CMA CGM anticipates a tough 2026 following a profit drop in 2025, with geopolitical tensions impacting container shipping markets.
CMA CGM warned of a challenging year ahead after reporting steep declines in revenue and profit for 2025, with geopolitical tensions in the Middle East expected to weigh on container shipping markets, reports London's S&P Global.
The French carrier stated that group net profit fell 58 per cent to US$2.3 billion from $5.7 billion in 2024, while revenue slipped two per cent to $54 billion. Shipping division revenue dropped six per cent to $34.3 billion, with EBITDA plunging 30 per cent to $7.9 billion.
CMA CGM chairman and CEO Rodolphe Saade emphasized that the company would rely on diversification, network flexibility, and financial strength to manage the uncertain outlook. He stressed that the priority was protecting staff and maintaining reliable service while continuing to invest in assets and expand the global network.
Container volumes rose three per cent to 24.2 million TEU last year, including a 5.3 per cent increase in the fourth quarter to 6.3 million TEU. However, average revenue per TEU fell nine per cent to $1,414, dragging down profitability. Fourth-quarter EBITDA slumped 48 per cent to $1.5 billion.
CMA CGM's results mirrored losses at rivals Maersk and Ocean Network Express. Maritime consultant Drewry nonetheless upgraded its 2025 profit forecast for carriers to $32 billion and now expects a $1 billion profit in 2026, reversing an earlier forecast of a US$10 billion loss.
The company's logistics arm, including CEVA Logistics, posted stable full-year revenue of $18 billion and EBITDA of $1.7 billion, though fourth-quarter EBITDA fell 11 per cent to $440 million due to volatility and weakness in the automotive sector.
Air freight and terminals were standout performers, with revenue from other activities surging 48 per cent to $4.3 billion. EBITDA more than doubled to $958 million, boosted by the acquisition of Air Belgium and the deployment of a fifth Boeing 777 freighter on trans-Pacific routes.
The terminals business expanded with CMA CGM's purchase of a 51 per cent stake in Santos Brasil last April. Quarterly revenue from air and terminals rose 39 per cent to $1.3 billion, while EBITDA jumped 74 per cent to $278 million.
