Kuala lumpur: Westports Holdings Bhd is anticipated to experience an increase in its earnings for the fourth quarter of 2025 (4Q 2025), driven by both stronger year-on-year (y-o-y) and quarter-on-quarter (q-o-q) volumes, alongside elevated yard utilisation.
According to BERNAMA News Agency, this positive outlook is based on observed trends and operational metrics.
In a research note, Maybank IB detailed that yard density at Westports reached nearly 100 per cent in December 2025 as a result of high vessel discharge volumes. This occurred even though storage fees have tripled since July 2025, while dwell time remained stable. This scenario is anticipated to bolster higher q-o-q earnings, with the 4Q results expected to be announced on January 30, 2026. Westports' performance for the first nine months of 2025 (9M 2025) accounted for 74 per cent of Maybank IB's projections. The bank has maintained its forecasts and set a discounted cash flow-based target price of RM6.73 for Westports, advising a "Buy" stance on the company.
Maybank IB also noted that productivity is expected to recover in the near term. Management at Westports estimates that deferred or temporarily diverted volume during the congestion stands at 50,000-100,000 twenty-foot equivalent units (TEUs), a figure that underscores the underlying demand outpacing the throughput handled. The company highlighted that the robust container throughput in 4Q 2025 aligns with strong intra-Asia container trade volumes, reaching one of the highest monthly levels for the year.
The stronger-than-anticipated activity underscores resilient regional demand and ongoing supply-chain diversification, which, according to Maybank IB, intensified yard operations and contributed to congestion in late November and December 2025. Looking forward, the bank expects activity to moderate ahead of the Chinese New Year, providing a temporary respite for global supply chains.
This expected pause could allow ports and operators to recalibrate before encountering potential renewed pressures, spurred by the United States' restocking efforts and the possible resumption of Red Sea transits. Although Westports' first quarter of 2026 (1Q 2026) volumes are predicted to ease q-o-q, earnings should remain stable, aided by a Phase 2 tariff hike of 10 per cent.
However, Maybank IB also identified several risk factors that could impact future earnings. These include potential abrupt changes in trading routes or a significant slowdown in the global economy, which could reduce container throughput and consequently, earnings for Westports. Furthermore, any unexpected delay in tariff hikes or a rise in operational costs might negatively affect future earnings growth.