DSV, 1159 – INTERIM FINANCIAL REPORT H1 2025

Company Announcement No. 1159

Stable organic financial performance and strong start to the integration of Schenker in a challenging market environment

• The integration of Schenker is off to a strong start both commercially and organisationally, with integration of the first countries set to commence in Q3 2025. Reaffirming expected synergies in the level of DKK 9 billion by the end of 2028.
• The DSV Group reported EBIT before special items of DKK 4,725 million in Q2 2025 driven by stable organic performance and a solid contribution of DKK 925 million from the acquisition of Schenker, despite a challenging market environment.
• Adjusted free cash flow of DKK 3,982 million in Q2 2025 with adjusted cash conversion of 143%, contributed to the deleveraging, resulting in a pro forma gearing ratio of 2.7x.
• Full-year 2025 guidance for EBIT before special items remains unchanged in the range of DKK 19.5 – 21.5 billion. Market development remains highly uncertain due to the current situation related to trade tariffs and macroeconomic outlook.

Jens H. Lund, Group CEO: “The second quarter has been extraordinary, with the completion of the acquisition of Schenker. While delivering on our financial expectations with stable organic earnings and a positive contribution from Schenker, we continue our commercial approach by servicing our customers in a highly volatile and unpredictable market. The integration of Schenker is off to a strong start, with the establishment of a new global leadership team. We have also engaged in close dialogue with our customers to ensure a smooth transition. In addition, we have held thorough and constructive negotiations with works councils in Germany, resulting in a frame agreement that will allow us to move forward with the integration and reduce uncertainty for employees and customers. We are confident that this acquisition will deliver significant benefits to our customers and create long-term value for our shareholders.”

Selected key figures and ratios for the period 1 January – 30 June 2025

Performance in Q2 2025
While market conditions in Q2 2025 have been challenging and volatile for global trade due to the uncertainties related to trade tariffs, geopolitical issues and the macroeconomic outlook, DSV reported EBIT before special items of DKK 4,725 million compared to DKK 4,099 million in the same period last year. The growth in EBIT before special items was driven by stable organic performance, especially in Air & Sea, and positive contribution of DKK 925 million from the acquisition of Schenker.

The Air & Sea division reported a higher EBIT before special items of DKK 3,461 million, compared to DKK 2,898 million in the same period last year with positive organic earnings growth due to higher gross profit combined with a solid contribution from Schenker.

Road reported a lower EBIT before special items of DKK 520 million, compared to DKK 549 million in the same period last year. While Schenker contributed positively to earnings, the performance in the division was negatively affected by the overall low activity level and weak market conditions within some markets in Europe and the US.

Contract Logistics reported a higher EBIT before special items of DKK 724 million, compared to DKK 661 million last year, based on a positive contribution from Schenker and a soft organic earnings performance. The division continues to focus on improving margins and return on invested capital through strict cost control and commercial initiatives.

The acquisition of Schenker was completed on 30 April 2025 with two months of financial contribution to DSV in Q2 2025. The integration is off to a strong start with the global leadership team in place after the appointment of more than 500 executives already by May 2025. After thorough and constructive negotiations with German works councils, we have negotiated a frame agreement. This will allow us to begin the integration in Germany in H2 2025 and hereby reduce the uncertainty for employees and customers. The integration of the first countries will commence in Q3 2025, with the Air & Sea activities first in line.

With reference to DSV’s Announcement No. 1149 and Announcement No. 1154, DSV’s Board of Directors intended to nominate former CEO of Schenker, Jochen Thewes, for election to the Board of Directors. However, Jochen Thewes has recently accepted an executive position, starting late this year, at a company investing in global supply chains, and the DSV Board of Directors and Jochen Thewes have agreed not to proceed with his nomination to the Board, as his new role is not considered compatible with a seat on the DSV Board. Board succession planning is ongoing, and the Board of Directors intends to nominate an additional member for shareholder approval.

Outlook for 2025
Based on the performance in H1 2025 and the expectations for H2 2025, the full-year outlook for 2025 is as follows:

• EBIT before special items in the range of DKK 19.5 – 21.5 billion (unchanged).
• A limited part of the total synergies related to the Schenker integration still expected in 2025 in the range of DKK 500-600 million.
• Amortisation of purchase price allocations below DKK 500 million (previously DKK 500 million).
• Special items related to restructuring and integration costs in the range of DKK 2.0-2.5 billion (unchanged).
• The effective tax rate is expected in the range of 26-28% (previously approximately 24%). During the integration of Schenker, we expect an elevated effective tax rate with the long-term effective tax rate still expected at 24%.

The current uncertainties related to trade tariffs, the geopolitical landscape, including the Red Sea situation and macroeconomic factors, which all can impact the global trading environment and activity level, remain uncertain, and unforeseen changes may impact our financial expectations. We continue to monitor activity across our organisation, and we will adjust capacity and our cost base if needed.

Synergies and integration costs related to Schenker
We maintain our expectation of achieving annual synergies at the level of DKK 9 billion by the end of 2028, when the majority of the integration is expected to be completed. We expect that around 50% of the integration will be completed by the end of 2026 and 75% by the end of 2027. Total transaction and integration costs are still expected to be in the level of DKK 11 billion with the majority of the cost expected in 2026 and 2027. These costs will be charged to the statement of profit and loss as special items during the integration period.

Contacts
Investor Relations
Stig Frederiksen, tel. +45 43 20 36 38, stig.frederiksen@dsv.com
Alexander Plenborg, tel. +45 43 20 33 73, alexander.plenborg@dsv.com

Media
Jonatan Rying Larsen, tel. +45 25 41 77 37, press@dsv.com

Yours sincerely,

DSV A/S

Attachment

• 1159 – Announcement (31.07.2025) – INTERIM FINANCIAL REPORT H1 2025