DHL Group: earnings growth in the second quarter of 2025

08/05/2025, 07:00 AM CEST

Operating profit was up 5.7 percent to EUR 1.4 billion, supported by cost improvements and yield management. The EBIT margin improved by 0.7 percentage points to 7.2 percent.

The Group's headquarters in Bonn, Germany.

Group revenue decreased by 3.9 percent to EUR 19.8 billion in Q2 2025
(Q2 2024: EUR 20.6 billion) due to exchange rate effects and slower momentum in trade volumes
EBIT increased by 5.7 percent to EUR 1.4 billion; EBIT margin at 7.2 percent
(Q2 2024: 6.5 percent)
Strong free cash flow (excluding M&A) of EUR 329 million (Q2 2024: EUR 360 million)
Guidance unchanged: EBIT of at least EUR 6 billion and free cash flow (excluding M&A) of approximately EUR 3 billion expected in 2025
CFO Melanie Kreis: "In the second quarter, trade conflicts and geopolitical tensions affected global economic dynamics. We anticipate continued volatility in the global economy in the second half of the year. Our focus on efficiency improvements and growth markets is paying off in this situation."

Bonn - The logistics company DHL Group closed the second quarter of 2025 with earnings growth, despite a volatile global environment. Revenue decreased by 3.9 percent compared to the previous year to EUR 19.8 billion, primarily due to the impact of exchange rate effects and slower momentum in trade volumes, while profitability improved. Operating profit was up 5.7 percent to EUR 1.4 billion, supported by cost improvements and yield management. The EBIT margin improved by 0.7 percentage points to 7.2 percent.

Half-Year Report (HTML-version)

"Thanks to our good cash flow and strong balance sheet, we can afford to invest in the future."

CFO Melanie Kreis discusses the Group's increased profitability. She also explains how DHL Group is progressing with its investments in new growth markets and regions as part of "Strategy 2030" and why the Group is well-positioned for the second half of the year.

Interview with CFO Melanie Kreis

Investors' conference call

CFO Melanie Kreis explained the Group results for the second quarter 2025.

To the event

In the second quarter, trade conflicts and geopolitical tensions increased, impacting global economic dynamics. We anticipate continued volatility in the global economy in the second half of the year. Our focus on efficiency improvements and growth markets is paying off in this situation. We have adjusted our capacities to the volume development and achieved structural cost improvements. This combination has significantly contributed to earnings growth. We are working to further improve our efficiency and leverage growth opportunities in the current environment. Our diversified portfolio provides stability.

Melanie Kreis, CFO DHL Group

Continuous investments in growth markets

In the second quarter of 2025, DHL Group's gross capital expenditure (capex owned assets) amounted to EUR 608 million, 4 percent below previous year's levels. DHL Group continues to maintain tight capex control and is adjusting investments to the current economic environment. At the same time, the Group is investing organically and inorganically in growth markets and productivity improvements as part of its Strategy 2030. In the second quarter, DHL Group announced several investment programs, acquisitions, and partnerships, including investments in the Middle East of more than EUR 500 million between 2024 and 2030, with a focus on the rapidly growing Gulf markets of Saudi Arabia and the United Arab Emirates.

The Group is also expanding its capabilities in pharma logistics: In the second quarter, DHL Group completed the acquisition of CRYOPDP, a provider of courier services for clinical trials, biopharma, and cell and gene therapies. DHL Supply Chain will take advantage of the expertise of the newly acquired specialist provider and the global air freight services of DHL Express and DHL Global Forwarding to expand its pharma-specialized network and maximize its potential. Additionally, the expansion of the DHL Health Logistics Campus in Florstadt (near Frankfurt) will create the central DHL pharma hub in Europe.

With the acquisition of IDS Fulfillment in the USA and the strategic partnership with Evri in the UK, DHL Group is further expanding its capabilities in the structurally growing e-commerce business.

Improved cost structure

As part of the Group-wide "Fit for Growth" program, DHL Group is working to improve its cost structure in combination with regular capacity adjustments. For example, DHL Express further reduced costs in its air freight network and costs for pick-up and delivery in the second quarter.

