NTG Q1 2025: Robust revenue growth
May 13, 2025
By Transport Intelligence[1] In Q1 2025, Nordic Transport Group (NTG) strengthened its growth trajectory with the acquisitions of Danish freight forwarder DTK and the UK-based group behind EDS Worldwide and Rolls Freight. According to the freight forwarder, these strategic moves contributed to a 24.9% year-on-year increase in revenue, reaching DKK 2,695m, while the gross profit rose by 30% to DKK 602m.
The gross margin improved to 22.3%, supported by greater exposure to groupage services following earlier German acquisitions such as Schmalz+Schon and ITC Logistic. Despite persistent softness in the European road freight market, particularly in Germany, NTG's targeted acquisition strategy continues to bolster its market position and drive performance across key segments. This approach has helped offset broader market challenges, with both the Road & Logistics and Air & Ocean divisions achieving year-on-year revenue growth.
In terms of revenue by country, Q1 2025 saw growth across all markets compared to Q1 2024, except for Finland, where revenue dropped by 11.9%, from DKK 151m to DKK 133m. The Group has yet to comment on this decline. Road & Logistics
In Q1 2025, NTG's Road & Logistics division saw a solid increase in revenue and gross profit, despite continued pressure in the European road freight market.
Revenue increased by 25.0% year-on-year to DKK 2,005m, with 22.4% of the growth attributed to recent acquisitions, including Schmalz+Schon and ITC Logistic. Organic growth was modest at 2.3%, supported by higher groupage volumes in key markets, while the gross profit grew even more strongly, up 30.8% to DKK 454m, lifting the gross margin to 22.6%. This improvement was helped by both higher freight rates and the strong margin profiles of the newly acquired German companies.
However, profit at the operating level told a different story. Adjusted EBIT slipped by 2.9% to DKK 100m, and the operating margin narrowed to 5.0%. The decline mainly reflects the higher cost base from the acquisitions and softer performance in Sweden, Poland, and Germany.
Encouragingly, March showed signs of improvement, and performance in the Netherlands was notably positive. The forwarder highlighted strong demand for warehousing services and recently integrated Thortrans into LGT Logistics A/S. It expects this integration to positively impact its earnings in H2 2025.
The Group notes that while volumes stayed flat and the usual spring pickup didn't materialise, the recently introduced rate increases in some Nordic markets helped support margins. Air & Ocean
In Q1 2025, NTG's Air & Ocean division saw a strong start to the year, with net revenue climbing 25.0% to DKK 691m from DKK 553m in Q1 2024. According to the freight forwarder, this growth came from a mix of higher activity levels, slightly better freight rates on select trade lanes, and contributions from recent acquisitions like Freightzen Logistics and Schmalz+Schon.
The gross profit rose by 27.6% to DKK 148m, with the gross margin improving slightly to 21.4%. The Group observed that stable air freight rates and rising volumes contributed positively to performance. However, ocean freight rates continued to decline, a trend that is likely to persist with growing market capacity.
However, this outlook could be disrupted by geopolitical factors, such as the recently announced US tariffs. On the strategic side, NTG is strengthening its footprint in the Asia-Pacific region through its Freightzen acquisition and further investments. The division remains focused on growing its network, improving operations, and rolling out new products and logistics hubs in the months ahead.
Author: Shruti Sasidharan
Source: Ti Insight
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References
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