Danish shipping company A.P. Moller-Maersk has reported robust financial results for 2024, marking growth across all business segments and significantly enhancing profitability. 

The company’s EBIT surged by 65% to reach $6.5 billion, driven by increased container demand and elevated freight rates in the Ocean segment. Additionally, there was notable growth in revenue and volume within the Terminals division, alongside solid improvements in many Logistics & Services products. 

In light of these strong results and a solid balance sheet, the Board of Directors has proposed a dividend of $0.16 per share and announced a share buy-back program of up to approximately $2 billion, intended to be executed over the next 12 months.

“Our ability to adapt to changing circumstances and maintain stable supply chains for our customers faced significant challenges throughout 2024, yet our commitment paid off with record-high customer satisfaction,” stated Vincent Clerc, Chief Executive Officer.

The Ocean segment saw improved profitability over the previous year, driven by a substantial rise in freight rates, particularly influenced by conditions in the Red Sea and strong demand for shipping services. 

High utilization rates and disciplined cost management ensured that Ocean operations navigated uncertainties efficiently. Despite increased costs associated with re-routing freight around the Cape of Good Hope, stable operational costs year-on-year helped balance the financial impact.

The Logistics & Services segment exhibited resilience throughout 2024, demonstrating consistent quarterly momentum that led to volume growth, increased revenue, and an improved EBIT margin compared to 2023. Overall revenue grew by 7%, bolstered by strong performance in the Warehousing, Air, and First Mile product categories, while profitability improved across most offerings.

The Terminals division achieved its best financial performance in 2024, with EBITDA and EBIT hitting record levels. This success was attributed to robust top-line growth propelled by high volumes, tariff increases that offset inflationary pressures, an improved mix of customers and products, and increased storage revenue.

“We effectively capitalized on rising demand, improved productivity, and strictly managed costs, all of which underpinned our strong financial performance. With our three robust business units, Ocean, Logistics & Services, and Terminals, combined with seamless integration across the supply chain, we are exceptionally positioned to assist our customers during an era marked by geopolitical changes and the need for resilient supply chains,” Clerc added.

Guidance for 2025

Looking ahead to 2025, Maersk anticipated global container volume growth of around 4%, expecting to match market growth rates. The financial results forecast assumes that the Red Sea will reopen mid-year for the lower end of the guidance and by year-end for the upper end. The outlook for 2025 remains subject to considerable macroeconomic uncertainties that could impact both container volume growth and freight rates.

Shareholder returns

In 2024, Maersk returned $1.6 billion to shareholders through dividends and share buy-backs. Additionally, the demerger and spin-off of Svitzer provided $1.1 billion to shareholders through a dividend in-kind.

In February 2024, the Board of Directors decided to suspend the share buy-back program, with plans to revisit the initiative once market conditions in the Ocean segment stabilize. They also resolved to initiate a share buy-back program valued at up to DKK 14.4 billion (approximately US$2 billion), which will be implemented over a 12-month period.

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