DHL (ETR:DHLn) reported second-quarter earnings that beat expectations, with group EBIT up 6% year over year to €1.43 billion, as cost reductions in its Express unit helped offset a 4% drop in revenue.
Group revenue declined to €19.83 billion from €20.64 billion in the prior-year quarter, falling 6% below consensus.
Express revenue dropped 6% to €5.87 billion, but EBIT rose to €730 million, 7% above consensus.
The unit’s EBIT margin improved to 12.4% from 11% a year earlier, aided by an 8% reduction in aviation costs, a 5% drop in pickup costs and a 3% cut in direct full-time employees. Excluding one-time items, Express EBIT rose 11% to €760 million.
Global Forwarding & Freight posted a 5% revenue decline to €4.62 billion. EBIT fell 30% to €196 million, with margins narrowing to 4.2% from 5.7%. Adjusted EBIT came to €215 million, down 22% year over year.
Supply Chain revenue decreased 4% to €4.18 billion. EBIT rose 25% to €348 million, with margins increasing to 8.3% from 6.4%. Adjusted EBIT was €294 million, a 5% year-over-year gain.
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The eCommerce division reported revenue of €1.66 billion, down 1%. EBIT declined 16% to €56 million, with margins at 3.4% versus 4% a year earlier. Adjusted EBIT was €64 million, down 4%.
Post & Parcel Germany reported flat revenue at €4.15 billion and a 28% increase in EBIT to €166 million. Margins improved to 4% from 3.1%.
Operating cash flow rose to €1.71 billion from €1.61 billion in the second quarter of 2024. Free cash flow dropped 78% to €76 million from €345 million.
DHL reaffirmed its full-year EBIT guidance of more than €6 billion. The company updated its language on trade risks, stating the outlook excludes the impact of a “potential further escalation in tariffs,” a revision from previous wording.
