Delivers Record Gross Profit and Raises Fiscal Year 2026 Guidance
MIAMI--(BUSINESS WIRE)--July 23, 2026--
World Kinect Corporation (NYSE: WKC) today reported financial results for the second quarter of 2026.
Second Quarter 2026 Highlights
-- Gross profit of $365 million -- Adjusted gross profit of $350 million -- GAAP net income of $48 million, or $0.94 per diluted share -- Adjusted net income of $66 million, or $1.29 per diluted share -- Adjusted EBITDA of $136 million -- Repurchased $14 million of common stock -- Increased regular quarterly cash dividend by 15%
Reportable Segment Year-Over-Year Highlights
Aviation Segment
-- Second quarter 2026 gross profit was $208 million, the highest
quarterly gross profit in the history of the segment, an increase of 51%,
primarily attributable to stronger physical inventory-related
profitability in our core commercial business driven by elevated jet fuel
price volatility, in addition to the contribution from Universal Trip
Support Services acquired in the fourth quarter of 2025.
Land Segment
-- Second quarter 2026 gross profit was $77 million and income from
operations was $6 million. Land Adjusted income from operations was $20
million, an increase of $19 million year-over-year, principally
reflecting the benefits of our land portfolio transformation.
Marine Segment
-- Second quarter 2026 gross profit was $80 million, the highest quarterly
gross profit in the history of the segment, an increase of 195%,
primarily driven by higher profit contribution from our core resale
business and certain physical locations, which benefited from increased
bunker fuel prices and elevated market volatility.
"We delivered an exceptional quarter, reflecting solid execution by our team and the strength of our business during a period of significant market volatility," said Ira M. Birns, Chief Executive Officer. "Continued volatile market conditions associated with the conflict in the Middle East created meaningful opportunities across our business, once again demonstrating our ability to support customers through periods of disruption while delivering strong financial results."
"Our second quarter results were very strong, driven by favorable market conditions and the benefits of our streamlined portfolio," said Mike Tejada, Executive Vice President and Chief Financial Officer. "This performance, together with our expectations for the balance of the year, enabled us to raise our full-year Adjusted EPS guidance for the second time this year, while returning capital to shareholders through a 15% dividend increase and additional share repurchases."
2026 Outlook
For the full year 2026, the Company is increasing its Adjusted EPS(1) guidance to a range of $3.20 to $3.40 per share, an increase of approximately 20% from the midpoint of its previous range of $2.65 to $2.85.
(____________________________________) (1) Adjusted EPS is a non-GAAP measure that excludes from the corresponding GAAP financial measure of diluted earnings per share the effect of adjustments as described under "Non-GAAP Financial Measures". We have not provided a reconciliation of such non-GAAP guidance to the corresponding GAAP measure because we cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period.
Financial Summary
(Unaudited - in millions, except per share data)
Three Months Ended June Six Months Ended June
30, 30,
------------------------ ------------------------
2026 2025 Change 2026 2025 Change
------- ------- ------ ------- ------- ------
Volume (1) 3,903 4,220 (8)% 7,905 8,397 (6)%
Revenue $13,591 $ 9,043 50% $23,276 $18,496 26%
Gross profit $ 365 $ 232 57% $ 636 $ 463 37%
Adjusted gross
profit $ 350 $ 232 50% $ 604 $ 463 30%
Operating
expenses $ 269 $ 577 (53)% $ 484 $ 814 (41)%
Adjusted
operating
expenses $ 233 $ 173 35% $ 414 $ 350 18%
Income (loss)
from
operations $ 96 $ (345) 128% $ 152 $ (352) 143%
Operating
margin 26% (148)% 24% (76)%
Adjusted income
from
operations $ 116 $ 60 95% $ 189 $ 113 68%
Adjusted
operating
margin 33% 26% 31% 24%
Net income
(loss)
including
noncontrolling
interest $ 50 $ (339) 115% $ 75 $ (360) 121%
Adjusted EBITDA $ 136 $ 87 55% $ 230 $ 168 37%
Diluted earnings
(loss) per
common share $ 0.94 $(6.06) 115% $ 1.44 $(6.38) 123%
Adjusted EPS $ 1.29 $ 0.59 119% $ 2.04 $ 1.07 91%
(1) Includes gallons and gallon equivalents converted as described in the
table below.
