Ocean Network Express's FY2025 Net Profit Drops 92% to $338 Million Amid Geopolitics and Overcapacity
Singapore-based container shipping giant Ocean Network Express (ONE) reported full-year revenue of $16.6 billion and net profit of $338 million for the fiscal year ended March 2026, down 14% and 92% respectively compared with the previous year. Fourth-quarter revenue reached $4.04 billion with net profit of $55 million, an 82% drop year-on-year, as freight rates posted a late recovery despite sluggish cargo volumes. The carrier said weakness in transpacific demand defined the year alongside continued newbuild deliveries that swelled global fleet capacity.
CEO Jeremy Nixon credited disciplined cost control and operational efficiency for keeping the carrier in the black amid what he described as a "complex and volatile global environment." Nixon said heightened volatility in the fourth quarter did not derail a profitable full-year result. ONE noted that cargo demand stayed subdued through much of the year, particularly on transpacific trades, while the Asia–Europe route provided a relative bright spot, with steady volumes ahead of Lunar New Year helping offset weakness elsewhere. Port congestion and severe weather offered limited support to rates by tightening effective capacity.
Like its peers, ONE continues to absorb rising costs tied to geopolitical instability, especially in the Middle East where restrictions on transits through the Strait of Hormuz persist. The company said the direct impact on fourth-quarter earnings was limited, but the outlook is far more uncertain. Persistent instability has also clouded any meaningful return to Red Sea–Suez Canal routing, with vessels continuing to divert around the Cape of Good Hope, adding time and fuel costs across the network.
ONE expects to remain profitable in FY2026, forecasting net income of around $300 million. That outlook hinges on the key assumption that conditions in the Middle East stabilize by mid-year. The company warned that ongoing disruption in the Strait of Hormuz and broader regional tensions will continue to pressure costs and network reliability, even as it pushes to maintain service levels. The result aligns with broader sector trends after Maersk and Cosco previously flagged earnings declines under similar geopolitical pressure.
Key Takeaways:
1. Ocean Network Express's FY2025 revenue fell to $16.6bn and net profit dropped 92% to $338m.
2. Fourth-quarter revenue was $4.04bn with profit of $55m, an 82% year-on-year decline.
3. CEO Jeremy Nixon credited disciplined cost control and operational efficiency for keeping the carrier in the black.
4. Strait of Hormuz restrictions and a delayed return to Red Sea–Suez routing continue to pressure costs.
5. ONE forecasts about $300m FY2026 net profit, contingent on Middle East stabilization by mid-year.
