World Kinect Swings to $26.2M Profit in Q1 2026 After Year-Ago Loss

World Kinect Corp (NYSE: WKI), a global energy and commodities distributor, reported net income attributable to shareholders of $26.2 million for the three months ended March 31, 2026, compared with a net loss of $21.1 million in the same quarter of 2025. Read more earnings reports.

Revenue climbed 2.5% to $9.69 billion from $9.45 billion in the prior-year period. Cost of revenue increased to $9.41 billion from $9.22 billion, leaving gross profit at $271.2 million versus $230.4 million a year earlier.

The company swung to operating income of $56.3 million from an operating loss of $6.6 million in the first quarter of 2025. The year-ago quarter included a goodwill and asset impairment charge of $44.5 million, which did not recur in the current period.

Operating expenses totaled $214.9 million, down from $237.0 million in the prior-year quarter. Compensation and employee benefits rose to $130.8 million from $105.1 million, while restructuring and exit costs fell to $6.7 million from $15.0 million.

Diluted earnings per share came in at $0.50, compared with a loss of $0.37 per share in the first quarter of 2025. The weighted average diluted share count declined to 52.0 million shares from 56.8 million shares.

Interest expense and other financing costs increased to $26.3 million from $22.9 million. Income tax expense was $6.6 million, compared with a tax benefit of $6.8 million in the prior-year period.

The company's balance sheet showed total assets of $6.80 billion as of March 31, 2026, up from $5.86 billion at December 31, 2025. Accounts receivable jumped to $2.84 billion from $2.21 billion, while inventories rose to $739.2 million from $454.2 million.

Cash and cash equivalents declined to $151.1 million from $193.5 million at year-end 2025. The company held total debt of $798.7 million, including current maturities of $9.1 million and long-term debt of $789.6 million.

Operating cash flow turned negative at $46.4 million used in operations, compared with $114.4 million provided by operations in the first quarter of 2025. The swing reflected a $629.3 million increase in accounts receivable and a $260.5 million increase in inventories, partially offset by an $825.1 million increase in accounts payable.

World Kinect paid $10.7 million in dividends and repurchased $75.0 million of common stock during the quarter. The company also borrowed $1.52 billion and repaid $1.41 billion in debt during the three-month period.

Total equity stood at $1.21 billion as of March 31, 2026, down from $1.31 billion at the end of 2025. The decline reflected the share buyback activity and a $42.2 million charge to accumulated other comprehensive income, primarily driven by a $41.1 million loss on cash flow hedges.