Letter from the CEO
Delivering customer and shareholder value
2025 was another strong year for Höegh Autoliners, with solid financial performance despite a complex and volatile operating environment. Global trade conditions were shaped by evolving tariff announcements and introduction of a new significant port fee in the United States, which eventually was put on hold for one year.
Against this backdrop, we delivered an EBITDA of USD 621 million for 2025 with 26% return on invested capital, supported by disciplined operational execution, resilient customer demand and the agility and dedication of our team.
The demand for shipping services remained strong throughout 2025, primarily driven by increased export growth in Asia and particularly China, which is now the world’s largest car market, producer and car exporter with 7x growth since 2020. Increased car export from China, on top of relatively steady export flows out of Japan and Korea, have fully absorbed new vessel capacity being delivered during the year.
In car shipping cargo flows from Asia have traditionally exceeded flows returning to Asia. With the added volume from China the imbalance in our industry is further increased, which is negatively impacting network efficiency but driving tonnage miles. We are proud to be able to assist our customers in delivering on their strategy and were able to grow volumes from Asia with 40% from 2024. Our strategy continues to be “long on cargo” and we enter 2026 with an historically strong contract backlog, reinforcing future earnings and underscoring the trust our customers place in our services.
We strive to deliver quality service to our customers. We also value to our shareholders highly and are pleased to have declared total dividends of USD 424 million for the year, corresponding to a 22.9% dividend yield.
Leading position in deep sea shipping decarbonisation
We have a history of investing in new ship design and new technology, and we are very pleased with our market defining newbuilding program. With delivery of three Aurora Class vessels during 2025 and another early in January 2026, we enter the new year with eight newbuild vessels on the water. Further, we continued to optimize our fleet by divesting two smaller, non‑core vessels during the year, resulting in a net gain of USD 60 million. Our position as the car carrier with the largest share of large, carbon‑efficient vessels in its fleet is further strengthened.
We continue to invest in efficiency initiatives, including engine de-rating, propeller upgrades and the expansion of shore‑power capabilities. These initiatives, together with our newbuilt vessels in the fleet, enabled a significant year‑on‑year fleet carbon intensity reduction of 10% for our fleet. Our performance keeps us firmly on track to meet our target of reducing fleet-wide carbon intensity by more than 30% by 2030.
We will have four more newbuilds being delivered from summer 2027, which will be the first vessels in the car carrier segment delivered with multi-fuel engines able to run on ammonia. We are progressing as planned to be able to offer near zero-emission operation on ammonia from 2027, reinforcing our leadership position in the decarbonization of deep-sea shipping.
Investing in our people
Health and safety for our people remain our utmost focus. We have deepened our commitment to safeguarding the wellbeing of our crew and strengthened our efforts to identify and mitigate risks related to accidents and illness, both physical and mental. As part of this, we have worked extensively on a mental‑health training program that will be rolled out across our seafarer pool early in 2026.
Learning and development are also among our strategic priorities. Our in‑house crewing and technical management teams are continuously upskilled to manage and operate larger, multi‑fuel vessels. In addition, the Company is investing in building critical capabilities across all land‑based employees to accelerate performance and establish a strong foundation for future career growth within the organization.
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.
During times of uncertainty, we are pleased to have built resilience through a strong balance sheet, a high-quality contract backlog, competitive financing costs, and a modern and efficient fleet.
None of these achievements would have been possible without the collective dedication of our employees, customers, suppliers, and partners. I extend my heartfelt gratitude for your contributions to our strong performance in 2025. Together, we are committed to our mission of “sailing for sustainability”.
Sign.
Andreas Enger, CEO
