World Kinect Corporation (NYSE:WKC) today reported financial results for the first quarter of 2025.

First Quarter 2025 Highlights

Gross profit of $230 million
GAAP net loss of $21 million, or $0.37 per diluted share
Adjusted net income of $27 million, or $0.48 per diluted share
Generated $114 million of operating cash flow
Repurchased $10 million of common stock
Adjusted EBITDA of $80 million

Year-Over-Year Segment Profitability

Aviation – Gross profit of $116 million, an increase of 7%, primarily attributable to improved performance from our operated airport locations in Europe, our physical inventory business, and our business and general aviation activities, partially offset by a decrease in gross profit attributable to the Avinode sale, which closed during the second quarter of 2024.
Land – Gross profit of $79 million, a decrease of 19%, primarily attributable to lower profit contribution from our liquid fuel business in North America, as a result of industry trends and reduced demand driven by economic uncertainty.
Marine – Gross profit of $36 million, a decrease of 26%, principally due to lower bunker fuel prices and further reduced volatility that had benefited prior year results, as well as reduced demand and lower margins in our resale and physical businesses as a result of increasing market uncertainty.

First Quarter 2025 – U.K. Land Divestiture and Restructuring Activities

On April 9, 2025, we completed the sale of our U.K. land fuels business. As a result, we recognized an asset impairment charge of $44.5 million. The sale is expected to result in an additional estimated pre-tax loss of $65 million, including the reclassification of approximately $55 million of cumulative translation losses to net income which will have no impact to shareholders' equity or cash flows, that will be recognized in the three months ended June 30, 2025.
During the first quarter of 2025, we began an initiative designed to further streamline our operating model and enhance organizational efficiency and effectiveness. As part of this initiative, we undertook cost management actions in response to the current and projected business needs. As a result, we recognized restructuring charges of $15.0 million during the three months ended March 31, 2025, principally related to severance costs.

Financial Summary
(Unaudited - in millions, except per share data)
	Three Months Ended March 31,
		2025			2024		Change
Volume⁽¹⁾		4,177			4,414		(5	)%
Revenue	$	9,453		$	10,951		(14	)%
Gross profit	$	230		$	254		(9	)%
Operating expenses	$	237		$	191		24	%
Adjusted operating expenses	$	178		$	190		(6	)%
Income (loss) from operations	$	(7	)	$	63		(110	)%
Operating margin		(3	)%		25	%
Adjusted income from operations	$	53		$	64		(18	)%
Adjusted operating margin		23	%		25	%
Net income (loss) including noncontrolling interest	$	(21	)	$	27		(178	)%
Adjusted EBITDA	$	80		$	86		(6	)%
Diluted earnings per common share	$	(0.37	)	$	0.45		(182	)%
Adjusted diluted earnings per common share	$	0.48		$	0.47		2	%

⁽¹⁾ Includes gallons and gallon equivalents converted as described in the table below.

"Our Aviation business outperformed our expectations this quarter, while our Land business faced headwinds due to challenging market conditions," said Michael J. Kasbar, Chairman and Chief Executive Officer. "The divestiture of our U.K. Land business marks continued progress in streamlining our Land portfolio and reinforces our commitment to achieving our broader financial goals."

"We continued to streamline our land business and right size our cost structure this quarter, while delivering strong operating and free cash flow," said Ira M. Birns, Executive Vice President and Chief Financial Officer. "We remain well positioned with a strong balance sheet to navigate market dynamics while continuing to invest in our core capabilities."

Earnings Conference Call

An investor conference call will be held today, April 24, 2025, at 5:00 PM Eastern Time to discuss first quarter results. Participants can access the live webcast by visiting our website at ir.worldkinect.com. An on-demand replay of the webcast will be available shortly after the call.

About World Kinect Corporation

Headquartered in Miami, Florida, World Kinect Corporation (NYSE:WKC) is a global energy management company offering fulfillment and related services to more than 150,000 customers across the aviation, marine, and land-based transportation sectors. The company also supplies natural gas and power in the United States and Europe along with a broad suite of other sustainability-related products and services.

For more information, visit world-kinect.com.

Definitions

"Net income (loss)" means net income (loss) attributable to World Kinect as presented in the Statements of Income and Comprehensive Income.
"Operating margin" means income (loss) from operations as a percentage of gross profit.

