Deutsche Post (DHL) Investor presentation summary

Strategic direction and transformation

• Strategy 2030 targets sustainable growth by leveraging e-commerce, geographic expansion, life sciences, new energy, and digitalization, with a focus on operational efficiency and capital discipline.

• Transformation from a mail-heavy profile to a global logistics leader has driven higher EBIT and free cash flow, supported by divisional programs and yield management.

• Legal group structure realignment is on track, with a carve-down of Post & Parcel Germany planned for H2 2026 to enhance governance and strategic flexibility.

• Sustainability targets include reducing logistics-related GHG emissions to ≤32.1m metric tons CO₂e by 2026 and net zero by 2050, with strong focus on employee engagement and diversity.

Financial performance and outlook

• Q1 2026 revenue grew 2% organically, with EBIT up 8% year-over-year, driven by Express and Supply Chain divisions.

• Free cash flow reached €1.2bn in Q1 2026, reflecting strong cash generation and disciplined capital allocation.

• FY2026 guidance confirmed: Group EBIT > €6.2bn, FCF (excl. M&A) ~€3bn, and gross capex (excl. leases) €3.0–3.3bn.

• Mid-term targets: Group EBIT > €7bn, FCF > €3bn annually, assuming market growth rates return to trend.

• Dividend per share proposed to increase to €1.90 for FY2025, with ongoing share buyback program up to €6bn by end of 2026.

Divisional performance and initiatives

• Express: EBIT up 20.6% in Q1 2026, with focus on weight per day as a key metric; fleet renewal and yield management drive profitability.

• Global Forwarding: EBIT down 18.5% due to lower gross profit, but volume growth in air and ocean freight; digitalization and sales effectiveness are key priorities.

• Supply Chain: 6% organic revenue growth in Q1 2026, EBIT up 3.1%, driven by new contracts, e-commerce, and digitalization; market leader in contract logistics.

• eCommerce: Organic revenue up 5% in Q1 2026, offset by UK deconsolidation; focus on cross-border growth and operational investments.

• Post & Parcel Germany: Parcel volumes and revenue up, mail volumes down; transformation to a parcel-focused business continues.