World Kinect : Q1-2026 Earnings Webcast-04-23-2026-vFinal

Published: 2026-04-23 17:29:00 ET WKC

Published on 04/23/2026 at 05:29 pm EDT

WORLD KINECT

FIRST QUARTER 2026 EARNINGS CALL

APRIL 23, 2026

NON-GAAP FINANCIAL MEASURES

We believe that the non-GAAP financial measures we present (collectively, the "Non-GAAP Measures"), when considered in conjunction with our financial information prepared in accordance with GAAP, are useful to investors to further aid in evaluating our ongoing financial performance and to provide supplemental information to our GAAP results. Non-GAAP Measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In addition, our presentation of the non-GAAP financial measures may not be comparable to the presentation of such metrics by other companies. Our forward-looking guidance for our Non-GAAP Measures depends on future levels of revenues and other metrics which are not reasonably estimable at this time. Accordingly, we cannot provide a reconciliation between projected adjusted gross profit, adjusted operating expense, and the most comparable GAAP metrics without unreasonable effort.

The Non-GAAP Measures exclude acquisition and divestiture related expenses, costs associated with restructuring activities (including all costs associated with exit activities), impairments, gains or losses on the extinguishment of debt, gains or losses on sale of businesses, integration costs associated with our acquisitions, and non-operating legal settlements, primarily because we do not believe they are reflective of our core operating results. We also exclude costs associated with a previously disclosed erroneous bid made in the Finnish power market (the "Finnish bid error") that resulted in the extraordinary losses.

Definitions

"Net income (loss)" means net income (loss) attributable to World Kinect as presented in the Statements of Income and Comprehensive Income.

"Operating margin" means income (loss) from operations as a percentage of gross profit.

We use the following non-GAAP measures:

Adjusted net income attributable to World Kinect ("adjusted net income") is defined as net income excluding the impact of acquisition and divestiture related expenses, costs associated with restructuring activities (including all costs associated with exit activities), impairments, gains or losses on the extinguishment of debt, gains or losses on sale of businesses, integration costs, non-operating legal settlements, costs associated with the Finnish bid error, and operating results associated with non-core divestitures and business exits.

Adjusted diluted earnings per common share is computed by dividing adjusted net income by the sum of the weighted average number of shares of common stock outstanding for the period and the number of additional shares of common stock that would have been outstanding if our outstanding potentially dilutive securities had been issued. For the purpose of calculating Adjusted EPS, the weighted average number of shares of common stock outstanding is adjusted to include the convertible note hedges. Potentially dilutive securities include share-based compensation awards, such as non-vested restricted stock units, performance stock units where the performance requirements have been met, settled stock appreciation rights awards, and the convertible notes.

Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDAis defined as net income including noncontrolling interest and excluding the impact of interest, income taxes, and depreciation and amortization, in addition to acquisition and divestiture related expenses, costs associated with restructuring activities (including all costs associated with exit activities), impairments, gains or losses on sale of businesses, integration costs, non-operating legal settlements, costs associated with the Finnish bid error, and operating results associated with non-core divestitures and business exits.

Adjusted income from operations is defined is defined as income (loss) from operations excluding the impact of acquisition and divestiture related expenses, costs associated with restructuring activities (including all costs associated with exit activities), impairments, integration costs, costs associated with the Finnish bid error, and operating results associated with non-core divestitures and business exits.

Consolidated and Land Adjusted Gross Profit is defined as gross profit excluding the impact of costs associated with the Finnish bid error and operating results associated with non-core divestitures and business exits.

Adjusted income from operations as a percentage of adjusted gross profit ("adjusted operating margin") is computed by dividing adjusted income from operations by adjusted gross profit.

Adjusted operating expenses is defined as operating expenses excluding the impact of acquisition and divestiture related expenses, costs associated with restructuring activities (including all costs associated with exit activities), impairments, integration costs, costs associated with the Finnish bid error, and operating results associated with non-core divestitures and business exits.

Free Cash Flow is defined as operating cash flow minus total capital expenditures as presented in the Statement of Cash Flows.

Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures in this presentation and on our website.

EXECUTIVE TEAM

Ira M. Birns

CEO

John P. Rau

President

Mike Tejada

EVP C CFO

BUSINESS OVERVIEW

We delivered a strong start to the year, reflecting the strength of our team and ability to execute in a volatile market environment.

By simplifying the portfolio and sharpening our focus on the core, we're beginning to deliver clearer, more consistent results and improving returns on capital.

