Zim profit plunges 78% ahead of $4.2 billion sale to Hapag-Lloyd
Israeli carrier transported fewer containers and saw average freight prices fall 18% in 2025.
Just before it is set to change hands, Zim closed 2025 with sharply weaker results, reflecting a decline in both shipping volumes and sea freight rates.
The Israeli shipping company reported a net profit of $481 million for 2025, a 77.7% drop from $2.15 billion the previous year. In the fourth quarter, net profit plunged 93.3% to $38 million, compared with $563 million in the fourth quarter of 2024.
The decline was driven by lower container volumes and falling freight prices. In 2025, Zim transported 3.66 million containers (TEU), a 2.3% decrease compared with 2024. At the same time, the average freight rate per container fell 17.8% to $1,551.
Shipping rates have recently begun rising again amid geopolitical tensions, particularly the war with Iran and the closure of the Strait of Hormuz, which has disrupted global shipping routes.
In line with its dividend policy, Zim will distribute a $106 million dividend for the fourth quarter, representing about 50% of quarterly net profit, bringing total dividends for 2025 to $240 million.
Since its IPO on the New York Stock Exchange in January 2021, Zim has distributed $4.8 billion in dividends to shareholders, about 25 times the amount it raised in the offering.
Last month, a deal was signed under which German shipping giant Hapag-Lloyd will acquire all publicly traded shares of Zim, which currently has no controlling shareholder, in a transaction valued at $4.2 billion. Including this acquisition, total distributions to Zim shareholders will reach $10 billion.
At the same time, Hapag-Lloyd signed a separate agreement with Israeli private equity fund FIMI, which will acquire Zim’s Israeli operations. These include 16 ships out of the company’s current fleet of 115 vessels, as well as the shipping routes to and from Israel.
FIMI’s participation in the deal is intended to help overcome regulatory hurdles in Israel. The state holds a golden share in Zim that allows it to veto a sale of the company and to nationalize its fleet during emergencies in order to ensure the continuity of supplies to Israel.
Because of this mechanism, a full sale of the company to a foreign entity could face regulatory difficulties. FIMI’s involvement is meant to address these concerns. However, it remains unclear whether all 11 government bodies required to approve the transaction will ultimately do so, despite the fund’s participation.
One reason for the uncertainty is that the new Zim entity that will retain the Israeli operations, and the obligations tied to the golden share, will be smaller than the current company.
