Financial performance
Höegh Autoliners reports consolidated financial information pursuant to the International Financial Reporting Standards (IFRS). In accordance with the requirements of Norwegian accounting legislation, the Board confirms that the requirements for the going concern assumption have been met and that the annual accounts have been prepared on this basis.
Result 2025
The Group reported total revenues in 2025 of USD 1 426 million (USD 1 371 million in 2024) and an operating profit (EBITDA) of USD 621 million (USD 692 million in 2024). The strong operating result is reflecting a 10% increase in volume compared to 2024, however somewhat offset by a decrease in net freight rates of 6% from 2024. The strong export growth out of Asia increased the demand for capacity and led to a significantly higher charter hire cost in 2025 compared to 2024.
The vessels Höegh Beijing and Höegh New York were sold in 2025 with a total gain of USD 61 million.
Interest expenses are higher in 2025 than in 2024, reflecting the increased debt from delivery of three Aurora Class vessels during the year. The net profit after tax amounted to USD 513 million (USD 620 million in 2024).
Basic earnings per share amounted to USD 2.69 (2024: USD 3.25).
Financial position
Gross interest-bearing mortgage debt increased from USD 708 million in 2024 to USD 913 million at year-end 2025, mainly due to drawdown on the loan facility related to the newbuilding program and debt related to the sale and leaseback arrangements with Bank of Communications. Net interest-bearing debt increased from USD 581 million in 2024 to USD 630 million in 2025. For more information on the interest-bearing debt, see Note 18 in the consolidated accounts.
The cash balance at the end of the year was USD 299 million, which was up from USD 208 million at the end of 2024. The strong financial results through 2025 have enabled the Group to maintain a strong cash position at year-end 2025, even after distributing dividends to shareholders of USD 415 million.
The book equity totaled USD 1 275 million in 2025, an increase from USD 1 177 million in 2024. Book equity represented 55% of total equity and liabilities on 31 December 2025. The Group’s covenants relating to the USD 720 million loan facility are related to a minimum book equity ratio, working capital and a minimum liquidity. The Group complied with these requirements at year-end 2025.
Net cash flow from operating, investing and financing activities was positive with USD 86 million (2024: negative with USD 249 million). The net cash flow from operations amounted to USD 583 million (2024: USD 708 million). Cash flow from investing activities was negative with USD 167 million (2024: negative USD 280 million). The decrease from 2024 is mainly due to lower newbuilding instalments for Aurora vessels in 2025. Net cash flow used in financing activities was negative with USD 330 million (2024: negative USD 677 million), whereof USD 415 million was related to dividend payments to shareholders, USD 63 million (2024: USD 131 million) was related to payment of lease liabilities and the mortgage debt payments in 2025 amounted to USD 68 million (2024: USD 46 million).
In December 2025, the Company purchased 103 000 own shares to meet obligations from the Company’s share bonus program. A total of 106 192 shares were delivered to the participants following the completion of the vesting period for the second award, where the remaining shares were delivered from the Company’s own shares. The Company has 461 own shares at 31 December 2025.
Allocation of result
The net profit for 2025 for the parent company Höegh Autoliners ASA amounted to USD 419 million (USD 952 million in 2024). The Company has a total equity of USD 1 238 million and an equity ratio of 71%. The Company has during 2025 distributed cash dividends to the shareholders of USD 415 million. On 31 December 2025, USD 99 million in dividend paid in March 2026 has been recorded as current liability. The Board of Directors has proposed that the net profit for 2025 is transferred to retained earnings. Dividends will be distributed regularly in 2026 following an authorisation given to the Board of Directors.
Financial risks
Interest rate risk
The interest rate risk can be reduced through interest rate swaps. The Group currently evaluates the exposure to interest rate risk as limited, and at year-end 2025, the Group did not have any interest rate swaps (no interest rate swaps at end of 2024).
Foreign exchange rate risk
The Group is only to a limited extent exposed to currency fluctuations as the majority of its income and expenses are in USD. The largest non-USD costs are in EUR and relate to port and cargo operations. Fluctuations in EUR constitute a smaller risk, however; this is partly balanced, as parts of the Group’s costs and revenues are both Euro-denominated. The largest net foreign exchange rate exposure is in NOK. The Group has active currency hedges at the end of 2025 (same at end of 2024). See note 14 for more details.
Bunker price risk
The Group has Bunker Adjustment Factor (BAF) clauses in most commercial contracts, designed to adjust for changes in bunker prices. Due to time lag, the Group will not be fully compensated in periods of rapidly changing prices, but the BAF will give reasonable compensation in most periods. The Group has no bunker derivatives at year-end 2025 (no bunker derivatives at end of 2024).
The risk of losses on receivables is considered to be low. The Group has not experienced any significant losses on receivables in recent years.
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to liquidity management is to ensure, to the extent possible, that the liquidity at any time can meet on-going obligations, both under normal and stressful conditions. The liquidity reserve shall be kept solid with targeted minimum cash holding relative to the size of the operation, cash flow development and capital commitments. The Group will seek to have the majority of its liquidity in bank deposits. Total bank deposits at 31 December 2025 amount to USD 299 million.
For more information on financial risks, see Note 14 in the consolidated accounts.
With around 80% of global trade enabled by maritime shipping, the shipping sector is responsible for about 3% of all global greenhouse gases (GHG). In the coming decades the shipping industry will need to undergo a radical transformation if it is to meet challenging targets to cut greenhouse emissions and to comply with future emission and environmental regulations.
As a global shipping company, Höegh Autoliners acknowledge that climate change, including the actions and measures taken by regulatory institutions and industry participants may impose a significant financial impact on our business. Read more about climate risk and our sustainability topics in the Sustainability Statements in this report.
Organisation
Höegh Autoliners had 481 land-based employees at the end of 2025, located across 16 offices and 1 282 seafarers. Absence through illness continues to be low and well below industry average. In 2025, the number of days registered as “absence due to illness” represented 0.5% for employees in Norway (2024: 0.7%). For more information on employees, working environment and other social matters, see Social information in our Sustainability Statements.
Directors and officers’ liability insurance
Höegh Autoliners has a directors’ and officers’ liability insurance. For more information see the Corporate Governance statement.
Events after the balance sheet date
Dividend
On 24 February 2026, the Board of Directors resolved to distribute a cash dividend of USD 0.5189 per share. The dividend was paid out in March 2026.
Looking ahead
Höegh Autoliners continued to navigate a highly complex market shaped by geopolitical uncertainties as we entered 2026. The recent escalation of conflict in the Middle East has introduced significant uncertainty, with the effective closure of the Strait of Hormuz disrupting global shipping lanes and energy markets. This development may lead to increased volatility in fuel costs, rerouting of vessels, and broader supply chain disruptions. We are closely monitoring the situation and remain prepared to adapt our operations to safeguard our people, assets, and service commitments.
