DHL beats Q2 estimates on cost cuts despite revenue decline

Published 05/08/2025, 06:30
Updated 05/08/2025, 11:24
© Reuters.

Investing.com -- DHL (ETR:DHLn) on Tuesday reported second-quarter earnings that beat expectations, with group EBIT up 6% year over year to €1.43 billion, as cost reductions in its Express unit helped offset a 4% drop in revenue.

Group revenue declined to €19.83 billion from €20.64 billion in the prior-year quarter, falling 6% below consensus.

Express revenue dropped 6% to €5.87 billion, but EBIT rose to €730 million, 7% above consensus. 

The unit’s EBIT margin improved to 12.4% from 11% a year earlier, aided by an 8% reduction in aviation costs, a 5% drop in pickup costs and a 3% cut in direct full-time employees. Excluding one-time items, Express EBIT rose 11% to €760 million.

Global Forwarding & Freight posted a 5% revenue decline to €4.62 billion. EBIT fell 30% to €196 million, with margins narrowing to 4.2% from 5.7%. Adjusted EBIT came to €215 million, down 22% year over year.

Supply Chain revenue decreased 4% to €4.18 billion. EBIT rose 25% to €348 million, with margins increasing to 8.3% from 6.4%. Adjusted EBIT was €294 million, a 5% year-over-year gain.

The eCommerce division reported revenue of €1.66 billion, down 1%. EBIT declined 16% to €56 million, with margins at 3.4% versus 4% a year earlier. Adjusted EBIT was €64 million, down 4%.

Post & Parcel Germany reported flat revenue at €4.15 billion and a 28% increase in EBIT to €166 million. Margins improved to 4% from 3.1%.

Operating cash flow rose to €1.71 billion from €1.61 billion in the second quarter of 2024. Free cash flow dropped 78% to €76 million from €345 million.

DHL reaffirmed its full-year EBIT guidance of more than €6 billion. The company updated its language on trade risks, stating the outlook excludes the impact of a “potential further escalation in tariffs,” a revision from previous wording.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.