DHL's cautious profit outlook sends shares lower

Core Viewpoint - DHL forecasts a higher operating profit for 2026, expecting earnings before interest and taxes to exceed 6.2 billion euros ($7.2 billion), despite a worsening geopolitical environment [1][2][3] Financial Performance - DHL reported a 1.3% decline in its fourth-quarter operating profit to 1.83 billion euros, primarily impacted by a 36% slump in its freight forwarding business [5] - The company anticipates free cash flow, excluding acquisitions, to be around 3 billion euros [2] Geopolitical Impact - The geopolitical landscape remains volatile, with significant disruptions in logistics and shipping due to conflicts, particularly in the Middle East [3][4] - The closure of the Strait of Hormuz has forced major carriers to divert vessels, increasing transit times and costs [4] Market Conditions - The logistics and shipping sector is experiencing declining freight rates in air and ocean freight, alongside weak economic conditions in Europe, especially Germany [6]