How ZIM (ZIM Integrated Shipping Services) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a shipping and logistics provider like ZIM Income Statement Overview makes money is essential for investors and anyone interested in the business of global container shipping. In this post, we break down ZIM's quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick ZIM Overview

ZIM Income Statement Overview operates as a global container shipping company, providing maritime transportation services for cargo across major international trade routes. Revenue comes primarily from freight charges for container shipments, with additional income from logistics services and related fees. The company’s business segments typically include container shipping, logistics, and value-added services, though the latest filing does not break out segment-specific revenue.

Revenue Breakdown

• Total Revenue (Q2 2025): $1.64B (-15.4% YoY)
  • Container Shipping: $1.64B (100% of total; no segment breakdown provided)
  • Growth is pressured by lower freight rates and softer global demand, reflecting industry-wide headwinds.

Gross Profit and Margins

• Gross Profit: $220.8M (13.5% gross margin)
  • Cost of Revenue: $1.41B (+0.3% YoY)
  • ZIM maintains moderate margins due to its asset-light business model and focus on operational efficiencies, but faces margin compression from rising costs and declining rates.
• Most costs come from vessel chartering, fuel, port fees, and crew expenses.

Operating Income and Expenses

• Operating Income: $149.2M (-66.9% YoY, 9.1% margin)
• Operating Expenses: $71.6M (+28.1% YoY)
  • R&D: Not disclosed for Q2 2025
  • SG&A: $84.2M (+20.1% YoY, 5.1% of revenue) — Includes sales, general, and administrative costs such as staff, marketing, and IT infrastructure.
  • ZIM continues to control costs and invest in digital transformation, while expanding its service network and maintaining operational efficiency.

Net Income

• Pre-Tax Income: $49.3M (-86.8% YoY, 3.0% margin)
• Income Tax: $25.6M (51.9% effective tax rate)
• Net Income: $22.8M (-93.9% YoY, 1.4% net margin)
• ZIM converts a modest portion of sales into profit due to industry volatility, high operating leverage, and elevated interest expenses.

What Drives ZIM's Money Machine?

• Container shipping services: 100% of revenue, driven by global trade volumes and freight rates.
• Utilization rate: ZIM’s ability to fill ships and optimize routes directly impacts profitability.
• Digital transformation: Strategic investments in IT and logistics platforms to improve efficiency and customer experience.
• Expansion into value-added logistics: Growth area, though not yet a significant profit contributor.

Visualizing ZIM's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A and vessel costs) taking the largest chunk.
• Even after significant costs and high interest expenses, only 1.4% of revenue drops to the bottom line.

Key Takeaways

• ZIM's money comes overwhelmingly from container shipping services
• Moderate gross and slim net margins illustrate the challenges of the shipping industry’s cyclical nature
• Heavy investment in digital transformation and network expansion, balanced by tight cost controls
• Ongoing growth is driven by trade volume recovery and operational efficiency

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FAQ About ZIM's Income Statement

1. What is the main source of ZIM's revenue in 2025?

ZIM generates over 100% of its revenue from container shipping services. No other revenue segments were disclosed for Q2 2025.

2. How profitable is ZIM in Q2 2025?

ZIM reported net income of $22.8M in Q2 2025, with a net margin of approximately 1.4%, reflecting modest profitability driven by operational efficiency but pressured by industry headwinds and rising costs.

3. What are the largest expense categories for ZIM?

The biggest expenses on ZIM's income statement are cost of revenue (vessel chartering, fuel, port fees) and SG&A ($84.2M in Q2 2025, 5.1% of revenue), as ZIM prioritizes digital transformation and network expansion.

4. Why does [segment/division] operate at a loss?

ZIM’s overall profitability is pressured by high operating leverage and interest expenses. While the company invests in digital transformation and logistics, these areas are not yet profitable, contributing to slim net margins.

5. How does ZIM's effective tax rate compare to previous years?

ZIM's effective tax rate in Q2 2025 was 51.9%, higher than previous years. This elevated rate is primarily due to geographic earnings mix and limited tax benefits from share-based compensation.