DSV (DSV) Q3 2024 earnings summary

Executive summary

• Announced acquisition of Schenker, approved by seller, with EUR 5 billion (DKK 37.3 billion) capital raised; closing expected in Q2 2025 pending regulatory approvals.

• Achieved year-over-year EBIT growth for the first time in several quarters, with Q3 2024 EBIT before special items up 1.5% and gross profit up 4.8%.

• Solid cash flow generation, with Q3 adjusted free cash flow at DKK 2,524 million and net working capital ratio improved to 4.7%.

• Upgraded and narrowed full-year 2024 EBIT guidance to DKK 16–17 billion.

• Customer satisfaction reached all-time highs, and NEOM joint venture received final regulatory approvals.

Financial highlights

• Q3 2024 revenue rose 25.2% year-over-year to DKK 44,095 million; gross profit up 4.8% to DKK 11,080 million; EBIT before special items DKK 4,420 million (+1.5%).

• Air & Ocean gross profit up 5.2% driven by higher volumes; conversion rates remain healthy at 50%.

• Air freight volumes up 8% in Q3 and 7% year-to-date; ocean freight volumes up 8% in Q3 and 7% year-to-date.

• Road segment revenue up 9.8% year-over-year, but EBIT down 1.6% amid cost pressures and tight capacity.

• Solutions segment revenue up 20.3% year-over-year; EBIT up 9.8% driven by capacity expansion and new customer wins.

Outlook and guidance

• Full-year 2024 EBIT before special items expected at DKK 16,000–17,000 million; effective tax rate at 24%.

• Air and sea markets expected to grow 5–7% in 2024; Road segment to see flat or low growth; Solutions to experience higher growth.

• Operational efficiency initiatives to positively impact costs in Q4 2024 and Q1 2025.

• NEOM project ramping up slower than anticipated, with limited activity expected in Q4 and early 2025.