Hapag-Lloyd has published its financial results for the first nine months of 2025, revealing a business that is carrying more cargo than ever but earning far less from it. Profit has fallen by almost half, and the numbers show a company moving more freight but generating much lower returns. According to the latest financial report, higher operating costs and weaker freight rates have eroded margins despite the growth in transported volumes.
The headline figures make the picture clearer: operating profit has more than halved, EBITDA is down by around a quarter, and net profit has fallen below USD 1 billion. This decline has not been driven by weak demand. On the contrary, Hapag-Lloyd moved over 10 million TEU — about 9% more than last year, significantly outpacing global container growth. The Gemini Cooperation with Maersk has boosted reliability to near 90%, helping the carrier win market share.
Yet the additional cargo is bringing in far less profit per box. Average freight rates have fallen, while cost per transported TEU has risen by around 5%, reducing the economic margin per container from roughly USD 188 to just USD 59. The gap between what Hapag-Lloyd earns and what it spends on each container has collapsed, signalling a profound margin squeeze.
A more reliable network, but a more expensive one
Much of this cost pressure comes from ongoing global disruption and the company’s own network redesign. Lower bunker prices offered some relief, but higher port storage charges, container repositioning costs, inland transport expenses, and mid-term charter rates more than cancelled out the savings. Continued Red Sea diversions have pushed up voyage and canal costs, while tariff-driven volatility on US-bound trades has created inefficient, irregular flows that require expensive operational adjustments.
This dynamic is especially visible in the Gemini network rollout. The cooperation has delivered highly reliable schedules and a stronger commercial product, but the promised efficiency gains have not yet arrived. Hapag-Lloyd acknowledges that start-up costs are still weighing on the P&L and that the full benefits will only materialise in 2026. For now, Gemini is helping win customers but dragging down margins.
The same tension appears in the terminals business. The segment delivered higher revenue, supported by new assets like the Le Havre terminal, yet EBITDA, EBIT, and margins all declined. Weather disruptions, weaker performance in Latin America, and ramp-up expenses have held back earnings. In other words, the terminal expansion strengthens long-term strategy but is currently an earnings drag.
Financial strength still solid — but no longer untouchable
The financial structure of the group has also shifted. Hapag-Lloyd has moved from a large net cash position to net debt of roughly USD 700 million, reflecting lower operating cash flow, major dividend payments, and continuous investment in ships and terminals. While the equity ratio remains high, the transition from cash-rich to moderately indebted marks a clear change in the company’s financial profile.
A closer look at the accounts reveals further weakness. Interest expenses are up while interest income is down, pushing the financial result into negative territory. Meanwhile, ** favourable tax effects have helped support the bottom line**, suggesting that underlying profitability has deteriorated even more than the headline net profit implies.
Looking to the end of the year, Hapag-Lloyd has narrowed its earnings forecast, signalling a more cautious outlook. Its revised guidance suggests that the final quarter could be particularly weak, potentially even loss-making at EBIT level. Persistent pressure on freight rates, ongoing diversions around the Red Sea, and the unfinished Gemini transition continue to weigh on expectations.
Overall, the results portray a company caught between strategic progress and financial strain. Hapag-Lloyd is delivering a more reliable network and handling more cargo, but higher costs, structural inefficiencies, and geopolitical pressures are eroding profitability. Whether Gemini’s promised savings arrive quickly enough to reverse the downward trend in margins will be a key question for 2026.
