World Kinect Corporation (WKC) | Investment Case

1. Company Snapshot

1.a. Company Description

World Kinect Corporation engages in the distribution of fuel and related products and services in the aviation, marine and land transportation industries worldwide.Its Aviation segment supplies fuel and related products and services to commercial airlines, second and third tier airlines, cargo carriers, regional and low-cost carriers, airports, fixed based operators, corporate fleets, charters, fractional operators, private aircraft, the U.S., foreign governments, intergovernmental, and military customers.This segment also offers fuel management, price risk management, ground handling, dispatch services and trip planning services, such as flight planning and scheduling, weather reports and overflight permits.

Its Land segment offers fuel, lubricants, heating oil, natural gas, power, and related products and services to retail petroleum operators, as well as industrial, commercial, residential and government customers.This segment also offers energy procurement management, price risk management, and sustainability solutions, such as carbon management and renewable energy solutions; distributes fuel under long-term contracts to branded and unbranded distributors, convenience stores, and retail fuel outlets operated by third parties; and distributes heating oil and unbranded fuel, as well as offers transportation logistics.Its Marine segment markets fuel, lubricants, and related products and services to international container, dry bulk and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the U.S., foreign governments, and other fuel suppliers.

Its marine fuel-related services include management services to procure fuel, cost control, quality control, and claims management services.This segment also engages in the fueling of vessels, and transportation and delivery of fuel and fuel-related products.The company was formerly known as World Fuel Services Corporation and changed its name to World Kinect Corporation in June 2023.

World Kinect Corporation was incorporated in 1984 and is headquartered in Miami, Florida.

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1.b. Last Insights on WKC

World Kinect Corporation's recent performance was negatively impacted by a GAAP net loss of $339 million, or $6.06 per diluted share, in the second quarter of 2025. This significant loss was largely driven by a decline in adjusted EBITDA, which fell to $87 million from $123 million in the prior-year period. The company's aviation segment, which typically generates significant revenue, saw a gross profit increase of only 8% year-over-year, indicating a slowdown in growth.

1.c. Company Highlights

Last Price	24.21
Change Percentage	0.75%
Open	24.35
Previous Close	24.03
Market Cap ( Millions)	1345
Volume	612113
Year High	31.54
Year Low	22.71
M A 50	25.05
M A 200	26.6

FCF Yield	24.83%
Dividend Yield	3.06%
ROE	-24.64%
Debt / Equity	49.16%
Net Debt / EBIDTA	-100.97%
Price To Book	0.83
Price Earnings Ratio	-3.08
Price To FCF	4.03
Price To sales	0.04
EV / EBITDA	-5.23

2. World Kinect's Q3 2025 Earnings: A Mixed Bag

World Kinect Corporation reported a mixed financial performance in the third quarter of 2025, with a revenue decline driven by a 4% year-over-year decrease in volume to 4.3 billion gallons. The company's consolidated gross profit declined 7% to $250 million, while earnings per share (EPS) came in at $0.54, missing analyst estimates of $0.61. The aviation segment was a bright spot, with gross profit increasing 11% to $143 million, driven by strong results in Europe and government sales. The company's operating expenses were well-controlled, and its cash flow generation remained strong, with $116 million of operating cash flow and $102 million of free cash flow.

Publication Date: Nov -15

                                    📋 Highlights
                                    Leadership Transition::
                                                Ira M. Birns elected CEO effective January 1, 2026, succeeding Michael J. Kasbar.
Volume Decline::
                                                Third-quarter volume fell 4% year-over-year to 4.3 billion gallons.
Aerospace Growth::
                                                Aviation gross profit rose 11% to $143 million, driven by Europe and government sales.
Acquisition Impact::
                                                Universal Trip Support Services acquisition expected to add 7% accretion to adjusted EPS in Year 1.
Cash Flow & Debt::
                                                Generated $116 million operating cash flow and $102 million free cash flow; net debt/EBITDA under 1x.

                                

Segment Performance

The company's segment performance was mixed, with the land segment experiencing a 20% year-over-year decline in gross profit to $81 million due to unfavorable market conditions and exits from Brazil and the UK. The marine segment also saw a decline, with gross profit decreasing 32% year-over-year due to lower profit contributions and low market volatility. As Ira M. Birns noted, the company is working to address transportation inefficiencies and is exploring strategies to manage product delivery in North America more cost-efficiently, which should help to improve the land business's profitability.

Outlook and Guidance

The company expects consolidated gross profit to be $237-$245 million in Q4 and operating expenses to be $181-$187 million. The recent acquisition of Universal Trip Support Services is expected to be 7% accretive to adjusted earnings per share in the first year, with a fairly ratable monthly benefit. The company's guidance suggests a continued focus on driving growth and enhancing shareholder returns, with $214 million returned to shareholders through buybacks and dividends since the beginning of 2024.

Valuation and Growth Prospects

With a P/E Ratio of -3.19 and an EV/EBITDA ratio of -5.37, the company's valuation multiples suggest that the market is pricing in significant challenges. However, the company's ROIC of 7.62% and its focus on driving efficiencies and cost savings could help to improve its profitability. Analysts estimate revenue growth of 2.1% next year, which suggests a relatively stable outlook. The company's dividend yield of 2.96% and free cash flow yield of 24.04% are also attractive, making it a potentially interesting investment opportunity for income-focused investors.

