DHL Group has reported a solid financial performance in the first quarter of 2025, with revenue and earnings rising despite a cautious global economic climate and shifting trade policies. Group revenue increased by 2.8% year-on-year to EUR 20,809 million (Q1 2024: EUR 20,251 million), while operating profit (EBIT) rose by 4.5% to EUR 1,370 million (Q1 2024: EUR 1,311 million).
CEO Tobias Meyer commented: 'Changes in trade policy shaped the first quarter. Financially, we had a strong start to the year 2025.' He added: 'The economic environment in the first quarter of 2025 was characterised by US customs and trade policy and general economic caution. Nevertheless, we continued the positive momentum of the previous quarters with slight revenue and earnings growth. This is also the result of our stringent cost and yield management. At the same time, we continue to invest in high-growth business areas while working on structurally improving our efficiency.'
The company's free cash flow (excluding M&A) rose significantly, improving by 17.4% to EUR 732 million (Q1 2024: EUR 623 million), aided by effective cost controls and lower capital expenditure, which stood at EUR 461 million (Q1 2024: EUR 483 million). Net profit after non-controlling interests grew to EUR 786 million, up 6.2%, and basic earnings per share rose from EUR 0.63 to EUR 0.68.
Post & Parcel Germany posted notable growth, with revenue increasing by 3.8% to EUR 4,428 million, and EBIT rising sharply by 44.6% to EUR 281 million. This was driven by the first postage rate increase in three years, additional mail volumes from a recent federal election, and continued growth in the parcel segment. However, DHL noted that 'the challenging regulatory framework for the letter business in Germany remains unchanged.'
DHL eCommerce also achieved a 7.5% rise in revenue to EUR 1,756 million, although EBIT declined by 9.2% to EUR 52 million due to increased depreciation linked to ongoing strategic investments in its network.
To support its long-term goals, the Group launched the "Fit for Growth" programme in March 2025. As part of Strategy 2030, this initiative aims to enhance operational efficiency and reduce the cost base by more than EUR 1 billion, with full impact expected by 2027.
A major focus area under this strategy is the life sciences & healthcare sector. DHL is expanding under the new "DHL Health Logistics" brand, with plans to invest around EUR 2 billion by 2030 to meet rising global demand for logistics services related to pharmaceuticals, medical devices, clinical trials, and advanced therapies.
Despite ongoing global uncertainties, DHL Group has reaffirmed its full-year guidance:
'DHL Group still expects an operating result of at least EUR 6 billion and a free cash flow (excluding M&A) of approximately EUR 3 billion for the fiscal year 2025.'
The company cautioned, however, that this guidance does not account for future tariff or trade policy changes, which could materially impact results either positively or negatively.
More information:
DHL
www.group.dhl.com