Air and sea freight and contract logistics benefited most from the acquisition and market conditions, while the road division continued to face operational difficulties as networks were combined in parts of Europe. DSV kept its integration timetable unchanged and slightly raised the lower end of its full-year profit guidance.
The acquisition of DB Schenker remained the main driver of DSV’s performance. In the second quarter, the Danish group increased revenue to DKr76.7 billion, or about €10.3 billion. Operating profit before special items rose 32.5% to DKr6.26 billion, or about €840 million.
For the first half of the year, operating profit before special items totalled DKr11.11 billion, or about €1.49 billion.
Against that backdrop, DSV raised the lower end of its outlook and now expects full-year operating profit before special items of between DKr23.5 billion and DKr25.5 billion, equivalent to about €3.15 billion to €3.42 billion.
DSV said the quarter benefited from an additional month of contributions from Schenker, early synergies and strong performance in air and sea freight and contract logistics. Market conditions were affected by the conflict in the Middle East, rising energy prices and higher freight rates.
Road integration remains the main challenge
DSV said the integration of Schenker was broadly progressing as planned across the group. Its European road operation remained the main exception, with continued disruption as the two networks were combined.
In Germany, France and the Netherlands, network consolidation, IT migrations and organisational changes reduced productivity and left shipment growth below expectations. DSV also reported operational disruption related to its withdrawal from the IDS network in Germany.
To stabilise the division, DSV introduced an improvement plan and appointed group chief operating officer Brian Ejsing to lead the road division in addition to his existing responsibilities. Management teams were reorganised in several countries in an effort to restore productivity and service levels during the second half of the year.
The underlying pressure was less apparent in the headline profit figure. Operating profit in the road division rose 90.5% to DKr999 million, or about €134 million, in the second quarter.
DSV said most of the increase came from the additional Schenker contribution and gains from property sales. Property disposals alone added about DKr250 million, or €34 million. Underlying operational performance fell short of expectations.
Alongside the integration, DSV is restructuring its European groupage network. It plans to reduce the number of terminals from more than 400 to about 280.
The company is also introducing its STAR transport management system, which now handles roughly 20% of shipments. DSV plans to use artificial intelligence tools to support route planning, quotations and booking processes.
Air and sea benefit from tighter capacity
The air and sea division delivered a steadier performance. Operating profit before special items rose 9.4% to DKr3.78 billion, or about €506 million, in the second quarter.
DSV also reported an improvement in its conversion ratio, which measures the proportion of gross profit converted into operating profit. The ratio increased for the first time since the Schenker integration began, reaching 42.4%.
According to DSV, geopolitical tensions in the Middle East had a direct effect on air freight conditions. Airspace closures and flight diversions reduced capacity and pushed rates higher, supporting the division’s results.
Air freight volumes rose 10% during the quarter, while sea freight volumes increased 6%.
Volumes on the key Asia-Europe trade lane were below expectations, however, because of disruption in the Middle East, weaker demand and the continued diversion of many container vessels around the Cape of Good Hope.
Contract logistics delivers the largest profit increase
The strongest improvement came from contract logistics. Operating profit more than doubled to DKr1.53 billion, or about €205 million, an increase of 111.2% from the previous year.
Growth was led by customers in the technology, cloud infrastructure and data centre sectors. DSV also reported stronger activity in healthcare, consumer goods, aerospace and defence. Automotive-related business remained under pressure.
DSV now operates about 1,200 logistics sites worldwide, with approximately 17 million square metres of warehouse space.
By 2027, the group plans to consolidate a further 1.7 million square metres of space and close less profitable sites. It is also standardising its IT systems and plans to retire roughly a quarter of its existing applications. DSV expects artificial intelligence tools to support further productivity improvements.
Integration timetable unchanged
DSV said more than 60 countries, including key markets such as Germany, were either fully connected to its network or undergoing integration. The group continued to expect the process to be completed by the end of 2026.
Since the integration began, DSV has eliminated more than 8,000 office roles across the group.
Its financial targets remain unchanged. From 2027, DSV aims to generate annual synergies of about DKr9 billion, or €1.2 billion.
For 2026, it expects additional synergies of at least DKr4 billion, or about €536 million. Cumulative synergies are expected to reach roughly DKr5 billion, or €670 million, by the end of the year.
Total transaction and integration costs are still estimated at about DKr11 billion, or €1.47 billion. Since the acquisition was completed, DSV has booked DKr7.4 billion, or about €990 million, in special items.
Customer retention holds up except in road freight
Despite the operational changes, DSV reported stable customer retention among its largest international accounts. Road freight remained the main weak point, with customer satisfaction scores declining because of disruption in Europe.
DSV said it also saw opportunities to provide additional transport and logistics services to existing customers.
Outlook
DSV continued to expect difficult market conditions in the second half of the year. It identified the geopolitical situation in the Middle East, higher energy prices and their potential effects on global trade and international supply chains as the main risks.
Schenker is already making a substantial contribution to group results, while air and sea freight and contract logistics are benefiting from both the acquisition and current market conditions.
Attention is likely to remain focused on DSV’s European road operation, where the group is seeking to restore productivity and service levels while delivering its planned integration synergies.