Earnings Conference Call
An investor conference call will be held today, July 23, 2026, at 5:00 PM Eastern Time to discuss our second quarter results. Participants can access the live webcast by visiting our website at ir.worldkinect.com. An on-demand replay of the webcast will be available shortly after the call.
About the Company
Headquartered in Miami, Florida, World Fuel is a leading global provider of aviation, marine and ground-based transportation fuels and complementary services. Through an integrated global supply and logistics network, it sources and distributes products and services to meet customer needs across more than 200 countries and territories throughout the world, including lower-carbon fuels to support customers' energy-transition objectives. In the United States, the Company also markets natural gas and related solutions.
For more information, visit world-kinect.com.
Definitions
-- World Kinect Corporation (the "Company"), along with its consolidated
subsidiaries, is referred to collectively as "World Kinect," "World Fuel,
" "we," "our," and "us."
-- "Net income (loss)" means net income (loss) attributable to World
Kinect as presented in the Consolidated Statements of Income and
Comprehensive Income.
-- "Operating margin" means income (loss) from operations as a percentage
of gross profit.
Non-GAAP Financial Measures
We believe that the non-GAAP financial measures, when considered in conjunction with our financial information prepared in accordance with GAAP, are useful to investors to further aid in evaluating our ongoing financial performance and to provide supplemental information to our GAAP results.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In addition, our presentation of the non-GAAP financial measures may not be comparable to the presentation of such metrics by other companies.
Our non-GAAP financial measures exclude acquisition and divestiture related expenses, costs associated with restructuring activities (including all costs associated with exit activities), impairments, gains or losses on the extinguishment of debt, gains or losses on sale of businesses, integration costs associated with our acquisitions, and non-operating legal settlements, primarily because we do not believe they are reflective of our core operating results. We also exclude costs associated with a previously disclosed erroneous bid made in the Finnish power market (the "Finnish bid error") that resulted in the extraordinary losses and related penalties and fees, as well as operating results associated with certain non-core businesses divested or otherwise in the process of being exited or wound-down for periods following management's determination that the operating results of such businesses are no longer indicative of the Company's ongoing operations ("non-core divestitures and business exits"). While these non-core divestitures and business exits do not qualify for or represent discontinued operations under the applicable accounting guidance because they do not represent a strategic shift that will have a major effect on our operations and financial results, we believe that excluding the operating results associated with this activity enhances investors' understanding of the profitability of our remaining businesses.
We use the following non-GAAP measures:
-- Adjusted net income attributable to World Kinect ("Adjusted net
income") is defined as net income excluding the impact of acquisition and
divestiture related expenses, costs associated with restructuring
activities (including all costs associated with exit activities),
impairments, gains or losses on the extinguishment of debt, gains or
losses on sale of businesses, integration costs, non-operating legal
settlements, costs associated with the Finnish bid error, and operating
results associated with non-core divestitures and business exits.
-- Adjusted diluted earnings per common share ("Adjusted EPS") is computed
by dividing adjusted net income by the sum of the weighted average number
of shares of common stock outstanding for the period and the number of
additional shares of common stock that would have been outstanding if our
outstanding potentially dilutive securities had been issued. For the
purpose of calculating Adjusted EPS, the weighted average number of
shares of common stock outstanding is adjusted to include the convertible
note hedges. Potentially dilutive securities include share-based
compensation awards, such as non-vested restricted stock units,
performance stock units where the performance requirements have been met,
settled stock appreciation rights awards, and the convertible notes.
-- Adjusted earnings before interest, taxes, depreciation and amortization
("Adjusted EBITDA") is defined as net income including noncontrolling
interest and excluding the impact of interest, income taxes, and
depreciation and amortization, in addition to acquisition and divestiture
related expenses, costs associated with restructuring activities
(including all costs associated with exit activities), impairments, gains
or losses on sale of businesses, integration costs, non-operating legal
settlements, costs associated with the Finnish bid error, and operating
results associated with non-core divestitures and business exits.
-- Adjusted income from operations is defined as income (loss) from
operations excluding the impact of acquisition and divestiture related
expenses, costs associated with restructuring activities (including all
costs associated with exit activities), impairments, integration costs,
costs associated with the Finnish bid error, and operating results
associated with non-core divestitures and business exits.
-- Adjusted income from operations as a percentage of gross profit
("Adjusted operating margin") is computed by dividing Adjusted income
from operations by Adjusted gross profit.