Free cash flow (excluding M&A) decreased by 8.5 percent compared to the previous year's period but remained at a high level of EUR 329 million. Looking at the first half of the year, free cash flow (excluding M&A) grew by 7.9 percent year-on-year to EUR 1.1 billion. Overall, DHL Group generated consolidated net profit after non-controlling interests of EUR 815 million in the second quarter of 2025 - an increase of 9.6 percent compared to the previous year's period. Basic earnings per share amounted to EUR 0.72 compared to EUR 0.64 per share in the second quarter of 2024.

Guidance unchanged

The Group continues to anticipate a subdued macroeconomic environment. The cost improvements are expected to positively contribute to earnings development. Based on these assumptions, the guidance for the 2025 financial year remains unchanged. The Group continues to expect an operating result of at least EUR 6 billion and a free cash flow (excluding M&A) of around EUR 3 billion. This outlook does not account for further potential escalation in tariff or trade policies as such developments could have substantial effects for DHL Group.

Express: earnings growth despite volume decline

DHL Express experienced a decline in time-definite international shipments (TDI) as expected. Through effective capacity management, structural cost improvements, and price discipline, the division managed to increase operating profit despite the revenue decline and further improved its EBIT margin.

Express	Q2 2024	Q2 2025	YOY
Revenue ^{(in EUR million)}	6,220	5,868	−5.7 ⁽¹⁾
EBIT^{(in EUR million)}	683	730	6.9 ⁽¹⁾
EBIT margin ^{(in percent)}	11.0	12.4	1.5 ⁽²⁾
^{(1) in percent}	^{(2) in percentage points}

Global Forwarding, Freight: volatile volume development

DHL Global Forwarding, Freight faced volatile volume and freight rate developments due to trade conflicts. While air freight volumes slightly increased compared to the previous year's quarter, sea freight volumes declined. Revenue and earnings were also affected by the economic weakness in the German and European road freight business.

Global Forwarding, Freight	Q2 2024	Q2 2025	YOY
Revenue^{(in EUR million)}	4,880	4,620	−5.3 ⁽¹⁾
EBIT ^{(in EUR million)}	280	196	-29.7 ⁽¹⁾
EBIT margin^{(in percent)}	5.7	4.3	−1.5 ⁽²⁾
^{(1) in percent}	^{(2) in percentage points}

Supply Chain: sustained earnings growth

DHL Supply Chain further improved its operating result in the second quarter. The reported figures include a positive net one-off effect of EUR 54 million mainly from the first-time full consolidation of the ASMO joint venture in Saudi Arabia. Even without one-off effects, the division managed to increase operating profit and EBIT margin. Profitable growth is supported by ongoing digitalization and automation.

Supply Chain	Q2 2024	Q2 2025	YOY
Revenue^{(in EUR million)}	4,352	4,183	−3.9 ⁽¹⁾
EBIT^{(in EUR million)}	279	348	24.4 ⁽¹⁾
EBIT margin^{(in percent)}	6.4	8.3	1.9 ⁽²⁾
^{(1) in percent}	^{(2) in percentage points}

eCommerce: structural growth trend intact, slower volume growth due to economic conditions

DHL eCommerce experienced slower volume growth due to economic conditions in some markets. Operating profit declined partly because of continuous investments in network expansion. The structural e-commerce trend remains intact.

eCommerce	Q2 2024	Q2 2025	YOY
Revenue ^{(in EUR million)}	1,667	1,656	−0.7 ⁽¹⁾
EBIT ^{(in EUR million) (1)}	67	56	−16.1 ⁽¹⁾
EBIT margin ^{(in percent)}	4.0	3.4	−0.6 ⁽²⁾
^{(1) in percent}	^{(2) in percentage points}

Post & Parcel Germany: yield management and cost improvements stabilize earnings

Despite slower growth dynamics in the parcel business due to economic conditions, a continued decline in mail volumes, and burdens from wage agreements, Post & Parcel Germany managed to further stabilize its operating result. The positive earnings development is attributable to the parcel business, yield management, and structural cost improvements.

Post & Parcel Germany	Q2 2024	Q2 2025	YOY
Revenue^{(in EUR million)}	4,160	4,150	−0.2 ⁽¹⁾
EBIT ^{(in EUR million)}	130	166	28.0 ⁽¹⁾
EBIT margin ^{(in percent)}	3.1	4.0	0.9 ⁽²⁾
^{(1) in percent}	^{(2) in percentage points}