Scan Global Logistics (SGL) reported a robust start to 2025, with total revenue increasing by 30.8% year-on-year, rising from €490m in Q1 2024 to €641m in Q1 2025. This growth supported a 14% uplift in gross profit and an EBITDA of €43m, up from €40m in the prior-year period. The company characterised this as a solid performance in the face of ongoing global market challenges.
Despite the overall growth, revenue trends varied across business divisions:
• The Air & Ocean division was the primary growth driver.
• The Road and Solutions divisions recorded revenue declines compared to the same period last year.
Air & Ocean
The Air & Ocean segment delivered standout results, with revenue climbing 39% year-on-year to €578m, up from €417min Q1 2024. Growth was supported by increased volumes across both air and ocean freight, stable air freight rates, and continued declines in ocean freight rates. However, SGL noted that falling ocean rates could lead to softer revenue performance in Q2 2025.
EBITDA for the division rose by 8% to €108m, while gross profit grew by 16%, bolstered by acquisitions made in Italy and Brazil during 2024.
SGL stated that it continues to see strong demand for flexible and reliable logistics solutions, particularly in EMEA and Asia. At the same time, external factors, such as the Red Sea conflict and the risk of new tariff barriers continue to weigh on capacity and pricing in global trade. The shift from air to ocean transport, prompted by declining ocean freight rates, has added pressure to margins.
While performance in North America fell short of expectations, the company has launched several corrective initiatives aimed at improving results in the coming quarters.
Road
In the Road division, revenue declined by 12% year-on-year, falling from €65m in Q1 2024 to €57.2m in Q1 2025. The decrease was attributed to challenging market conditions and continued overcapacity in the segment.
Despite the revenue drop, gross profit improved by 16.6%, increasing from €12m in Q1 2024 to €14m in Q1 2025 and the EBITDA remained steady at €1m.
However, the company noted that its profitability remained under pressure due to efficiency challenges and underutilised capacity. In response, SGL is prioritising stronger collaboration with both customers and hauliers to drive improved performance.
Solutions
SGL did not provide revenue figures for its Solutions division, but reported that both revenue and gross profit declined compared to Q1 2024, as the division operated in a highly competitive environment. Nonetheless, EBITDA remained stable, indicating a degree of operational resilience despite top-line pressures.
Looking ahead, Scan Global Logistics expects to maintain strong activity levels throughout 2025. This momentum is underpinned by the commercial traction of recent investments and the full-year impact of its 2024 acquisitions.
That said, the company remains cautious given the current macroeconomic climate. Rising tariff risks, ongoing instability in the Red Sea, and fluctuating freight rates are all likely to influence capacity, customer demand, and pricing. SGL also anticipates further pressure on yields as the shift in ocean freight dynamics continues to ripple through the market potentially affecting air freight demand, as seen in 2024.
Author: Shruti Sasidharan
Source: Ti Insight
Supply chain strategists can use GSCi – Ti’s online data platform – to identify opportunities for growth, support strategic decisions, help them stay abreast of industry trends and development, as well as understand future impacts on the industry.
Visit GSCI subscription to sign up today or contact Michael Clover for a free demonstration: [email protected] | +44 (0) 1666 519907
For your logistics and transportation management needs
Providing high frequency logistics and supply chain data and analysis for all those invested in the industry.