3. NewsRoom

World Kinect Corporation Declares Regular Quarterly Cash Dividend and Announces Additional $150 Million Share Repurchase Authorization

Dec -04

Source: businesswire.com

Edgestream Partners L.P. Decreases Stake in World Kinect Corporation $WKC

Dec -04

Source: defenseworld.net

American Century Companies Inc. Boosts Stock Position in World Kinect Corporation $WKC

Dec -03

Source: defenseworld.net

World Kinect Corporation Extends $2 Billion Credit Facility to 2030

Nov -11

Source: businesswire.com

World Kinect Corporation Completes Acquisition of Universal Weather and Aviation's Trip Support Services Business

Nov -05

Source: businesswire.com

World Kinect Corporation (NYSE:WKC) Receives $28.75 Average Price Target from Brokerages

Oct -31

Source: defenseworld.net

World Kinect Corporation (WKC) Q3 2025 Earnings Call Transcript

Oct -24

Source: seekingalpha.com

World Kinect (WKC) Q3 Earnings and Revenues Lag Estimates

Oct -23

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.92%)

6. Segments

Aviation

Expected Growth: 2.0%

World Kinect Corporation's 2.0% growth in Aviation is driven by increasing air travel demand, fueled by rising middle-class incomes and business travel. Additionally, the company's focus on modernizing its fleet with fuel-efficient aircraft, expanding into emerging markets, and investing in digital technologies to enhance customer experience are contributing to its growth momentum.

Land

Expected Growth: 1.8%

World Kinect Corporation's 1.8% growth in Land segment is driven by increasing demand for industrial and logistics spaces, government initiatives to boost infrastructure development, and strategic acquisitions to expand land bank. Additionally, rising e-commerce penetration and growing need for data centers are contributing to the segment's growth.

Marine

Expected Growth: 1.9%

The 1.9% growth of Marine segment at World Kinect Corporation is driven by increasing global seaborne trade, rising demand for energy efficient vessels, and growing adoption of digitalization and automation in the maritime industry, leading to higher sales of marine equipment and services.

7. Detailed Products

Risk Management

World Kinect Corporation's Risk Management services help organizations identify, assess, and mitigate risks that could impact their business operations.

Compliance Solutions

World Kinect Corporation's Compliance Solutions provide organizations with the tools and expertise needed to comply with regulatory requirements and industry standards.

Insurance and Benefits

World Kinect Corporation's Insurance and Benefits services offer customized insurance solutions and employee benefits programs to organizations.

Human Capital Management

World Kinect Corporation's Human Capital Management services help organizations manage their workforce, from recruitment to retirement.

Global Expansion

World Kinect Corporation's Global Expansion services provide organizations with the expertise and resources needed to expand their business globally.

8. World Kinect Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for World Kinect Corporation is medium due to the availability of alternative gaming consoles and entertainment systems.

Bargaining Power Of Customers

The bargaining power of customers is high due to the large number of gamers and the availability of alternative gaming options.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's strong relationships with its suppliers and the availability of multiple suppliers.

Threat Of New Entrants

The threat of new entrants is medium due to the high barriers to entry in the gaming industry and the need for significant investments in research and development.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the gaming industry and the presence of well-established competitors.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	31.36%
Debt Cost	10.29%
Equity Weight	68.64%
Equity Cost	10.29%
WACC	10.29%
Leverage	45.70%

11. Quality Control: World Kinect Corporation passed 2 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Star

A-Score: 7.3/10

Value: 8.4

Growth: 5.8

Quality: 5.2

Yield: 10.0

Momentum: 5.5

Volatility: 9.0

1-Year Total Return ->

CrossAmerica Partners

A-Score: 6.3/10

Value: 7.2

Growth: 4.7

Quality: 3.5

Yield: 10.0

Momentum: 3.5

Volatility: 9.0

1-Year Total Return ->

World Kinect

A-Score: 5.7/10

Value: 9.6

Growth: 4.7

Quality: 3.7

Yield: 5.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

Delek US Holdings

A-Score: 5.3/10

Value: 8.0

Growth: 2.0

Quality: 3.2

Yield: 6.0

Momentum: 9.5

Volatility: 3.0

1-Year Total Return ->

Par Pacific

A-Score: 4.4/10

Value: 5.8

Growth: 5.4

Quality: 2.1

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

1-Year Total Return ->

Aemetis

A-Score: 3.4/10

Value: 9.6

Growth: 1.7

Quality: 5.2

Yield: 0.0

Momentum: 3.0

Volatility: 1.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-6.59%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

10.29%

World Kinect Corporation - US9814751064

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on WKC

1.c. Company Highlights

Lower Quality

Average Growth

Medium Volatility

Earnings Miss

Revenues Miss

Stable Momentum

Average Quality

Strong Momentum

Fairly Valued

Earnings Beats

Less Volatile

Cheaper

2. World Kinect's Q3 2025 Earnings: A Mixed Bag

Segment Performance

Outlook and Guidance

Valuation and Growth Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.92%)

6. Segments

Aviation

Expected Growth: 2.0%

Land

Expected Growth: 1.8%

Marine

Expected Growth: 1.9%

7. Detailed Products

Risk Management

Compliance Solutions

Insurance and Benefits

Human Capital Management

Global Expansion

8. World Kinect Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: World Kinect Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.21$

Current Price

24.21$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA