Ocean Network Express (ONE) has posted its financial results for the first quarter of FY2026, covering the period from April 1 to June 30, 2026.
For the first quarter, ONE generated revenue of US$4.539 billion (US$4.042 billion in Q1 FY2025) and recorded a net profit of US$31 million (US$55 million in Q1 FY2025). Gross operating profit reached US$707 million (US$719 million in Q1 FY2025) while operating income totalled US$76 million (US$74 million in Q1 FY2025) during the period.
Strong cargo demand drove freight rates up late in the quarter. Meanwhile, Middle East developments raised fuel prices and operating costs. ONE said that, despite these challenges, it maintained high vessel utilisation through disciplined execution and capacity management.
On ONE's trans-Pacific routes, cargo volumes grew from May onward due to accelerated front-loading ahead of possible tariff changes at the end of July, as well as a movement to replenish retail inventories. Asia-Europe trade also showed steady recovery.
In addition, tighter supply-demand conditions elevated freight rates with services on all routes operating at full capacity.
Reflecting the recent increase in freight rates and strong cargo demand, ONE's full-year forecast guidance has been upgraded to US$900 million (previously US$300 million). Spot freight rates have remained on an upward trend since the first quarter. Backed by solid cargo demand, higher freight rate levels are expected to persist particularly through the second quarter across various trades.
Despite adjusting the second half outlook for higher fuel costs, ONE's first half profit has been substantially revised upward from the previous guidance. With the situation in the Strait of Hormuz still dynamic, the company's latest forecast assumes that operating conditions stabilise to pre-conflict levels in October; and that Cape of Good Hope rerouting would continue for the full fiscal year.
"The first quarter reflected a demanding market, with Middle East disruption raising fuel and operating costs across the industry," Till Ole Barrelet, CEO of ONE, remarked. "As demand recovered through the quarter, we improved yields and maintained high utilisation. We have raised our full-year forecast and remain focused on operational agility as conditions evolve."