Free cash flow margin has deteriorated from 52.3% in 2024Q3 to 16.6% in 2026Q1, suggesting that the company's ability to generate discretionary cash is rapidly eroding as market conditions normalize.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | 1.63B | 1.83B | 3.75B | 1.02B | 6.11B | 5.97B | 880.8M | 370.63M | 225.01M | 230.93M | -40.19M | 173.15M | 120.98M | 12.63M |
| Operating CF Margin % | - | 26.44% | 44.53% | 19.76% | 48.64% | 55.65% | 22.07% | 11.23% | 6.93% | 7.75% | -1.58% | 5.79% | 3.55% | 0.34% |
| Operating CF Growth % | -244.48% | -51.36% | 267.91% | -83.31% | 2.33% | 577.9% | 137.65% | 64.72% | -2.56% | 674.66% | -123.21% | 43.11% | 857.91% | - |
| Net Income | 97.9M | 479.2M | 2.15B | -2.69B | 4.63B | 4.65B | 524.2M | -13.04M | -119.85M | 11.36M | -168.29M | 2.25M | -204.91M | -534.97M |
| Depreciation & Amortization | 1.29B | 1.29B | 1.14B | 1.47B | 1.4B | 779.2M | 314.1M | 245.51M | 111.57M | 108.39M | 100.97M | 98.31M | 127.02M | 159.34M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 223.39M | 151.6M | 51.2M | -127.6M | 1.4B | 1.01B | 16.6M | 11.77M | 14.13M | 14.23M | -70K | 0 | 0 | 0 |
| Other Non-Cash Items | 33.86M | -166.9M | 397.8M | 2.19B | -1.43B | -197M | 155.7M | 109.05M | 107.53M | 103.65M | 165.76M | -12.69M | 157.54M | 409.68M |
| Working Capital Changes | -11.92M | 75.2M | 7.4M | 174.9M | 115.1M | -270.8M | -129.8M | 17.35M | 111.63M | -6.7M | 25.3M | 85.28M | 41.33M | -21.43M |
| Change in Receivables | 45.63M | 262.3M | -352.9M | 242.7M | 496.6M | -766.5M | -204.5M | 43.42M | -3.81M | -15.35M | 43.39M | 71.72M | 4.86M | -59.48M |
| Change in Inventory | 12.21M | 44.4M | -32.9M | 11.4M | -71.7M | -66.8M | 8.1M | 9.73M | -6.65M | -22.36M | 3.09M | 33.85M | 22.46M | 13.05M |
| Change in Payables | 72.93M | -267.1M | 0 | 0 | 0 | 0 | 0 | -28.11M | 131.68M | 35.58M | -8.39M | 0 | 0 | 0 |
| Cash from Investing | 3.85M | -133.3M | -223.2M | 1.78B | -1.65B | -3.34B | -35.2M | 38.03M | 51.11M | -93.55M | 141.55M | 103.54M | -92.21M | 133.13M |
| Capital Expenditures | -176.45M | -217.7M | -214.1M | -115.7M | -345.5M | -1.01B | -42.64M | -16.15M | -22.58M | -29.49M | -13.46M | -31.36M | -18.64M | -22.08M |
| CapEx % of Revenue | 2.8% | 3.15% | 2.54% | 2.24% | 2.75% | 9.37% | 1.07% | 0.49% | 0.7% | 0.99% | 0.53% | 1.05% | 0.55% | 0.6% |
| Acquisitions | 4.73M | 36.6M | 0 | 0 | 0 | -182.4M | 0 | 0 | 0 | 0 | 30.67M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 64.44M | -67.5M | -9.1M | 25.2M | 27.9M | 91.53M | 6.64M | 54.18M | 73.69M | -64.05M | 124.34M | 134.9M | -73.57M | 155.21M |
| Cash from Financing | -2.28B | -1.96B | -3.13B | -2.89B | -4.98B | -1.65B | -460.4M | -411.4M | -242.68M | -139.77M | -155.23M | -282.59M | 82.39M | -208.97M |
| Debt Issued (Net) | -1.3B | -1.44B | -2.08B | -1.73B | -1.44B | -1.16B | -321.1M | -283.61M | -154.96M | -55.44M | -150.79M | -179.05M | 4.48M | -101.91M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 205.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -631.13M | -515.6M | -579.2M | -769.2M | -3.3B | -536.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -352.66M | -3.8M | -469.6M | -389.6M | -229.4M | -164.7M | -139.3M | -127.79M | -87.72M | -84.33M | -4.44M | -103.54M | 77.92M | -107.06M |
| Net Change in Cash | -624.5M | -263M | 393.2M | -100.6M | -521.2M | 972.9M | 387.6M | -3.5M | 28.4M | 288K | -61.14M | -11.64M | 107.14M | -64.27M |
| Free Cash Flow | 1.46B | 1.61B | 3.54B | 904.3M | 5.76B | 4.97B | 838.1M | 354.48M | 202.43M | 201.43M | -53.65M | 141.79M | 102.34M | -9.45M |
| FCF Margin % | 23.13% | 23.28% | 41.99% | 17.52% | 45.89% | 46.29% | 21% | 10.74% | 6.23% | 6.76% | -2.11% | 4.74% | 3% | -0.26% |
| FCF Growth % | -63.73% | -54.57% | 291.31% | -84.31% | 16.08% | 492.52% | 136.43% | 75.12% | 0.49% | 475.49% | -137.83% | 38.54% | 1182.54% | - |
| FCF per Share | 12.08 | 13.34 | 29.37 | 7.52 | 47.86 | 41.75 | 6.98 | 3.02 | 1.94 | 2.01 | -0.54 | 1.42 | 1.02 | -0.01 |
