DSV Reports Q2 2026 Results: Full Earnings Call Transcript

DSV (OTC: DSDVY ) held its second-quarter earnings conference call on Wednesday.

Below is the complete transcript from the call.

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For comprehensive financial data and transcripts, visit Access the full call at Summary DSV A/S reported increased EBIT and EBITDA, driven by successful integration efforts, particularly in Air & Sea, where a 42% conversion rate was achieved.

The company's cash flow appeared unusually high due to one-off transactions and high freight rates, but management is comfortable with the full-year guidance.

Sea freight faced a 4% drop in gross profit compared to last year, necessitating initiatives to drive volumes in ocean freight.

Road division delivered EBIT of 999 million, impacted by one-off costs of 250 million, with performance issues in large network integrations, particularly in Germany, France, and the Netherlands.

Contract Logistics (CL) highlighted positive developments with a quarterly contribution of 1.5 billion and a strong return on invested capital.

Revenue increased by 23%, with a group conversion ratio close to 31%, and earnings per share rose from the last quarter.

DSV A/S maintained its strategic roadmap with unchanged financial targets for 2030, increasing bottom guidance from 23 billion to 23.5 billion.

The company expects slight decreases in yield for Air & Sea for the rest of the year due to seasonal and geopolitical factors.

Management highlighted the temporary nature of current challenges and reaffirmed confidence in achieving financial targets, with continued focus on resolving integration issues in Road.

Full Transcript Jens Lund During the remaining part of the year as planned.

In the business case the impact is basically that we more or less expect the same as we announced on the capital markets day, so not much new to mention there.

And then there's a graph on the right side trying to also just visually explain how the impact of the synergies is going to pan out.

The financial highlights: the GP up in this market but also of course because of the integration impact, the EBIT also up, and we see that of course we still continue also to invest in integration through the special items cost.

But EBIT definitely up, the EBITDA also up, and I think we've seen now an improvement in IBS for the first time since we acquired Schenker.

So that's also very positive.

The cash flow, Michael will talk a little bit more about it, but I think there's been a little bit of comments on the cash flow already that it seems unusually high.

I think if we do adjust for some of the one-off transactions — and they have gone into the bank account — and also the high freight rates, I think the cash flow is as it should be and what could be expected.

So at least when we look at it from the company side, we are comfortable under full-year guidance.

I mentioned that and you can see the graphs below.

Switching on to Air & Sea.

I think here we also had some debate on the capital markets day and also with investors during the quarter, because we had, as announced, seen the trough in Q1, and now we see a conversion rate of 42%, which was also what was planned for in the business case and definitely also the expectation, I guess, in the market as well.

So really glad to see that we managed to deliver on that.

The freight rates have increased a bit; that's of course very good for the yields, because also the volatility in the market means that we can sell additional services, but of course it has adverse impact on the volumes where certain markets are down-trending because of the crisis.

So we also mentioned here in the call that we'd seen that the volumes are a little bit lower than what we'd anticipated, but I guess that's also something that is usual in an integration — that you focus more on the integration and perhaps a little bit less on the customer side.

So all in all our EBIT increased and I think the conversion rates are up, so very positive about the development on the Air & Sea side.

If we take the GP here, you can also see for air freight that we are almost at 5 billion, so 13% up.

And if we look at the yields, 8,700 per tonne is also in the high end.

But I guess that's also due to many of these issues that you have with the supply chains being disrupted.

Our most important area is of course these days on air freight the technology vertical that continues to drive volumes.

We have sanitized our portfolio in Air & Sea and we have definitely seen that some perishable volumes, but also some of the volumes that we had in relation to Chinese exports, have declined or we've reduced those volumes.

So that of course also has an impact on the yield because yield on those volumes was very low.

So moving on to the sea freight.

Here we see GP 4% down compared to last year.