Singapore-based shipping company Pacific International Lines (PIL) has posted its financial results for the fiscal year ended December 31, 2025.
PIL delivered net profit after tax of US$1.04 billion, underpinned by volume growth, high asset utilisation and strong cost management amid challenging market conditions.
The group gross operating profit amounted to US$1.50 billion with the container shipping business contributing US$1.47 billion.
PIL said its FY2025 results reflects the group’s operational agility, disciplined financial management, and ability to deliver long-term value.
The group recorded revenue of US$4.27 billion, a marginal year-on-year moderation of less than one per cent from 2024. This was primarily due to softening freight rates, offset by healthy volume growth. Notably, volume expansion across the group helped cushion revenue pressures during the year.
The group gross operating profit amounted to US$1.5 billion in FY2025, with the gross operating profit margin moderating to 35 per cent from 39 per cent in the prior year, primarily due to lower rates and increased container handling costs.
"Against this backdrop, PIL’s core container shipping business remained the principal driver of the group’s performance, delivering a resilient outcome in FY2025," PIL said. "This was underpinned by strong volume growth and high asset utilisation across key trade corridors."
Container shipping revenue increased to US$3.81 billion, up from US$3.76 billion in 2024, supported by a 17 per cent year‑on‑year increase in volumes to 2.58 million TEUs. Gross operating profit was US$1.47 billion, easing from the exceptionally strong US$1.65 billion recorded in 2024.
Reflecting this and higher vessel and equipment depreciation, operating profit settled at US$1.04 billion from US$1.33 billion in 2024, with the operating profit margins moderating to 27 per cent from 35 per cent.
"While cost pressures and freight rate moderation weighed on margins compared with the rate levels recorded in 2024, the business continued to generate healthy earnings through disciplined yield management, effective fleet deployment and operational efficiency," said PIL.
"The group’s margins remain among the leading performers in the container shipping industry, reflecting continued earnings strength via operational discipline and efficiency initiatives. This demonstrates PIL’s ability to balance volume growth with commercial and cost discipline in a dynamic market environment."
PIL’s fleet comprised 95 owned vessels and 11 chartered-in vessels at year-end, providing operational flexibility and supporting service continuity across its global network.
It bolstered its fleet with the order of eight new 13,000TEU vessels in 2026, bringing the total number of newbuild LNG dual-fuel vessels ordered since 2022 to 28. Of these, six were delivered in 2025 and two in 2024, supporting PIL’s goal of operating a more modern fuel-efficient and environmentally sustainable fleet.
As of December 31, 2025, PIL maintained a robust balance sheet and strong liquidity position, providing a solid foundation to navigate market volatility and support long-term strategic initiatives.
Cash and deposits increased to US$2.74 billion, up from US$2.4 billion in the prior year, reflecting continued strong cash generation and prudent capital management. The group also maintained exceptionally low gross gearing of 0.15x and was in a net cash position on a net gearing basis, reinforcing its financial resilience.
“Our results in 2025 delivered resilient profitability through volume growth and capacity optimisation," said Lars Kastrup, CEO of PIL. "It is driven by operational agility, financial discipline, and focussed execution. Year-on-year we remain focused on our long-term objectives in building a healthy, sustainable and progressive organisation, to better serve our customers.
"In 2025, we strengthened our network initiatives in 14 countries in Latin America, Africa and Asia, improved our sustainability rating performance, and remain on track for our fleet modernisation plans, to not only reduce emissions, but also upgrade connectivity, enhance safety and efficiency."
Kastrup added that while the year ahead remains challenging amid geopolitical tensions, supply chain disruption and new capacity entering the market, Asia continues to be a key engine of global trade growth.
"With our deep Asian roots and experience, PIL is well positioned to adapt to evolving market conditions. As we strengthen our end-to-end supply chain capabilities, flexible network deployment and exercise disciplined cost and capacity management, I am confident in our ability to remain resilient and thrive in a volatile environment."
