Logistic Stocks KW and CHL Down for the March 2026 Quarter

• March earnings are down for logistics stocks Kingston Wharves Limited (KW) and Cargo Handlers Limited (CHL).
• For the quarter ended March 2026, KW reported a 22.3% decline in net profit to $590.85Mn as core revenue growth was undermined by an 80.3% slip in other operating revenue. Driven by a 12.0% increase from its terminal segment and a 35.0% surge in Logistics, which benefited from higher container volumes partially linked to post-Hurricane Melissa activity, core revenues grew by 18.0% to $3.33Bn. However, $84.66Mn in exchange losses, which is a reversal from the $117.45Mn gains for March 2025, weighed heavily on the bottom line, leading to the 22.0% decline in earnings. Management noted that the FX losses were due to the appreciation of the Jamaican dollar relative to the US Dollar, and that, excluding the FX volatility, net earnings would have grown by 5.0%.
• Notwithstanding the decline, management maintains a positive outlook as it seeks to leverage its strategic infrastructure and strong liquidity to navigate heightened global uncertainties, such as Middle East tensions and fuel price volatility. To capitalise on shifting regional trade routes and growing logistics demand, KW plans to collaborate with the government to acquire and develop near-port lands for expanded yard space. Prior capital investments in berth capacity and yard modernisation are also expected to continue bolstering operational efficiency and support faster vessel handling across its diversified cargo base.
• CHL also reported softer earnings, which declined by 39.1% to $39.69Mn, owing to lower core operating revenues and the share of profit of associates.
• Reflecting reduced warehousing capacity and smaller cement shipments at the Port of Montego Bay following Hurricane Melissa, revenues dipped by 18.9% to $105.17Mn. Management noted that the reduction in cement shipments is expected to be short-term and that restoration of warehousing facilities at the port continues post-Melissa. Revenue streams were further suppressed by an 8% drop in cruise revenue, although container handling numbers normalised and showed a marginal year-over-year improvement.
• The company experienced a minor relief as operating and administrative expenses decreased by 3% to $85.38Mn. However, with the faster pace of decline in revenues relative to expenses, operating profit ultimately collapsed by 54.6% to $17.8M. The bottom line was also weighed down by the company's share of profit from associates, which shrank 43% to $19.49M for the quarter.
• As at the close of trading on May 18, 2026, KWL shares traded at $36.99, meaning it is up 7.41% YTD and trades at a P/E of 15.73x. Meanwhile, CHL traded at $16.73, is down 16.7% and trades at a P/E of 18.73x. The peer median for Energy Material and Infrastructure (EMI) stocks was 17.28x.

(Sources: Kingston Wharves Ltd., Cargo Handlers Ltd. & NCBCM Research)