DSV (DSV) Q1 2026 earnings summary

Executive summary

• EBIT before special items rose 31.2% year-over-year to DKK 4,855 million, driven by the Schenker acquisition despite challenging market conditions and geopolitical unrest, particularly in the Middle East.

• Gross profit increased 78.4% to DKK 18,903 million, with revenue up 74.7% to DKK 70,416 million, reflecting strong contributions from all divisions and Schenker.

• Schenker integration is progressing in over 50 countries, with 45% completed by end of Q1 and expected annual synergies of DKK 9 billion by 2027 and DKK 4–5 billion incremental impact in 2026.

• More than 7,000 white-collar FTEs reduced since integration began, supporting productivity improvements and limited customer attrition.

• Adjusted free cash flow was DKK 1,517 million, impacted by seasonality and higher net working capital.

Financial highlights

• Revenue: DKK 70,416 million (+74.7% YoY); Gross profit: DKK 18,903 million (+78.4% YoY); EBIT before special items: DKK 4,855 million (+31.2% YoY).

• Cash conversion ratio above 69%; adjusted free cash flow: DKK 1,517 million.

• Net interest costs at DKK 968 million, including DKK 515 million in leasing costs; interest costs reflect Schenker acquisition financing.

• Profit for the period: DKK 1,638 million (down from DKK 2,812 million YoY) due to higher special items and financial expenses.

• Special items (integration costs): DKK 1,453 million in Q1 2026, with DKK 6 billion accumulated.

Outlook and guidance

• 2026 EBIT before special items guidance maintained at DKK 23,000–25,500 million, including Schenker synergies.

• Full financial impact from Schenker synergies of DKK 9 billion expected in 2027, with DKK 4–5 billion in 2026.

• Air & Sea yields expected to remain slightly higher than Q4; Road and Contract Logistics to see flat to mid-single-digit growth.

• Uncertainties remain due to geopolitical risks, especially in the Middle East, macroeconomic factors, and exchange rate fluctuations.

• Special items for 2026 expected at DKK 6,500 million; effective tax rate to remain elevated at ~28% due to integration.