayani - Bank of America
Lars Heindorff - Nordea
Cedar Ekblom - Morgan Stanley
Ulrik Bak - SEB
Marco Limite - Barclays
Cristian Nedelcu - UBS
Parash Jain - HSBC
Omar Nokta - Jefferies
Alexia Dogani - J.P. Morgan
Alex Irving - Bernstein
Presentation
Vincent Clerc
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 A.P. Møller - Mærsk. 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 high and contracts had a stabilizing effect. In Terminals, we delivered strong results, yet again driven by strong volumes and higher revenue per move.
The increased macroeconomic and geopolitical uncertainties since we shared our guidance in February inevitably affects our outlook for the rest of the year. Against this new backdrop and especially on the back of the escalation we saw of the U.S.-China trade relation as well as the unresolved questions around the other tariffs currently under 90 days reprieve, we revised our expectation of container market volumes growth to be in the range of minus 1% to plus 4% from the around -- about 4%, which we had communicated previously.
On the other hand, despite the lower volume outlook, we confirm our full year 2025 EBIT guidance of $0 to $3 billion. I will get more into the details of this later in the presentation. But now taking a closer look at each of our segments.
First, Logistics & Services generated an EBIT margin of 4.1%, which has improved since the first quarter 2024 and is on track to reach our profitability goal of 6% during 2025. This steady margin uplift we have seen in the recent quarter owes itself to the continued operational improvements we have made in Middle Mile, also known as Maersk Crown Freight; and Last Mile as well as the productivity gains across the entire logistics and services portfolio. Revenue remained stable year-on-year, with volume growth across most products, while Air and Middle Mile, we took targeted actions to rebase those businesses to focus on margin in favor of revenue....
A.P. Moller - Maersk AS (AMKBY) Q1 2025 Earnings Call Transcript