DFDS, one of Europe’s largest ferry operators, announced a series of shake-ups after posting disappointing financial results for the third quarter. The company had said that 2025 would be a transitional year as it laid the foundations for improving financial performance, and now it is adding layoffs, cost-cutting, and a search for a new chief executive officer.
While saying that it was making progress on most of the priorities laid out in its plan, DFDS reported a 32 percent year-over-year decline in income (EBIT). Revenues were up four percent, but the growth in the existing business lines was off two percent this quarter.
The company said among its priorities are a focus on its logistic operations, adapting its Mediterranean ferry network, including a new pricing model, and a turnaround for operations in Turkey and Europe South. While reporting progress on its initiatives, it also said the earnings trend improvement for Turkey and Europe South is slower than expected “amid challenging market conditions.”
Citing uncertainties for the business in Q4, the company lowered its income (EBIT) forecast. It said it was mainly driven by the uncertainties for the Mediterranean ferry and logistics activities.
Long-term CEO Torben Carlsen is a casualty, with the board reporting it is initiating a search for a successor to lead the next phase of the strategy execution. Carlsen will remain in place while the search is ongoing.
Torben Carlsen joined DFDS in 2009 as Executive Vice President and CFO and was appointed President and CEO in May 2019. During his tenure with DFDS, he has led the company through several key acquisitions, including Norfolkline in 2010 and the expansion into the Mediterranean with UN RoRo in 2018, and expanded DFDS’ network and geographical scope, while also navigating significant macro challenges such as Brexit, Covid, and adverse inflationary and market developments as a consequence of the Russian invasion of Ukraine.
He also served as Chair of Danish Shipping for the last three years and represented Danish Shipping in the European Shipowners’ Association while also being a board member of Interferry.
To accelerate the earnings improvements, the company also said it will implement a cost reduction program, including layoffs, in 2026. The plan calls for a reduction of approximately 400 mainly office-based positions. The company says it currently has 16,500 full-time employees.
The cost-saving initiatives are expected to reduce costs by around DKK 300 million ($46 million). The company implementation would cost approximately DKK 100 million ($15.5 million) in Q4 2025.
