Deutsche Post (DHL) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw a return to top-line growth with revenue up 6.2% to €20,592 million after five quarters of decline, while EBIT was stable at €1,373 million year-over-year, showing improvement from earlier declines.

• Net profit attributable to shareholders declined 6.9% to €751 million, and basic EPS was €0.64, down 5.9%.

• Macroeconomic conditions remain mixed, with B2B trade and European freight markets underperforming, but eCommerce and B2C parcel volumes showing robust growth.

• Board announced a major modernization of the Group structure, aligning legal and management structures and managing all divisions as standalone entities over two years.

• Management remains focused on cost, yield, and capex discipline, supporting strong free cash flow and shareholder returns.

Financial highlights

• Q3 2024 revenue: €20,592 million (+6.2% year-over-year); EBIT: €1,373 million (flat year-over-year); net profit: €751 million (-6.9%).

• Free cash flow for Q3 was €723 million, down from €1,074 million in Q3 2023, mainly due to higher working capital outflow.

• Group EBIT margin remained stable; positive one-time effect of ~€70 million from legal disputes included in Q3 EBIT.

• Basic EPS in Q3 2024: €0.64 (-5.9% year-over-year).

• Net debt increased to €19,428 million as of September 30, 2024.

Outlook and guidance

• FY 2024 EBIT guidance revised to above €5.8 billion (from €6.0–6.6 billion); DHL divisions expected to contribute over €5.5 billion and Post & Parcel Germany around €800 million.

• Midterm EBIT target adjusted to above €7 billion for 2026, reflecting slower B2B recovery and regulatory decisions.

• FY 2024 capex guidance reduced to €3.0–3.2 billion; free cash flow guidance now €2.8–3.0 billion.

• Dividend continuity remains a priority, with payout at least at last year’s level.

• Guidance reflects continued muted macro environment, challenging B2B volumes, and accelerated mail decline.