Deutsche Post (DHL) Investor presentation summary

Strategic direction and transformation

• Strategy 2030 targets sustainable growth by leveraging e-commerce, geographic expansion, life sciences, new energy, and digitalization, with a focus on operational efficiency and capital discipline.

• Transformation over the past decade shifted the business from mail-heavy to a global logistics leader, resulting in higher margins and resilient cash flows.

• Legal group structure is being streamlined, with a carve-down of Post & Parcel Germany planned for 2026 to enhance governance and strategic flexibility.

• Sustainability targets include reducing logistics-related GHG emissions to ≤32.1m metric tons CO₂e by 2026 and net zero by 2050, with strong employee engagement and diversity goals.

Financial performance and outlook

• Q1 2026 revenue grew 2% organically, with EBIT up 8% year-over-year, driven by Express and Supply Chain divisions.

• FY2026 guidance confirmed: Group EBIT > €6.2bn, FCF (excl. M&A) ~€3bn, and gross capex €3.0–3.3bn.

• Mid-term targets: Group EBIT > €7bn, FCF > €3bn annually, assuming market growth returns to trend.

• FY2025 EPS increased 8% to €3.09, with ROIC at 13.9% and FCF conversion at 96%.

• Strong liquidity with €4.6bn centrally available and net debt/EBITDA at 2.0x as of March 2026.

Divisional performance and initiatives

• Express: EBIT up 20.6% in Q1 2026, with focus on weight per shipment and yield management; fleet renewal and digitalization drive efficiency.

• Global Forwarding: EBIT down 18.5% due to lower gross profit, but volume growth in air and ocean freight; digitalization and sales transformation are key priorities.

• Supply Chain: 6% organic revenue growth and 3% EBIT growth in Q1 2026, supported by new contracts, digitalization, and automation.

• eCommerce: Organic revenue up 5% in Q1 2026, offset by UK deconsolidation; focus on cross-border growth and digital platform investments.

• Post & Parcel Germany: Parcel volumes up 6%, mail volumes down 13% in Q1 2026; transformation to a parcel-focused business continues.