DHL Group has reported its revenues fell 3.9% to €19.8bn (US$23bn) in the second quarter of 2025 compared to the same period the previous year.

However, operating profit grew 5.7% to €1.4bn (US$1.6bn) thanks to cost improvements and yield management, and gross capital expenditure fell by 4% to €608m (US$710m) compared to Q2 2024, despite a volatile global environment, the logistics giant said.

“In the second quarter, trade conflicts and geopolitical tensions increased, impacting global economic dynamics,” commented Melanie Kreis, CFO of DHL Group. “We anticipate continued volatility in the global economy in the second half of the year. Our focus on efficiency improvements and growth markets is paying off in this situation.

“We have adjusted our capacities to the volume development and achieved structural cost improvements. This combination has significantly contributed to earnings growth. We are working to further improve our efficiency and leverage growth opportunities in the current environment. Our diversified portfolio provides stability.”

Continuous investments in growth markets

As part of its Strategy 2030, DHL Group announced several investment programs, acquisitions and partnerships in Q2 2025, including investments in the Middle East of more than €500m (US$584m) between 2024 and 2030, with a focus on the rapidly growing Gulf markets of Saudi Arabia and the United Arab Emirates.

The group is also expanding its capabilities in pharma logistics. In the second quarter, DHL Group completed the acquisition of Cryopdp, a provider of courier services for clinical trials, biopharma and cell and gene therapies, and also expanded its DHL Health Logistics Campus in Florstadt to create the central DHL pharma hub in Europe.

The company also announced the acquisition of IDS Fulfillment in the USA and a strategic partnership with Evri in the UK as part of the expansion of its growing e-commerce business.

Guidance unchanged

The company said it continues to “anticipate a subdued macroeconomic environment” but that cost improvements it is making are expected to positively contribute to earnings development. Based on these assumptions, the guidance for the 2025 financial year remains unchanged, with an expected operating result of at least €6bn (US$6.9bn) and a free cash flow (excluding mergers and acquisitions) of around €3bn (US3.5bn) billion. This outlook does not account for further potential escalation in tariff or trade policies as such developments could have substantial effects for DHL Group, the company stated.

Author Credits- HAZEL KING
Parcel and postal technology INTERNATIONAL