A.P. Moller - Maersk has reported strong financial results for 2024, with profitability rising significantly across all segments. The company recorded a 65% increase in earnings before interest and tax (EBIT) to USD 6.5 billion, driven by higher container demand, elevated freight rates in its Ocean segment, and steady growth in Terminals and Logistics & Services. Given these results, Maersk's Board of Directors has proposed a dividend of DKK 1,120 per share and announced a share buy-back programme worth approximately USD 2 billion over 12 months.
'Our ability to navigate shifting circumstances and ensure steady supply chains for our customers was put to the test throughout 2024. Our efforts were rewarded with record-high customer satisfaction. We successfully capitalised on increased demand while enhancing productivity and rigorously managing costs — all of which contributed to our strong financial performance. With three strong businesses — Ocean, Logistics & Services, and Terminals — plus integrated offerings across the supply chain, we are uniquely positioned to support our customers in an era where geopolitical changes and disruptions continue to reinforce the need for resilient supply chains' - Vincent Clerc, CEO of A.P. Moller - Maersk.
Performance across business segments
The Ocean segment saw significant profitability improvements due to rising freight rates, influenced by disruptions in the Red Sea and strong demand. Cost discipline and high utilisation rates helped stabilise operational expenses, mitigating the impact of re-routing vessels via the Cape of Good Hope.
Logistics & Services showed resilience, with revenue increasing by 7% compared to 2023. Growth in warehousing, air freight, and first-mile logistics contributed to higher earnings before interest and tax (EBIT) margins.
The Terminals segment achieved record financial results, with revenue boosted by higher volumes, inflation-adjusted tariff increases, and increased storage income.
Financial outlook and guidance for 2025
Maersk anticipates global container volume growth of approximately 4% in 2025 and expects to perform in line with market trends. However, the company foresees an ongoing supply-demand imbalance, influenced by new vessel deliveries and the potential reopening of the Red Sea. The financial outlook assumes two scenarios: a mid-year reopening of the Red Sea for the lower end of guidance and a year-end reopening for the higher end. Macroeconomic uncertainties, including fluctuating freight rates and fuel prices, could impact financial performance.
For 2025, Maersk has provided financial guidance, forecasting an EBITDA range between USD 6.0 billion and USD 9.0 billion, and EBIT ranging from USD 0 to USD 3.0 billion. Free cash flow is projected at negative USD 3.0 billion, while capital expenditures (CAPEX) are expected to remain between USD 10 billion and USD 11 billion for both 2024-2025 and 2025-2026.
Shareholder returns and strategic investments
During 2024, Maersk returned USD 1.6 billion to shareholders through dividends and share buy-backs. Additionally, the demerger and spin-off of Svitzer contributed USD 1.1 billion via dividend-in-kind payments. The company had previously suspended its share buy-back programme in early 2024 but has now reinitiated a USD 2 billion repurchase plan.
With continued investments in logistics and sustainability, Maersk aims to maintain its competitive position while working towards its goal of achieving net-zero greenhouse gas emissions by 2040.
More information:
Maersk
www.maersk.com