ZIM Integrated Shipping Services is currently undergoing a complicated strategic review that might change the course of the Israeli shipping company. The board is considering several acquisition proposals while dealing with a fluctuating freight rate market that has cut earnings by more than half compared to the previous year.
Based in Haifa, ZIM announced in late November that it received interest from various parties, including strategic buyers, after a preliminary non-binding offer from CEO Eli Glickman and Rami Ungar to buy all outstanding shares. The board has hired Evercore as a financial advisor and enlisted Meitar Law Offices and Skadden, Arps, Slate, Meagher & Flom as legal advisors to explore options aimed at enhancing shareholder value.
This announcement follows ZIM's acknowledgment of acquisition rumors in August; however, they did not confirm or deny these rumors, stating that the company "does not comment on market rumors or speculation."
ZIM was founded in 1945 and became publicly traded on the New York Stock Exchange during the peak of the COVID-19 supply chain crisis in January 2021. It quickly emerged as one of the most watched stocks in the industry, often achieving strong performance.
As part of the strategic review, ZIM reported a net income of $123 million for the third quarter, a decline of 89% from $1.126 billion during the same time last year. Revenues dropped 36% year-over-year to $1.78 billion, largely due to a 35% decrease in average freight rates, which fell to $1,602 per TEU. The company's adjusted EBITDA also fell by 61% to $593 million.
Glickman noted, "Our business resilience was clear in the third quarter, where we achieved solid earnings despite a volatile rate environment influenced by a complex geopolitical landscape, frequent tariff policy changes, and an ongoing global trade war." He added that ZIM continues to benefit from its flexible fleet deployment strategy, allowing the company to respond rapidly to market changes, even as it faces downward pricing pressures.
Despite the significant earnings drop, ZIM's board declared a third-quarter dividend of $37 million, or $0.31 per share, which represents 30% of the quarterly net income. Since its initial public offering about five years ago, the company has returned approximately $5.7 billion to shareholders—over 25 times what it raised during its January 2021 IPO.
The board has brought on two new independent directors, Yair Avidan and Dr. Yoram Turbowicz, to strengthen its financial and transactional expertise during this review process. ZIM has stated that it will not provide updates on its strategic review until a decision is made or the process is complete.
Looking to the future, ZIM has updated its guidance for full-year 2025. It now anticipates adjusted EBITDA between $2.0 billion and $2.2 billion and adjusted EBIT between $700 million and $900 million, an increase from earlier estimates of $1.8 billion to $2.2 billion and $550 million to $950 million, respectively.
Glickman recognized the tough market conditions but expressed confidence in the company's position. "Even though fourth-quarter market conditions have deteriorated, we are raising the midpoints of our 2025 guidance ranges based on our strong performance so far," he mentioned. "We believe that our unique commercial strategy, improved fleet profile, and better cost structure will help ZIM cope with near-term volatility and provide long-term value to shareholders."
As of September 30, 2025, the company maintained a net debt of $2.64 billion and a net leverage ratio of 0.9x.