World Kinect Corporation Reports 14% Revenue Decline and Operating Loss in Q1 2025

World Kinect Corporation reported a significant decline in financial performance for the first quarter of 2025, with total revenue of $9.5 billion, down 14% from $11.0 billion in the same period last year. The decrease was attributed to lower revenues across all segments, particularly in the land, marine, and aviation sectors, which saw declines of $551.2 million, $457.6 million, and $490.0 million, respectively. Gross profit also fell to $230.4 million, a 9% decrease from $254.1 million in the prior year, primarily due to reduced contributions from the land and marine segments.

Operating expenses increased by 24% to $237.0 million, driven by asset impairment charges of $44.5 million related to the Watson Fuels sale and restructuring charges of $15.0 million. This led to an operating loss of $6.6 million, a stark contrast to the $63.3 million profit reported in the same quarter of 2024. The company also experienced a net loss attributable to World Kinect of $21.1 million, compared to a profit of $27.4 million in the previous year, resulting in a basic loss per share of $0.37.

In terms of strategic developments, World Kinect completed the sale of its U.K. land fuels business, WFL (UK) Ltd., for approximately $42.8 million, which is expected to incur a pre-tax loss of about $65 million in the upcoming quarter. The company is undergoing a transformation initiative aimed at streamlining operations and enhancing efficiency, which includes workforce reductions and the closure of certain roles. As of March 31, 2025, the company had a total employee headcount of 56.6 million shares outstanding, a slight decrease from 56.7 million shares at the end of 2024.

Operationally, the company reported a decrease in customer engagement metrics, with total accounts receivable dropping to $2.2 billion from $2.4 billion at the end of 2024. The company’s cash and cash equivalents increased to $456.4 million, up from $382.9 million, reflecting improved liquidity management. However, the overall market conditions remain challenging, with significant uncertainty regarding trade policies and inflation impacting demand for fuel products.

Looking ahead, World Kinect anticipates continued challenges in the market, particularly with respect to inflation and trade-related uncertainties. The company is focused on leveraging its restructuring efforts to improve operational efficiency and is optimistic about the potential for growth in its core businesses. However, the outlook remains cautious as the company navigates a volatile economic environment and seeks to stabilize its financial performance.