This article first appeared on GuruFocus .
-
EBIT:DKK6.3 billion, surpassing the DKK6 billion mark.
-
Revenue Growth:Increased by 23%.
-
EPS:Improved for the first time since the Schenker acquisition.
-
Cash Flow:Impacted by higher activity and increased freight rates.
-
Air & Sea Conversion Ratio:42%.
-
Air Freight GP:Almost DKK5 billion, up 13%.
-
Sea Freight GP:Down 4%, hovering around DKK4,000 per TEU.
-
Road EBIT:DKK999 million, with DKK250 million of a one-off nature.
-
CL EBIT:DKK1.5 billion for the quarter.
-
Gearing Ratio:Reduced to 2.7 from 2.8.
-
Guidance Range:Increased bottom from DKK23 billion to DKK23.5 billion.
Release Date: July 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
DSV AS ( DSDVF ) achieved its strongest quarterly EBIT result since COVID, reaching DKK6.3 billion, surpassing the DKK6 billion mark.
-
The integration of Schenker is progressing well, with 60 countries integrated and significant headcount reductions achieved.
-
The Air & Sea division saw a conversion ratio of 42%, aligning with business case expectations, and experienced a 13% increase in air freight GP.
-
The company has upgraded its guidance, narrowing the range and increasing the bottom end due to positive performance.
-
The Contract Logistics (CL) division produced DKK1.5 billion in the quarter, with a strong return on invested capital and growth driven by the tech vertical.
Negative Points
-
The Road division faced integration challenges, resulting in a DKK250 million one-off cost and a lower EBIT of DKK750 million.
-
Volumes in certain markets are down due to the crisis, impacting overall performance despite increased freight rates.
-
Cash flow was unusually high due to one-off transactions and higher freight rates, raising concerns about sustainability.
-
The company is experiencing lower-than-expected volumes in sea freight, with a 4% decline in GP compared to last year.
-
There are ongoing integration issues in large countries like Germany, France, and the Netherlands, affecting delivery quality and incurring additional costs.
Q & A Highlights
Q: Can you elaborate on the additional costs incurred in the Road division to maintain delivery quality, and how do you expect these costs to trend in the coming quarters? A: Jens Lund, Group CEO, explained that the additional costs in the Road division were significant, estimated between DKK250 million and DKK500 million for the first half of the year. These costs are expected to be reduced as delivery quality improves, with a focus on eliminating these costs during the third quarter.
Q: Could you provide insights into the expected EBIT for Q3 and the impact of seasonality and synergies? A: Jens Lund noted that while they do not guide on a quarterly basis, improvements are expected in Air & Sea due to synergies, and the Road division is anticipated to turn around by Q4. Contract Logistics (CL) is expected to continue its steady progress.
Q: Is there any concern about the free cash flow performance, and how does it affect potential share buybacks? A: Michael Ebbe, CFO, stated that the cash flow situation is temporary and expected to normalize in Q3. The company assesses cash flow and gearing ratio quarterly to determine the feasibility of share buybacks, but no immediate buybacks are planned for Q3.
Q: Can you clarify the impact of temporary issues in Road and working capital on Q3 and Q4 performance? A: Jens Lund confirmed that the Road division's performance is expected to improve by Q4, with temporary issues being resolved. Michael Ebbe added that working capital impacts are temporary, with cash flow expected to improve as property divestments are finalized.
Q: Why is there an expectation of lower Air & Sea yields in the second half, and can volume growth be achieved post-Schenker acquisition? A: Jens Lund explained that normal seasonality typically results in lower yields towards the end of the year. However, they anticipate growth in Air & Sea volumes in the latter part of the year as they move past the integration phase.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
