Freight group DSV's shares slide 15% as cash flow falls, earnings disappoint (updated)

Dsv A/S

22/07/2026 07:19

Adds CEO and CFO quotes in paragraphs 5 and 9-10
Cash flow DKK 786 million vs year-ago DKK 3.98 billion
Struggles to fully integrate Schenker after merger
Profit rises more than expected while outlook slightly stronger
Analysts say profit, outlook still fail to impress
By Louise Rasmussen

    COPENHAGEN, July 22 (Reuters) - Danish freight company DSV DSV.CO posted a sharp fall in second-quarter cash flow on Wednesday, dragging its shares down 15% to an eight-month low as disappointment over profit growth and earnings outlook rattled investors. 
Last year, DSV bought Germany's Schenker to form the world's biggest freight forwarder. But while cost cuts are on track, DSV said it struggled to unify sprawling transport networks and has yet to complete deals to divest excess property.
DSV's adjusted free cash flow fell to 786 million Danish crowns ($120 million) from 3.98 billion crowns a year ago due to a temporary rise in working capital from higher activity, rising freight rates and soaring fuel prices.
In addition, a disposal of Schenker properties, for which payment was still pending at the end of the quarter, increased receivables by some 1.8 billion crowns, it said.
"This is temporary and we should see the cash flow coming in the third quarter," Chief Financial Officer Michael Ebbe told a conference call.

    Operating profit before special items rose to 6.26 billion crowns from 4.73 billion a year ago, below an average of 6.05 billion in an analyst poll provided by the company.
     

    OUTLOOK, CHALLENGES FROM SCHENKER INTEGRATION
  

    The company now expects EBIT excluding one-offs of 23.5 billion to 25.5 billion crowns for 2026, an upward adjustment to the bottom of the range from 23 billion previously, while analysts on average forecast 24.67 billion.
Jyske Bank analyst Haider Anjum said in a note the share drop, which moderated to 13% by late afternoon, was likely "a strong overreaction", although investors may have expected a bigger hike in earnings guidance.

    CEO Jens Lund said struggles to integrate road transport networks in countries such as Germany, France and the Netherlands had led to reduced productivity.
  

     "When you don't deliver in full on time, you have extra costs, because you have to get express trucks or do express deliveries or do some things that compensate," Lund said, expecting
     progress by September and full integration by year-end.
  
     
($1 = 6.5504 Danish crowns) 

(Reporting by Louise Rasmussen, editing by Terje Solsvik, Alexander Smith and Andrei Khalip)
((Louisebreusch.rasmussen@tr.com; +45 21 27 97 79;))