DSV Reports Strong Q2 Performance Amid Global Challenges
Stable Organic Financial Performance Reported
Company Announcement No. 1159
Stable organic financial performance and strong start to the integration of Schenker in a challenging market environment
- The integration of Schenker is progressing well, with the integration of the initial countries anticipated to kick off in Q3 2025. The expected synergies are reaffirmed at DKK 9 billion by the end of 2028.
- EBIT before special items for the DSV Group reached DKK 4,725 million in Q2 2025, driven by stable organic performance and a solid contribution of DKK 925 million from the Schenker acquisition.
- In Q2 2025, adjusted free cash flow stood at DKK 3,982 million, with an impressive adjusted cash conversion of 143%, aiding in deleveraging. This resulted in a pro forma gearing ratio of 2.7x.
- The guidance for full-year 2025 EBIT before special items remains unchanged, targeting between DKK 19.5 - 21.5 billion amidst uncertain market conditions impacted by trade tariffs and macroeconomic developments.
According to Jens H. Lund, Group CEO, "The second quarter has been extraordinary, highlighted by the completion of Schenker's acquisition. Our financial results reflect stable organic performance and the positive contributions from Schenker, reaffirming our commitment to serving our customers in a volatile market. A new global leadership team has been established, ensuring a smooth transition for our clients and employees alike, particularly through constructive negotiations with works councils in Germany that have paved the way for a successful integration process. We are optimistic about the long-term value this acquisition will bring to our shareholders and customers.”
Performance Metrics: January – June 2025
The financial performance recorded from January to June demonstrated a robust outlook despite external pressures. Below are selected key figures:
- Revenue: DKK 61,983 million (compared to DKK 41,157 million in Q2 2024)
- Gross Profit: DKK 17,241 million (up from DKK 10,841 million last year)
- Operating Profit (EBIT) before special items: DKK 4,725 million (increased from DKK 4,099 million)
- Profit for the period: DKK 2,356 million compared to DKK 2,712 million in Q2 2024
- Adjusted free cash flow: DKK 3,982 million (growth from DKK 1,229 million last year)
Q2 2025 Performance Highlights
In the second quarter of 2025, despite the volatile global trade conditions primarily driven by geopolitical tensions and tariff uncertainties, DSV achieved an EBIT before special items of DKK 4,725 million, signifying considerable improvement from DKK 4,099 million the previous year. This increase is largely attributed to a stable organic performance, particularly in the Air & Sea sector, and strong contributions from Schenker.
The Air & Sea division reported an EBIT before special items of DKK 3,461 million, reflecting an increase over the previous year’s DKK 2,898 million due to higher gross profit and enhanced performance through Schenker. Conversely, the Road division experienced a slight decline in EBIT before special items, registering DKK 520 million, down from DKK 549 million despite the positive influence of Schenker.
Contract Logistics reported a solid EBIT before special items of DKK 724 million, up from DKK 661 million last year, bolstered by the Schenker acquisition and ongoing initiatives to elevate margins through cost efficiencies.
DSV completed the acquisition of Schenker on April 30, 2025, contributing positively to financials in Q2. The integration process is well underway, with over 500 executives appointed to the global leadership team as of May 2025. Following collaborative discussions with German works councils, a framework agreement was reached to commence the integration process in Germany in H2 2025, thereby alleviating uncertainties revolving around employee and customer expectations. The integration activities will predominantly commence in Q3 2025, prioritizing Air & Sea operations.
Outlook for 2025
Reflecting on the outcomes from H1 2025 and projecting into H2, DSV maintains its EBIT guidance before special items at DKK 19.5 - 21.5 billion:
- Synergies stemming from the Schenker integration are projected to materialize, estimating around DKK 500-600 million for 2025.
- Amortization costs are revised to be below DKK 500 million.
- Expected special items related to restructuring and integration costs remain unchanged between DKK 2.0-2.5 billion.
- The anticipated effective tax rate is now projected to be between 26-28%, up from approximately 24% as a direct consequence of the Schenker integration.
Ongoing uncertainties surrounding global trade tariffs, geopolitical issues, and macroeconomic factors continue to pose challenges, potentially impacting DSV's financial outlook. The company is committed to monitoring its operations closely and making necessary adjustments to staffing and capacity in response to these conditions.
Projected Synergies and Integration Costs
DSV remains confident about achieving annual synergies of DKK 9 billion by the conclusion of 2028 as the integration advances. Approximately 50% of integration processes are anticipated to be finalized by the end of 2026.
Contact Information
Investor Relations
Stig Frederiksen, tel. +45 43 20 36 38, stig.frederiksen@dsv.com
Alexander Plenborg, tel. +45 43 20 33 73, alexander.plenborg@dsv.com
Media
Jonatan Rying Larsen, tel. +45 25 41 77 37, press@dsv.com
Yours sincerely,
DSV A/S
Frequently Asked Questions
What was the EBIT reported by DSV for Q2 2025?
DSV reported an EBIT before special items of DKK 4,725 million for Q2 2025.
What are the expected synergies from the Schenker acquisition?
DSV expects annual synergies from the Schenker acquisition to reach DKK 9 billion by the end of 2028.
How much free cash flow did DSV generate in Q2 2025?
In Q2 2025, DSV generated an adjusted free cash flow of DKK 3,982 million.
What is the full-year EBIT guidance for DSV in 2025?
The full-year EBIT guidance for 2025 remains between DKK 19.5 - 21.5 billion.
Who can investors contact for further information about DSV?
Investors can contact Stig Frederiksen or Alexander Plenborg for further inquiries regarding DSV.
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