DSV A/S

DSV reported group GP up 2.3% year over year, revenue up 10.5% in the first 9 months of 2026, profit for the period up DKK 900 million versus the same quarter last year, and EPS up 11.5% on a 12-month rolling basis. Group conversion improved from 27.9% to 32.6%, adjusted free cash flow was DKK 6.4 billion in Q3, and cash conversion was more than 128%. Management narrowed full-year EBIT guidance to DKK 24 billion-DKK 25 billion. They also said the delayed DKK 1 billion of synergies now shifts into 2027, with full impact from 2028, while 2026 synergy delivery remains around DKK 4 billion and the company still targets DKK 9 billion of longer-term savings.

Jens Lund framed the quarter as a turning point: Road operations are now normalized, the quality issues are resolved, and attention can shift back to commercial activity and productivity. He emphasized that integration is largely on plan, with only a few countries left, and said the business is regaining momentum in gross profit and EBIT. His tone was confident but cautious on timing, repeatedly noting that Road volume recovery and synergy realization will take time.

Michael Ebbe focused on the math behind the quarter: revenue was up 10.5%, profit for the period increased by DKK 900 million year over year, conversion rose to 32.6% from 27.9%, and adjusted free cash flow reached DKK 6.4 billion. He also pointed to gearing at 2.56, down 0.2 during the quarter, and said net interest-bearing debt has been reduced by DKK 12.6 billion since the integration began. He said DSV launched a DKK 1.5 billion share buyback and reiterated the plan to move toward 2x gearing in the first half of 2027, while explaining that DKK 1 billion of synergies has shifted later into 2027.

Analysts pressed management on how much Road’s weakness was due to lost customer volume versus extra quality-related costs, and management estimated the extra cost at DKK 200 million-DKK 300 million, with the lost volume recovery likely taking 6 to 9 months. They also asked whether synergies had slipped further, and management clarified that the DKK 1 billion delay moves the full run-rate impact into 2028, while 2026 guidance still implies about DKK 4 billion of synergy delivery. In Air & Sea, management said about 20%-25% of volume is on Tango, the systems will coexist for a while, and volume trends are near an inflection point rather than still in decline.