DSV (DSV) Q2 2026 earnings summary

Executive summary

• EBIT before special items reached DKK 6.3 billion in Q2 2026, up 32.5% year-over-year, marking the strongest quarterly result since COVID and the start of the Schenker integration.

• Schenker integration is progressing as planned, with over 60 countries integrated or in process, targeting completion by end of 2026 and DKK 9 billion in annual synergies by 2027.

• Management changes and recovery plans have been initiated in the Road division to address integration challenges and improve delivery quality.

• Over 8,000 white-collar positions have been reduced since the integration began.

• New "Leverage to Lead" strategy and 2030 financial ambitions focus on AI, technology, and network optimization.

Financial highlights

• Q2 2026 revenue rose 23.4% year-over-year to DKK 76,688 million; gross profit up 17.5% to DKK 20,277 million.

• EBIT before special items increased 32.5% to DKK 6,255 million; diluted adjusted EPS up 24% sequentially to DKK 14.5.

• Adjusted free cash flow for H1 2026 was DKK 786 million, temporarily impacted by higher net working capital from increased activity and freight rates.

• Net interest-bearing debt reduced by nearly DKK 7 billion since the Schenker acquisition, now at DKK 87,331 million; gearing ratio at 2.7x.

• Q2 2026 gross margin at 26.4%, operating margin at 8.2%, and conversion ratio at 30.8%.

Outlook and guidance

• Full-year 2026 EBIT before special items guidance narrowed to DKK 23.5–25.5 billion, reflecting strong H1 performance and integration progress.

• At least DKK 4 billion incremental synergies from Schenker expected in 2026; annual synergies of DKK 9 billion targeted by 2027.

• Effective tax rate for 2026 projected at 28%, temporarily elevated due to integration.

• Market assumptions include low to mid-single-digit growth in Air & Sea, flat to low-single-digit growth in Road, and mid-single-digit growth in Contract Logistics.

• Yield in Air & Sea anticipated to slightly decrease in H2, with volume growth expected to recover.