-- Adjusted operating expenses is defined as operating expenses excluding
the impact of acquisition and divestiture related expenses, costs
associated with restructuring activities (including all costs associated
with exit activities), impairments, integration costs, costs associated
with the Finnish bid error, and operating results associated with
non-core divestitures and business exits.
-- Adjusted gross profit is defined as gross profit excluding the impact
of costs associated with the Finnish bid error and operating results
associated with non-core divestitures and business exits.
-- Free cash flow is defined as operating cash flow minus total capital
expenditures.
Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures in this press release and on our website.
Information Relating to Forward-Looking Statements
This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe," "expect," "could," "conviction," "would," "will," "continue," "future," "may," "outlook," "undertake," "anticipated," "forecast," "forward," "guidance," "predict," "expectation," or words or phrases of similar meaning. Specifically, this release includes forward-looking statements regarding our future performance and geopolitical and economic conditions in the markets in which we operate. Our forward-looking statements are qualified in their entirety by cautionary statements and risk factor disclosures contained in our Securities and Exchange Commission ("SEC") filings, including our most recent Annual Report on Form 10-K filed with the SEC. Our actual results may differ materially from the future results, performance or achievements expressed or implied by the forward-looking statements. Important factors that could cause actual results to differ materially from the results and events anticipated or implied by such forward-looking statements include, but are not limited to: customer and counterparty creditworthiness and our ability to collect accounts receivable and settle derivative contracts; changes in the market prices of, or an unexpected shortage or disruption in the supply of, energy or commodities or extremely high or low fuel prices that continue for an extended period of time; adverse conditions in the industries in which our customers operate; our inability to effectively mitigate certain financial risks and other risks associated with derivatives and our physical fuel products; changes in the political, economic or regulatory environment generally and in the markets in which we operate, including as a result of the current conflicts in Middle East and Eastern Europe; our ability to achieve the expected level of benefit from our restructuring activities and cost reduction initiatives; relationships with our employees and potential labor disputes associated with employees covered by collective bargaining agreements; our failure to comply with restrictions and covenants governing our outstanding indebtedness; the impact of cyber, AI and other information technology or security related incidents on us, our customers or other parties; the imposition of tariffs or retaliatory tariffs and other trade measures, or renegotiation of existing trade arrangements; greenhouse gas reduction programs and other environmental and climate change legislation adopted by governments around the world, including cap and trade regimes, carbon taxes, increased efficiency standards and mandates for renewable energy, and increased scrutiny on environmental and carbon offset credits, each of which could increase our operating and compliance costs as well as adversely impact our sales of fuel products; changes in credit terms extended to us from our suppliers; non-performance of suppliers on their sale commitments and customers on their purchase commitments; non-performance of third-party service providers; our ability to effectively integrate and derive benefits from acquired businesses or fully realize the anticipated benefits of our acquisitions, divestitures and other strategic transactions; our ability to effectively complete divestitures in accordance with anticipated timing; our ability to meet financial forecasts associated with our operating plan; lower than expected cash flows and revenues, which could impair our ability to realize the value of recorded intangible assets and goodwill; the availability of cash and sufficient liquidity to fund our working capital and strategic investment needs; currency exchange fluctuations; inflationary pressures and their impact on our customers or the global economy, including sudden or significant increases in interest rates or a global recession; our ability to effectively leverage technology and operating systems and realize the anticipated benefits; the proliferation of alternative fuel which could result in lower global demand for certain energy sources; failure to meet fuel and other product specifications agreed with our customers; environmental and other risks associated with the storage, transportation and delivery of petroleum products; reputational harm from adverse publicity arising out of spills, environmental contamination or public perception about the impacts on climate change by us or other companies in our industry; risks associated with operating in high-risk locations, including supply disruptions, border or route closures and other logistical difficulties that arise when working in these areas; uninsured or underinsured losses; seasonal variability that adversely affects our revenues and operating results, as well as the impact of natural disasters, such as earthquakes, hurricanes and wildfires; pandemics, terrorism, global conflicts, power outages, and other events that could impact demand for fuel; declines in the value and liquidity of cash equivalents and investments; our ability to retain and attract senior management and other key employees; changes in U.S. or foreign tax laws, interpretations of such laws, changes in the mix of taxable income among different tax jurisdictions, or adverse results of tax audits, assessments, or disputes; our failure to generate sufficient future taxable income in jurisdictions with material deferred tax assets and net operating loss carryforwards; changes in multilateral conventions, treaties, tariffs and trade measures or other arrangements between or among sovereign nations; our ability to comply with U.S. and international laws and regulations, including those related to anti-corruption, economic sanction programs and environmental matters; the outcome of litigation, regulatory investigations and other legal matters, including the associated legal and other costs; and other risks described from time to time in our SEC filings. New risks emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risks on our business or the extent to which any factor may cause actual results to differ materially from those contained in any forward-looking statement. Further, forward-looking statements speak only as of the date they are made. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, changes in expectations, future events, or otherwise, except as required by law.
