DHL air freight volumes dip as group exceeds 2025 profit target

DHL Group reported higher operating profit in 2025 despite lower revenue, supported by capacity management measures and cost improvements. The logistics company said performance in its air freight and express operations remained stable even as global freight markets faced volatility.

Within the Global Forwarding, Freight division, air freight volumes declined by 1 per cent year on year to around 1.8 million metric tonnes in 2025. Air freight revenue fell by 4.6 per cent while gross profit declined by 0.9 per cent compared with the previous year. In the fourth quarter, air freight revenue dropped by 10.3 per cent and gross profit declined by 6.6 per cent.

The division reported revenue of EUR 18.6 billion in 2025, down 5.1 per cent from EUR 19.6 billion in the previous year. Operating profit fell 29.6 per cent to EUR 756 million, with the EBIT margin declining to 4.1 per cent. The result included a negative non-recurring impact of EUR 84 million related to restructuring.

DHL said freight forwarding markets were affected by geopolitical conflicts and uncertainty around tariffs during the year. Capacity constraints that had affected markets earlier began to ease in 2025, contributing to lower air and ocean freight rates.

Ocean freight volumes handled by the division declined by 1.2 per cent to approximately 3.3 million twenty-foot equivalent units. The decline reflected lower goods flows between Asia and North America and a shift away from high-volume, low-yield shipments. Ocean freight revenue fell by 8.6 per cent, and gross profit declined by 5.4 per cent due to lower freight rates.

Revenue in the freight business unit declined by 2.9 per cent to EUR 5.04 billion. Shipment volumes fell by 1.4 per cent, partly linked to reduced activity in the German automotive sector. Gross profit declined 13.5 per cent to EUR 1.09 billion as higher operating costs affected margins.

The Express division also saw revenue decline but reported higher earnings. Revenue fell 2.8 per cent to EUR 24.4 billion in 2025, while operating profit increased 2.5 per cent to EUR 3.16 billion. The EBIT margin improved to 12.9 per cent.

Shipment volumes to the United States declined due to higher tariffs and the removal of the dae minimis rule. DHL said the division maintained earnings growth through cost discipline, productivity improvements and flexible management of its air network.

At the group level, DHL reported revenue of EUR 82.9 billion for 2025, a decline of 1.6 per cent compared with EUR 84.2 billion in 2024. Operating profit increased to EUR 6.1 billion from EUR 5.9 billion, exceeding the company’s guidance of at least EUR 6 billion.

Profitability improved as the EBIT margin rose to 7.4 per cent from 7.0 per cent in the previous year.

“Active capacity management and structural cost improvements enabled us to exceed our financial targets. At the same time, we continue to invest in global growth markets and sectors,” said Tobias Meyer, CEO of DHL Group. “Economic volatility will persist in 2026. We are very well-positioned both globally and locally. This enables us to work closely with our customers and further strengthen their supply chains in a challenging environment.”

Free cash flow excluding mergers and acquisitions increased to EUR 3.2 billion from EUR 3.0 billion in 2024, exceeding the company’s guidance of around EUR 3 billion. Capital expenditure for owned assets totalled EUR 3.0 billion during the year.

Net profit attributable to shareholders of Deutsche Post AG rose 5.1 per cent to EUR 3.5 billion. Basic earnings per share increased to EUR 3.09 from EUR 2.86 in 2024.

The Board of Management and Supervisory Board plan to propose a dividend of EUR 1.90 per share at the company’s Annual General Meeting, up from EUR 1.85 per share a year earlier. If approved, the total payout would amount to EUR 2.1 billion.

“We have significantly improved our earnings per share compared to last year, underscoring the effectiveness of our efficiency measures. Free cash flow without M&A is strong and structurally much higher than in the past. This provides a financially sustainable foundation for the proposed dividend increase. The combination of dividends and share buybacks makes us an attractive investment for shareholders,” said Melanie Kreis, CFO of DHL Group.

The company continued implementation of its Strategy 2030 programme during 2025. The strategy focuses on four priorities: Employer of Choice, Provider of Choice, Investment of Choice and Green Logistics of Choice.

Employee satisfaction reached 82 per cent while the occupational accident rate declined to 13.3 per one million working hours from 14.5 in 2024. DHL also expanded capabilities in clinical trial and speciality pharmaceutical logistics through acquisitions, including CRYOPDP and SDS Rx, and increased capacity for handling hazardous goods and batteries.

The company continued to invest in markets including India, China and Colombia. Return on invested capital improved to 13.9 per cent.

DHL also reported progress in sustainability measures. Greenhouse gas emissions declined to 32.3 million tonnes of CO₂ equivalent. The share of sustainable aviation fuel used in the company’s aircraft fleet increased to 10 per cent while the electric delivery vehicle fleet expanded to about 45,400 vehicles.

For 2026, DHL Group expects continued geopolitical uncertainty and trade volatility. The company forecasts operating profit above EUR 6.2 billion and free cash flow excluding mergers and acquisitions of around EUR 3 billion.