World Kinect Corp (WKC, Financial) released its Q3 2023 earnings report on October 26, 2023. The company reported a decrease in gross profit, net income, and adjusted EBITDA compared to the same period last year. Despite the challenges, the company remains optimistic about future opportunities.
Financial Performance
World Kinect Corp (WKC, Financial) reported a gross profit of $281 million in Q3 2023, a decrease of 13% compared to the same period last year. Net income also decreased by 18% to $35 million. Adjusted EBITDA decreased by 18% to $101 million. The company's revenue also declined by 22% to $12.245 billion.
Segment Profitability
World Kinect Corp (WKC, Financial) reported a decrease in gross profit in the Aviation and Marine segments, while the Land segment saw an increase. The Aviation segment reported a gross profit of $126 million, a decrease of 3% year-over-year. The Marine segment reported a gross profit of $35 million, a decrease of 54% year-over-year. The Land segment reported a gross profit of $121 million, an increase of 3% year-over-year.
Year-to-Date Performance
For the year-to-date period, World Kinect Corp (WKC, Financial) reported a gross profit of $825.8 million, an increase of 2% year-over-year. However, net income decreased by 6% year-over-year to $87.7 million. Adjusted EBITDA increased by 5% year-over-year to $286.7 million.
Company's Commentary
Michael J. Kasbar, Chairman and Chief Executive Officer, commented on the company's performance,
As our team continues to deliver for our global customer base, evidenced by our solid results within the quarter, we remain focused on our strategy to accelerate growth by maximizing efficiencies in our conventional business, expanding our suite of energy-management solutions and increasing the availability of renewable and low-carbon fuels."
Ira M. Birns, Executive Vice President and Chief Financial Officer, added,
Despite marine’s decline from last year’s near record performance, we delivered solid results this quarter, benefiting, in part, from our emerging sustainability-related business activities which continue to grow."
Looking Forward
Despite the decrease in gross profit and net income, World Kinect Corp (WKC, Financial) remains optimistic about future opportunities. The company continues to focus on enhancing its performance and driving greater value for its shareholders.
Explore the complete 8-K earnings release (here) from World Kinect Corp for further details.
