Deutsche Post ETR: DHL, operating as DHL Group, reported stronger second-quarter performance as revenue rose 13% year over year and EBIT increased 30%, driven by higher shipment volumes, yield management and cost discipline. Management said the results supported an increase in its full-year EBIT outlook to more than €6.5 billion.
Chief Executive Officer Tobias Meyer said the company benefited from accelerating business activity across its Express, Global Forwarding and Supply Chain divisions. He attributed the profit growth to improved volume flow-through, the completed Fit for Growth savings program, disciplined capacity management and yield actions, particularly at DHL Express.
“We had indeed a good second quarter as DHL Group,” Meyer said, adding that the company was seeing “really positive momentum” across a broad set of businesses and customer sectors.
Express growth driven by industrial shipments
DHL Express returned to volume growth during the quarter, with weight per day increasing 9%, according to management. Meyer said the improvement was broad-based geographically, although Europe remained weaker because of its macroeconomic environment. The Americas and the Middle East and Africa posted stronger growth, with some year-over-year comparison effects in the Americas.
Management emphasized that the main driver of Express growth was its strategy to win more industrial and business-to-business shipments rather than lower-priced volume. The company is targeting heavier shipments, including components for aviation, power generation, automotive, data centers and renewable-energy installations.
Meyer said heavier shipments can carry lower revenue per kilogram than small parcels or documents, but can still be profitable because their cost structure differs. He also pointed to backhaul lanes, including routes from the Americas, where lower headline revenue can remain accretive because the capacity might otherwise be unused.
Chief Financial Officer Melanie Kreis said DHL Express’ strong financial performance reflected “the core operating performance,” combining profitable growth with a cost-efficient and flexible network. The division reported a 16.8% margin in the quarter, while management said it remains focused primarily on growing absolute EBIT rather than targeting a specific margin level.
The company also cited approximately €150 million of more temporary benefits from tighter air-freight market conditions on Asia-Europe routes. Kreis said this contributed to the 9% weight-per-day growth but was not the dominant driver. Management said July broadly continued second-quarter trends, though August is typically seasonally weak and it was too early to determine how market conditions would develop later in the quarter.
Forwarding and Supply Chain advance
DHL Global Forwarding recorded 7% volume growth in both ocean and air freight, which management described as above-market performance. Ocean freight gross profit held up well, while air-freight yield and gross profit increased strongly.
Kreis said the division received some temporary support from air-freight market disruptions, estimated in the low- to mid-double-digit millions of euros, but management said this was not the principal reason for the improvement. Meyer said the progress reflected more disciplined execution, including attention to customer profitability, service quality and coordination between product, country and regional organizations.
Management cautioned that there was still additional structural work to do at Global Forwarding. Kreis said the division’s conversion rate above 19% in the quarter was not yet at the level the company ultimately wants to achieve.
DHL Supply Chain reported 13% revenue growth on a reported basis and 10% organic growth, with EBIT exceeding €300 million for the first time in a quarter excluding special effects. The division posted a 6.5% margin.
The company highlighted demand tied to data-center construction, especially in the United States. DHL is providing international transport, warehousing, staging and sequencing of components near construction sites, and in some cases installation services. Management said these activities currently come from a relatively small base but are generally supported by multiyear contracts. DHL also expects longer-term opportunities in spare-parts logistics as data centers mature.
Supply Chain won €4 billion in new contract value during the first half, Kreis said.
Cash flow, fuel and capital allocation
Free cash flow reflected higher working-capital needs associated with business growth, freight rates and fuel costs. Cash flow also included a temporary €416 million positive effect from reimbursements under the IEEPA tariff procedure that had been received but not yet returned to customers. Kreis said the reimbursements would ultimately have no impact on free cash flow.
Revenue growth included roughly five percentage points from the pass-through of higher fuel prices, while organic revenue growth excluding fuel accelerated to 8%. Management said fuel surcharges are intended as a cost-recovery mechanism and noted that a two-percentage-point reduction in the fuel surcharge reflected its current cost base.
DHL maintained its full-year free-cash-flow target of €3 billion and gross capital-expenditure guidance. Kreis said the company expects continued investment in growth projects, including facilities, automation and robotics, while remaining disciplined on capital intensity.
The group also extended and enlarged its share-repurchase program. Management said the program now allows for cumulative buybacks of up to €6.5 billion through the end of 2027, leaving up to €1.5 billion available for future repurchases.
Outlook raised
Management reaffirmed the updated outlook it published July 7, forecasting full-year 2026 EBIT above €6.5 billion. The expected increase is to come from DHL’s operating divisions, while the outlook for Post & Parcel Germany and group functions remains unchanged.
Meyer said the company remains alert to volatility in tariffs, fuel prices, freight markets and regional disruptions. Still, he said DHL’s second-quarter results and strategic progress gave management confidence that its growth trajectory is sustainable.
“There’s more work for us to do,” Meyer said, “because we have more growth opportunities on the radar that we want to unlock.”
About Deutsche Post (ETR:DHL)
Deutsche Post AG operates as a mail and logistics company in Germany, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. The company operates through five segments: Express; Global Forwarding, Freight; Supply Chain; eCommerce Solutions; and Post & Parcel Germany. The Express segment offers time-definite courier and express services to business and private customers. The Global Forwarding, Freight segment provides air, ocean, and overland freight forwarding services; and offers multimodal and sector-specific solutions.
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