DHL Q2 profit beats expectations, helped by cost controls
The company posted quarterly earnings before interest and tax (EBIT) of 1.43 billion euros ($1.65 billion), above analysts' forecast of 1.33 billion euros in a company provided consensus.
Despite the profitability beat, DHL's quarterly revenue fell 3.9% from a year earlier to 19.83 billion euros, below analysts' forecast of 21.01 billion euros.
The German logistics giant confirmed its guidance for operating profit of at least 6 billion euros in 2025 and said it expected annual free cash flow excluding M&A of around 3 billion euros. The forecast does not account for potential impacts from changes in tariff or trade policies, it added.
"We anticipate continued volatility in the global economy in the second half of the year," DHL's Chief Financial Officer Melanie Kreis said in the statement, as trade conflicts and geopolitical tensions intensified in the second quarter.
"Our focus on efficiency improvements and growth markets is paying off in this situation," Kreis said, adding that DHL has adjusted capacity to match demand and achieved structural cost savings.
In March, the German logistics giant announced plans to cut 8,000 jobs in its home market by 2025, its largest workforce reduction in two decades, citing declining letter volumes and burdensome regulation.
Global logistics companies have been facing mounting challenges this year, as rising trade barriers, geopolitical tensions, and increasing supply chain complexity slow global trade volumes. U.S. President Donald Trump's trade tariffs have played a major role in heightening uncertainty, putting pressure on demand and earnings across the sector.
United Parcel Service echoed the trend, posting in July weaker quarterly profit and refraining again from full-year forecast release.
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