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World Kinect (WKC)
NYSE:WKC
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World Kinect
(NYSE:WKC)
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Rating:53Neutral
Price Target:
$27.00
▲(8.22% Upside)
Action:ReiteratedDate:02/20/26
The score is held back mainly by weak financial performance driven by the TTM earnings collapse and margin pressure, partially offset by positive cash generation and moderate leverage. Guidance and strategic actions from the earnings call add support, while technicals and dividend yield are modestly constructive but not strong enough to outweigh the profitability risk.
Positive Factors
Strategic Leadership & Portfolio Reset
New senior leadership and an explicit portfolio-simplification strategy create structural clarity for capital allocation. Over 2–6 months this improves decision-making on divestitures, cost cuts and reinvestment priority, increasing odds of durable margin and ROIC recovery once execution progresses.
Consistent Cash Generation
Positive operating and free cash flow despite a net loss show the business can convert sales to cash, supporting buybacks, dividends, debt servicing and funding restructurings. Sustained cash generation provides financial flexibility to execute the strategic reset and fund targeted investments.
Aviation Segment Growth & Acquisition
Aviation growth and a bolt-on acquisition materially raise higher-margin, service-oriented revenue. This shifts mix away from more cyclical land volumes toward recurring aviation services, improving durable gross-profit stability and providing a clearer platform for margin expansion over coming quarters.
Negative Factors
Severe Profitability Deterioration
A large TTM net loss and negative operating/EBITDA margins signal structural profit weakness. Eroded equity and negative ROE reduce internal capital for growth and make the business reliant on cost cuts, disposals or sustained cash conversion to restore long-term financial health.
Land Segment Underperformance
Significant and persistent weakness in the land business shrinks a core volume base and compresses consolidated gross profit. Lower scale and margin erosion force asset sales and impairments, reducing recurring earnings power and requiring sustained execution to rebuild profitability in other segments.
Competitive & Market Margin Pressure
Structural competitiveness and a low-volatility fuel environment limit pricing power and hedging upside, keeping margins thin. If competitive pressure persists, long-run gross-margin sustainability is threatened, making earnings and cash generation more sensitive to volume and cost trends.
World Kinect (WKC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.28B
Dividend Yield3.3%
Average Volume (3M)953.21K
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth-15.32%
EPS Growth-442.37%
CountryUS
Employees4,745
SectorEnergy
Sector Strength52
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)0.30
Shares Outstanding51,278,990
10 Day Avg. Volume1,469,925
30 Day Avg. Volume953,207
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.99
Price to Sales (P/S)0.03
P/FCF Ratio5.65
Enterprise Value/Market Cap1.48
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit3.53
Enterprise Value/Ebitda-3.57
Forecast
1Y Price Target
$26.50Price Target Upside6.21% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)2.41
Revenue Forecast (FY)$36.35B
World Kinect Business Overview & Revenue Model
Company DescriptionWorld 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.
How the Company Makes MoneyWorld Kinect generates revenue through multiple streams, primarily from the sale of fuel products to commercial clients, including gasoline, diesel, and other energy products. Additionally, the company earns income from its energy management services, which help clients implement energy-efficient practices and technologies. Another significant revenue stream comes from carbon offset programs and sustainability consulting, allowing businesses to meet regulatory requirements and achieve their environmental goals. WKC also engages in partnerships with various companies and governmental bodies to expand its service offerings and enhance its market presence, further contributing to its earnings.
World Kinect Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: management has executed a clear strategic reset—simplifying the portfolio, completing a targeted aviation acquisition (~$70M gross profit run-rate), returning capital to shareholders, and outlining a pathway to improved margins and ~ $2.20–$2.40 adjusted EPS in 2026. However, the quarter and full year 2025 results were pressured by meaningful land underperformance, notable impairments and restructuring charges (totaling ~$325M of adjustments), and competitive margin pressure in fuels. While the transformation actions improve the long-term earnings quality and cash generation potential, near-term results include sizable write-downs, lower volumes and gross profit declines, and residual exit costs into H1 2026. The positives (strategic clarity, strong cash generation, acquisition and buybacks, and explicit 2026 EPS target) are counterbalanced by material one-time losses and ongoing headwinds in the land segment and some margin pressure, leaving the overall tone cautiously balanced.Q4-2025 Updates
Positive Updates
Leadership and Strategic Reset
New leadership installed (Ira Birns as CEO, Mike Tejada as CFO, John Rau as President) and a clear strategic focus on simplifying the portfolio, sharpening capital allocation and improving transparency to drive long-term value.
Aviation Acquisition and Growth
Closed acquisition of Universal Weather & Aviation's Trip Support Services (Nov 2025); expected incremental gross profit contribution of ~ $70 million in 2026; Q4 aviation gross profit $130 million, up ~8% year-over-year; full year aviation gross profit $526 million, up 8%.
