DSV reports higher quarterly earnings as Schenker integration weighs on Road division

DSV reported higher revenue and operating earnings in the third quarter of 2026, supported by growth in its Air & Sea and Contract Logistics divisions, although integration-related challenges continued to affect its Road business.

The Danish logistics group recorded revenue of DKK 80.7 billion, compared with DKK 72.0 billion in the corresponding period of 2025. Operating profit (EBIT) before special items reached DKK 6.6 billion, up from DKK 5.4 billion a year earlier, including DKK 300 million in gains from property disposals.

Net profit for the quarter increased to DKK 3.0 billion from DKK 2.2 billion, while gross profit rose to DKK 20.3 billion.

The results reflect the continued integration of Schenker, with cost synergies contributing to earnings growth across parts of the business despite operational difficulties in European road transport.

Air & Sea and Contract Logistics support earnings

DSV’s Air & Sea division generated EBIT before special items of DKK 4.28 billion, representing an 18.9% increase compared with the third quarter of 2025.

The improvement was primarily driven by cost synergies from the Schenker integration, while gross profit remained broadly unchanged year on year. The division’s conversion ratio increased to 45.8%, compared with 38.6% in the previous year.

Contract Logistics recorded EBIT before special items of DKK 1.67 billion, an increase of 50.3%, including DKK 105 million in property disposal gains. Performance benefited from integration synergies, improved productivity, higher capacity utilisation and the consolidation of less profitable facilities.

The Road division, however, reported a 35.1% decline in EBIT before special items to DKK 526 million, including DKK 195 million from property disposals.

DSV attributed the decline to negative volume growth and reduced productivity following operational disruptions associated with the Schenker integration in Europe. According to the company, service levels had normalised towards the end of the quarter, allowing management to shift its attention towards productivity improvements and commercial performance.

Schenker integration synergies partly delayed

DSV maintained its expectation of achieving approximately DKK 9 billion in annual synergies from the Schenker integration, although the company acknowledged that some benefits associated with Road and certain group functions would be delayed until 2027.

The group stated that integration was either completed or underway in almost all countries by the end of the third quarter, with the remaining markets expected to begin the process during the final quarter of 2026.

Total transaction and integration costs are still expected to reach approximately DKK 11 billion. However, the company reduced its forecast for integration-related special items in 2026 to around DKK 5.5 billion, from DKK 6.5 billion previously, with the remaining costs expected to be recognised in 2027.

The anticipated annual synergies are also expected to be partly offset by inflationary pressures and additional costs associated with increased Contract Logistics activity.

DSV narrows annual outlook and launches share buyback

Following its performance during the first nine months of 2026, DSV narrowed its full-year guidance for EBIT before special items to DKK 24–25 billion, compared with its previous range of DKK 23.5–25.5 billion.

The company also reported adjusted free cash flow of DKK 6.44 billion for the third quarter, supported by DKK 3.19 billion in proceeds from property disposals. Its gearing ratio declined to 2.5 times.

Separately, DSV announced a DKK 1.5 billion share buyback programme, scheduled to run from 21 October 2026 until 1 February 2027. It is the company’s first share repurchase programme since the Schenker acquisition.

Despite continued uncertainty surrounding energy prices, inflation, trade tariffs and geopolitical developments, DSV expects the integration process and operational improvements to remain central to its performance over the coming quarters.