Maersk Shares Tumble After Earnings, Guidance Disappoint

By Dominic Chopping

A.P. Moller-Maersk shares tumbled after the shipping group's third-quarter earnings disappointed and a fresh guidance upgrade, driven by higher freight rates, failed to impress investors.

Shares fell as much as 12% in early European trade.

The Danish company said severe typhoons in East Asia during the third quarter and the continuing disruption to shipping from the Strait of Hormuz closure caused widespread network congestion, driving capacity constraints and sending freight rates sharply higher.

At the same time, Maersk said demand and global trade have remained resilient, driven by consumer spending and also increasingly by major investments in electrification, energy and the rapid expansion of artificial-intelligence infrastructure, which Maersk said is generating significant flows of industrial cargo around the world.

"We have been well positioned to capture this demand, with our vessel fleet operating at full capacity and demand exceeding available space on certain routes," Chief Executive Vincent Clerc said.

However, earnings in the quarter disappointed investors and the new guidance also underwhelmed, according to analysts at J.P. Morgan.

Third-quarter underlying earnings before interest, taxes, depreciation and amortization of $4.7 billion came in 11% below consensus, while volumes in the company's main shipping business fell 1% and guidance failed to impress following strong recent upgrades from peers Hapag-Lloyd and ZIM, the bank added.

"The strong spot freight rate trends...appear not to have converted into Maersk unit revenues," J.P. Morgan analysts said.

The company's main shipping business reported earnings before interest and taxes of $2.59 billion in the quarter, shy of the $3.07 billion expected in a FactSet forecast, while spot freight rates increased 46%.

Operating costs at the unit increased 18%, mainly driven by sharply higher fuel costs.

Shipping companies have grappled with widespread network disruption following the outbreak of the Middle East conflict at the end of February, with vessels forced to divert on longer routes, increasing fuel, insurance and operating costs.

However, an easing of tensions around the Red Sea has seen a partial return of vessels passing through the Suez Canal--a key maritime route that offers the fastest and most efficient transit from Asia to Europe and the U.S.

The company now targets underlying earnings before interest, taxes, depreciation and amortization for the year of between $14 billion and $14.5 billion, ahead of its previous target range of $10.5 billion to $12.5 billion.

Maersk also raised its guidance for underlying earnings before interest and taxes to between $8 billion and $8.5 billion, from $4.5 billion to $6.5 billion. Free cash flow is now expected at more than $3 billion compared with above zero previously.

The company had already lifted its annual forecasts in June and August due to strong demand and rising freight rates.

In the third quarter, group underlying EBIT jumped to $3.25 billion from $1.13 billion a year earlier, while revenue rose 27% to $18.1 billion. A FactSet analysts' forecast had seen underlying EBIT of $3.82 billion on revenue of $18.25 billion.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

November 05, 2026 04:49 ET (09:49 GMT)