Non-GAAP Financial Measures

We believe that the non-GAAP financial measures, when considered in conjunction with our financial information prepared in accordance with GAAP, are useful to investors to further aid in evaluating our ongoing financial performance and to provide greater transparency as supplemental information to our GAAP results.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In addition, our presentation of the non-GAAP financial measures may not be comparable to the presentation of such metrics by other companies.

Our non-GAAP financial measures exclude acquisition and divestiture related expenses, costs associated with restructuring activities (including all costs associated with exit activities), impairments, gains or losses on the extinguishment of debt, gains or losses on sale of businesses, integration costs associated with our acquisitions, and non-operating legal settlements, primarily because we do not believe they are reflective of our core operating results. We also exclude costs associated with a previously disclosed erroneous bid made in the Finnish power market (the "Finnish bid error") that resulted in the extraordinary losses.

We use the following non-GAAP measures:

Adjusted net income attributable to World Kinect ("Adjusted net income") is defined as net income excluding the impact of acquisition and divestiture related expenses, costs associated with restructuring activities (including all costs associated with exit activities), impairments, gains or losses on the extinguishment of debt, gains or losses on sale of businesses, integration costs, non-operating legal settlements, and costs associated with the Finnish bid error.
Adjusted diluted earnings per common share ("Adjusted EPS") is computed by dividing adjusted net income by the sum of the weighted average number of shares of common stock outstanding for the period and the number of additional shares of common stock that would have been outstanding if our outstanding potentially dilutive securities had been issued. For the purpose of calculating Adjusted EPS, the weighted average number of shares of common stock outstanding is adjusted to include the convertible note hedges. Potentially dilutive securities include share-based compensation awards, such as non-vested restricted stock units, performance stock units where the performance requirements have been met, settled stock appreciation rights awards, and the convertible notes.
Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") is defined as net income including noncontrolling interest and excluding the impact of interest, income taxes, and depreciation and amortization, in addition to acquisition and divestiture related expenses, costs associated with restructuring activities (including all costs associated with exit activities), impairments, gains or losses on sale of businesses, integration costs, non-operating legal settlements, and costs associated with the Finnish bid error.
Adjusted income from operations is defined as income (loss) from operations excluding the impact of acquisition and divestiture related expenses, costs associated with restructuring activities (including all costs associated with exit activities), impairments, integration costs, and costs associated with the Finnish bid error.
Adjusted income from operations as a percentage of adjusted gross profit ("Adjusted operating margin") is computed by dividing Adjusted income from operations by Adjusted gross profit (as defined below).
Adjusted operating expenses is defined as operating expenses excluding the impact of acquisition and divestiture related expenses, costs associated with restructuring activities (including all costs associated with exit activities), impairments, integration costs, and costs associated with the Finnish bid error.
Consolidated and Land Adjusted gross profit is defined as gross profit excluding the impact of costs associated with the Finnish bid error.
Free cash flow is defined as operating cash flow minus total capital expenditures.

Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures in this press release and on our website.

