Operating income flat as fuel costs rise; $381M buyback and Supreme Court setback

Filed June 26, 2026 · Period ending May 31, 2026 · Compared to 10-Q Jun 26, 2025 · ~2 min read

Key Changes

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  Operating income fell $83M in Q2 and was essentially flat year-to-date ($1.5B, down $19M) as fuel costs per metric ton jumped 29% to $793 and ship-sale gains from the prior year did not recur. EU emission allowance costs also rose $28M as the regulation now covers 100% of in-scope emissions.

  MD&A: Operating Results verify on EDGAR →
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  Supreme Court vacated the 11th Circuit's favorable ruling in the Havana Docks case on May 21, 2026, remanding for further appellate proceedings. This reintroduces uncertainty around the $110M judgment that had been reversed at the appellate level.

  Legal Proceedings: Havana Docks verify on EDGAR →
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  Company repurchased $381M of stock and paid $414M in dividends during the first half of fiscal 2026, marking a return to capital allocation to shareholders. Operating cash flow rose $575M to $3.9B, driven by higher net income.

  MD&A: Financing Activities verify on EDGAR →