DSV, 1164 - 2025 ANNUAL REPORT

Core Viewpoint - The company reported solid financial performance for Q4 and full-year 2025, despite significant market challenges, and anticipates completing the Schenker integration by the end of 2026 [2][3]. Financial Performance - Q4 2025 revenue reached DKK 71,685 million, a 64.5% increase from DKK 43,514 million in Q4 2024 [2]. - Full-year 2025 revenue was DKK 247,331 million, up from DKK 167,106 million in 2024, marking a 47.9% growth [2]. - Gross profit for Q4 2025 was DKK 19,119 million, compared to DKK 10,788 million in Q4 2024, reflecting a 77.5% increase [2]. - Operating profit (EBIT) before special items for Q4 2025 was DKK 5,592 million, a 42.1% increase from DKK 3,936 million in Q4 2024 [2]. - Adjusted earnings for the period were DKK 2,999 million in Q4 2025, slightly up from DKK 2,849 million in Q4 2024 [2]. - Adjusted free cash flow for 2025 was DKK 16,335 million, significantly higher than DKK 5,550 million in 2024 [2]. Integration of Schenker - The integration of Schenker is progressing faster than expected, with 30% completion in 2025, and is now anticipated to finalize by the end of 2026 [8]. - The company expects annual synergies from the integration to reach DKK 9 billion, with a financial impact of at least DKK 4,000 million expected in 2026 [8]. - Total transaction and integration costs for 2025 were DKK 4,527 million, higher than anticipated due to rapid integration progress [9]. Divisional Performance - The Air & Sea division reported EBIT before special items of DKK 3,071 million in Q4 2025, a 4.1% growth in constant currencies compared to the previous year [4]. - The Road division achieved EBIT before special items of DKK 1,009 million in Q4 2025, significantly up from DKK 311 million in the same period last year [5]. - Contract Logistics reported EBIT before special items of DKK 1,514 million in Q4 2025, compared to DKK 531 million in Q4 2024, driven by Schenker's contribution and improved warehouse utilization [6]. Future Outlook - The company anticipates EBIT before special items for 2026 to be in the range of DKK 23,000 - 25,500 million, including synergies from Schenker [11]. - The effective tax rate is expected to remain around 28.0% in 2026 due to ongoing integration costs [11].