Information Relating to Forward-Looking Statements

This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe," "anticipate," "expect," "estimate," "project," "could," "would," "will," "will be," "will continue," "plan," or words or phrases of similar meaning. Specifically, this release includes forward-looking statements regarding the expected financial impacts from the sale of our U.K. land fuels business, the impacts of cost management initiatives, and developments in our Land business. Our forward-looking statements are qualified in their entirety by cautionary statements and risk factor disclosures contained in our Securities and Exchange Commission ("SEC") filings, including our most recent Annual Report on Form 10-K filed with the SEC. Our actual results may differ materially from the future results, performance or achievements expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from the results and events anticipated by such forward-looking statements include, but are not limited to: the effects of tariffs and other trade restrictions, which can lead to continuing uncertainty and volatility in global financial and commodity markets, declining consumer confidence, lower personal and business travel and consequent demand for our fuel products; customer and counterparty creditworthiness and our ability to collect accounts receivable and settle derivative contracts; changes in the market prices of energy or commodities or extremely high or low fuel prices that continue for an extended period of time; adverse conditions in the industries in which our customers operate; our inability to effectively mitigate certain financial risks and other risks associated with derivatives and our physical fuel products; our ability to achieve the expected level of benefit from our restructuring activities and cost reduction initiatives; relationships with our employees and potential labor disputes associated with employees covered by collective bargaining agreements; our failure to comply with restrictions and covenants governing our outstanding indebtedness; the impact of cyber and other information technology or security related incidents on us, our customers or other parties; changes in the political, economic or regulatory environment generally and in the markets in which we operate, including as a result of the current conflicts in Eastern Europe and the Middle East and the actions of the U.S. presidential administration; greenhouse gas reduction programs and other environmental and climate change legislation adopted by governments around the world, including cap and trade regimes, carbon taxes, increased efficiency standards and mandates for renewable energy, each of which could increase our operating and compliance costs as well as adversely impact our sales of fuel products; changes in credit terms extended to us from our suppliers; non-performance of suppliers on their sale commitments and customers on their purchase commitments; non-performance of third-party service providers; our ability to effectively integrate and derive benefits from acquired businesses; our ability to meet financial forecasts associated with our operating plan; lower than expected cash flows and revenues, which could impair our ability to realize the value of recorded intangible assets and goodwill; the availability of cash and sufficient liquidity to fund our working capital and strategic investment needs; currency exchange fluctuations; inflationary pressures and their impact on our customers or the global economy, including sudden or significant increases in interest rates or a global recession; our ability to effectively leverage technology and operating systems and realize the anticipated benefits; failure to meet fuel and other product specifications agreed with our customers; environmental and other risks associated with the storage, transportation and delivery of petroleum products; reputational harm from adverse publicity arising out of spills, environmental contamination or public perception about the impacts on climate change by us or other companies in our industry; risks associated with operating in high-risk locations, including supply disruptions, border closures and other logistical difficulties that arise when working in these areas; uninsured or underinsured losses; seasonal variability that adversely affects our revenues and operating results, as well as the impact of natural disasters, such as earthquakes, hurricanes and wildfires; declines in the value and liquidity of cash equivalents and investments; our ability to retain and attract senior management and other key employees; changes in U.S. or foreign tax laws, interpretations of such laws, changes in the mix of taxable income among different tax jurisdictions, or adverse results of tax audits, assessments, or disputes; our failure to generate sufficient future taxable income in jurisdictions with material deferred tax assets and net operating loss carryforwards; changes in multilateral conventions, treaties or other arrangements between or among sovereign nations; our ability to comply with U.S. and international laws and regulations, including those related to anti-corruption, economic sanction programs and environmental matters; the outcome of litigation, regulatory investigations and other legal matters, including the associated legal and other costs; and other risks described from time to time in our SEC filings. New risks emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, changes in expectations, future events, or otherwise, except as required by law.

-- Some amounts in this press release may not add due to rounding. All percentages have been calculated using unrounded amounts --

WORLD KINECT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited - In millions, except per share data)

	March 31, 2025			December 31, 2024
Assets:
Current assets:
Cash and cash equivalents	$	456.4		$	382.9
Accounts receivable, net of allowance for credit losses of $23.4 million and $22.5 million as of March 31, 2025 and December 31, 2024, respectively		2,245.8			2,432.6
Inventories		503.7			513.5
Prepaid expenses		71.2			71.4
Short-term derivative assets, net		172.0			176.5
Other current assets		380.8			382.2
Total current assets		3,829.9			3,959.2
Property and equipment, net		480.1			513.3
Goodwill		1,186.3			1,181.7
Identifiable intangible assets, net		248.5			261.2
Other non-current assets		844.3			816.4
Total assets	$	6,589.1		$	6,731.8
Liabilities:
Current liabilities:
Current maturities of long-term debt	$	86.8		$	84.0
Accounts payable		2,529.7			2,726.5
Short-term derivative liabilities, net		108.8			91.5
Accrued expenses and other current liabilities		617.0			535.8
Total current liabilities		3,342.3			3,437.8
Long-term debt		792.3			796.8
Other long-term liabilities		526.3			541.2
Total liabilities		4,660.9			4,775.8
Commitments and contingencies
Equity:
World Kinect shareholders' equity:
Preferred stock, $1.00 par value; 0.1 shares authorized, none issued		—			—
Common stock, $0.01 par value; 100.0 shares authorized, 56.6 and 56.7 issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		0.6			0.6
Capital in excess of par value		23.1			30.0
Retained earnings		1,978.5			2,009.2
Accumulated other comprehensive income (loss)		(81.0	)		(91.0	)
Total World Kinect shareholders' equity		1,921.2			1,948.7
Noncontrolling interest		7.0			7.2
Total equity		1,928.3			1,955.9
Total liabilities and equity	$	6,589.1		$	6,731.8

WORLD KINECT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited – In millions, except per share data)

