Danish ferry and logistics company, DFDS has reported a 3% rise in revenue to DKK7.8 bill for the second quarter of this year.
Organic growth was minus 2%, while EBIT fell 69% to DKK163 mill and adjusted free cash flow was DKK538 mill.
The outlook for the full year was an EBIT of DKK0.8-1.0 bill – previously around DKK1.0 bill, plus a revenue growth of around 5% and an adjusted free cash flow of around DKK1 bill (unchanged).
“Most of the network performed in line with our expectations for the quarter. The Mediterranean activities remain our key earnings challenge,” explained CEO, Torben Carlsen (pictured).
“As outlined earlier this year, 2025 is a transitional year for DFDS where we lay the foundation for improving financial performance following events of 2024.
“The financial performance of most of the network was in line with our expectations for the quarter. Our key earnings challenge in 2025 remains therefore to resolve three specific focus areas – Adapting Mediterranean ferry operations to competitive environment change, turning Logistics Türkiye & Europe South around to breakeven by year-end 2025 and delivering on logistics boost turnaround projects initiated in 2024.
“The realised and expected delivery on the logistics boost projects is in line with the expectations for 2025 set earlier this year.
“The adaptation of the Mediterranean business unit progressed in 2Q25 but less than expected. Volumes were to a large extent intact but the impact from pricing initiatives fell short of expectations. Further actions have been launched to improve the effectiveness of the yield recovery in the remainder of the year.
“The Türkiye & Europe South turnaround progressed well in 2Q25 with regard to rightsizing of the network, while volumes and margins were below target, partly due to Turkish transport market dynamics. Achieving the breakeven target in 2025 may therefore be delayed.
“To reflect the challenges facing two of the focus areas, the EBIT outlook for 2025 is updated to a range of DKK0.8-1 bill from previously an EBIT of around DKK1 bill. The Q2 cash flow generation was on track and financial leverage is set to improve as expected in H2. The 2025 outlook for adjusted free cash flow is unchanged DKK 1 bill,” he said.
Towards the end of July, 2025, the EU and US entered into a trade agreement that set a general tariff of 15% on EU exports to the US.
This agreement may curb demand for parts of the EU’s export sector, which in turn could impact Europe’s economic short-term growth prospects.
The agreement seems likely to support Europe’s determination to become more self-reliant and DFDS expected near shoring to grow trading with manufacturing hubs such as Türkiye and Morocco, which will benefit its network.
