DHL raises operating profit outlook to more than 7.0 billion euros
Key Facts
DHL Group raised its 2026 operating profit outlook to more than 7.0 billion euros, according to a statement issued on October 16, following the release of preliminary third-quarter results. The group had previously targeted earnings before interest and taxes of more than 6.5 billion euros for the same year. The company linked the revised outlook to continued earnings momentum and expectations of a strong year-end peak season. The Wall Street Journal reported that the increase was based on "positive momentum and the outlook for a strong peak season". The group had already raised its earnings guidance in July, making the latest increase a further revision to its annual targets.
According to the group's preliminary results, third-quarter revenue was about 22.6 billion euros, up more than 12% year on year. Operating profit for the same period reached about 1,710 million euros, according to the company statement. That represents growth of about 16% from the year-earlier quarter, outpacing revenue growth. Second-quarter operating profit was 1.9 billion euros, according to the group's half-year results statement. Those earnings rose 30% year on year, compared with the slower growth the group reported for the third quarter.
By business, the express division posted preliminary operating profit of about 1,035 million euros in the third quarter, according to the group's statement. The company said growth in shipment weights supported the division's operating leverage, among the factors contributing to its performance during the period. A shortage of air freight capacity provided a further earnings boost, adding about 100 million euros to the division's profit. Preliminary operating profit at the e-commerce business was about 50 million euros in the same quarter, according to figures released by the group. The post and parcel business in Germany recorded preliminary operating profit of about 150 million euros.
The revised annual outlook included an increase in the profit target for the DHL divisions to more than 6.4 billion euros, according to the group's financial outlook page. Previous guidance for these divisions had pointed to profit of more than 5.9 billion euros for the year. On cash flow, the group raised its 2026 free cash flow guidance to more than 3.2 billion euros. That compares with previous guidance of about 3.0 billion euros, according to the company's financial update. The free cash flow target excludes net mergers and acquisitions, according to the group's definition of its guidance.
The group is targeting gross capital expenditure of about 3.6 billion euros for the year, according to its financial outlook page. This target excludes leases, according to the company, while third-quarter cash flows included net payments related to the International Emergency Economic Powers Act. Those outflows totalled about 255 million euros, according to the group's preliminary results statement. Under its share buyback programme, the company had raised the programme's ceiling to 6.5 billion euros, according to its half-year results statement. The group extended the programme until the end of 2027 when it previously announced the revised ceiling.
The group's financial guidance assumes no further deterioration in the geopolitical situation, according to the conditions set out on its outlook page. Its expectations for the year-end shipping season are based on the prospect of a strong peak, according to the Wall Street Journal's account of the company's comments. The group is scheduled to publish its full third-quarter report on November 5, 2026, according to the date specified in its statement. That follows the preliminary figures released alongside the increase in its annual earnings outlook. After the quarterly report, DHL plans to review its medium-term guidance in March 2027, according to the timetable it announced to investors.