Wave of Earnings Reports in Germany: Adidas and DHL Under Pressure from Forecasts

The 2025 financial results season brought a wave of volatility to the Frankfurt stock exchange. Investors are paying particular attention to management communications regarding prospects for the coming months, which in many cases proved more conservative than the market expected. The DHL Group, despite forecasting growth in operating profit for 2026, warned of persistent geopolitical uncertainty. The company plans rigorous cost discipline to mitigate the impact of weaker global demand, which, however, did not reassure shareholders, causing a drop in share prices after the report's publication. Adidas is grappling with similar problems. While it announced the extension of CEO Björn Gulden's contract until 2030, it simultaneously lowered its profit forecasts for 2026. The company indicates that the main brakes on growth will be potential US trade tariffs and the tense situation in the Middle East, which affects supply chains. A positive note is the proposal to appoint Nassef Sawiris as chairman of the supervisory board, which is intended to strengthen owner oversight of the company during a difficult period of transformation. In the industrial sector, tire manufacturer Continental reported a net loss of 165 million euros for 2025, attributing it to the costs of a deep restructuring, although management anticipates sales stabilization in the current year. The German economy, the driving force of the eurozone, has for years based its growth on exports, making it particularly vulnerable to any disruptions in world trade and changes in the customs policies of its main economic partners.The technology and automotive sectors also delivered mixed signals. Truck manufacturer Traton, part of the Volkswagen Group, reported a decline in profits due to disruptions in international trade, forcing management to adopt a cautious stance for 2026. Meanwhile, Merck KGaA warned of declining margins in the pharmaceutical segment, where a key multiple sclerosis drug is losing patent protection to cheaper generic drugs. A bright spot in the overview remains Broadcom, which, thanks to the AI boom, expects record sales of AI processors, contrasting with the general slowdown in traditional heavy industry and retail sectors. „Ich fühle mich mit 60 fitter als mit 50, und Adidas kehrt auf den Wachstumspfad zurück, auch wenn das Marktumfeld herausfordernd bleibt.” — Björn Gulden