| FCF Conversion (FCF/Net Income) | 14.87x | 3.81x | 1.75x | -0.38x | 1.32x | 1.29x | 1.70x | -20.42x | -1.79x | 37.04x | 0.24x | 76.85x | -0.59x | -0.02x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Charter hire cost rigidity
According to ZIM's quarterly financial disclosures, the company consistently reports operating cash flow that significantly exceeds net income, with the OCF/NI ratio reaching an extreme -3.05 in 2026Q1, suggesting that non-cash depreciation charges are the primary driver of reported cash flow rather than core operational profitability.
The persistent gap between net income and operating cash flow highlights that ZIM's cash generation is heavily reliant on the accounting treatment of its chartered fleet. Investors should interpret this divergence as a sign that reported cash flow may overstate the company's ability to generate organic liquidity in a declining freight rate environment.
As reported in recent financial statements, ZIM's free cash flow margin has experienced a volatile decline from a peak of 52.3% in 2024Q3 to 16.6% in 2026Q1, indicating that the company's ability to convert revenue into discretionary cash is rapidly eroding as market conditions normalize.
The sharp contraction in FCF margins suggests that the company's asset-light model is struggling to maintain efficiency as freight rates fall. This trend warrants further investigation into whether the current level of cash generation is sufficient to cover ongoing lease obligations and potential future capital requirements.
Based on ZIM's reported figures, capital expenditures as a percentage of revenue have remained modest, fluctuating between 1.5% and 3.9% over the last ten quarters, which reflects the company's strategic reliance on chartered tonnage rather than heavy investment in owned vessel infrastructure.
While low capital intensity is a hallmark of the charter-heavy model, it may obscure the true cost of fleet maintenance which is instead embedded within operating lease expenses. Analysts should monitor whether this low capex profile is sustainable if the company is forced to modernize its fleet to meet evolving environmental regulations.
Data from recent filings indicates that ZIM's working capital changes are highly erratic, swinging from a $159.1 million inflow in 2024Q4 to a $38.7 million outflow in 2026Q1, which suggests that the company's cash position is sensitive to the timing of collections and payables in a volatile shipping cycle.
This volatility in working capital appears to reflect the cyclical nature of shipping demand and the potential for payment delays from customers. Investors should monitor these fluctuations closely, as they may indicate underlying stress in the company's ability to manage its short-term liquidity requirements during periods of revenue contraction.
As evidenced by historical cash flow statements, ZIM has prioritized significant dividend payouts, including $471 million in 2025Q2, even as net income has fluctuated, which suggests a management preference for returning capital to shareholders that may conflict with the need to preserve liquidity during industry downturns.
The decision to distribute substantial cash during periods of declining profitability appears to have limited the company's ability to build a larger cash buffer. This capital allocation strategy warrants caution, as it may leave the firm with less flexibility to navigate prolonged periods of depressed freight rates.
Quick answers to the most common questions about buying ZIM stock.
ZIM Integrated Shipping Services Ltd. (ZIM) generated $1.83B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
ZIM Integrated Shipping Services Ltd. (ZIM) generated $1.61B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
ZIM Integrated Shipping Services Ltd. (ZIM) spent $217.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, ZIM Integrated Shipping Services Ltd. (ZIM) returned $515.6M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.