Hapag-Lloyd reports strong Q1 growth but warns of uncertainty ahead
The German shipping company saw a strong start to 2025, with profits and transport volumes up, but management remains cautious due to global tensions.
GERMANY – Hapag-Lloyd has kicked off 2025 on a positive note, reporting a sharp rise in profits and transport volumes in its preliminary results for the first quarter.
The global shipping company recorded a 17 percent rise in EBITDA to US$1.1 billion compared to the same period in 2024. Group EBIT jumped by 24 percent to US$500 million.
Transport volume reached 3.3 million twenty-foot equivalent units (TEU), up 9 percent from Q1 2024. The average freight rate also rose by 9 percent to US$1,480 per TEU. Revenue edged up slightly from US$4.6 billion to US$5.3 billion.
“We got 2025 off to a good start in the first quarter, but the market environment is currently characterised by many uncertainties,” said Rolf Habben Jansen, CEO of Hapag-Lloyd.
He added, “We therefore continue to expect lower results for 2025 as a whole.”
Strategic focus and operational improvements
Despite the good numbers, the company is focused on long-term goals and operational improvements. Jansen said Hapag-Lloyd will press forward with its Strategy 2030.
This includes expanding its Hanseatic Global Terminals and implementing the Gemini Cooperation, a customer-focused initiative to raise service quality.
“At the same time, we will make our fleet even more efficient and continue to decarbonise it,” he said. “In addition, we will keep a close eye on our costs and work intensively on becoming even more digital and efficient.”
The company projects full-year EBITDA to land between US$2.5 billion and US$4 billion. Group EBIT is expected to range between US$0 and US$1.5 billion. However, Hapag-Lloyd said these projections remain uncertain due to geopolitical tensions and fluctuating freight rates.
Ongoing tensions cloud forecast
The company highlighted the continued unrest in the Red Sea and trade conflicts as major concerns. “Both the ongoing tense situation in the Red Sea and the global trade conflict could have a significant impact on supply and demand in container shipping and thus also on Hapag-Lloyd’s earnings performance,” the company noted.
This follows a solid finish to 2024, when Hapag-Lloyd saw its revenue rise by 6.6 percent to US$20.7 billion. EBIT came in at US$849 million, a major improvement from a loss the year before.
Transport volume also rose to 12.5 million TEU, up 4.7 percent from 2023. The average freight rate was stable at US$1,492 per TEU.
Despite the positive results, Hapag-Lloyd’s stock price dropped by 8.42 percent, possibly reflecting investor concern about future earnings. Still, the company expects transport volumes to grow by 10 percent in 2025. A dividend of €8.20 (US$8.85) per share has been proposed.
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