Latest news with #WorldKinect
Globe and Mail
02-08-2025
- Business
- Globe and Mail
World Kinect (WKC) Q2 EPS Jumps 23%
Key Points Adjusted earnings per share exceeded expectations, reaching $0.59 compared to the analyst estimate of $0.48 for Q2 2025. GAAP revenue fell short of expectations, dropping 18% in Q2 2025 compared to Q2 2024, to $9.04 billion. These 10 stocks could mint the next wave of millionaires › World Kinect (NYSE:WKC), a global fuel and energy supply logistics provider to the aviation, land, and marine sectors, released its Q2 2025 results on July 31, 2025. The company reported adjusted earnings per share of $0.59, comfortably beating the analyst forecast of $0.48. However, GAAP revenue came in at $9.04 billion, missing expectations of $9.32 billion. Revenue dropped 18% compared to Q2 2024. The quarter was shaped by significant one-off items, including $405 million in impairment and restructuring charges. These actions reflected a strategic overhaul, particularly in the Land segment. While Aviation produced strong results, the company's headline revenue contraction (GAAP revenue of $9,043 million) and considerable charges underscore ongoing operational and portfolio transition challenges. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (Non-GAAP) $0.59 $0.48 $0.48 23 % Revenue (GAAP) $9.04 billion $9.32 billion $10.97 billion (18 %) Gross Profit $232 million $245 million -5 % Adjusted EBITDA $87 million $81 million 7 % Free Cash Flow (Non-GAAP) $13 million $53 million (-75 %) Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Business Overview and Strategic Focus World Kinect (NYSE:WKC) delivers fuel and energy solutions to commercial customers worldwide, focusing on the aviation, land transportation, and marine shipping industries. It sources, supplies, and manages logistics for both conventional fossil fuels and a growing range of sustainable products, such as renewable diesel and sustainable aviation fuel. The company's recent strategy emphasizes portfolio reshaping and operational efficiency. It is expanding into renewable energy, optimizing global supply chains, and increasing focus on its core markets by exiting underperforming business lines. Key factors for success include cost control, regulatory compliance, and competitive service offerings, along with strengthening its capabilities for the energy transition. Quarter Highlights: Financials and Segment Performance The period was marked by a split between standout results in Aviation and ongoing challenges in Land and Marine. Management reported that while Aviation gross profit rose 8% year over year and volumes grew 1.7%, Land and Marine segments both saw double-digit drops in gross profit and single-digit drops in volume. The Land segment especially reflected the impact of recent asset sales, including the divestment of the UK Land business, which closed in April. This transaction resulted in an $82 million pre-tax loss, including $55 million in foreign currency translation losses. The company reported over $430 million in impairment and restructuring costs for the first half of 2025. Most of this, around $367 million, was a non-cash impairment tied to goodwill in the Land segment. The Marine segment recorded a $32 million impairment related to an underperforming physical inventory site. The Land segment's exit from legacy markets and ongoing portfolio cleanup drove its gross profit down 17%, while Marine faced a 26% drop, affected by a one-time tax settlement and weak sector demand. Cost management measures were evident, with adjusted operating expenses falling 10% from the prior year to $173 million, even as headline operating expenses rose because of the impairment charges. The company recognized $6 million in restructuring charges tied to a global finance and accounting transformation initiative. Net cash provided by operating activities (GAAP) fell sharply to $28 million, and free cash flow declined to $13.3 million, down 75% compared to Q2 2024, reflecting the effects of reduced net income and higher transition charges. On the positive side, the Aviation segment continued to benefit from strong general and business aviation activities and solid performance at operated European airports. Adoption of sustainable aviation fuel and renewable products is increasing. Marine segment results remained under pressure from an unfavorable tax settlement and weaker performance in key markets. Shareholder returns included $35 million in share repurchases. The board declared an 18% increase in the quarterly dividend, indicating management's focus on returning capital to shareholders despite the challenging quarter. Understanding World Kinect's Business Model and Priorities The company's business model relies on sourcing large volumes of fuel for resale, leveraging efficient logistics, and managing supply chain risks. For Aviation, products include traditional jet fuel and sustainable aviation fuel. In the Land segment, the focus is on gasoline, diesel, and lower-carbon alternatives. Marine serves global shipping with conventional and renewable fuels. Success is tied to volume handled, profit per unit, and operational discipline. Recently, World Kinect has prioritized operational efficiency and realigned its portfolio to concentrate on higher-margin and more resilient segments. It exited certain non-U.S. markets, particularly in Land, to focus on North America, and launched restructuring aimed at streamlining finance and accounting as well as reducing headcount. The company also emphasized compliance with tightening environmental rules and the ability to