-- Some amounts in this press release may not add due to rounding. All percentages have been calculated using unrounded amounts --
WORLD KINECT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited - In millions, except per share data)
June 30, 2026 December 31, 2025
--------------- ---------------------
Assets:
Current assets:
Cash and cash equivalents $ 135.3 $ 193.5
Accounts receivable, net of
allowance for credit losses
of $48.6 million and $15.6
million as of June 30, 2026
and December 31, 2025,
respectively 2,942.2 2,208.5
Inventories 579.3 454.2
Prepaid expenses 76.4 86.6
Short-term derivative assets,
net 79.7 100.5
Other current assets 403.1 457.2
---------- --------------
Total current assets 4,216.0 3,500.5
Property and equipment, net 349.4 348.4
Goodwill 739.7 737.5
Identifiable intangible assets,
net 296.7 311.7
Other non-current assets 997.2 965.9
---------- --------------
Total assets $ 6,598.9 $ 5,863.9
========== ==============
Liabilities:
Current liabilities:
Current maturities of
long-term debt $ 8.7 $ 11.9
Accounts payable 3,252.1 2,586.9
Short-term derivative
liabilities, net 64.3 52.7
Accrued expenses and other
current liabilities 660.0 658.9
---------- --------------
Total current liabilities 3,985.2 3,310.4
Long-term debt 736.6 685.2
Other long-term liabilities 610.0 560.4
---------- --------------
Total liabilities 5,331.8 4,556.1
---------- --------------
Commitments and contingencies
Equity:
World Kinect shareholders'
equity:
Preferred stock, $1.00 par
value; 0.1 shares
authorized, none issued -- --
Common stock, $0.01 par
value; 100.0 shares
authorized, 51.2 and 54.1
issued and outstanding as of
June 30, 2026 and December
31, 2025, respectively 0.5 0.5
Capital in excess of par
value -- --
Retained earnings 1,289.8 1,315.9
Accumulated other
comprehensive income (loss) (32.7) (17.3)
---------- --------------
Total World Kinect
shareholders' equity 1,257.6 1,299.1
Noncontrolling interest 9.5 8.8
---------- --------------
Total equity 1,267.1 1,307.9
---------- --------------
Total liabilities and
equity $ 6,598.9 $ 5,863.9
========== ==============
WORLD KINECT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited -- In millions, except per share data)
For the Three Months For the Six Months Ended
Ended June 30, June 30,
--------------------- ------------------------
2026 2025 2026 2025
-------- ------- -------- --------
Revenue $13,591.2 $9,043.3 $23,276.2 $18,495.8
Cost of revenue 13,226.0 8,810.9 22,639.8 18,033.0
-------- ------- -------- --------
Gross profit 365.1 232.4 636.3 462.8
-------- ------- -------- --------
Operating expenses:
Compensation and
employee
benefits 145.3 105.5 276.2 210.6
General and
administrative 117.5 67.3 194.9 139.7
Goodwill and other
asset
impairments (2.7) 398.6 (2.7) 443.1
Restructuring and
exit costs 8.9 6.0 15.6 21.0
-------- ------- -------- --------
Total operating
expenses 269.1 577.5 484.0 814.5
-------- ------- -------- --------
Income (loss) from
operations 96.1 (345.1) 152.4 (351.6)
-------- ------- -------- --------
Non-operating income
(expenses), net:
Interest expense
and other
financing costs,
net (30.6) (25.7) (56.9) (48.5)
Other income
(expense), net 0.8 (78.0) 3.0 (76.6)
-------- ------- -------- --------
Total
non-operating
income
(expense),
net (29.8) (103.6) (53.8) (125.1)
-------- ------- -------- --------
Income (loss) before
income taxes 66.3 (448.7) 98.5 (476.8)
Income tax expense
(benefit) 16.6 (109.6) 23.2 (116.4)