Ira M. Birns

CEO

FINANCIAL OVERVIEW

Mike Tejada

EVP C CFO

CONSOLIDATED 1Q 2026 FINANCIAL HIGHLIGHTS

$ MILLIONS (EXCEPT EPS)

1Q 2026

1Q 2025

VOLUME1

4,002

4,177

GROSS PROFIT

$271

$230

ADJ. GROSS PROFIT3

$254

$230

NET INCOME (LOSS)2

$26

($21)

DILUTED EPS

$0.50

($0.37)

ADJ. NET INCOME3

$39

$27

ADJ. DILUTED EPS3

$0.75

$0.48

ADJ. EBITDA3

$94

$80

OPERATING CASH FLOW

($46)

$114

FREE CASH FLOW3

($60)

$99

Includes gallons and gallon equivalents.

Net Income (loss) including Noncontrolling Interest.

Adjusted Gross Profit, Adjusted Net Income, Adjusted Diluted EPS, Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. Please see Appendix for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.

CONSOLIDATED 1Q 2026 FINANCIAL HIGHLIGHTS

Volumes1

1,4G4

G82

1,700

4,177

-6.2%

1,273

1,022

1,623

3,G18

Adjusted Gross Profit2

$MM

+10.2%

$4G.2

$66.4

$138.2

$253.8

$230.4

$7G.0

$35.7

$115.7

Aviation Marine Land

Q1 2025

Q1 2026

Q1 2025

Q1 2026

Includes gallons and gallon equivalents. 1Q26 Excludes volume related to Non-core divestitures and business exits.

Adjusted Gross Profit is a non-GAAP financial measure. Please see the Appendix for a reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures.

Q1 2026

Volumes

Metric Tons in MM

Gross Profit

$MM

Q1 2026 vs Q1 2025

First quarter 2026 gross profit was $66 million, an increase of 86%, primarily driven by higher bunker fuel prices, elevated price volatility, and strong execution supported by disciplined risk management in a dynamic market environment.

3.7

+4%

3.G

$35.7

+86%

$66.4

Q1 2025 Q1 2026 Q1 2025 Q1 2026

Q1 2026

Volumes

Gallons in MM

Gross Profit

$MM

Q1 2026 vs Q1 2025

First quarter 2026 gross profit was $138 million, an increase of 20% which is primarily attributable to Universal Trip Support Services "TSS" acquired in the fourth quarter of 2025 and increased contributions from our core commercial business and government activity.

1,700 C

-5%

1,623

$115.7

+20%

$138.2

Q1 2025 Q1 2026 Q1 2025 Q1 2026

Q1 2026

Volumes1

Gallons in MM

Adjusted Gross Profit

$MM

Q1 2026 vs Q1 2025

First quarter 2026 adjusted gross profit was

$4G million, an expected decrease of 38%, reflecting the impact of the portfolio actions and exits we announced last quarter and unfavorable market conditions in our natural gas business, partially offset by higher contributions from our cardlock network and retail operations in North America.

1,4G4

-15%

1,273

-38%

$7G.0

$4G.2

Q1 2025 Q1 2026 Q1 2025 Q1 2026

Lower Q1 2026 volumes and adjusted gross profit reflect the exit of non-core businesses, however our streamlined land business delivered a 62% increase in adjusted operating income2.

Includes gallons and gallon equivalents. 1Q26 Excludes volume related to Non-core divestitures and business exits.

Adjusted Operating Income is a non-GAAP financial measure. Please see the Appendix for a reconciliation of our non-

GAAP financial measures to their most directly comparable GAAP measures.

ADJUSTED OPERATING EXPENSES1

Consolidated Adjusted Operating Expenses

($MM)

Quarter highlights

First quarter 2026 adjusted operating expenses were $181 million, an increase of 2%, which reflects the inclusion of the Universal TSS business as well as higher variable compensation driven in part by our strong results in the quarter. These operating expense increases were mostly offset by lower costs from the Land simplification actions we have been taking.

$178 $173 $181

$186

$181

1. Please see Appendix for a reconciliation of this non-GAAP measure to its most directly comparable GAAP measure.

Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

1212

RAISING FISCAL YEAR 2026 ADJUSTED EPS1 GUIDANCE

Adjusted Diluted Earnings Per Share

$2.65 - $2.85

$2.20 - $2.40

$1.G1

Please see Appendix for a reconciliation of this non-GAAP measure to its most directly comparable GAAP measure.

Not a guarantee of actual future performance. Actual performance is subject to various risks and uncertainties, including those referenced in our most recent Form 10-K and other filings with the SEC. EPS Guidance includes share repurchases in FY26 and a full year impact of the Universal TSS acquisition. The company has provided 2026 earnings guidance with regard to the non-GAAP measure of adjusted diluted earnings per share. This measure excludes from the corresponding GAAP financial measure the effect of

adjustments as described in the "Non-GAAP financial measures" section. The company has not provided a reconciliation of such non-GAAP guidance to guidance

presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period.

