DFDS lowers 2025 profit outlook due to Mediterranean headwinds

Ferry and logistics operator DFDS has updated its 2025 earnings outlook, lowering its EBIT (earnings before interest and tax) forecast to a range of DKK0.8 billion to DKK1 billion ($125.4 million to $156.8 million), from a previous expectation of around DKK1 billion. The company attributed the change to challenges in two of its key focus areas.

The company stated that while the financial performance of most of its network was broadly in line with expectations for the second quarter, its Mediterranean business unit progressed less than expected. Although volumes in the region were largely intact, the impact from pricing initiatives fell short of expectations. The company said further actions have been launched to improve yield recovery for the remainder of the year.

Additionally, the turnaround of its Turkey and Europe South logistics division progressed well in terms of rightsizing the network, but volumes and margins were below target, partly due to Turkish transport market dynamics. 

The company warned that achieving its breakeven target for this division in 2025 may be delayed. DFDS also confirmed that its 2025 outlook for adjusted free cash flow remains unchanged at DKK1 billion.