DSV (DSV) Q1 2025 earnings summary

Executive summary

• Q1 2025 marked by the completion of the Schenker acquisition, creating a world-leading logistics provider with pro forma revenue of DKK 310 billion and 160,000 employees.

• Solid Q1 operational results with earnings growth, strong cash flow, and upgraded full-year 2025 EBIT guidance to DKK 19.5–21.5 billion, reflecting Schenker's contribution.

• Integration of Schenker is expected to deliver DKK 9.0 billion in annual synergies by 2028, with limited impact in 2025.

• Management changes include key Schenker executives joining the leadership team to drive integration and performance.

Financial highlights

• Q1 2025 revenue rose 8.2% to DKK 41,680 million; gross profit up 6.2% to DKK 10,991 million; EBIT before special items up 4.8% to DKK 3,860 million.

• Profit for the period was DKK 2,812 million, up from DKK 2,393 million year-over-year.

• Adjusted free cash flow reached DKK 3,165 million, with a cash conversion ratio above 90%.

• Net interest-bearing debt at Q1 2025 was negative DKK 2,932 million, reflecting capital raised for the acquisition.

• Gross margin at 26.4% and operating margin at 9.3% in Q1 2025.

Outlook and guidance

• 2025 EBIT before special items guidance upgraded to DKK 19.5–21.5 billion, driven by Schenker acquisition.

• Limited synergy impact in 2025 (~DKK 500 million), with DKK 9.0 billion annual synergies targeted by 2028.

• Special items for restructuring and integration costs estimated at DKK 2.0–2.5 billion in 2025.

• Long-term financial targets withdrawn pending further integration and understanding of Schenker.

• Macroeconomic and geopolitical uncertainties, including tariffs and trade tensions, may impact global volume growth.