DHL Group: Read-x from FDX 4Q26 results

Research evidence excerpt

DHL Group: Read-x from FDX 4Q26 results

Equity Research

European Transportation

24 June 2026

DHL Group

Read-x from FDX 4Q26 results

First LookWe see +ve momentum in Express continuing, with FDX

international priority volumes improving QoQ on a strong

May, giving us confidence on DHL weight turning positive in DPWGn.DE/DHL GY OVERWEIGHT

European Transportation NEUTRAL

2Q on YoY. Express margins diluted by surcharges, would have Price Target EUR 57.00

been up L4L. +ve momo continuing for the rest of the year Price (23-Jun-26) EUR 51.06

Potential Upside/Downside +11.6%

Source: Bloomberg, Barclays Research

Summary: Sequential volumes improvement continues in international priority, +ve for

DHL where we expect Express weight to turn +ve YoY after years of decline May being

stronger than March/April. FDX management also flagging solid core pricing in express European Transportation

domestic + international. 2Q Federal express margins flat YoY with fuel cost increase Marco Limite

+39 (0)2 6372 2582increasing revs and diluting margins, but surcharges fully covering costs. More details -

marco.limite@barclays.com

BBI, Milan1) FDX's 4Q26 adj. EPS of $6.31, slightly ahead of BBG consensus $5.974. Non-gaap EBIT of

$2.09bn slightly ahead of consensus at $2.03bn. See full note from Blandon Oglenski here. Helene Iselin

Federal express EBIT at $1.9bn vs css at $1.9bn and a touch below Barclays at $2.0bn on Express +44 (0)20 7773 7391

EBIT margin at 8.9%, flattish YoY and vs BarclaysE at 9.4%. Management highlighted margins helene.iselin@barclays.com

Barclays, UKwere negatively impacted by higher fuel surcharge revenue (which offsets higher fuel expense)

in the fourth quarter with margins up YoY ex fuel. Expects solid core pricing gains and volume Emilie Fung