offer renewable fuel solutions as key competitive differentiators. Events Driving the Quarter's Performance The quarter's most significant developments centered on the sale of the UK Land fuels operation and the associated impairments. The UK business, which had struggled due to reliance on weather-dependent heating oil sales and high capital requirements, was sold in April. The transaction contributed directly to the sharp drop in Land segment volume and profit. Management stated the divestiture of the U.K. land business, completed in April 2025, immediately improved Land operating margin and reduced ongoing capital expenditure requirements. Marine segment results were negatively affected by a $32 million impairment of an underperforming inventory location and a one-time tax settlement. Volume in Marine dropped 7% compared to Q2 2024, continuing the segment's prolonged weakness amidst global shipping volatility. Land segment volume fell 7% compared to Q2 2024, with profit hit by the UK exit, lower North American demand, and ongoing transition costs. Segment revenues reflected these changes, with Land revenue dropping 26.4% and Marine down 17.8% compared to Q2 2024. Impairments in the Land segment, reaching $367 million (of which $359 million was goodwill), reflect recent underperformance and a strategic move to concentrate on core, higher-return markets. Restructuring costs of $6 million aimed to drive future efficiency, particularly in back-office and finance. These measures, while painful in the short term, are part of the company's shift toward a leaner, more focused business. On a positive note, performance in Aviation underscored operational strengths. The segment benefited from increased profit contribution from operated airport locations in Europe and higher profitability in general aviation. Division gross profit increased and volumes were slightly higher, even as group-wide revenue fell short. Aviation's stability was supported by the company's ownership of assets in Europe. World Kinect's board raised the quarterly dividend by 18%, reflecting a continued commitment to shareholder returns. In addition to the buybacks, these actions signal management's confidence in the business's future cash generation potential after the current restructuring and divestiture wave. Looking Ahead: Guidance and Investor Focus Areas The company indicated that benefits from restructuring and asset sales should improve adjusted margins and streamline the operating model, but it stopped short of upgrading margin or profit targets for the year. The company signaled that margin improvement and greater efficiency are expected as it continues to reshape its portfolio, but the timing and pace of benefits remain uncertain. Major one-off costs and lower cash generation this period illustrate risks associated with turnaround and transformation efforts. The quarterly dividend was raised 18%. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,036%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 29, 2025
Yahoo
17-07-2025
- Business
- Yahoo
World Kinect (WKC) to Report Q2 Results: What to Expect
World Kinect (WKC) is expected to deliver flat earnings compared to the year-ago quarter on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. Zacks Consensus Estimate This company that services ships, jets and trucks is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $9.8 billion, down 10.7% from the year-ago quarter. Estimate Revisions Trend The consensus EPS estimate for the quarter has been revised 9.93% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). How Have the Numbers Shaped Up for World Kinect? For World Kinect, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.83%. On the other hand, the stock currently carries a Zacks Rank of #5. So, this combination makes it difficult to conclusively predict that World Kinect will beat the consensus EPS estimate. Does Earnings Surprise History Hold Any Clue? While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that World Kinect would post earnings of $0.45 per share when it actually produced earnings of $0.48, delivering a surprise of +6.67%. Over the last four quarters, the company has beaten consensus EPS estimates two times. Bottom Line An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. World Kinect doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report World Kinect Corporation (WKC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Axios
11-06-2025
- Business
- Axios
22 Florida companies make 2025 Fortune 500 list
Twenty-two of the country's top-grossing companies call Florida home — including three in Miami — according to the 2025 Fortune 500 list. Why it matters: Fortune 500 companies can boost Florida's economy, influence its policy priorities and power job growth. Florida's top ten ranked companies, by fiscal year 2024 revenue are: 71. Publix Super Markets (Lakeland): $60.18 billion — up 1 spot from last year 106. World Kinect (Miami): $42.17B — down 13 spots 129. Lennar (Miami): $35.4B — down 3 136. GuideWell Mutual Holding (Jacksonville): $32.9B — no change 148. Jabil (St. Petersburg): $28.9B — down 23 spots 160. AutoNation (Fort Lauderdale): $26.8B — down five spots 172. Carrier Global (Palm Beach Gardens): $24.8B — up 12 spots 173. NextEra Energy (Juno Beach): $24.8B — down 21 points 203. L3Harris Technologies (Melbourne): $21.3B — up 6 spots 294. Raymond James Financial (St. Petersburg): $14.9B — up 18 spots The big picture: Walmart topped the magazine's annual list for the 13th straight year. Amazon, UnitedHealth Group, Apple and CVS Health round out the top five.
