Germany's DHL hikes dividend, raises outlook despite weak Q4 earnings

German logistics major DHL Group on Thursday raised its dividend and issued a fiscal 2026 outlook, expecting profit growth despite weak earnings and revenues in its fourth quarter.

In 2026, the group expects geopolitical uncertainties to persist. For fiscal 2026, DHL Group expects an operating profit or earnings before interest and tax (EBIT) above €6.2 billion ($7.2 billion) and free cash flow, excluding mergers and acquisitions, of around €3 billion.

In fiscal 2025, EBIT was €6.1 billion. The group expects operating profit over €5.6 billion for DHL, and over €0.9 billion for the Post & Parcel Germany segment.

Further, the company said its board of management and supervisory board intend to propose a dividend increase to €1.90 per share from last year's €1.85 per share, at the upcoming annual general meeting.

In the fourth quarter, consolidated net profit dropped 3.4% to €1.06 billion from €1.10 billion. Earnings per share remained flat with last year's €0.93.

EBIT, a key earnings metric, declined 1.3% to €1.83 billion from €1.85 billion. Revenue for the quarter declined 2.7% to €22.09 billion from €22.70 billion last year. International revenues were down 4.5% to €15.98 billion from the prior year's €16.72 billion.