Quarter Three Financial Performance and Earnings Revision
Hapag-Lloyd reported a 50% drop in nine-month net profit to EUR 846 million ($986.6 million) in November 2025 due to challenging market conditions across the container shipping sector. Hapag-Lloyd recorded USD 2.8 billion in EBITDA with Group EBIT declining 55% year-on-year to EUR 809 million due to ongoing market instability; therefore its full year EBIT forecast has been reduced from its original range announced in August.
Rolf Habben Jansen attributed their challenging results to an increasingly uncertain market environment fueled by geopolitical developments and trade policy uncertainties. Although earnings improved compared to prior-year levels during the third quarter, due to depressed freight rates and rising cost pressures; security concerns in Red Sea waters combined with frequent shifts in US trade policy has created unpredictable demand patterns across the shipping sector.
Volume Growth Offset by Rate Pressure
Hapag-Lloyd demonstrated its resilience despite profitability challenges with strong operational performance in Liner Shipping segment, where transport volumes rose 9% year over year to 10.2 million twenty-foot equivalent units (TEU), due to an upswing on East-West trades. Revenue increased to $15.7 billion as customer demand and market share growth strengthened revenue growth prospects.
However, average freight rates declined 4.8% year-on-year to $1,397 per TEU despite volume gains, significantly undermining profitability despite gains. Furthermore, Gemini Cooperation network transition and start-up expenses combined with congestion-related expenses at various global ports had additional negative ramifications on profitability. Terminal & Infrastructure segment revenue rose 375 million thanks to acquisition of French terminal. EBITDA and EBIT remained slightly below prior year levels.
Gemini Cooperation Unlocking Early Cost Advantages
Hapag-Lloyd recently reported its first cost benefits from their Gemini cooperation launched with Maersk in February 2025, with management promising full implementation by 2026. The strategic alliance, which introduced a Cape of Good Hope network as a response to Red Sea security concerns, has begun yielding operational efficiencies despite earlier significant investments. Management stressed the company will respond nimbly and cost effectively in response to any changes in global trade while adhering to tight cost discipline going forward.
2026 Prospect for Sustainable Investments and 2026 Projection.
As part of its decarbonization strategy, Hapag-Lloyd announced plans to invest in up to 22 new ships with capacities of less than 5,000 TEU as part of a long-term charter and ownership fleet mix. This initiative marks a key step toward improved efficiency and net-zero fleet operations by 2045; yet Hapag-Lloyd remains cautious about 2025 full year performance with revised Group EBITDA forecast between $3.1 billion and $3.6 billion due to geopolitical challenges and fluctuating freight rates affecting potential results.