Company: WKC
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001628280-25-019852
Chunk: 9

Company: WORLD KINECT CORP
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 2
Chunk 9
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.1 (103.8)Land segment average price per gallon$1.92 $2.14 $(0.22)

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(1)Includes gallons and gallon equivalents of British Thermal Units (BTU) for our natural gas sales and Kilowatt Hours (kWh) for our power business.

Revenues in our land segment were $2.9 billion for the three months ended March 31, 2025, a decrease of $551.2 million, or 16%, compared to the three months ended March 31, 2024. The decrease in revenue was driven by lower average fuel prices and a decrease in volume. Average fuel prices decreased by 10%. Total volumes decreased by 103.8 million, or 6%, to 1.5 billion gallons or gallon equivalents, primarily attributable to the sale of our fuel business in Brazil as well as the rationalization of certain assets within our North American land business during the fourth quarter of 2024.

Land segment gross profit for the three months ended March 31, 2025 was $79.0 million, a decrease of $18.3 million, or 19%, compared to the three months ended March 31, 2024. The decrease in gross profit was primarily attributable to lower profit contribution from our liquid fuel business in North America,  as a result of industry trends and reduced demand driven by economic uncertainty.

Loss from operations in our land segment for the three months ended March 31, 2025 was $45.3 million, a decrease of $63.7 million, or 345%, compared to the three months ended March 31, 2024. In addition to the decrease in gross profit discussed above, operating expenses increased due to asset impairment charges recognized in connection with the Watson Fuels sale and restructuring charges during the first quarter of 2025, as discussed under "Restructuring and Exit Activities" above, partially offset by lower compensation and general and administrative costs principally as a result of the savings already achieved a part of our exit and restructuring activities.

Marine Segment Results of Operations

The following provides a summary of the marine segment results of operations for the periods indicated (in millions, except price per metric ton):

For the Three Months Ended March 31, 20252024ChangeRevenue$1,932.9 $2,390.5 $(457.6)Gross profit$35.7 $48.4 $(12.7)Operating expenses