World Kinect Q3 Adjusted EPS Rises to $0.99; 2026 Outlook at $3.52-$3.62

World Kinect Corporation reported sharply higher third-quarter earnings and cash generation, supported by a strong Marine performance and improved profitability in Land. The company now expects fiscal 2026 adjusted earnings of $3.52 to $3.62 per share, compared with its initial guidance of $2.20 to $2.40 issued in February.

For the three months ended September 30, GAAP net income was $38.0 million, or $0.70 per diluted share, up from $25.7 million, or $0.46 per share, a year earlier. Adjusted net income rose to $50.8 million from $30.0 million, while adjusted diluted EPS increased to $0.99 from $0.54.

Adjusted EBITDA climbed to $127.1 million from $94.0 million. Gross profit increased 15% to $288.1 million, while adjusted gross profit rose 11.7% to $278.9 million. Those gains came despite a 6% decline in consolidated volume to 4.03 billion gallons and gallon equivalents, excluding volume related to non-core divestitures and business exits.

Operating cash flow increased to $175 million from $116 million, and free cash flow rose to $164 million from $102 million. Adjusted operating expenses declined 3% year over year to $176.2 million, primarily reflecting Land cost reductions and exit actions, partly offset by the inclusion of Universal Trip Support.

Marine and Land drive profit growth

Marine delivered the largest year-over-year improvement. Segment gross profit more than doubled to $58.8 million from $25.5 million even as volume declined 8% to 3.7 million metric tons. World Kinect attributed the increase mainly to stronger contributions from its core resale business and certain physical locations, which benefited from higher bunker fuel prices and global supply dynamics.

Land adjusted income from operations increased 102% to $27.9 million from $13.8 million, despite a 14% decline in volume to 1.19 billion gallons and gallon equivalents. Management said the improvement principally reflected the company’s Land portfolio transformation and higher contributions from retail and cardlock operations. Adjusted Land gross profit was $72.2 million, compared with $81.4 million a year earlier, after excluding $9.2 million associated with non-core divestitures and business exits.

Aviation gross profit rose 4% to $147.9 million as volume increased 1% to 1.85 billion gallons. Stronger commercial fuel resale results and contributions from the expanded trip-support business were partly offset by lower gross profit in physical inventory activities, where significant price movements pressured margins. Aviation fuel gross profit declined to $112.0 million from $121.5 million, while non-fuel gross profit increased to $35.9 million from $21.2 million.

Fiscal 2026 outlook

World Kinect’s current fiscal 2026 adjusted EPS guidance of $3.52 to $3.62 includes planned share repurchases and a full-year contribution from the Universal Trip Support acquisition. The company did not provide a GAAP reconciliation for the outlook because it said it could not predict and quantify all potential adjustments with reasonable confidence.

Management said its efforts to reshape the company are creating a more focused business positioned for improved returns and profitable growth. Its priorities include continued optimization of finance and accounting operations and cash-flow generation.

The outlook remains subject to risks including energy-price and supply volatility, customer and counterparty creditworthiness, geopolitical conflicts, tariffs and trade measures, currency movements, inflation, regulatory changes, cybersecurity incidents, and the company’s ability to realize expected benefits from restructuring, acquisitions and divestitures. World Kinect also identified risks tied to fuel transportation and storage, environmental regulation, supplier and customer performance, liquidity, taxation and legal matters.