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Gross Profit (GP): Increased in the quarter.
Special Items: Impact of 1.1 billion DKK related to integration.
Cash Flow: Strong cash flow over 4 billion DKK with a cash conversion ratio of 96%.
Net Working Capital: Improved to below 2%.
Debt Reduction: Reduced by 4 billion DKK.
Guidance: Full-year guidance narrowed to 19.5 to 20.5 billion DKK.
Synergies: Expected synergies increased to around 800 million DKK.
Tax Rate: Higher due to integration, expected to return to 24% next year.
Release Date: October 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
DSV AS (DSDVF) is experiencing good momentum with the Schengen integration, receiving positive feedback from customers and maintaining low attrition.
The company has started to reduce its debt, demonstrating strong cash flow generation.
DSV AS (DSDVF) has narrowed its guidance, staying within the ranges set at the beginning of the year.
The company has made significant progress in executing synergies, increasing the completion target from 15% to 30% by the end of the year.
The road division is showing strong performance, with Schenko’s road organization contributing significantly and achieving a solid footprint in the Asia Pacific and Europe.
The company is facing challenges with lower productivity and a decrease in transaction size due to economic difficulties.
There is pressure on the conversion ratio and operating margin, particularly in the air and ocean freight divisions.
The ocean freight market is currently tough, with a decline in gross profit and headwinds from foreign exchange impacts.
The integration process is complex, requiring significant effort to combine 85,000 people across more than 80 countries.
DSV AS (DSDVF) is experiencing a high tax rate due to the Schenko integration, which is higher than previously anticipated.
Q: Can you elaborate on your expectations for Q4, especially regarding the low end of the guidance range of 19.5? A: Jens Lund, Group CEO: The main factor is volume, particularly in air and ocean freight. We anticipated growth in volume, but now we see a decline. FX is also a significant factor. We’re doing well in contract logistics and road, but volume and FX are the main explanations for maintaining the low end of the guidance.
Q: Could you discuss the strong verticals for DSV and how yields are holding up in these areas? A: Jens Lund, Group CEO: Yields are holding up well, especially in strong verticals like technology, pharma, and aerospace defense. We are a big player in Europe, and while automotive and industrial areas face challenges, our broad service offering helps us make good progress.
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Q: Can you provide an update on synergies and procurement opportunities within DSV? A: Jens Lund, Group CEO: We are currently focused on achieving the planned synergies. As we integrate, we may identify additional opportunities, but it’s too early to specify. We are rolling out countries onto CargoWise One while maintaining some volume on Tango, allowing us to exchange data seamlessly.
Q: What are your thoughts on returning capital to shareholders, and when might buybacks resume? A: Michael Ebbe, CFO: We are closely monitoring cash flow and leverage. If strong cash flow continues, we will reassess our position on buybacks within a couple of quarters, considering our gearing ratio and rating agencies’ views.
Q: Can you clarify the expected synergies for 2026 and discuss customer retention during the integration? A: Michael Ebbe, CFO: We expect around 4 billion in synergies for 2026. Jens Lund, Group CEO: Customer retention has been strong, better than expected. We’ve focused on larger customers and are now addressing smaller ones, maintaining a structured approach to integration.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.