-------- ------- -------- --------
Net income (loss)
including
noncontrolling
interest 49.8 (339.1) 75.3 (360.4)
Net income (loss)
attributable to
noncontrolling
interest 1.4 0.3 0.7 0.1
-------- ------- -------- --------
Net income (loss)
attributable to
World Kinect $ 48.4 $ (339.4) $ 74.6 $ (360.4)
======== ======= ======== ========
Basic earnings (loss)
per common share $ 0.94 $ (6.06) $ 1.45 $ (6.38)
======== ======= ======== ========
Basic weighted
average common
shares 51.3 56.0 51.5 56.5
======== ======= ======== ========
Diluted earnings
(loss) per common
share $ 0.94 $ (6.06) $ 1.44 $ (6.38)
======== ======= ======== ========
Diluted weighted
average common
shares 51.6 56.0 51.8 56.5
======== ======= ======== ========
Comprehensive income
(loss):
Net income (loss)
including
noncontrolling
interest $ 49.8 $ (339.1) $ 75.3 $ (360.4)
-------- ------- -------- --------
Other comprehensive
income (loss):
Foreign currency
translation
adjustments (0.3) 61.7 (1.4) 74.3
Cash flow hedges,
net of income tax
expense (benefit)
of $9.3 and $0.5
for the three
months ended June
30, 2026 and
2025,
respectively, and
net of income tax
expense (benefit)
of $(5.1) and
$(0.4) for the
six months ended
June 30, 2026 and
2025,
respectively 27.1 1.4 (13.9) (1.1)
-------- ------- -------- --------
Total other
comprehensive
income (loss) 26.8 63.1 (15.3) 73.1
-------- ------- -------- --------
Comprehensive income
(loss) including
noncontrolling
interest 76.6 (276.0) 60.0 (287.2)
Comprehensive income
(loss) attributable
to noncontrolling
interest 1.4 0.3 0.7 0.1
-------- ------- -------- --------
Comprehensive income
(loss) attributable
to World Kinect $ 75.2 $ (276.2) $ 59.2 $ (287.3)
======== ======= ======== ========
WORLD KINECT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - In millions)
For the Three Months For the Six Months Ended
Ended June 30, June 30,
-------------------- ------------------------
2026 2025 2026 2025
-------- ------ -------- --------
Cash flows from
operating activities:
Net income (loss)
including
noncontrolling
interest $ 49.8 $(339.1) $ 75.3 $ (360.4)
Adjustments to
reconcile net income
including
noncontrolling
interest to net cash
provided by operating
activities:
Unrealized (gain)
loss on
derivatives 14.6 12.1 25.1 13.6
(Gain) loss on sale
of business (1.2) 81.7 (1.2) 81.7
Depreciation and
amortization 20.2 23.8 40.2 49.5
Noncash operating
lease expense 9.8 10.3 17.5 18.9
Provision for
credit losses 29.6 1.6 35.5 4.1
Share-based payment
award compensation
costs 7.2 2.4 14.6 9.2
Deferred income tax
expense (benefit) 12.6 (107.3) 18.0 (139.8)
Unrealized foreign
currency (gains)
losses, net 13.0 (1.6) 6.6 2.3
Goodwill and other
asset impairment
charges (2.7) 398.6 (2.7) 443.1
Other 3.5 3.5 3.1 12.4
Changes in assets
and liabilities,
net of
acquisitions and
divestitures:
Accounts
receivable,
net (121.4) (35.7) (750.7) 168.6
Inventories 136.9 11.0 (123.6) 20.0
Prepaid expenses 22.3 (8.0) 9.4 (7.6)
Other current
assets (27.9) 17.6 (42.2) 15.6
Cash collateral
with
counterparties 29.9 20.7 (5.8) 15.0
Other
non-current
assets (29.0) (26.4) (76.3) (56.2)
Change in
derivative
assets and
liabilities,
net 11.6 0.3 (8.1) 2.0
Accounts payable (177.2) 119.9 647.9 (90.0)
Accrued expenses
and other
current
liabilities (37.4) (161.8) 5.6 (73.3)
Other long-term
liabilities 14.8 4.6 44.3 13.8
-------- ------ -------- --------
Net cash provided by
(used in) operating
activities (21.3) 28.3 (67.7) 142.6
