Wilhelmsen Q1 2025 presentation: EBITDA jumps 20%, strategic acquisitions fuel growth

Introduction & Market Context

Wilh. Wilhelmsen Holding ASA (OB:WWIB) presented its first quarter 2025 results on May 9, showcasing strong performance across its maritime services and energy segments. The Norwegian maritime group reported significant year-over-year growth in both revenue and profitability, supported by strategic acquisitions and increased contributions from its investment portfolio.

The company, which operates through Maritime Services, New Energy, and Strategic Holdings divisions, continues to benefit from its diversified business model while maintaining a strong balance sheet with a 72% equity ratio.

Quarterly Performance Highlights

Wilhelmsen reported a 20% year-over-year increase in EBITDA for Q1 2025, with total income reaching USD 297 million, up 12% from the same period last year. Net profit to equity holders reached USD 132 million, translating to earnings per share of USD 3.13, a 28% increase from Q1 2024.

As shown in the following comprehensive financial comparison table, the company demonstrated improved performance both year-over-year and quarter-on-quarter across key metrics:

The Maritime Services division, which includes Ships Service, Port Services, and Ship Management, delivered USD 213 million in total income, up 10% year-over-year. This growth was partially driven by the 2024 acquisition of Zeaborn Ship Management, which contributed significantly to the division’s performance. EBITDA for the segment reached USD 32 million, representing a 16% increase from Q1 2024.

The following chart illustrates the consistent growth trend in Maritime Services:

The New Energy division showed even stronger growth, with total income increasing 19% year-over-year to USD 82 million. EBITDA for this segment jumped 30% to USD 15 million, resulting in an improved EBITDA margin of 19%. This performance was primarily driven by increased activity at Norwegian offshore bases operated by NorSea.

The following chart demonstrates the New Energy division’s improving financial trajectory:

Detailed Financial Analysis

Wilhelmsen’s Strategic Holdings and Investments continued to be a major contributor to overall results. Share of profit from associates reached USD 116 million, with USD 86 million coming from Wallenius Wilhelmsen ASA and USD 30 million from Hyundai Glovis (KS:086280) Co., Ltd.

The company’s investment portfolio showed strong performance as illustrated in this value-adjusted chart:

Cash flow from operating activities was robust at USD 155 million for the quarter, contributing to a total of USD 37 million in cash from operating activities and associates. The company maintained its strong financial position with a 72% equity ratio and a balanced debt maturity profile.

Wilhelmsen’s commitment to shareholder returns was evident in its dividend policy. The Annual General Meeting approved a first dividend of NOK 12.00 per share, with a potential second dividend of up to NOK 8.00 per share, in line with the company’s 3-5% dividend yield target. The company also completed a buyback of 611,061 own shares during the quarter.

The following chart illustrates Wilhelmsen’s consistent dividend growth and cash returns to shareholders:

Strategic Initiatives

The Ship Management segment showed particularly strong growth, with total income up 82% year-over-year to USD 38 million. This significant increase was primarily due to the acquisition of Zeaborn Ship Management, completed on March 31, 2024. Even excluding this acquisition, the segment’s organic growth was impressive at 23% year-over-year.

As shown in the following chart, Ship Management has experienced accelerating growth:

In the New Energy division, NorSea continued its strong performance with total income of USD 81 million, up 20% year-over-year and 8% from the previous quarter. This growth was driven by increased activity across all main Norwegian offshore bases.

The following chart demonstrates NorSea’s consistent revenue growth:

Post-quarter, on April 29, Wilhelmsen announced an unconditional mandatory cash offer of NOK 23.00 per share to acquire all outstanding shares in Edda Wind ASA not already owned by the company. This move aligns with Wilhelmsen’s strategy to expand its presence in the renewable energy sector.

The company also increased its ownership in Reach Subsea ASA to 29.6% during the quarter, exercising remaining warrants, although this resulted in a USD 7 million loss from change in fair value of financial assets.

Forward-Looking Statements

Looking ahead, Wilhelmsen maintains a positive outlook while acknowledging ongoing market uncertainties. The company emphasized its strong balance sheet and balanced portfolio of maritime operations and investments, which position it well to support, grow, and expand its business portfolio.

Management reiterated its commitment to delivering consistent yearly dividends, as evidenced by the approved first dividend and potential second dividend for 2025. The company’s strategic focus remains on shaping the maritime industry through teaming and collaboration, learning and innovation, customer-centered approaches, empowerment, and stewardship.

With its diversified business model spanning traditional maritime services, emerging energy solutions, and strategic investments, Wilhelmsen appears well-positioned to navigate market challenges while pursuing growth opportunities across its business segments.

Full presentation:

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