Deutsche Post (ETR:DHL), which reports as DHL Group, said it delivered on its 2025 guidance despite a macro environment that “turned out to be a bit different” than many initial assumptions, pointing to cost, yield, and capacity management across divisions as key contributors. Group CEO Tobias Meyer told investors that full-year earnings before interest and taxes (EBIT) increased to EUR 6.2 billion, while earnings per share rose 8% year over year.
Meyer also highlighted cash generation and shareholder returns. Free cash flow (net of M&A) increased to EUR 3.2 billion, and the company reiterated its commitment to dividends and share repurchases, noting EUR 1.5 billion remaining under its buyback authorization.
2025 results and key metrics
Beyond financial results, management said the group met or exceeded several non-financial targets, including employee engagement of 82, a decarbonization factor of 2.1 million tons, and a cybersecurity rating of 780, which Meyer described as at the top of its peer group.
Chief Financial Officer Melanie Kreis said the company’s largest EBIT-contributing division, DHL Express, recorded its sixth consecutive quarter of EBIT growth on an adjusted basis, attributing the trend to yield, cost, and capacity measures. Kreis added that Post & Parcel Germany and DHL eCommerce delivered another “successful peak season,” with their highest operating contribution of the year occurring in the fourth quarter, supported by seasonal volumes, cost discipline, and targeted peak-season surcharge mechanisms.
For 2025 overall, Kreis said the group posted a 7% operating EBIT increase and noted a series of non-recurring items, mainly “cost of change” tied to the Fit for Growth program. On a reported basis, she said EBIT increased 3.7%. Kreis also said group return on invested capital (ROIC) rose 20 basis points year over year.
Fit for Growth and cost actions
Management emphasized its Fit for Growth program as a central driver of performance and resilience. Meyer said the company executed structural resets in Europe and the U.S. in aviation and air freight through network redesigns and measures such as “air to truck,” as well as fleet and aviation optimization. He also referenced adjustments in Post & Parcel Germany during the first half of 2025 that were enabled by the flexibility of Germany’s new postal law.
In the question-and-answer session, executives said Fit for Growth progressed faster than initially planned, particularly in Europe for Express and also for Post & Parcel Germany, with swift actions in the U.S. as well. Addressing investor questions, management clarified that the company achieved EUR 600 million of gross savings in 2025 (excluding cost of change), and indicated that—based on its previously communicated EUR 1 billion ambition—roughly EUR 400 million would remain to be realized in 2026 in a “very simple calculation.” Kreis added that if additional savings beyond that level are achievable, the company would not stop measures simply because the target had been reached.
Asked about potential “cost of change” items in 2026, Kreis said the company would continue pursuing improvements even if they carry associated costs, but she expected those costs to return to a magnitude that would not require separate flagging as in 2025.
2026 guidance and strategic priorities
For 2026, DHL Group guided to group EBIT in excess of EUR 6.2 billion and free cash flow “in excess and around the EUR 3 billion mark.” The company expects gross capital expenditures of EUR 3.0 billion to EUR 3.3 billion and a tax rate around 30%, while keeping its midterm outlook unchanged.
Management said 2026 is expected to remain volatile, but argued the company has built a stronger base after 2025’s adjustments. Kreis said the company expects further profit growth in 2026, requiring close steering of costs, yield, and CapEx, while balancing shareholder returns and targeted investments. Meyer said the group intends to “get back on the track of growth” by combining bottom-line discipline with growth initiatives.
On Express specifically, Meyer said the company is seeking to restore the integrator industry’s long-term trend of gaining share versus general air freight by focusing on “smart industrial growth,” particularly in B2B verticals, with the goal of gradually increasing weight per shipment over time. He said some initiatives should take effect in 2026, while others—such as cold chain transport capabilities in Express—will take longer to influence results.
AI, legal structure changes, and market disruptions
Executives spent time outlining where they see AI influencing operations, including customer service, customs, recruiting, vehicle maintenance, and a “Delivery Buddy” initiative that would bring AI guidance to courier hand scanners. Meyer said the aim is not just efficiency but also improved compliance and documentation in customs, better hiring fit, and process re-engineering at “industrial scale.” When asked what gives the company a “right to win” in AI, Meyer pointed to scale, a structured IT landscape across divisions, and a data-driven operating foundation, while noting that execution will determine outcomes.
On corporate structure, Kreis said the planned alignment of legal structures remains on schedule. Subject to a shareholder vote at the annual general meeting on May 5, the listed group entity would be renamed DHL AG, with Post & Parcel Germany operations becoming a subsidiary named Deutsche Post AG, similar to other divisions’ structure.
Management also addressed ongoing disruption risks, including geopolitical tensions in the Middle East. Meyer said the situation has constrained air activity in some countries and affected ocean shipping through the Strait of Hormuz, creating operational complexity that could sometimes lead to urgent shipping needs. He said DHL has a well-established road network in the Middle East to help move cargo to open airports and maintain connectivity, and noted that fuel surcharge mechanisms are in place, though timing effects can occur when fuel prices rise quickly. On pricing, management said it can implement emergency surcharges on a country-specific basis to pass through higher costs, including insurance-related costs.
More broadly, Meyer argued that while conflicts are “tragic,” disruptions often shift freight from ocean or land transport into air and express services, and he said DHL’s footprint can position it as a “go-to” provider in such moments. He added the company will remain cautious about operational integration across divisions if it risks harming the value proposition of Express versus standard parcel services, while supporting collaboration—particularly on technology—and cross-divisional initiatives where they enhance service and efficiency.
About Deutsche Post (ETR:DHL)
Deutsche Post AG operates as a mail and logistics company in Germany, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. The company operates through five segments: Express; Global Forwarding, Freight; Supply Chain; eCommerce Solutions; and Post & Parcel Germany. The Express segment offers time-definite courier and express services to business and private customers. The Global Forwarding, Freight segment provides air, ocean, and overland freight forwarding services; and offers multimodal and sector-specific solutions.
