Company: WKC
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000789460-25-000019
Chunk: 13

Company: WORLD KINECT CORP
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 2
Chunk 13
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 by lower compensation and employee benefit costs and general and administrative expenses primarily driven by the sales of Avinode, Brazil, and Watson Fuels, as well as reduced compensation costs associated with cost reduction initiatives as part of our restructuring program.

Non-Operating Income (Expense), net. For the six months ended June 30, 2025, we had net non-operating expense of $125.1 million compared to net non-operating income of $38.6 million the six months ended June 30, 2024. The increase in non-operating income of $163.8 million during the six months ended June 30, 2025 was primarily attributable to the $81.7 million loss on the sale of Watson Fuels during the six months ended June 30, 2025 compared to the $96.0 million gain recognized on the sale of Avinode during the six months ended June 30, 2024, as discussed in Note 3. Acquisitions and Divestitures, partially offset by a decrease in interest expense, driven by a decrease in our average interest rates and daily borrowings, and an increase in foreign currency gains.

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Income Taxes. For the six months ended June 30, 2025, we recognized income tax benefit of $116.4 million, compared to income tax expense of $13.0 million for the six months ended June 30, 2024. The decrease of $129.4 million was primarily attributable to lower income before income taxes as well as changes in the mix of our worldwide earnings, in addition to a net discrete tax benefit of $11.7 million as compared to a net discrete tax benefit of $0.2 million for the six months ended June 30, 2024. See Note 12. Income Taxes for additional information.

Aviation Segment Results of Operations

The following provides a summary of our aviation segment results of operations for the periods indicated (in millions, except price per gallon):

For the Six Months Ended June 30, 20252024ChangeRevenue$9,379.3 $10,512.9 $(1,133.6)Gross profit$253.6 $236.2 $17.5 Operating expenses125.8 124.2 1.6 Income (loss) from operations$127.8 $112.0 $15.8 Operational metrics:Aviation segment volumes (gallons)3,556.2 3,