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The company is focused on achieving an adjusted operating margin of 30% and full-year adjusted EBITDA of $480 million to $520 million by 2026.
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The company aims to generate between $900 million and $1.2 billion in total free cash flow over the next five years, with approximately 40% allocated to share buybacks and dividends.
Miami, March 13, 2024–(BUSINESS WIRE)–WorldKinect Corporation (NYSE: WKC) (“WorldKinect” or the “Company”) today hosted its 2024 Investor Day, in which the Company will We discussed our unique positions and strategies. We have financial objectives that capture opportunities across our three business segments and drive attractive long-term shareholder returns.
“As our team continues to serve our global customer base, we are increasing the efficiency of our core distribution platform, increasing the availability of renewable energy and low-carbon fuels, and expanding the energy continuum. We are focused on strategies to accelerate growth: managed solutions,'' said Michael J. Kasbar, Chairman and Chief Executive Officer. “We are confident that our clear strategy will deliver greater value for our shareholders.”
financial outlook
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We continue to focus on improving operating efficiency with the goal of achieving an adjusted operating margin of 30% by 2026.
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Increased operational efficiency and profitable growth are expected to result in annual adjusted EBITDA of $480 million to $520 million by 2026.
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The Company expects total free cash flow to be between $900 million and $1.2 billion over the next five years, approximately 40% of which is expected to be allocated to stock repurchases and dividends.
“With a focus on improving shareholder returns, today we announced updated financial guidance that focuses on improving operating efficiency, profitability and free cash flow,” said Ira M. Burns, Executive Vice President and Chief Financial Officer. says Mr. “We believe that achieving these efficiency improvements and profitable growth will strengthen our ability to deliver sustainable returns to our shareholders.”
new logo
The company also unveiled its new logo today. This better reflects our core operating model and our strategic focus on growing sustainability solutions. This is a continuation of the rebranding effort that began in June 2023 when the company changed its name from World Fuel Services Corporation to World Kinect Corporation and celebrated the occasion by ringing the closing bell of the NYSE.
Webcast and supplementary materials
To view the Investor Day webcast and presentation materials, please visit our Investor Relations website at ir.worldkinect.com.
About World Kinect Corporation
World Kinect Corporation (NYSE: WKC), headquartered in Miami, Florida, is a global energy management company providing fulfillment and related services to more than 150,000 customers across the air, maritime and ground transportation sectors. The company also supplies natural gas and electricity to the United States and Europe, as well as expanding into other sustainability-related products and services.
For more information, please visit www.world-kinect.com.
Non-GAAP financial measures
Adjusted operating margin, adjusted EBITDA and free cash flow are non-GAAP measures. Our non-GAAP financial measures exclude acquisition and disposition-related costs, restructuring charges, impairment charges, extinguishment gains and losses, gains and losses on divestitures, acquisition-related integration costs, and non-operating legal settlements. That's because we do not believe they reflect our core operating results. Adjusted operating margin is calculated by dividing adjusted operating income by adjusted gross profit. Adjusted operating income is defined as operating income excluding the impact of acquisition- and divestiture-related costs, restructuring costs, impairments and integration costs. Adjusted gross profit is defined as gross profit excluding the impact of costs related to bid errors in Finland in November 2023. Adjusted EBITDA is defined as net income (loss) excluding acquisition and divestiture-related costs, restructuring charges, impairments, gains and losses on divestitures, integration costs and other expenses, as well as the effects of interest, income taxes, depreciation and amortization. Masu. -Management of legal settlements. Free cash flow is defined as cash provided by operating activities less total capital expenditures. Our guidance regarding these non-GAAP measures depends on future levels of revenue, expenses, interest expense and other measures that cannot be reasonably estimated at this time. Accordingly, we are unable to provide a reconciliation between our projected adjusted operating margin, adjusted EBITDA and free cash flow to the most comparable GAAP measures and related ratios without undue effort.