-------- ------ -------- --------
Cash flows from
investing activities:
Proceeds from sale of
business, net of
divested cash 84.5 23.4 84.5 23.4
Capital expenditures (13.8) (15.0) (27.6) (30.1)
Other investing
activities, net 5.6 (7.4) 7.8 1.9
-------- ------ -------- --------
Net cash provided by
(used in) investing
activities 76.3 1.0 64.7 (4.8)
-------- ------ -------- --------
Cash flows from
financing activities:
Borrowings of debt 1,505.0 813.0 3,020.0 1,624.0
Repayments of debt (1,557.4) (863.5) (2,970.3) (1,682.8)
Dividends paid on
common stock (10.2) (9.6) (20.9) (19.2)
Repurchases of common
stock (14.3) (35.0) (89.3) (45.0)
Other financing
activities, net 3.9 (3.6) 3.0 (8.0)
-------- ------ -------- --------
Net cash provided by
(used in) financing
activities (73.0) (98.6) (57.5) (131.1)
-------- ------ -------- --------
Cash and cash
equivalents
reclassified as
assets held for sale 0.4 -- -- --
Effect of exchange
rate changes on cash
and cash equivalents 1.8 16.3 2.3 13.6
-------- ------ -------- --------
Net increase (decrease)
in cash and cash
equivalents (15.7) (53.2) (58.2) 20.3
Cash and cash
equivalents, as of the
beginning of the period 151.1 456.4 193.5 382.9
-------- ------ -------- --------
Cash and cash
equivalents, as of the
end of the period $ 135.3 $ 403.2 $ 135.3 $ 403.2
======== ====== ======== ========
WORLD KINECT CORPORATION
BUSINESS SEGMENTS INFORMATION
(Unaudited - In millions)
For the Three Months For the Six Months Ended
Ended June 30, June 30,
--------------------- ------------------------
Revenue: 2026 2025 2026 2025
-------- ------- -------- --------
Aviation
segment $ 7,959.5 $4,725.1 $13,004.6 $ 9,379.3
Land segment 2,867.9 2,425.0 5,443.8 5,290.3
Marine segment 2,763.8 1,893.2 4,827.7 3,826.1
-------- ------- -------- --------
Total
revenue $13,591.2 $9,043.3 $23,276.2 $18,495.8
======== ======= ======== ========
Gross profit:
Aviation
segment $ 208.0 $ 138.0 $ 346.2 $ 253.6
Land segment 77.5 67.4 144.1 146.4
Marine segment 79.7 27.0 146.0 62.8
-------- ------- -------- --------
Total gross
profit $ 365.1 $ 232.4 $ 636.3 $ 462.8
======== ======= ======== ========
Income (loss)
from operations:
Aviation
segment $ 104.8 $ 71.7 $ 162.5 $ 127.8
Land segment 6.3 (366.9) 8.6 (412.2)
Marine segment 22.2 (25.6) 55.2 (10.8)
Corporate
overhead -
unallocated (37.4) (24.2) (73.9) (56.5)
-------- ------- -------- --------
Total income
(loss) from
operations $ 96.1 $ (345.1) $ 152.4 $ (351.6)
======== ======= ======== ========
SALES VOLUME SUPPLEMENTAL INFORMATION
(Unaudited - In millions)
For the Three
Months Ended June For the Six Months
30, Ended June 30,
------------------ ----------------------
Volume (Gallons): 2026 2025 2026 2025
-------- -------- --------- -----------
Aviation Segment 1,759.9 1,856.0 3,382.8 3,556.2
Land Segment (1) 1,228.2 1,343.3 2,585.4 2,837.6
Marine Segment
(2) 914.5 1,020.7 1,936.4 2,003.0
-------- -------- --------- ---------
Consolidated
Total 3,902.5 4,219.9 7,904.6 8,396.8
======== ======== ========= =========
(1) Includes gallons and gallon equivalents of British Thermal Units $(BTU)$
for our natural gas sales and Kilowatt Hours (kWh) for our power
business.
(2) Converted from metric tons to gallons at a rate of 264 gallons per
metric ton. Marine segment metric tons were 3.5 and 3.9 for the three
months ended June 30, 2026 and 2025, respectively; and 7.3 and 7.6 for
the six months ended June 30, 2026 and 2025, respectively.
