Deutsche Post (DHL) Q4 2025 earnings summary

Executive summary

• EBIT for FY2025 rose to EUR 6.1 billion–6.2 billion, up 3.7%–4% year-over-year, with EPS growing 8% and robust free cash flow supporting increased dividends and share buybacks.

• Transformation and digitalization, including AI and automation, enhanced operational resilience and efficiency.

• Strategy 2030 targets GDP+ growth in key verticals and regions, emphasizing resilience and diversification.

• Maintained high employee engagement (82%) and exceeded decarbonization targets, with greenhouse gas emissions reduced to 32.3 million tonnes CO₂e.

• Dividend proposed to increase to EUR 1.90 per share, with a payout ratio of 60.6%.

Financial highlights

• EBIT increased to EUR 6.1 billion–6.2 billion for 2025, up 3.7%–7.1% year-over-year; EPS grew 8% to EUR 3.09.

• Free cash flow (excluding M&A) reached EUR 3.2 billion, up 8.3% year-over-year and ahead of target.

• Net profit attributable to shareholders increased 5.1% to EUR 3.5 billion.

• EBIT margin improved to 7.4% from 7.0% in the prior year.

• Share buybacks totaled EUR 1.4 billion in 2025, with EUR 1.5 billion remaining for 2026.

Outlook and guidance

• 2026 EBIT guidance set at a minimum of EUR 6.2 billion, with free cash flow targeted around EUR 3 billion and gross CapEx between EUR 3–3.3 billion.

• Midterm outlook targets EBIT above EUR 7 billion and free cash flow above EUR 3 billion annually, assuming market growth rates return to trend.

• Continued focus on efficiency, capacity management, and cost programs amid persistent geopolitical uncertainties.

• Fit for Growth program expected to deliver an additional EUR 400 million in cost savings in 2026.