DHL Q2 Profit Rises, Shares Lead DAX

DHL Group reported a second-quarter 2025 operating profit of €1.43 billion ($1.65 billion), surpassing analyst expectations despite a 3.9% year-over-year revenue decline to €19.83 billion, largely due to currency effects and weak trade volumes. Earnings growth was driven by cost controls and efficiency measures that offset macroeconomic headwinds, including trade conflicts and geopolitical tensions. The company reaffirmed its 2025 EBIT target of at least €6 billion and expects annual free cash flow of about €3 billion, excluding mergers and acquisitions, though this outlook does not factor in potential tariff impacts. DHL shares rose roughly 4% following the results, making it the top performer on Germany's DAX index as investors had feared a profit warning. Management remains cautious, anticipating ongoing economic volatility in the second half, and credits cost discipline and growth market strategies for the robust performance. DHL's results stand in contrast to sector peer UPS, which recently reported weaker profit and withheld full-year guidance.