World Kinect NYSE: WKC reported record third-quarter adjusted earnings per share of $0.99, up 83% from a year earlier, as strong marine performance, aviation growth and improvement in its land segment lifted results. The company also raised its full-year adjusted EPS outlook for the third time this year.
Chief Executive Officer Ira Birns said the quarter reflected both stronger underlying earnings power and the company’s ability to benefit from market disruptions and fuel-price volatility. He emphasized that World Kinect is working to improve returns on deployed capital and cash generation while building businesses that are not dependent on volatile market conditions.
“Our objective is not to rely on volatility for growth,” Birns said. “It is to continue improving and growing the underlying business while maintaining the capabilities and financial strength to capitalize on opportunities when they arise.”
Third-Quarter Results and Guidance
Chief Financial Officer Mike Tejada said consolidated adjusted gross profit rose 12% year over year to $279 million. The company’s third-quarter non-GAAP adjustments totaled about $18.2 million, or $12.8 million after tax.
Adjusted operating expenses were $176 million, down 3% from the prior-year period. The decline primarily reflected the simplification of the land portfolio, partly offset by expenses associated with the Universal Trip Support acquisition, which closed in the fourth quarter of 2025.
Net interest expense increased 90% year over year to $31 million, reflecting higher average borrowings and working-capital requirements. World Kinect’s adjusted effective tax rate was 32% in the third quarter, compared with 27.4% a year earlier, as unfavorable discrete tax items offset some favorable tax items earlier in the year.
Following its third-quarter outperformance, the company raised its full-year adjusted EPS guidance to a range of $3.52 to $3.62, from previous guidance of $3.20 to $3.40. World Kinect generated about $3.02 in adjusted EPS through the first nine months of 2026.
Tejada said the company’s outlook takes a measured view of market conditions for the remainder of the year. While commodity prices and volatility remain elevated, he said markets can change rapidly and that the company is focused on the underlying fundamentals of its businesses.
Marine Profit Surges Despite Lower Volumes
Marine was the largest contributor to year-over-year gross-profit growth. Segment gross profit increased 131% to $59 million, although volume declined 8% to 3.7 million metric tons.
The company attributed lower volume to conflict-related disruptions in shipping patterns and customer activity. However, higher market prices and supply conditions supported profitability, even as margins moderated from the initial disruption.
Birns said ongoing volatility, schedule disruptions and shifting trade patterns created opportunities for World Kinect to help customers manage changing conditions. He cited the company’s supply network, liquidity access and ability to source and deliver fuel as key advantages in a difficult market environment.
For the fourth quarter, World Kinect expects marine gross profit to remain above the prior-year level but decline sequentially as incremental market benefits continue to moderate.
Aviation Growth Includes Trip Support Contribution
Aviation volume rose 1% year over year to 1.9 billion gallons, while gross profit increased 4% to $148 million. Tejada said the improvement was driven primarily by stronger commercial fuel resale performance and contributions from the expanded trip-support business.
The gains were partly offset by lower gross profit in the physical inventory business, where significant price movements hurt margins during the quarter.
Birns said commercial passenger activity remained strong, particularly in the company’s on-airport fuel supply operations in Western Europe and Latin America, while cargo activity was solid globally. He also pointed to year-over-year growth in commercial trip-support services and said Universal has expanded World Kinect’s capabilities in business and general aviation.
World Kinect expects aviation to post strong year-over-year gross-profit growth in the fourth quarter, with gross profit relatively flat compared with the third quarter.
Land Segment Continues Portfolio-Driven Improvement
The land segment’s adjusted operating income more than doubled from a year earlier to $28 million. While volume fell 14% to 1.2 billion gallon equivalents and adjusted gross profit declined 11% to $72 million, the company said year-over-year comparisons continued to reflect businesses that it exited or divested.
Retail and cardlock operations both delivered strong year-over-year gross-profit growth. Tejada said cardlock also benefited from market activity during the quarter, though that benefit had begun to subside entering the fourth quarter.
Birns said the company had largely completed the portfolio work intended to simplify land operations and sharpen their focus. He described the segment as now shifting from simplification toward performance and growth, with emphasis on pricing, productivity, operating efficiency and returns.
“We’re barely halfway through the game,” Birns said in response to an analyst question about the turnaround effort, adding that World Kinect sees additional opportunity to grow retail and cardlock operations. Through the first nine months of 2026, land adjusted operating income was more than double the segment’s full-year 2025 result.
For the fourth quarter, the company expects land adjusted operating income to remain above the prior-year level but decline sequentially, principally because of seasonality.
Cash Flow and Capital Discipline
World Kinect generated $175 million in operating cash flow and $164 million in free cash flow during the third quarter. Tejada said working-capital discipline improved cash conversion while preserving financial flexibility.
He cautioned that third-quarter cash generation represented a high watermark and should not necessarily be expected to repeat in the fourth quarter. The company plans to remain focused on customer credit, supplier terms, working-capital management and the cost of financing in an elevated-interest-rate environment.
Birns said the company plans to discuss its full-year results and provide an initial perspective on 2027 when it reports again in February.
About World Kinect (NYSE:WKC)
World Kinect Corporation NYSE: WKC is an energy management company that supplies, distributes and manages fuel and other energy products for commercial customers around the world. The company serves the aviation, marine and land transportation sectors, as well as commercial, industrial and government customers.
Its offerings include conventional and renewable fuels, natural gas, electricity, lubricants, fuel-management services and related environmental solutions. World Kinect also provides procurement, logistics, payment-processing and transaction-management services designed to help customers manage energy supply, costs and operational requirements.
The company was founded as World Fuel Services in 1985 and adopted the World Kinect name in 2024.
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