WORLD KINECT CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited - In millions, except per share data)
For the Three Months Ended June 30, For the Six Months Ended June 30,
-------------------------------------------------- ---------------------------------------------------
2026 2025 2026 2025
----------------------- ------------------------- ------------------------ -------------------------
Reconciliation of
GAAP to non-GAAP Net Diluted Diluted Diluted Diluted
financial Income Earnings per Net Income Earnings per Net Income Earnings per Net Income Earnings per
measures: (Loss) Share (1) (Loss) Share (1) (Loss) Share (1) (Loss) Share (1)
--------- ------------ ----------- ------------ ---------- ------------ ----------- ------------
GAAP measure $48.4 $ 0.94 $(339.4) $(6.06) $ 74.6 $ 1.44 $(360.4) $(6.38)
Impact of
adjustments to
weighted
average
diluted shares
outstanding
(1) -- -- -- 0.03 -- -- -- 0.05
Acquisition
and
divestiture
related
expenses -- -- -- -- 0.2 -- -- --
Non-core
divestitures
and business
exits (2) 4.1 0.08 -- -- 11.5 0.22 -- --
(Gain) loss on
sale of
business (1.2) (0.02) 81.9 1.45 (1.4) (0.03) 82.3 1.45
Goodwill and
other asset
impairments (2.7) (0.05) 398.6 7.08 (2.7) (0.05) 443.1 7.79
Integration
costs 1.7 0.03 -- -- 4.1 0.08 -- --
Exit costs -
provision for
credit losses 3.0 0.06 -- -- 3.0 0.06 -- --
Finnish bid
error 5.2 0.10 -- -- 5.2 0.10 -- --
Restructuring
and exit costs
(3) 8.9 0.17 6.0 0.11 15.6 0.30 21.0 0.37
Income tax
impacts (0.9) (0.02) (113.9) (2.02) (4.5) (0.09) (125.4) (2.20)
---- ----- --- ------ ----- --- ----- ----- --- ------ ----- ---
Adjusted non-GAAP
measure $66.4 $ 1.29 $ 33.3 $ 0.59 $105.6 $ 2.04 $ 60.6 $ 1.07
==== ===== ==== ====== ===== ==== ===== ===== ==== ====== ===== ====
(1) For the three and six months ended June 30, 2025, Adjusted diluted
earnings per share was calculated considering the impact of dilutive
shares that were not considered for GAAP purposes as these periods were
in a net loss position. For the three and six months ended June 30,
2025, GAAP weighted-average shares outstanding were 56.0 million and
56.5 million and, for non-GAAP purposes, were adjusted by 0.3 million
and 0.4 million dilutive shares outstanding, resulting in non-GAAP
weighted average shares outstanding of 56.3 million and 56.9 million,
respectively. There were no adjustments made to diluted weighted-average
shares outstanding for any other period presented.
(2) Represents the operating results of certain non-core
businesses--specifically direct fuel transportation services,
lubricants, heating oil, power, and certain advisory and sustainability
offerings--for periods following management's determination that such
results are no longer indicative of the Company's ongoing operations.
During the three and six months ended June 30, 2025, these businesses
were considered to be part of our core business portfolio and no
adjustments were made to remove these businesses from our non-GAAP
financial measures. During the three and six months ended June 30, 2026,
management had initiated actions to divest or exit select Land segment
activities that are no longer aligned with the Company's core strategy
or profitability objectives and these businesses were in a wind-down or
divestiture phase, during which the Company continued to service
existing customer obligations but ceased investing in or actively
marketing the underlying products and services. Accordingly, for the
three and six months ended June 30, 2026, the operating results of these
businesses are excluded from our non-GAAP financial measures. While
these activities do not qualify as discontinued operations under
applicable accounting guidance, management believes their operating
results during the exit and divestiture period are not representative of
the Company's ongoing operations and has therefore excluded them from
non-GAAP financial measures to enhance comparability and investor
understanding of core business performance.
(3) Restructuring and exit costs during the three months ended June 30, 2026
were comprised of $3.7 million of charges related to our restructuring
program, including severance and other compensation costs as well as
transition costs associated with our global finance and accounting
optimization program, and $5.2 million of charges associated with exit
activities related to our decision to exit certain operations within the
land segment that are no longer profitable or aligned with the Company's
core business and corporate strategy, comprised of charges associated
with various legal matters and contract termination costs of $2.4
million and severance and compensation costs of $3.2 million, which were
partially offset by a net gain on the sale of assets of $0.5 million.
