- EBIT Growth & EPS Increase: EBIT reached EUR 6.2 billion in 2025, with EPS up 8% year-on-year.
- Free Cash Flow & Shareholder Returns: Generated EUR 3.2 billion free cash flow and EUR 1.5 billion remaining for share buybacks.
- Fit for Growth Cost Savings: Delivered EUR 600 million structural savings in 2025, exceeding targets and targeting EUR 400 million in 2026.
- Divisional Performance Highlights: DHL Express achieved sixth consecutive EBIT growth, while Post & Parcel Germany and e-commerce recorded highest Q4 operating contribution.
- 2026 Guidance: EBIT expected to exceed EUR 6.2 billion, with free cash flow of EUR 3 billion and tax rate around 30%.
Divisional Performance
In terms of divisional performance, DHL Express saw the sixth consecutive quarter of EBIT growth, driven by effective yield, cost, and capacity measures. Post & Parcel Germany and DHL e-commerce achieved a successful peak season, locking in the highest operating contribution of the year in the fourth quarter. DHL Forwarding Freight showed structural improvement potential, while DHL Supply Chain delivered top and bottom line growth.
Cost Savings and Guidance
The company's "Fit for Growth" program delivered significant structural cost savings of EUR 600 million, ahead of initial indications. DHL's guidance for 2026 is for EBIT to exceed EUR 6.2 billion, with a free cash flow of around EUR 3 billion and a tax rate of around 30%. The company expects further profit growth in 2026, driven by leveraging growth opportunities in countries, trade lines, and sectors where its logistics expertise can drive sustainable, accelerated growth.
Valuation Metrics
With a P/E Ratio of 14.68 and an EV/EBITDA of 6.65, the market seems to have priced in a reasonable level of growth. The Dividend Yield stands at 4.03%, indicating an attractive return for income investors. The ROIC of 8.08% suggests that the company is generating returns above its cost of capital, but there is room for improvement.
Operational Highlights
DHL is focusing on smart industrial growth, particularly in B2B verticals, to increase the weight per shipment and drive growth. The company has a well-established road network in the Middle East, which enables it to bring cargo to open airports, mitigating the impact of disruptions in air activity and ocean-going vessels.
Growth Strategy
DHL's growth strategy focuses on organic growth opportunities, with a continued use of M&A as a supplement. The company aims to accelerate growth while maintaining profitability and cash generation, driven by technology and robotics, with opportunities for cost savings and synergies, particularly in collaboration between divisions.