World Kinect Corporation Reports 2025 Financial Results: Key Developments for Investors Executive Summary World Kinect Corporation has released its financial results for the quarter and year ended December 31, 2025. The headline figures indicate both challenges and strategic repositioning, with significant impacts for shareholders and potential price-sensitive information. Key Financial Highlights GAAP Net Loss: The company recorded a net loss of \$280 million, or \$5.11 per diluted share for the year. This is a substantial decline and is likely to be closely scrutinized by the market. Adjusted Net Income: On a non-GAAP basis, adjusted net income was \$17 million, or \$0.30 per diluted share for the quarter. For the full year, adjusted net income was \$107 million, or \$1.91 per diluted share. Adjusted EBITDA: Adjusted EBITDA was \$75 million for the quarter and \$336 million for the year, reflecting underlying profitability despite GAAP losses. Operating Cash Flow: Operating cash flow for the year was \$293 million, with free cash flow of \$227 million, indicating strong cash generation capabilities despite net losses. Segment Performance and Strategic Actions Land Segment: The company has substantially repositioned its Land segment, with additional non-core business exits planned for 2026. This restructuring is expected to further focus operations and may lead to future impacts on revenue and margin profiles. Marine Segment: Fourth quarter gross profit in Marine was \$35 million, up 2%, due to improved performance at certain physical locations. The segment remains well positioned to benefit if market volatility increases. Detailed Financial Tables Metric Q4 2025 Q4 2024 FY 2025 FY 2024 Change Revenue (\$M) 9,029 9,783 9,029 9,783 -8% Operating Expenses (\$M) 511 773 511 773 -7% Income (Loss) from Operations (\$M) (276) 68 (276) 68 -1001% Adjusted Income from Operations (\$M) 49 230 49 230 -79% Adjusted Operating Margin 24% 25% 24% 25% -1% Net Income (Loss) incl. noncontrolling interest (\$M) (279.5) 67.4 (279.5) 67.4 -1001% Adjusted EBITDA (\$M) 75 361 75 361 -79% Diluted EPS (5.11) 1.13 (5.11) 1.13 -1070% Adjusted Diluted EPS 0.30 1.14 0.30 1.14 -74% Cash Flow and Capital Management Cash Flow from Operations: \$293 million for FY 2025; free cash flow \$227 million. Investing Activities: Net cash used in investing activities was \$(170.0) million, including acquisition of business \$(153.6) million and capital expenditures. Financing Activities: Net cash used in financing activities was \$(151.5) million, reflecting dividends, share repurchases, and other financing costs. Dividends and Share Repurchases: Dividends paid totalled \$(11.0) million; share repurchases \$(40.0) million. Balance Sheet Overview Shareholders’ Equity: At year-end, World Kinect had total equity of \$1,307.9 million. Retained Earnings: \$1,315.9 million in 2025, down from \$2,009.2 million in 2024. Accumulated Other Comprehensive Loss: \$(17.3) million in 2025, compared to \$(91.0) million in 2024. Non-GAAP Financial Measures & Definitions The company emphasizes the use of non-GAAP financial measures, including adjusted net income, adjusted EBITDA, and free cash flow, to supplement GAAP results. These measures exclude acquisition/divestiture expenses, restructuring costs, impairments, debt extinguishment gains/losses, integration costs, and legal settlements. Investors are encouraged to review reconciliations on the company website. Free cash flow is defined as operating cash flow minus total capital expenditures. Forward-Looking Statements and Guidance The company provided guidance for 2026 with respect to non-GAAP Adjusted EPS, but did not provide a full reconciliation to GAAP due to the inability to predict adjustments. Forward-looking statements address restructuring benefits, future performance, and leadership transitions. Risks include trade measures, creditworthiness, commodity price volatility, restructuring effectiveness, and litigation outcomes. Shareholder Considerations and Price Sensitivity Net Loss and Restructuring: The substantial GAAP net loss and planned restructuring of the Land segment are major developments. These could affect future profitability and share value, especially as non-core business exits continue in 2026. Cash Flow Strength Amid Losses: Despite net losses, strong operating and free cash flow suggests underlying business resilience. This may provide support to the share price. Dividend and Share Repurchase Policy: Ongoing returns to shareholders via dividends and buybacks, despite losses, may be seen as positive for investor confidence. Impairments and Restructuring Costs: Significant impairments and restructuring expenses have impacted GAAP results and should be closely watched for future quarters. Contacts Braulio Medrano, Senior Director FP&A and Investor Relations Email: [email protected] Conclusion World Kinect Corporation’s 2025 report signals significant operational shifts, with ongoing restructuring, large GAAP losses, but strong cash flow and adjusted profitability. Investors should monitor the progress of business exits and restructuring, as well as the company’s ability to sustain cash generation and shareholder returns. These developments are likely to be price sensitive and could impact share values in the near term.
