DHL’s shares experienced dramatic swings on Tuesday, initially surging nearly 7% to a four-month high after reporting stronger-than-expected quarterly results, only to close 0.6% lower at €38.94. The logistics giant posted an operating profit of €1.4 billion, up 6% year-over-year, while net earnings jumped 10% to €815 million—far exceeding analyst forecasts. However, investor optimism quickly faded as structural concerns overshadowed the positive figures. Shrinking transport volumes, geopolitical tensions, and erratic shipping demand due to trade conflicts raised doubts about the company’s ability to sustain margins. Analysts remain deeply divided, with some lowering price targets while others maintain cautious optimism.
Volatility Reflects Market Uncertainty
Despite cost-cutting measures showing early success, DHL faces mounting challenges. The CFO highlighted extreme fluctuations in shipment volumes, particularly in time-sensitive express deliveries, where price hikes barely offset declining demand. While efficiency programs aim to save over €1 billion by 2027, the company warned that further trade policy escalations could disrupt its €6 billion annual profit target. The stock, still well below its March peak of €44, reflects persistent market unease over global trade headwinds.
