Deutsche Post (DHL) Q1 2026 earnings summary

Executive summary

• Q1 2026 achieved 2% organic revenue growth, with reported revenue at €20.4 billion, down 1.9% year-over-year due to currency effects; EBIT rose 8.3% to €1,483 million, led by Supply Chain and Express divisions.

• Free cash flow (excluding M&A) surged 65% to €1.2 billion, a historically strong Q1 figure reflecting high earnings quality and improved operational efficiency.

• The group demonstrated resilience amid Middle East conflict and global trade disruptions, maintaining supply chain continuity through rapid network adjustments and cost control.

• Strategic initiatives, including Fit for Growth, AI implementation, and continued investment in growth accelerators and efficiency, are progressing and supporting structural improvements.

• Net profit attributable to shareholders increased 3.3% to €812 million; basic EPS grew 6.6% to €0.73.

Financial highlights

• Q1 2026 revenue was €20,420 million, down 1.9% year-over-year due to negative currency effects of €700 million, but organic revenue grew 2%.

• EBIT rose to €1,483 million, up 8.3% year-over-year, with operating margin increasing to 7.3% from 6.6%.

• Free cash flow (excluding M&A) surged 65% to €1,207 million.

• Net cash from operating activities increased to €2,679 million from €2,178 million.

• Capital expenditure rose 12.4% to €518 million, mainly in Supply Chain and Post & Parcel Germany.

Outlook and guidance

• Guidance for 2026 is reaffirmed: group EBIT expected above €6.2 billion, free cash flow (excluding M&A) around €3 billion, and gross capex (excluding leases) €3.0–3.3 billion.

• Management remains conservative due to ongoing volatility, geopolitical uncertainties, and potential adverse effects from higher energy prices.

• Year-on-year comparisons are expected to improve in Q2 due to softer 2025 comparables.

• Tax rate for FY2026 expected at approximately 30%.

• Mid-term targets: Group EBIT above €7 billion, free cash flow (excluding M&A) above €3 billion annually.