KWL Earnings Soar in Q2 2025

  • Kingston Wharves Limited (KWL) saw its second quarter ended June 30, 2025 (Q2 2025) earnings surge by 37.6% to J$922.05Mn. The increase came as higher direct revenues outpaced the rise in direct and indirect costs.
  • Q2 2025 revenues rose to J$3.18Bn, (up 25.1% or J$638.714Mn year-over-year), driven by robust terminal operations and logistic services revenues. This growth came on the back of increased transshipment activities, a key area of strategic focus for the company, along with strong growth in motor units handled, increased container activity, higher volumes in bulk, and breakbulk operations.
  • In line with revenue growth, direct expenses grew by 16.4% to J$1.69Bn. However, with the robust pace of revenue growth, gross profits increased by 36.8% to J$1.49Bn and the gross profit margins increased from 42.8% to 46.7%.
  • Operating expenses also rose 22.3%, primarily due to head office charges to the logistics division and cost increases in connection with improved safety, security, customs protocols and technology systems. However, operating profits remained strong at J$1.13Bn (+34.1%), with operating margins rising from 33.2% to 35.6%.
  • KWL’s Q2 2025 results, coupled with solid earnings in Q1 2025, contributed to higher six-month earnings (H1 2025). Net profits experience a 21.3% increase in H1 2025 to $1.72Bn, with net profit margin inching up to 28.7% from 27.7% in the previous corresponding period.
  • Looking ahead, the management of KWL is approaching the remainder of 2025 with cautious optimism, navigating a more complex global trade landscape influenced by new tariffs and shipping-related charges between the United States (U.S.) and other countries. These developments continue to challenge and disrupt established supply chains and trade routes for shipping lines, cargo owners, and broader economies.
  • Nonetheless, KWL’s strategic focus remains on expanding its role as a terminal and logistics centre by advancing digital transformation, upgrading infrastructure, promoting sustainability, and investing in human capital. The Company is also focused on targeted infrastructure investments that are critical to improving operational efficiency and strengthening links with key shipping services.
  • As at the close of trading on Monday, September 1st, KWL shares’ price was J$30.00, reflecting an 8.8% year-to-date decline. At this price, the shares trade at a P/E of 15.87x, which is above the Main Market Energy, Industrials and Materials Sector average of 15.85x.

(Sources: KWL Financial Release & NCBCM Research)