DSV (DSV) Q4 2025 earnings summary

Executive summary

• Schenker integration is progressing rapidly, on track for completion by end of 2026 with full synergy impact expected in 2027; over 40 countries integrated or in process and more than 5,000 white-collar positions reduced since integration began.

• Employee and customer feedback on integration has been constructive, with low attrition rates and reduced uncertainty.

• Delivered solid financial performance in 2025 despite tough market conditions, FX headwinds, and geopolitical issues, with strong contributions from Schenker and growth in Technology.

• Strong progress in roadside and contract logistics, with significant business growth and improved cash flow.

Financial highlights

• FY 2025 revenue rose 51.3% to DKK 247,331 million, with EBIT before special items up 24.8% to DKK 19,611 million and gross profit up 59.0% to DKK 66,859 million.

• Integration costs related to Schenker totaled DKK 4.5 billion in 2025, with total expected costs of DKK 11 billion; costs in Q4 were higher due to fast integration pace.

• Free cash flow for FY 2025 was DKK -56,242 million, but adjusted free cash flow reached DKK 16,335 million after reversing acquisition and special items.

• Net interest-bearing debt at year-end was DKK 86,624 million, with a gearing ratio of 2.8x; strong cash flow enabled repayment of DKK 7 billion in debt for the year.

• Tax rate spiked to 40% this quarter due to integration effects, but effective tax rate expected at 28.0% in 2026.

Outlook and guidance

• FY 2026 EBIT before special items is guided at DKK 23–25.5 billion, reflecting full-year Schenker contribution and at least DKK 4 billion in incremental synergies.

• Air and sea freight markets expected to grow 2–3% in 2026; road market to see flat to low-single digit growth; contract logistics to grow low- to mid-single digits.

• Synergy target of DKK 9 billion remains, with high confidence in delivery by 2027.

• Guidance assumes current Red Sea conditions persist; yield and FX, especially USD, are key uncertainties, with USD headwind estimated at DKK 500 million.

• Effective tax rate temporarily elevated due to integration progress.