Germany's Ernst Russ 9-mth EBIT hit by fewer vessel sales, higher dry-docking costs, ups FY forecast

Overview

• Germany shipowner's nine-month revenue was flat yr/yr as higher charter rates offset FX impact

• EBIT and net income fell, mainly due to fewer vessel sales and higher dry-docking costs

• Company raised full-year revenue and EBIT forecast, citing stronger US dollar and secured charters

Outlook

• Ernst Russ raises 2026 revenue forecast to EUR 159-164 mln, up from EUR 150-160 mln

• Company now expects 2026 EBIT of EUR 63-70 mln, up from EUR 55-65 mln

• Outlook supported by strong charter backlog and high fleet availability

Result Drivers

• HIGHER CHARTER RATES - Co said increased average charter rates offset weaker US dollar and smaller average fleet to keep revenue stable

• LOWER VESSEL SALE GAINS AND DRY-DOCKING COSTS - EBIT decline mainly due to fewer gains from vessel sales and higher dry-docking costs from more scheduled dry-dockings

• TIGHT VESSEL CAPACITY - Geopolitical tensions and port congestion kept vessel capacity tight and charter rates high, particularly in the container segment

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy"

• Wall Street's median 12-month price target for Ernst Russ AG is €13.25, about 47.9% above its November 11 closing price of €8.96

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Nov 10 - Himalaya Shipping Q3 revenue rises on higher charter rates

• Nov 9 - Global Ship Lease's Q3 revenue rises on higher charter rates, new vessels

• Nov 11 - Hapag-Lloyd raises outlook for third time on strong freight rates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)