Forbes
06-06-2025
- Business
- Forbes
Daily Dividend Report: Verizon, World Kinect, Graco, T-Mobile, CRM
The Board of Directors at Verizon Communications today declared a quarterly dividend of 67.75 cents per outstanding share, unchanged from the previous quarter. The quarterly dividend is payable on August 1, 2025 to Verizon shareholders of record at the close of business on July 10, 2025. World Kinect announced today that its board of directors has declared a quarterly cash dividend of $0.20 per share, an increase of approximately 18% over its previous dividend of $0.17 per share. The dividend is payable on July 16, 2025, to shareholders of record on June 17, 2025. The Board of Directors of Graco has declared a regular quarterly dividend of 27.5 cents per common share, payable on August 6, 2025, to shareholders of record at the close of business on July 21, 2025. The company has approximately 165.6 million shares outstanding. T-Mobile US announced today that the Company's Board of Directors has declared a cash dividend of $0.88 per share on its issued and outstanding shares of common stock. The dividend is payable on September 11, 2025 to stockholders of record as of the close of business on August 29, 2025. Salesforce, the world's #1 AI CRM, today announced that its board of directors declared a quarterly cash dividend of $0.416 per share. The dividend is payable July 10, 2025 to shareholders of record on June 18, 2025. Other Top Dividends
Business Wire
25-04-2025
- Business
- Business Wire
World Kinect Corporation Announces Promotion of Ira M. Birns to President and John P. Rau to Chief Operating Officer
MIAMI--(BUSINESS WIRE)-- World Kinect Corporation (NYSE: WKC) announced today that Ira M. Birns, currently EVP and Chief Financial Officer, has been promoted to President and will continue in his CFO role, and that John P. Rau, currently EVP of Global Aviation, Land and Marine, has been promoted to Chief Operating Officer. They will continue to report directly to Chairman and CEO Michael Kasbar. 'Ira Birns and John Rau have demonstrated outstanding business leadership and operational capabilities throughout their careers and I am optimistic about their ability to navigate and steward the continuing evolution of our global energy distribution and solutions business,' Kasbar said. Ira Birns has been EVP & Chief Financial Officer of World Kinect Corporation since 2007, with responsibility for all of the company's Finance functions, Credit Risk Management, Corporate Development and Investor Relations. Prior to World Kinect, Mr. Birns served as Vice President and Treasurer at Arrow Electronics, Inc., a global provider of technology products, services and solutions. He currently serves as a member of the board of directors and the chair of the audit committee of Stem, Inc. (NYSE: STEM), a global leader in artificial intelligence driven clean energy solutions and services. He previously served as Chairman of the Association for Financial Professionals, a professional society committed to advancing the success of its members and their organizations globally. Mr. Birns holds a Bachelor of Business Administration degree in Public Accounting from Hofstra University. He is a certified public accountant as well as a certified treasury professional. Since 2011, John Rau has served in senior leadership roles at World Kinect, most recently as EVP of Global Aviation, Land and Marine, where he is responsible for the leadership of all three of the company's fuel, energy and sustainability businesses. Prior to joining World Kinect, Mr. Rau served as Managing Director at American Airlines from 1995 to 2011, where his responsibilities included jet fuel procurement and logistics. Previously, Mr. Rau worked at United Airlines, where he was responsible for the purchasing and hedging of jet fuel and managing United's jet fuel trading subsidiary. Mr. Rau holds a bachelor's degree in business administration from the University of Kansas. About World Kinect Corporation Headquartered in Miami, Florida, World Kinect Corporation (NYSE: WKC) is a global energy management company offering fulfillment and related services to more than 150,000 customers across the aviation, marine, and land-based transportation sectors. The company also supplies natural gas and power in the United States and Europe along with a broad suite of sustainability-related products and services. For more information, visit