Portfolio Repositioning and Capital Return
Exiting noncore European power/energy/sustainability businesses and selling North American tank wagon delivery & lubricants to Diesel Direct (expected close Q2'26); transaction expected to return approximately $100 million in proceeds/working capital; Board approved $150 million share repurchase authorization and executed $75 million post-year-end repurchases.
Cash Flow and Capital Allocation Strength
Full year 2025 operating cash flow $293 million and free cash flow $227 million (exceeding targets); combined free cash flow with 2024 of $419 million; Q4 share repurchases $40 million, full year repurchases $85 million; total capital returned via dividends and buybacks $126 million.
Cost and Operating Expense Improvement
Adjusted operating expenses down 6% in Q4 to $186 million and down ~7% for full year to $718 million, driven by lower incentive compensation and exits of certain land businesses; expect further operating expense reductions in 2026 (adjusted).
Balance Sheet / Liquidity Actions
Amended and extended $2.0 billion senior unsecured credit facility to November 2030 with a 1-year extension option, improving pricing and flexibility; net interest expense remained contained at $26 million in Q4.
2026 Financial Outlook and Guidance Shift
Company shifting to full-year adjusted EPS guidance for 2026 and expects 2026 adjusted EPS of $2.20 to $2.40 (representing solid year-over-year growth); expects Q1 EPS to be down year-over-year and roughly flat sequentially.
Negative Updates
Consolidated Revenue/Volume and Gross Profit Declines
Consolidated Q4 volume 4.2 billion gallons, down 5% year-over-year; full year volume 16.9 billion gallons, down ~4%. Consolidated Q4 gross profit $235 million, down 9% year-over-year; full year gross profit $948 million, down 8%.
Material Non-GAAP Adjustments and Impairments
Total non-GAAP adjustments in Q4 were $325 million ($296 million after tax), including $247 million of noncash intangible and other asset impairments (primarily in Land) and $77 million of restructuring/exit-related charges, indicating sizable one-time impacts from portfolio changes.
Severe Land Segment Underperformance
Land volumes Q4 down 9% year-over-year; full year land volumes down 8% to 5.6 billion gallons. Q4 land gross profit $71 million, down 32% year-over-year; full year land gross profit $298 million, down 22%. Company expects full year 2026 land volumes and gross profit to be meaningfully lower versus prior year.
Marine Full-Year Profit Pressure
Marine full year gross profit declined 21% (despite Q4 gross profit of $35 million, up 2% year-over-year), driven by a continued low fuel price and low volatility environment that reduced margins and upside optionality.
Competitive Pressure in Core Fuels/Aviation Margins
Management reported increased competitive pressure in core fuels that impacted margins in the quarter; while aviation gross profit grew (helped by acquisition), margins in core fuels were slightly weaker than anticipated and company cautioned continued pressure into 2026.
Near-Term Earnings Shortfall and Residual Costs
Management stated Q4 and full year 2025 results fell short of expectations; residual nonrecurring exit-related costs are expected to continue into H1 2026, and Q1 consolidated gross profit is expected to be down year-over-year and sequentially driven by land exit activity.
One-time Charges Related to Asset Sales
Recorded an $85 million noncash impairment in Q4 associated with the North American tank wagon delivery and lubricants businesses being sold, highlighting value write-downs incurred to exit noncore operations.
Company Guidance
Management shifted to full‑year adjusted EPS guidance for 2026 of $2.20–$2.40 (solid year‑over‑year growth) while noting Q1 adjusted EPS is expected to be down vs. prior year and roughly flat sequentially; consolidated Q1 gross profit is expected down year‑over‑year and sequentially (driven by land exit activity), aviation Q1 gross profit is expected to be up year‑over‑year, and marine Q1 gross profit should be generally in line with last year. They expect some residual non‑recurring exit costs into H1 2026, anticipate land adjusted operating income to nearly double in 2026 with land margins moving substantially toward a ~30% target, and note the refocused land business is roughly 5 billion gallon equivalents (including ~$2 billion from natural gas). Management also expects Q1 adjusted operating expenses to be down year‑over‑year and sequentially (adjusted for land exit activity), highlighted a pending Q2 ’26 sale of tank wagon/lubricants expected to return ~ $100 million of capital, confirmed an amended $2.0 billion credit facility extended to Nov 2030, and framed guidance against Q4 non‑GAAP adjustments of $325 million ($296M after tax) including ~$247M of impairments and ~$77M of restructuring charges and FY2025 cash generation (operating cash flow $293M, free cash flow $227M).World Kinect Financial Statement Overview
Summary
