10-Q · April 24, 2026
World Kinect's 10-Q shows revenue of $9,685.0 million in Q1 2026, up 2% vs Q1 2025, with gross profit rising 18% to $271.2 million and operating income turning positive to $56.3 million from an operating loss of $(6.6)…
Earnings analysis · 10-Q
WKC earnings analysis
Filed July 24, 2026 · Our reading of the company's report
The latest report
World Kinect delivered a strong Q2 turnaround: revenue increased 50% to $13.591 billion, gross profit rose 57%, and diluted EPS was $0.94 versus a $6.06 loss a year earlier. Aviation and marine drove the improvement…
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World Kinect delivered a strong Q2 turnaround: revenue increased 50% to $13.591 billion, gross profit rose 57%, and diluted EPS was $0.94 versus a $6.06 loss a year earlier. Aviation and marine drove the improvement through higher fuel prices, volatility-related physical margins, and the Universal TSS contribution, while land returned to a modest operating profit. The principal offset is cash conversion: first-half operating cash flow was negative $67.7 million as higher commodity prices raised working-capital needs, alongside lower volumes and elevated customer-credit risk.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.94
What stood out
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Revenue and gross profit accelerated
Q2 revenue rose 50% year over year to $13.591 billion from $9.043 billion, while gross profit increased 57% to $365.1 million. Gross margin expanded to 2.69% from 2.57%.
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Earnings returned sharply to profit
World Kinect earned $0.94 diluted EPS and $48.4 million of net income attributable to the company, versus a $6.06 diluted loss per share and $339.4 million net loss in Q2 2025. Operating income was $96.1 million, compared with a $345.1 million operating loss.
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Aviation was the largest growth driver
Aviation generated $7.960 billion of revenue, up 68%, and $104.8 million of operating income, up 46%. Gross profit rose $70.0 million to $208.0 million, supported by price volatility and Universal TSS, despite a 5% volume decline to 1.760 billion gallons.
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Marine profitability rebounded
Marine revenue increased 46% to $2.764 billion and gross profit nearly tripled to $79.7 million from $27.0 million. The segment swung to $22.2 million of operating income from a $25.6 million loss as higher bunker prices and volatility aided physical and resale profitability.
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Land segment returned to operating profit
Land revenue grew 18% to $2.868 billion and gross profit increased 15% to $77.5 million. The segment earned $6.3 million from operations versus a $366.9 million loss, although the comparison benefits from substantially lower impairment charges.
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Cost program and capital returns continue
Management expects about $30 million of annualized compensation savings and approximately $80 million of total savings in 2026-2030 from restructuring and finance/accounting optimization. It repurchased $89.3 million of stock in the first half and retained $212.7 million of authorization at June 30.
What to watch
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Higher prices consumed working capital
Operating cash flow reversed to a $67.7 million use in the first six months of 2026 from $142.6 million provided a year earlier, as higher fuel prices increased cash needs for receivables, payables, inventory, and derivatives. After $27.6 million of capital expenditures, implied free cash flow was negative $95.3 million.
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Price-led growth masks volume declines
All three segments reported lower physical volumes despite revenue growth: aviation volumes fell 5% to 1.760 billion gallons, land fell 9% to 1.228 billion gallons or equivalents, and marine fell 10% to 3.5 million metric tons. Revenue growth was primarily price-led, including an 83% aviation price-per-gallon increase.
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Customer credit losses increased
Bad-debt expense increased as certain aviation and marine customers deteriorated financially; a marine customer filed for creditor protection during Q2. Marine operating expenses rose $4.8 million to $57.4 million despite the segment's gross-profit improvement.
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Financing costs and covenant sensitivity
Interest expense and other financing costs increased to $30.6 million from $25.7 million in Q2. The company had $350.0 million of 3.250% convertible notes outstanding and a credit facility of up to $1.65 billion, whose availability can fluctuate with leverage and other covenant constraints.
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Restructuring execution remains a risk
The company recorded $6.1 million of exit-activity charges and $9.5 million of restructuring-plan charges during the first half of 2026, and expects another $4.4 million of finance-optimization transition and one-time charges in 2026. Execution is necessary to realize the projected $80 million of 2026-2030 savings.
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No material risk-factor updates; macro risk persists
Item 1A states there were no material changes to risk factors from the 2025 10-K and Q1 2026 10-Q. Nevertheless, management flags geopolitical conflict and trade-policy uncertainty; marine Q2 volume was down 0.4 million metric tons, with reduced demand linked to the Middle East conflict.
Management's outlook
The 10-Q provides no consolidated revenue or EPS outlook. Management expects approximately $30 million of annualized compensation-related savings from the 2025 restructuring plan, approximately $80 million of cumulative savings during 2026-2030 from finance/accounting optimization, and an additional $4.4 million of transition and one-time charges during 2026; transition activities are planned for completion in Q4 2026.
Earlier filings 4
10-K · February 24, 2026
World Kinect positions itself as a focused energy‑management provider operating across three reportable segments (Aviation, Land, Marine) and is shifting the Land segment away from low‑margin activities toward…
10-Q · October 24, 2025
World Kinect reported Q3 revenue of $9,391.8 million (down $1,099.1 million, or 10%, vs. Q3 2024) and diluted EPS of $0.46 (Q3 2024: $0.57). Gross profit declined to $249.6 million (gross margin ~2.7%) while operating…
10-Q · April 25, 2025
World Kinect reported Q1 revenue of $9,452.5 million, down $1,498.9 million (14%) versus Q1 2024, with gross profit falling to $230.4 million (down $23.7 million) and an operating loss of $6.6 million versus operating…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.