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Investing.com -- Danish logistics giant DSV A/S (CSE:DSV) on Thursday reported second-quarter earnings slightly below expectations but maintained its full-year guidance while revealing a faster-than-anticipated integration timeline for its Schenker acquisition.
The company’s Q2 EBIT came in 3% below consensus at DKK4,705 million, with the Air & Sea division posting EBIT of DKK3,461 million, 1% below expectations.
The Road division delivered EBIT of DKK520 million, 11% below consensus, while Solutions reported EBIT of DKK724 million, 8% below estimates.
Despite the slight earnings miss, DSV maintained its full-year EBIT guidance of DKK19,500-21,500 million, which includes approximately DKK500-600 million in synergies from the Schenker acquisition in 2025.
The company provided new details on its Schenker integration timeline, expecting 15% completion by the end of 2025, 50% by the end of 2026, and 75% by the end of 2027.
Based on this schedule, synergy realization could reach DKK4.0 billion in 2026, followed by DKK2.2 billion in both 2027 and 2028, potentially faster than previous estimates.
Margin performance showed pressure across all divisions compared to the same period last year. Air & Sea margins fell to 10.0% from 11.8% in Q2 2024, Road margins declined to 2.5% from 5.2%, and Solutions margins dropped to 7.2% from 9.6%.
Cash flow performance was strong, with Q2 operating cash flow reaching DKK4,577 million compared to DKK2,462 million in Q2 2024. Adjusted free cash flow improved significantly to DKK3,982 million versus DKK1,229 million in the same period last year.
DSV also updated its tax rate guidance to 26-28%, up from the previous 24%, which could put pressure on 2025 consensus estimates.
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