Information regarding forward-looking statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements that predict, predict, suggest or may suggest future results, performance or achievements. “believe”, “anticipate”, “expect”, “estimate”, “plan”, “could”, “would”, “would”, “will”, ” “continue”, “plan”, or words or phrases of similar meaning. Specifically, this release contains forward-looking statements regarding the Company's future financial performance, including operating margin, adjusted EBITDA and free cash flow. This release also contains statements regarding the Company's future capital return plans, which are subject to the approval of the Board of Directors, applicable law and the applicable provisions of the terms of the Company's Credit Agreement. . All of our forward-looking statements include the cautionary statements and risks contained in our filings with the Securities and Exchange Commission (“SEC”), including our most recent Annual Report on Form 10-K filed with the SEC. Fully qualified by disclosure of factors. Actual results may differ materially from forward-looking statements due to risks and uncertainties, including, but not limited to, the creditworthiness of our customers and counterparties, our ability to collect receivables and settle derivative contracts. . Fluctuations in energy or commodity market prices or extremely high or low fuel prices over an extended period of time. adverse conditions in the industries in which our customers operate; our inability to effectively mitigate certain financial and other risks associated with derivatives and our physical fuel products; our ability to achieve the expected levels of benefits from our restructuring activities and cost reduction initiatives; our relationships with our employees and potential labor disputes relating to our employees who are subject to collective bargaining agreements; failure to comply with the restrictions and covenants governing our outstanding debt; the impact of cyber and other information security-related incidents; changes in the general political, economic or regulatory environment and in the markets in which we operate, including current conflicts in Eastern Europe and the Middle East; Other environmental and climate change laws adopted by governments around the world, such as greenhouse gas reduction programs, cap-and-trade systems, carbon taxes, and increasing or mandating efficiency standards for renewable energy, affect our operations. Not only does it increase costs and compliance costs, but it can also have a negative impact. affect sales of our fuel products; changes in the terms of credit provided to us by our suppliers; failure of suppliers to fulfill sales commitments and failure of customers to fulfill purchase commitments; Nonperformance of Third Party Service Providers. our ability to effectively integrate and derive benefits from acquired businesses; our ability to achieve financial projections related to our operating plans; Our cash flows and revenues may be lower than expected and our ability to realize the value of our recorded intangible assets and goodwill may be impaired. the availability of cash and sufficient liquidity to fund working capital and strategic investment needs; Currency fluctuations. inflationary pressures and the impact on our customers and the global economy, including sudden or significant increases in interest rates and a global recession; Ability to effectively leverage technology and operating systems to achieve anticipated benefits. failure to meet fuel and other product specifications agreed with the customer; environmental and other risks associated with the storage, transportation and delivery of petroleum products; reputational damage from negative publicity resulting from public perception of spills, environmental pollution, or climate change impacts by us or our peers; Risks associated with working in high-risk locations, such as supply disruptions, border closures, and other logistical issues that arise when working in these areas. Uninsured or underinsured losses. the effects of seasonal fluctuations and natural disasters, such as earthquakes, hurricanes and wildfires, which adversely affect our revenues and results of operations; declines in the value and liquidity of cash equivalents and investments; our ability to retain and attract senior management and other key employees; changes in U.S. or foreign tax laws, the interpretation of such laws, changes in the composition of taxable income between different tax jurisdictions, or adverse outcomes of tax audits, assessments, or disputes; the Company's inability to generate sufficient future taxable income in its jurisdictions due to significant deferred tax assets and net operating loss carryforwards; changes to multilateral treaties, agreements, tariffs or other arrangements between or among sovereign States, including the withdrawal of the United Kingdom from the European Union; our ability to comply with U.S. and international laws and regulations, including laws and regulations related to anti-corruption, economic sanctions programs and environmental issues; the outcome of litigation, regulatory investigations and other legal matters, including related legal and other costs; and other risks described from time to time in our SEC filings. New risks emerge from time to time, and it is not possible for management to predict all such risk factors or assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise, except as required by law. yeah.
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contact address
Ira M. Burns, Executive Vice President and Chief Financial Officer
Elsa Ballard, Vice President of Investor Relations and Communications
investor@worldkinect.com