FY2025 Prior FY26 Guidance

Provided on 2/19/2026

Current FY26 Guidance2

1313

DISCIPLINED CAPITAL ALLOCATION

Capital Returned to Shareholders

$MM

$138.5

$100.0

$38.5

$126.3

$41.3

$85.7

$75.0

$10.7

$85.0

Dividends

Share Repurchases

FY 2024 FY 2025 YTD 2026

For the Three Months Ended March 31,

2025

2026

Net Income (Loss)

Diluted Earnings

per share1

Net Income (Loss)

Diluted Earnings

per share1

NON-GAAP RECONCILIATION (1/7)

$ in millions, except per share data

GAAP Measure

($21.1)

($0.37)

$26.2

$0.50

Acquisition and divestiture related expenses

0.2

0.00

Non-core divestitures and business exits2

7.4

0.14

(Gain) loss on sale of a business

0.4

0.01

(0.3)

(0.00)

Goodwill and other asset impairments

44.5

0.78

0.0

0.00

Integration costs

2.5

0.05

Restructuring and exit costs3

15.0

0.26

6.7

0.13

Income tax impacts

(11.5)

(0.20)

(3.5)

(0.07)

Adjusted non-GAAP measure

27.3

0.48

39.1

0.75

For the three months ended March 31, 2025, Adjusted diluted earnings per share was calculated considering the impact of dilutive shares that were not considered for GAAP purposes as the quarter was in a net loss position, and considered the convertible note hedges as described under "Non-GAAP Financial Measures" above. GAAP weighted-average shares outstanding was 56.8 million and there were 0.5 million dilutive shares outstanding, resulting in a non-GAAP weighted average shares outstanding of 57.3 million. There were no adjustments made to diluted weighted-average shares outstanding for any other period presented.

Represent the operating results of certain non-core businesses-specifically direct fuel transportation services, lubricants, heating oil, power, and certain advisory and sustainability offerings-for periods following management's determination that such results are no longer indicative of the Company's ongoing operations. During the three months ended March 31, 2025, these businesses were considered to be part of our core business portfolio and no adjustments were made to remove these businesses from our non-GAAP financial measures. During the three months ended March 31, 2026, management had initiated actions to divest or exit select Land segment activities that are no longer aligned with the Company's core strategy or profitability objectives and these businesses were in a wind-down or divestiture phase, during which the Company continued to service existing customer obligations but ceased investing in or actively marketing the underlying products and services. Accordingly, for the three months ended March 31, 2026, the operating results of these businesses are excluded from our non-GAAP financial measures. While these activities do not qualify as discontinued operations under applicable accounting guidance, management believes their operating results during the exit and divestiture period are not representative of the Company's ongoing operations and has therefore excluded them from non-GAAP financial measures to enhance comparability and investor understanding of core business performance.

Restructuring and exit costs during the three months ended March 31, 2026 were comprised of $5.7 million of charges related to our restructuring program, including severance and other compensation costs as well as transition costs associated with our global finance and accounting optimization program, and $1.0 million of charges associated with exit activities related to our decision to exit certain operations within the land segment that are no longer profitable or aligned with the Company's core business and corporate strategy, comprised of charges associated with various legal matters and contract termination costs of $7.8 million and severance and compensation costs of $0.9 million, which were partially offset by a net gain on the sale of assets of $7.7 million. Restructuring and exit costs during the three months ended March 31, 2025 were principally severance costs

associated with our restructuring program.

NON-GAAP RECONCILIATION (2/7)

For the Twelve Months Ended December 31, 2025

Net Income (Loss)

Diluted Earnings per

share1

$ in millions, except per share data

GAAP Measure

($614.4)

($10.99)

Impact of adjustments to weighted average

0.07

diluted shares outstanding1

Acquisition and divestiture related expenses

0.8

0.01

(Gain) loss on sale of a business

81.9

1.46

Goodwill and Other Asset Impairments

689.6

12.26

Integration Costs

1.0

0.02

Exit Cost - provisions for credit losses

0.5

0.01

Restructuring Charges and exit costs2

103.1

1.83

Loss on Extinguishment of Debt

0.5

0.01

Income tax impacts

(155.9)

(2.77)

Adjusted non-GAAP measure

107.2

1.91

For the year ended December 31, 2025, Adjusted diluted earnings per share was calculated considering the impact of dilutive shares that were not considered for GAAP purposes as these periods were in a net loss position. For the year ended December 31, 2025, GAAP diluted weighted-average shares outstanding were 55.9 million, and there were 0.4 million dilutive shares, resulting in non-GAAP diluted weighted average shares outstanding of 56.3 million.

