Wilh. Wilhelmsen Q2 2025 slides: profit surges 49% on strong associate contributions

Introduction & Market Context

Wilh. Wilhelmsen Holding ASA (OB:WWIB) reported a substantial increase in profitability for the second quarter of 2025, with net profit to equity holders surging 49% year-over-year to USD 250 million. The strong performance came despite ongoing uncertainty in the global trade environment, as the company’s diversified business model and strategic investments delivered robust returns.

The Norwegian maritime group, which operates across shipping services, logistics, and new energy sectors, saw its stock rise 1.52% to NOK 461 following the presentation, approaching its 52-week high of NOK 470.

Quarterly Performance Highlights

Wilhelmsen’s second quarter showed broad-based improvement across key financial metrics. Total income reached USD 315 million, representing a 5% increase year-over-year and a 6% rise quarter-on-quarter. EBITDA grew 4% both year-over-year and sequentially to USD 48 million.

The most dramatic improvement came from the company’s share of profit from associates, which jumped 42% year-over-year to USD 208 million, primarily driven by strong contributions from Wallenius Wilhelmsen ASA and Hyundai Glovis.

As shown in the following comprehensive financial summary:

Earnings per share reached USD 5.96, marking a substantial 55% increase from the same period last year. This performance reflects both organic growth in operating businesses and the success of the company’s strategic investments.

Segment Performance Analysis

Wilhelmsen’s performance showed significant variation across its business segments, with New Energy demonstrating strong growth while Maritime Services faced profitability challenges.

The Maritime Services division reported stable total income of USD 214 million, down 3% year-over-year due to changes in revenue recognition following the Zeaborn Ship Management acquisition. However, EBITDA declined 11% to USD 28 million, resulting in a compressed EBITDA margin of 13%.

As illustrated in the following chart showing Maritime Services’ performance:

In contrast, the New Energy division delivered impressive growth, with total income increasing 25% year-over-year to USD 100 million, driven by strong activity at Norwegian offshore bases. EBITDA rose 26% to USD 21 million, maintaining a healthy margin of 21%.

The following chart highlights the New Energy division’s growth trajectory:

The company’s Strategic Holdings segment provided the most substantial contribution to overall results. Share of profit from associates reached USD 197 million, including USD 157 million from Wallenius Wilhelmsen ASA and USD 40 million from Hyundai Glovis Co., Ltd. Additionally, Wilhelmsen received a USD 198 million dividend from Wallenius Wilhelmsen ASA during the quarter.

Strategic Initiatives and Investments

A key strategic development during the quarter was Wilhelmsen’s increased investment in Edda Wind, a market leader in the offshore wind service vessel segment. The company increased its shareholding to 37.8% and subsequently delisted Edda Wind following the quarter’s end on August 5.

Edda Wind operates a fleet of 12 vessels, with 8 currently in operation and 4 under construction. The book value of Wilhelmsen’s investment stands at USD 156 million, reflecting the company’s commitment to expanding its presence in renewable energy markets.

The Annual General Meeting approved the liquidation of 2,230,000 own shares and provided a mandate for further share buybacks, with the company repurchasing 334,885 shares during the quarter.

Financial Position and Shareholder Returns

Wilhelmsen maintained a strong financial position with a 74% equity ratio and a well-structured debt maturity profile. The company generated USD 308 million in cash from operating activities and associates in the first half of 2025.

The following chart illustrates the company’s solid equity position and debt structure:

Shareholder returns remained a priority, with a first dividend of NOK 12.00 per share already distributed and a potential second dividend of up to NOK 8.00 per share under consideration. This aligns with the company’s target of providing a 3-5% dividend yield.

The dividend and share buyback strategy is detailed in the following chart:

Forward-Looking Statements

Looking ahead, Wilhelmsen emphasized its strong balance sheet, solid liquidity, and balanced portfolio of maritime operations and investments. While acknowledging persistent uncertainty regarding geopolitical tensions and global trade, management expressed confidence in the group’s capacity to support and expand its business portfolio while delivering consistent yearly dividends.

The company’s diversified business model, with exposure to traditional maritime services, emerging energy sectors, and strategic investments, positions it to navigate potential market volatility while pursuing long-term growth opportunities.

Full presentation:

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