The big name of shipments and logistics DHL has closed the second quarter of the year with falling revenues, but superior to the expectations, while operational profitability grows, confirming the resilience of the business. The Guidance for 2025 is also confirmed.
Falling revenues in all the main business lines
DHL closed the quarter to 30 June with revenues of 19.8 billion euros, down 3.9% compared to the same period of 2024, also serving the negative impact of the euro/dollar gearbox, as well as the effects of a drop in lively volumes.
The Express division saw revenues drop by 6% to 5.87 billion euros, while the shipping and global transport division saw 5% revenues drop to 4.62 billion. Supply chain revenues are dropped by 4% to 4.18 billion, while ecommerce ones dropped by 1.66 billion.
“In the second quarter, commercial conflicts and geopolitical tensions have influenced global economic dynamics,” explained CFO Melanie Kreis, adding “we foresee a persistent volatility of the global economy in the second half of the year. Our attention to improving the efficiency and growth of the markets is making its fruits in this situation”.
Increased and expected profitability
Despite the drop in revenues, profitability is confirmed as increasing, with EBIT growing 5.7% to 1.4 billion euros and a margin in 7.2% improve from 6.5% of the previous year. To support the growth of ABIT, which exceeds the estimates of Consensus, contributed the cost control (fuel and work).
The operating cash flow rose to 1.71 billion euros, compared to the 1.61 billion euros of the second quarter of 2024. The free cash flow dropped by 78%, going from 345 million euros to 76 million euros.
Guidance 2025 confirmed
In light of these results, DHL confirmed the Guidance for the entire 2025, indicating an EBIT of over 6 billion euros and a free cash flow of 3 billion euros. The company has updated its declaration on commercial risks for the better, stating that the perspectives exclude the impact of a “potential further escalation of duties”.
