DSV’s Schenker Bet Pays Off as Quarterly Earnings Jump 32.5% Despite Freight Market Turmoil

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DSV delivered its strongest quarterly operating profit since announcing the Schenker acquisition, as integration gains and improved air freight performance helped the logistics group overcome geopolitical disruption, rising fuel costs and operational problems in parts of its European road network.

The Danish company reported earnings before interest and tax, excluding special items, of DKK 6.26 billion in the second quarter of 2026. That represented a 32.5% increase from DKK 4.73 billion in the same period last year.

Revenue climbed 23.7% to DKK 76.69 billion, while gross profit rose 17.5% to DKK 20.28 billion.

The integration of Schenker remains central to DSV’s earnings growth. More than 60 countries, including Germany and other major markets, have either completed the process or are currently being integrated.

DSV still expects the programme to be completed by the end of 2026 and to generate annual synergies of around DKK 9 billion, with the full financial benefit expected in 2027.

The company expects at least DKK 4 billion in additional synergy contributions during 2026. This would bring the accumulated impact on operating profit to approximately DKK 5 billion by year end.

However, the integration comes at a considerable cost. DSV booked DKK 1.47 billion in special items during the quarter, bringing total acquisition related special items to around DKK 7.4 billion since the transaction was announced. Total transaction and integration costs are expected to reach DKK 11 billion.

The Air & Sea division generated operating profit before special items of DKK 3.78 billion, up 9.4% year on year.

Improved air freight yields, higher gross profit and Schenker’s contribution supported the result. The division’s conversion ratio rose to 42.4%, marking its first improvement since the integration began.

Contract Logistics delivered the fastest earnings growth, with operating profit increasing 111.2% to DKK 1.53 billion. DSV attributed the result primarily to commercial expansion in technology related logistics, particularly cloud infrastructure and data centres.

The division’s performance also reflected the opening of new facilities and efforts to consolidate less profitable locations.

Road reported operating profit of DKK 999 million, up 90.5% from the previous year. The increase included contributions from Schenker and gains from property disposals.

Underlying performance was less encouraging. Several European markets experienced reduced productivity and network difficulties linked to the integration process. These problems affected commercial performance and limited volume growth.

Group Chief Executive Jens H. Lund said the Road division had performed below expectations and that management changes had been introduced to improve execution.

How quickly can a logistics group combine two global networks without disturbing the roads, warehouses and systems that keep freight moving every day? DSV’s quarterly figures show the financial benefits emerging, but they also reveal the operational strain beneath the headline growth.

Adjusted free cash flow dropped sharply to DKK 786 million from DKK 3.98 billion a year earlier.

DSV said higher working capital requirements reflected increased activity, rising freight rates, soaring bunker and jet fuel prices and receivables linked to the sale of former Schenker properties.

The company described the second quarter as volatile, with conflict in the Middle East disrupting supply chains and increasing energy costs.

Despite these risks, DSV narrowed its 2026 operating profit guidance to between DKK 23.5 billion and DKK 25.5 billion. The previous range was DKK 23 billion to DKK 25.5 billion.

Special items are expected to total around DKK 6.5 billion in 2026, while the effective tax rate is forecast to remain near 28% as the Schenker integration continues.

DSV said it would continue monitoring global trade activity and adjust capacity and costs if geopolitical risks begin to weaken demand or further disrupt freight markets.