News / ONE eyes $70m loss in H2 25 and 'remains cautious' as revenue falls

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Japanese carrier ONE today forecast it would make a $70m EBIT loss in the second half of its financial year, after first-half revenues fell by $1.4bn year on year.

The carrier reported its second-quarter and first-half results today – its financial calendar runs from July to June – and recorded total revenues for the first six months of $8.5bn, down from just over $10bn in the same period last year, despite a marginal 1% increase in volumes, from 6.43m teu in the first half of 2024 to 6.48m teu this year.

This hit profitability – EBIT for H1 25 was $320m, compared with $2.5bn in the same period last year, an 87% decline.

However, ONE chief executive Jeremy Nixon maintained that it had been a solid performance, given the external conditions.

“Our FY25 Q2 results underscore ONE’s resilience and stability in a challenging market. Despite the market fluctuations driven by geopolitical uncertainties, we delivered positive results and secured profitability for the first half of the fiscal year,” he said.

On its largest trade – the transpacific – it saw little impact from the tariffs: six-month volumes this year amounted to 1.38m teu, down slightly from the 1.4m teu it carried in the same period last year, with vessel utilisation down from 100% last year to 92% in the first half of this year, reflecting the tariff-induced fluctuations in demand.

“Lifting of the Asia–North America eastbound trade continued to increase in FY25 Q2, following the trend in Q1, driven by a cargo surge in July due to US tariff front-loading.

“However, utilisation declined, due to capacity increase,” the carrier said.

Meanwhile, volumes on its Asia-Europe services saw marginal growth, reaching 957,000 teu compared with the 886,000 teu it carried in the first six months of 2024, with vessel utilisation declining from 98% last year to 91%.

“We maintain a cautious outlook for the full year, given current market dynamics,” Mr Nixon said.

“We will continue to take steps to adapt our network and optimise our fleet, ensuring we meet market demands and provide customers with long-term reliability,” he added.

The carrier is now forecasting a $250m full-year EBIT, down from the $400m it offered as guidance three months ago.

“For the full-year forecast for FY 2025, it is anticipated that the ongoing delivery of new vessels will persist throughout the fiscal year, affecting overall market conditions,” it said.

“Amid the situation in the Red Sea, this forecast is based on the expectation that vessels will continue to route around the Cape of Good Hope.

“The global environment remains subject to significant uncertainties, including potential impacts from tariffs and USTR actions,” it added.