Eimskip reports improved earnings despite rising fuel costs
Icelandic shipping and logistics group Eimskip reported stronger third-quarter earnings in 2026, supported by higher cargo volumes, increased freight rates and operational efficiency measures, despite a significant rise in fuel and transportation costs.
Revenue increased by 19.4% compared with the corresponding period of 2025, while EBITDA rose by €8.9 million, or 43.6%. The improvement was recorded across the company’s liner shipping, logistics and forwarding businesses, although management acknowledged that profitability in its capital-intensive liner operations remains below satisfactory levels.
The year-on-year EBITDA comparison was also affected by a €2.9 million loss recorded in the third quarter of 2025 following the sale of the vessel Lagarfoss. Eimskip’s operational improvement programme, introduced during the second half of last year, contributed €3.3 million in benefits during the latest quarter, including a positive EBITDA impact of €2.9 million.
For the first nine months of 2026, the programme generated approximately €9.4 million in benefits, of which €8 million contributed to EBITDA.
Liner shipping and logistics performance
Revenue from liner services increased by 13.8%, supported by a 6.8% rise in transported volumes. Strong seafood and farmed salmon exports from Iceland and the Faroe Islands contributed to the improvement, alongside the introduction of a new direct shipping connection between Tórshavn and Rotterdam in August.
The service includes a call at Ålesund, Norway, and forms part of wider adjustments to Eimskip’s sailing network. The company also revised its Norwegian service schedule and reduced the number of vessels deployed on that line by one, seeking to improve operating efficiency while responding to growing demand from salmon exporters.
Despite these developments, liner profitability remained under pressure. Excluding the previous year’s loss on the sale of Lagarfoss, liner EBITDA increased by €3.5 million, while EBIT reached approximately €500,000 in the third quarter.
“Despite this improvement, profitability remains unsatisfactory,” said Vilhelm Már Thorsteinsson, CEO of Eimskip.
Revenue from logistics and agency services increased by 14.4%, primarily reflecting higher trucking activity in Iceland, additional warehousing operations and improved port services. The company’s new chilled and frozen storage facility in Denmark also contributed to the segment’s performance, while agency operations remained profitable despite fewer cruise ship calls.
Forwarding revenue increased by 30%, supported by an 11.2% rise in cargo volumes and higher international freight rates. Growth was particularly strong on trade routes involving Asia.
Fuel costs and operational restructuring
Eimskip’s operating expenses increased by 16.7% year-on-year, reflecting higher activity levels, increased third-party freight costs and rising oil prices. Vessel bunker expenses alone increased by €6.1 million, equivalent to 56%, although this was below the 78% increase in market fuel prices reported by the company.
Salary expenses rose by €1.8 million, or 4.6%, including approximately €1 million attributable to currency movements. Excluding foreign exchange effects, the increase was 2%, while the average workforce was 42 full-time equivalent positions lower than a year earlier.
Eimskip has continued restructuring its shipping operations following the decision in 2025 to discontinue dedicated coastal sailings and reduce its container vessel fleet. Additional adjustments were introduced after a decline in production at Norðurál, with the objective of improving the company’s cost structure.
The group also reported higher results from associated companies, reaching €7.3 million compared with €3.5 million a year earlier, primarily due to a vessel sale by Elbfeeder in July.
Beyond maritime operations, Eimskip has expanded its involvement in air cargo through preparations to establish Kales Ísland in partnership with Kales Group. The venture was selected as Air China’s cargo agent in Iceland, coinciding with the launch of the airline’s Keflavík–Beijing connection on October 26.
Looking ahead, Eimskip expects continued challenges from fuel prices and external market conditions. Higher activity increased working capital requirements during the quarter, affecting cash flow, although the company anticipates a more balanced working capital development in the fourth quarter.
Management said its priorities remain operational discipline, cost control and maintaining reliable transportation services while consolidating the improvements achieved during 2026.