	For the Three Months Ended March 31,
		2025			2024
Revenue	$	9,452.5		$	10,951.4
Cost of revenue		9,222.1			10,697.3
Gross profit		230.4			254.1
Operating expenses:
Compensation and employee benefits		105.1			115.5
General and administrative		72.4			75.1
Asset impairments		44.5			—
Restructuring charges		15.0			0.2
Total operating expenses		237.0			190.8
Income (loss) from operations		(6.6	)		63.3
Non-operating income (expenses), net:
Interest expense and other financing costs, net		(22.9	)		(28.9	)
Other income (expense), net		1.3			(3.9	)
Total non-operating income (expense), net		(21.5	)		(32.8	)
Income (loss) before income taxes		(28.1	)		30.5
Provision for income taxes		(6.8	)		3.3
Net income (loss) including noncontrolling interest		(21.3	)		27.2
Net income (loss) attributable to noncontrolling interest		(0.2	)		(0.2	)
Net income (loss) attributable to World Kinect	$	(21.1	)	$	27.4
Basic earnings (loss) per common share	$	(0.37	)	$	0.46
Basic weighted average common shares		56.8			59.9
Diluted earnings (loss) per common share	$	(0.37	)	$	0.45
Diluted weighted average common shares		56.8			60.3
Comprehensive income:
Net income (loss) including noncontrolling interest	$	(21.3	)	$	27.2
Other comprehensive income (loss):
Foreign currency translation adjustments		12.6			(11.8	)
Cash flow hedges, net of income tax expense (benefit) of ($0.9) and ($0.5) for the three months ended March 31, 2025 and 2024, respectively		(2.6	)		(1.0	)
Total other comprehensive income (loss)		10.0			(12.9	)
Comprehensive income (loss) including noncontrolling interest		(11.3	)		14.3
Comprehensive income (loss) attributable to noncontrolling interest		(0.2	)		(0.2	)
Comprehensive income (loss) attributable to World Kinect	$	(11.1	)	$	14.5

WORLD KINECT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - In millions)

	For the Three Months Ended March 31,
		2025			2024
Cash flows from operating activities:
Net income (loss) including noncontrolling interest	$	(21.3	)	$	27.2
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities:
Unrealized (gain) loss on derivatives		1.5			16.7
Depreciation and amortization		25.6			25.3
Noncash operating lease expense		8.6			8.4
Provision for credit losses		2.5			3.0
Share-based payment award compensation costs		6.8			5.9
Deferred income tax expense (benefit)		(32.5	)		(25.9	)
Unrealized foreign currency (gains) losses, net		4.0			14.4
Asset impairment charges		44.5			—
Other		9.0			6.4
Changes in assets and liabilities, net of acquisitions and divestitures:
Accounts receivable, net		204.3			36.1
Inventories		8.9			11.3
Prepaid expenses		0.4			(0.7	)
Other current assets		(2.0	)		37.0
Cash collateral with counterparties		(5.7	)		122.5
Other non-current assets		(29.7	)		(28.1	)
Change in derivative assets and liabilities, net		1.7			0.3
Accounts payable		(210.0	)		(122.6	)
Accrued expenses and other current liabilities		88.6			(29.5	)
Other long-term liabilities		9.1			2.4
Net cash provided by (used in) operating activities		114.4			110.2
Cash flows from investing activities:
Capital expenditures		(15.2	)		(17.5	)
Other investing activities, net		9.4			0.6
Net cash provided by (used in) investing activities		(5.8	)		(16.9	)
Cash flows from financing activities:
Borrowings of debt		811.0			939.0
Repayments of debt		(819.4	)		(942.9	)
Dividends paid on common stock		(9.7	)		(8.4	)
Repurchases of common stock		(10.0	)		—
Payments of deferred consideration for acquisitions		(0.4	)		(50.7	)
Other financing activities, net		(4.0	)		(1.3	)
Net cash provided by (used in) financing activities		(32.4	)		(64.3	)
Cash and cash equivalents reclassified as assets held for sale		—			(6.2	)
Effect of exchange rate changes on cash and cash equivalents		(2.7	)		(5.8	)
Net increase (decrease) in cash and cash equivalents		73.5			17.1
Cash and cash equivalents, as of the beginning of the period		382.9			304.3
Cash and cash equivalents, as of the end of the period	$	456.4		$	321.3

WORLD KINECT CORPORATION
BUSINESS SEGMENTS INFORMATION
(Unaudited - In millions)