Restructuring and exit costs during the six months ended June 30, 2026
were comprised of $9.5 million of charges related to our restructuring
program, including severance and other compensation costs as well as
transition costs associated with our global finance and accounting
optimization program, and $6.1 million of charges associated with exit
activities related to our decision to exit certain operations within the
land segment that are no longer profitable or aligned with the Company's
core business and corporate strategy, comprised of charges associated
with various legal matters and contract termination costs of $10.2
million and severance and compensation costs of $4.1 million, which were
partially offset by a net gain on the sale of assets of $8.2 million.
Restructuring and exit costs during the three and six months ended June
30, 2025 were principally related to our restructuring program,
including severance and other compensation costs as well as transition
costs associated with our global finance and accounting optimization
program.
For the Three
Months Ended June For the Six Months
30, Ended June 30,
----------------- -------------------
Reconciliation of
GAAP to non-GAAP
financial
measures: 2026 2025 2026 2025
----- ------ ----- ------
Net income (loss)
including
noncontrolling
interest $ 49.8 $(339.1) $ 75.3 $(360.4)
Interest
expense and
other
financing
costs, net 30.6 25.7 56.9 48.5
Income tax
expense
(benefit) 16.6 (109.6) 23.2 (116.4)
Depreciation
and
amortization 20.2 23.8 40.2 49.5
----- ------ ----- ------
EBITDA 117.1 (399.2) 195.6 (378.8)
Acquisition
and
divestiture
related
expenses -- -- 0.2 --
Non-core
divestitures
and business
exits 3.8 -- 10.7 --
(Gain) loss on
sale of
business (1.2) 81.9 (1.4) 82.3
Goodwill and
other asset
impairments (2.7) 398.6 (2.7) 443.1
Integration
costs 1.7 -- 4.1 --
Exit costs -
provision for
credit losses 3.0 -- 3.0 --
Finnish bid
error 5.2 -- 5.2 --
Restructuring
and exit
costs 8.9 6.0 15.6 21.0
----- ------ ----- ------
Adjusted EBITDA $135.7 $ 87.3 $230.2 $ 167.7
===== ====== ===== ======
For the Three Months Ended June 30,
-------------------------------------------------------------------------------------------------
2026 2025
-------------------------------------------------- ---------------------------------------------
Land
Land Segment Consolidated Segment Consolidated
------------- ----------------------------------- ----------- --------------------------------
Reconciliation of
GAAP to non-GAAP Operating Operating Operating Operating
financial Income Gross Operating Income Income Gross Operating Income
measures: (Loss) Profit Expenses (Loss) (Loss) Profit Expenses (Loss)
------------- ------- ------------- ----------- ----------- ------ ----------- -----------
GAAP measure $ 6.3 $365.1 $ 269.1 $ 96.1 $(366.9) $232.4 $ 577.5 $(345.1)
Non-core
divestitures
and business
exits 4.1 (15.4) (19.6) 4.1 -- -- -- --
Goodwill and
other asset
impairments (4.0) -- 2.7 (2.7) 367.0 -- (398.6) 398.6
Integration
costs -- -- (1.7) 1.7 -- -- -- --
Exit costs -
provision for
credit losses 3.0 -- (3.0) 3.0 -- -- -- --
Finnish bid
error 5.2 -- (5.2) 5.2 -- -- -- --
Restructuring
and exit
costs 5.3 -- (8.9) 8.9 1.2 -- (6.0) 6.0
---- --- ----- ----- ----- --- ------ ----- ------ ------
Adjusted non-GAAP
measure $ 20.0 $349.7 $ 233.5 $116.3 $ 1.3 $232.4 $ 172.8 $ 59.6
==== === ===== ===== ===== === ====== ===== ====== ======
For the Six Months Ended June 30,
-------------------------------------------------------------------------------------------------
2026 2025
-------------------------------------------------- ---------------------------------------------
Land
Land Segment Consolidated Segment Consolidated
------------- ----------------------------------- ----------- --------------------------------
Reconciliation of
GAAP to non-GAAP Operating Operating Operating Operating
financial Income Gross Operating Income Income Gross Operating Income
measures: (Loss) Profit Expenses (Loss) (Loss) Profit Expenses (Loss)
------------- ------- ------------- ----------- ----------- ------ ----------- -----------
GAAP measure $ 8.6 $636.3 $ 484.0 $152.4 $(412.2) $462.8 $ 814.5 $(351.6)
Acquisition and
divestiture
related
expenses -- -- (0.2) 0.2 -- -- -- --
Non-core
(MORE TO FOLLOW) Dow Jones Newswires
July 23, 2026 16:15 ET