Restructuring and exit costs during the year ended December 31, 2025 were comprised of $45.2 million of charges related to our restructuring program and $57.8 million of charges associated with exit activities.

NON-GAAP RECONCILIATION (3/7)

$ in millions

For the Three Months Ended March 31,

2025

2026

Net income (loss) including noncontrolling interest

($21.3)

$25.6

Interest expense and other financing cost, net

22.9

26.3

Provision (benefit) for income taxes

(6.8)

6.6

Depreciation and amortization

25.6

20.0

EBITDA

20.4

78.4

Acquisition and divestiture brelated expenses

0.2

Non-core divestitures and business exits

6.9

(Gain) loss on sale of a business

0.4

(0.3)

Goodwill and other asset impairments

44.5

0.0

Integration cost

2.5

Restructuring and exit costs

15.0

6.7

Adjusted EBITDA

80.3

94.4

NON-GAAP RECONCILIATION (4/7)

$ in millions

For the Three Months Ended

March 31,

June 30,

September 30,

December 31,

March 31,

2025

2026

Operating Expenses GAAP Measure

$237.0

$577.5

$186.8

$511.3

$214.9

Acquisition and divestiture related expenses

(0.0)

(0.8)

(0.2)

Non-core divestitures and business exits

(24.8)

Goodwill and other asset impairments

(44.5)

(398.6)

(246.5)

(0.0)

Integration costs

(1.0)

(2.5)

Restructuring and exit costs

(15.0)

(6.0)

(4.9)

(77.2)

(6.7)

Finnish bid error

(0.4)

0.4

Exit Cost - provisions for credit losses

(0.5)

Operating Expenses Adjusted Non-GAAP Measure

177.5

172.8

181.0

186.2

180.8

NON-GAAP RECONCILIATION (5/7)

$ in millions

For the Three Months Ended March 31,

2025

2026

Gross Profit GAAP Measures

$230.4

$271.2

Non-core divestitures and business exits1

(17.4)

Gross Profit Adjusted Non-GAAP Measures

230.4

253.8

1. Adjustment related to land gross profit, there are no adjustments to gross profit made for the aviation or marine segments.

NON-GAAP RECONCILIATION (6/7)

$ in millions

For the Three Months Ended March 31,

2025

2026

Net cash provided by (used in) operating activities

$114.4

($46.4)

Capital expenditures

15.2

13.8

Free cash flow

99.2

(60.2)

NON-GAAP RECONCILIATION (7/7)

$MM, Except per Share Data

For the Three Months Ended March 31, 2025

For the Three Months Ended March 31, 2026

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

Aviation

Gross Profit

$115.7

$0.0

$115.7

$138.2

$0.0

$138.2

Operating Expenses

59.5

(2.2)

57.3

80.6

(2.9)

77.7

Income from Operations

56.2

2.2

58.3

57.6

2.9

60.5

Marine

Gross Profit

35.7

66.4

Operating Expenses

20.9

(0.4)

20.5

33.4

(2.1)

31.3

Income from Operations

14.8

0.4

15.2

33.0

2.1

35.1

Land

Gross Profit

79.0

66.6

(17.4)

49.2

Operating Expenses

124.3

(51.7)

72.6

64.3

(25.5)

38.8

Income from Operations

(45.3)

51.7

6.4

2.2

8.2

10.4

Corporate (Unallocated)

Operating Expenses

32.3

(5.2)

27.1

36.6

(3.6)

33.0

Income from Operations

(32.3)

5.2

(27.1)

(36.6)

3.6

(33.0)

Consolidated WKC

Gross Profit

230.4

271.2

(17.4)

253.8

Operating Expenses

237.0

(59.5)

177.5

214.9

(34.1)

180.8

Income from Operations

(6.6)

59.5

52.9

56.3

16.7

73.0

Non-operating expense, net

21.5

(0.4)

21.1

24.1

0.3

24.3

Income before income taxes

(28.1)

59.9

31.8

32.2

16.5

48.6

Provision for income taxes

(6.8)

11.5

4.7

6.6

3.5

10.2

Net income (loss) attributable to noncontrolling interest

(0.2)

(0.7)

Net income (loss)

($21.1)

$48.4

$27.3

$26.2

$12.9

$39.1

Diluted earnings per common share

($0.37)

$0.85

$0.48

$0.50

$0.25

$0.75

Braulio Medrano

Senior Director FPCA and Investor Relations [email protected]

Disclaimer

World Kinect Corporation published this content on April 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2026 at 21:20 UTC.