	For the Three Months Ended March 31,
Revenue:		2025			2024
Aviation segment	$	4,654.2		$	5,144.2
Land segment		2,865.4			3,416.6
Marine segment		1,932.9			2,390.5
Total revenue	$	9,452.5		$	10,951.4
Gross profit:
Aviation segment	$	115.7		$	108.4
Land segment		79.0			97.3
Marine segment		35.7			48.4
Total gross profit	$	230.4		$	254.1
Income (loss) from operations:
Aviation segment	$	56.2		$	44.0
Land segment		(45.3	)		18.5
Marine segment		14.8			26.8
Corporate overhead - unallocated		(32.3	)		(25.9	)
Total income (loss) from operations	$	(6.6	)	$	63.3

SALES VOLUME SUPPLEMENTAL INFORMATION
(Unaudited - In millions)

	For the Three Months Ended March 31,
Volume (Gallons):	2025	2024
Aviation Segment	1,700.2	1,673.1
Land Segment ⁽¹⁾	1,494.3	1,598.1
Marine Segment ⁽²⁾	982.3	1,143.2
Consolidated Total	4,176.8	4,414.5

(1)	Includes gallons and gallon equivalents of British Thermal Units (BTU) for our natural gas sales and Kilowatt Hours (kWh) for our power business.
(2)	Converted from metric tons to gallons at a rate of 264 gallons per metric ton. Marine segment metric tons were 3.7 and 4.3 for the three months ended March 31, 2025 and 2024, respectively.

WORLD KINECT CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited - In millions, except per share data)

Reconciliation of GAAP to non-GAAP financial measures:	For the Three Months Ended March 31,
	2025						2024
	Net Income (Loss)			Diluted Earnings per Share⁽¹⁾			Net Income (Loss)			Diluted Earnings per Share⁽¹⁾
GAAP measure	$	(21.1	)	$	(0.37	)	$	27.4		$	0.45
(Gain) loss on sale of business		0.4			0.01			—			—
Asset impairments		44.5			0.78			—			—
Finnish bid error		—			—			0.9			0.02
Restructuring charges		15.0			0.26			0.2			—
Income tax impacts		(11.5	)		(0.20	)		(0.2	)		—
Adjusted non-GAAP measure	$	27.3		$	0.48		$	28.2		$	0.47

(1)

For the three months ended March 31, 2025, Adjusted diluted earnings per share is calculated considering the impact of dilutive shares that were not considered for GAAP purposes as the quarter is in a net loss position, and considers the convertible note hedges as described under "Non-GAAP Financial Measures" above. GAAP weighted-average shares outstanding was 56.8 million and there were 0.5 million dilutive shares outstanding, resulting in a non-GAAP weighted average shares outstanding of 57.3 million. There are no adjustments made to diluted weighted-average shares outstanding for any other period presented.

Reconciliation of GAAP to non-GAAP financial measures:	For the Three Months Ended March 31,
Reconciliation of GAAP to non-GAAP financial measures:	2025			2024
Net income (loss) including noncontrolling interest	$	(21.3	)	$	27.2
Interest expense and other financing costs, net		22.9			28.9
Provision (benefit) for income taxes		(6.8	)		3.3
Depreciation and amortization		25.6			25.3
EBITDA		20.4			84.8
(Gain) loss on sale of business		0.4			—
Asset impairments		44.5			—
Finnish bid error		—			0.9
Restructuring charges		15.0			0.2
Adjusted EBITDA	$	80.3		$	85.9

Reconciliation of GAAP to non-GAAP financial measures:	For the Three Months Ended March 31,
	2025						2024
	Operating Expenses			Operating Income (Loss)			Operating Expenses			Operating Income (Loss)
GAAP measure	$	237.0		$	(6.6	)	$	190.8		$	63.3
Asset impairments		(44.5	)		44.5			—			—
Finnish bid error		—			—			(0.9	)		0.9
Restructuring charges		(15.0	)		15.0			(0.2	)		0.2
Adjusted non-GAAP measure	$	177.5		$	52.9		$	189.7		$	64.4

Reconciliation of GAAP to non-GAAP financial measure:	For the Three Months Ended March 31,
Reconciliation of GAAP to non-GAAP financial measure:		2025			2024
Net cash provided by (used in) operating activities	$	114.4		$	110.2
Capital expenditures		(15.2	)		(17.5	)
Free cash flow	$	99.2		$	92.8

View source version on businesswire.com: https://www.businesswire.com/news/home/20250424547205/en/

Ira M. Birns, Executive Vice President & Chief Financial Officer

Braulio Medrano, Senior Director FP&A and Investor Relations

investor@worldkinect.com

World Kinect Corporation Reports First Quarter 2025 Results