Overall fundamentals are pressured by a sharp TTM earnings deterioration (large net loss and negative operating/EBITDA margins), despite moderately levered balance sheet metrics and still-positive operating/free cash flow. Cash flow declined versus last year and equity was meaningfully eroded, making profitability recovery the central risk.Income Statement
TTM (Trailing-Twelve-Months) results show a sharp deterioration: revenue declined (-1.86%) and profitability swung deeply negative (net loss of ~$614M; negative operating and EBITDA margins). While gross margin is relatively steady versus prior years, it remains very thin structurally, leaving earnings highly sensitive to costs and market volatility. Annual 2023–2024 were modestly profitable but also showed consecutive revenue declines, pointing to weakening momentum heading into the TTM loss.32
Negative
Balance Sheet
Leverage looks moderate with debt at ~0.54x equity in TTM, and total debt is down versus 2023–2024, which is a positive trajectory. However, equity also declined materially versus 2024, and returns on equity turned sharply negative in TTM, signaling that the recent loss meaningfully eroded shareholder value. Overall, the balance sheet is not highly levered, but profitability pressure is now the key risk to capital strength.55
Neutral
Cash Flow
Cash generation remains a relative bright spot: TTM operating cash flow (~$293M) and free cash flow (~$227M) are positive despite a net loss, suggesting non-cash charges and/or working-capital benefits supported cash results. That said, free cash flow fell meaningfully versus last year (TTM free cash flow growth ~-28%), and cash flow covers only a small portion of total debt (low operating cash flow relative to debt), limiting financial flexibility if weak earnings persist.58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 36.93B | 42.30B | 47.91B | 58.98B | 31.30B |
| Gross Profit | 534.60M | 714.70M | 784.33M | 522.00M | 66.10M |
| EBITDA | -532.00M | 332.40M | 323.33M | 366.10M | 226.80M |
| Net Income | -614.00M | 67.40M | 52.90M | 114.10M | 73.70M |
Balance Sheet | |||||
| Total Assets | 5.86B | 6.73B | 7.38B | 8.16B | 5.94B |
| Cash, Cash Equivalents and Short-Term Investments | 193.50M | 382.90M | 304.30M | 298.40M | 652.20M |
| Total Debt | 697.10M | 1.06B | 1.08B | 1.05B | 673.60M |
| Total Liabilities | 4.56B | 4.78B | 5.43B | 6.17B | 4.03B |
| Stockholders Equity | 1.30B | 1.95B | 1.94B | 1.98B | 1.91B |
Cash Flow | |||||
| Free Cash Flow | 227.30M | 191.70M | 14.80M | 59.90M | 111.20M |
| Operating Cash Flow | 292.90M | 259.90M | 102.40M | 138.50M | 150.40M |
| Investing Cash Flow | -170.00M | 64.50M | -101.10M | -724.90M | -58.40M |
| Financing Cash Flow | -315.10M | -230.60M | -152.40M | 237.30M | -113.60M |
World Kinect Technical Analysis
Negative
24.95
Price Trends
25.83
Negative
25.24
Negative
25.98
Negative
Market Momentum
-0.25
Positive
40.65
Neutral
37.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WKC, the sentiment is Negative. The current price of 24.95 is below the 20-day moving average (MA) of 26.55, below the 50-day MA of 25.83, and below the 200-day MA of 25.98, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 40.65 is Neutral, neither overbought nor oversold. The STOCH value of 37.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WKC.
World Kinect Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.09B | 5.85 | 27.33% | ― | -10.11% | -7.00% | |
69 Neutral | $9.78B | 27.96 | 5.60% | 6.88% | -5.18% | -33.14% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | $2.29B | -4.66 | -115.95% | 3.42% | -22.37% | -27.22% | |
54 Neutral | $4.16B | ― | -2.92% | 4.14% | -15.35% | -81.94% | |
53 Neutral | $1.28B | -2.25 | -23.84% | 3.30% | -15.32% | -442.37% | |
49 Neutral | $769.57M | 19.73 | ― | 10.09% | -10.27% | 131.17% |
* Energy Sector Average
WKC
World Kinect
24.95
-4.13
-14.21%
DK
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38.11
22.62
146.06%
PBF
PBF Energy
35.60
15.00
72.79%
SUN
Sunoco
63.79
8.79
15.99%
CAPL
Crossamerica Partners
20.18
-0.93
-4.43%
PARR
Par Pacific Holdings
42.67
28.30
196.94%
World Kinect Corporate Events
Executive/Board Changes
World Kinect Promotes Michael Kroll to Key Executive Role
Neutral
Dec 9, 2025
World Kinect Corporation announced that Michael Kroll has been promoted to Senior Vice President and Chief Accounting Officer, effective November 1, 2025. In line with his new role, his salary was increased to $390,000 per year, and he is eligible for a performance-based restricted stock unit award and other bonuses, contingent on company performance and continued employment. Additionally, the company amended its Executive Severance Policy, effective January 1, 2026, to provide specific benefits for participants in cases of termination due to various reasons, including death, disability, or company-initiated termination without cause. The policy also outlines severance payments and benefits in the event of a change of control, with specific designations for certain executives.
The most recent analyst rating on (WKC) stock is a Hold with a $24.50 price target. To see the full list of analyst forecasts on World Kinect stock, see the WKC Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.