Zim Integrated Shipping Services reported second-quarter net income of $64 million, up from $24 million a year earlier, as higher freight rates and increased volumes lifted revenue 9% to $1.78 billion.

The Haifa-based, New York-listed container carrier said in a release that it moved 922,000 container units in the three months ended June 30, a 3% increase from 895,000 units in the second quarter of 2025. Average freight revenue reached $1,590 per unit, up 8% year on year from $1,479 per unit.

Diluted earnings per share were $0.53, compared with $0.19 in the prior-year quarter. Adjusted net income came in at $77 million, versus $24 million a year earlier, after adjusting for costs related to the pending transaction with Hapag-Lloyd.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 4% year on year to $491 million. Operating income slipped to $144 million from $149 million in the second quarter of 2025. Zim generated $386 million in free cash flow during the quarter.

The company attributed the revenue increase principally to higher freight rates and larger volumes. Its second-quarter results were supported by its trans-Pacific exposure, commercial approach and cost structure, Zim said. The gains come in an industry whose earnings have swung sharply in recent years, from pandemic-era records in 2021 and 2022 to sector-wide losses in 2023 and a rebound in 2024 helped by the diversion of ships from the Red Sea onto longer routes around southern Africa — volatility that has made year-over-year comparisons and forward guidance key measures of carrier performance.

"Since assuming my role in July, my focus has been clear: to capitalize fully on current market opportunities while deploying the company's resources with discipline and efficiency," said Zim President and Chief Executive Chen Lichtenstein, who joined the company in July. "We remain committed to preserving the agility that allows us to respond quickly to changing market conditions, strengthening our competitiveness, and creating sustainable value."

First-half results trailed the corresponding period a year earlier. For the first six months of 2026, Zim reported revenue of $3.18 billion, down from $3.64 billion in the first half of 2025. Volume declined to 1.788 million units from 1.839 million units, while average freight revenue fell to $1,455 per unit from $1,632 per unit.

First-half operating income totaled $126 million, compared with $613 million a year earlier, and the company recorded a $38 million loss before income tax, versus a $430 million profit before tax in the corresponding 2025 period.

On the balance sheet, Zim's net debt — consisting predominantly of lease liabilities less cash — stood at $2.77 billion at June 30, down from $2.93 billion at the end of the first quarter. Net leverage was 1.6 times, compared with 1.7 times three months earlier. The company reported a net cash position — cash less financial debt excluding lease liabilities — of $2.46 billion. The preponderance of lease liabilities reflects Zim's heavy reliance on chartered-in vessels, a model that lets carriers flex capacity up and down with demand.

Zim reaffirmed its full-year 2026 guidance for adjusted EBITDA of $2 billion to $2.4 billion and adjusted EBIT of $700 million to $1.1 billion. The company said a dividend to shareholders is expected based on 2026 results.

The proposed Hapag-Lloyd transaction remains subject to closing conditions, including regulatory approvals, Zim said. If completed, the combination would extend a decade of consolidation that has concentrated global container capacity among a shrinking group of large carriers, a wave that included Maersk's purchase of Hamburg Süd and Cosco's takeover of OOCL's parent, Orient Overseas International. The carrier did not hold an earnings conference call because of the pending merger transaction, which has been opposed by several Israeli government agencies over security concerns. Those objections and the outstanding approvals remain the open variables in the transaction's path to completion.