Ocean Network Express (ONE) reported a profitable first quarter for fiscal 2026, overcoming higher fuel costs and geopolitical disruptions through strong cargo demand, disciplined capacity management and rising freight rates, while continuing to invest in fleet modernization under its long-term ONE2030 strategy.
For the quarter ended June 30, 2026, the Singapore-based container carrier generated revenue of $4.54 billion, EBITDA of $707 million and EBIT of $76 million, resulting in a net profit of $31 million. The carrier transported 3.26 million TEU during the quarter at an average freight rate of $1,300 per TEU.
While profit declined from the same period a year earlier, ONE characterized the results as demonstrating resilience in a challenging operating environment marked by escalating fuel prices and continued instability in the Middle East. Rising bunker costs, driven largely by the regional conflict, significantly increased operating expenses, while higher ship-related costs also weighed on earnings. These headwinds were partially offset by stronger cargo volumes and improving freight rates across key trades.
Market conditions improved noticeably during the quarter. After mixed demand in April, cargo volumes strengthened through May and June, led by Transpacific shipments from China as shippers accelerated exports ahead of anticipated fuel surcharge increases, potential tariff changes and retail inventory replenishment. The Asia-Europe trade also continued its recovery, while persistent port congestion and disruptions in the Strait of Hormuz absorbed much of the industry's newly added vessel capacity, tightening supply-demand fundamentals and supporting higher freight rates.
The carrier said Transpacific, Asia-Europe and Latin America trades were the primary drivers of year-over-year volume growth. By the end of the quarter, services across major trade lanes were operating at full capacity as utilization improved alongside strengthening market conditions.
Operationally, ONE continued executing its network strategy despite ongoing global supply chain challenges. During the quarter the company launched its redesigned 2026 East-West service network, aimed at improving schedule reliability, strengthening network stability and enhancing global connectivity amid persistent congestion and geopolitical uncertainty. The company also implemented targeted commercial initiatives designed to improve yield performance while offsetting rising operating costs.
Fleet investment remains a central pillar of ONE's long-term growth strategy. The company said development under its ONE2030 program is progressing as planned, with continued deployment of newbuild vessels intended to improve network competitiveness while reducing environmental impact.
As of June 30, ONE operated a fleet of 284 vessels with a total capacity exceeding 2.26 million TEU. The company took delivery of one 13,932-TEU newbuilding during the quarter and maintains an orderbook of 53 vessels, with seven additional deliveries scheduled during the remainder of fiscal 2026.
Looking ahead, ONE significantly raised its financial outlook, citing continued strength in freight markets and sustained cargo demand. The carrier increased its full-year profit forecast to $900 million—triple its previous guidance of $300 million—while projecting full-year revenue of $19.4 billion and EBIT of $1.1 billion. Management expects elevated freight rates to continue through the second quarter but cautioned that the outlook assumes operating conditions in the Strait of Hormuz stabilize by October, while Cape of Good Hope rerouting is expected to continue throughout the fiscal year.
