DSV Q3: Air freight yields up 8% despite 3% volume dip

DSV’s air freight business earned more on less cargo in the third quarter of 2026. Stronger yields more than made up for a drop in tonnage at the world’s largest freight forwarder.

Air freight gross profit rose 4% to DKK 5.01 billion (€672 million) in Q3 2026, up from DKK 4.74 billion (€636 million) in Q3 2025. It also grew from DKK 4.87 billion (€653 million) in Q2 2026. Average gross profit per tonne rose 8% to DKK 8,936 (€1,198) in Q3 2026, up from DKK 8,196 (€1,099) in Q3 2025 and DKK 8,722 (€1,169) in Q2 2026.

Volumes fell 3% to 561,000 tonnes in Q3 2026, down from 579,000 tonnes in Q3 2025. Strong growth in the Technology vertical partly offset the decline. Compared with Q2 2026, volumes edged up slightly from 558,000 tonnes.

DSV gave three reasons for the lower volume in Q3 2026 compared with Q3 2025: its own yield management initiatives, customers shifting from air freight to sea freight, and weaker activity in Europe. Market capacity stayed tight because of the continued impact of the Middle East conflict and strong demand linked to Technology and Cloud. Including acquisitions, air volumes grew 15% in the first nine months of 2026 compared with the same period of 2025. Air gross profit for the nine months reached DKK 14.14 billion (€1.90 billion), up 17.2% from DKK 12.10 billion (€1.62 billion).

At the combined Air & Sea division, EBIT rose 18.9% to DKK 4.28 billion (€573 million) in Q3 2026, up from DKK 3.53 billion (€473 million) in Q3 2025, mainly because of a lower cost base. The conversion ratio improved to 45.8% in Q3 2026, from 42.4% in Q2 2026 and 38.6% in Q3 2025. The operating margin was 9.4% in Q3 2026, compared with 9.1% in both Q2 2026 and Q3 2025. Gross profit was held back by falling volumes in some European markets and by the transfer of certain services to the new Global Products unit. Adjusted for those transfers, gross profit grew 2.8%.

Road under pressure
Road had a difficult quarter as integrating Schenker’s European road network disrupted operations. Compared with Q3 2025, revenue slipped 1% to DKK 23.38 billion (€3.13 billion) and gross profit fell 11.2% to DKK 4.50 billion (€603 million). EBIT dropped 35.1% to DKK 526 million (€71 million), from DKK 798 million (€107 million), and that figure includes DKK 195 million (€26 million) in gains from property disposals. The operating margin fell to 2.3% from 3.4%, and the conversion ratio fell to 11.7% from 15.9%.

DSV said operations had normalised by the end of the quarter. It strengthened divisional and country management and put recovery plans in place. The share of shipments delivered in full and on time (DIFOT) across its European road network rose from 92.4% in August to 93.4% in September and about 94% in early October. The focus is now on restoring productivity and profitability and winning back customer volumes. The remaining Road synergies have been pushed into 2027, but the division’s strategic priorities and financial targets are unchanged.

Contract Logistics strong
Contract Logistics continued to perform strongly. Compared with Q3 2025, revenue grew 7.3% to DKK 14.28 billion (€1.91 billion) and gross profit rose 1% to DKK 5.96 billion (€798 million). EBIT jumped 50.3% to DKK 1.67 billion (€224 million), from DKK 1.10 billion (€147 million), and includes DKK 105 million (€14 million) from property disposals. The operating margin rose to 11.7% from 8.4%. DSV credited synergies, site consolidation and commercial growth, particularly in Technology, including cloud and hyperscaler infrastructure. Pre-tax return on invested capital (ROIC) for the last 12 months improved to 10.9% from 6.9%.

Group performance
Compared with Q3 2025, Group revenue grew 10.5% to DKK 80.70 billion (€10.82 billion) and gross profit rose 2.3% to DKK 20.25 billion (€2.71 billion). EBIT before special items rose 19.5% to DKK 6.61 billion (€886 million), from DKK 5.43 billion (€728 million), including DKK 300 million (€40 million) in property disposal gains. Diluted adjusted earnings per share for the last 12 months rose 11.5% to DKK 56.1 (€7.52). Adjusted free cash flow was DKK 6.44 billion (€863 million), although net working capital stayed high because of higher freight rates and fuel prices.

Schenker integration
DSV said the Schenker integration is broadly on track. Almost all countries have completed or started the process, and the rest will begin in Q4 2026. The integration has so far cut about 9,000 white-collar jobs (net). Synergies grew by about DKK 300 million (€40 million) in the quarter and are now worth about DKK 1.4 billion (€188 million) per quarter compared with before the acquisition. Annual synergies are still expected to reach DKK 9 billion (€1.21 billion). Inflation and the cost of increased Contract Logistics activity will partly offset them, and the remaining Road and Group-function synergies have slipped into 2027. Total transaction and integration costs are still expected to be about DKK 11 billion (€1.47 billion). Special items were DKK 1.3 billion (€174 million) in Q3, bringing the total so far to about DKK 8.7 billion (€1.17 billion).

Global Products takes shape
DSV is also building a new Global Products unit. It brings together services such as Global Customs, Parcels, Fairs & Events, supply chain services and 5PL in one dedicated organisation, with the aim of a stronger offering and higher productivity. About 450 white-collar employees moved into the unit in Q3, bringing it to about 3,000, and more transfers will follow. The effect on EBIT is currently immaterial.

Outlook narrowed
DSV narrowed its full-year 2026 guidance for EBIT before special items to DKK 24.0–25.0 billion (€3.22–3.35 billion), from DKK 23.5–25.5 billion (€3.15–3.42 billion). EBIT before special items was DKK 19.61 billion (€2.63 billion) in 2025. Expected special items for 2026 were cut to DKK 5.5 billion (€737 million) from DKK 6.5 billion (€871 million), because about DKK 1 billion (€134 million) of integration costs will now be booked in 2027.

The company expects about DKK 4 billion (€536 million) in extra synergies compared with 2025. It also expects Q4 property disposal gains broadly in line with recent quarters. DSV warned that the Middle East conflict is adding to an uncertain economic environment, with rising inflation and interest rates.

DSV expects the global air and sea freight markets it serves to grow at mid-single-digit rates in 2026. For Q4 it expects Air & Sea volume growth below the market and slightly lower average gross profit yields than in Q3. It expects the road freight market to show flat to low-single-digit growth for the rest of the year and contract logistics to grow at mid-single-digit rates. The guidance assumes exchange rates stay at current levels, especially the US dollar against the Danish krone.

Share buyback resumes
DSV also launched a share buyback programme of DKK 1.5 billion (€201 million), its first since announcing the Schenker acquisition. It runs from 21 October 2026 to 1 February 2027, with DKK 1 billion (€134 million) to be bought back in Q4 2026 and DKK 500 million (€67 million) in Q1 2027. DSV said the buyback was possible because its gearing ratio has fallen to 2.5 times EBITDA. It aims to bring net interest-bearing debt below 2.0 times EBITDA during 2027.