Swisscom profit drops 23% as Vodafone Italia costs weigh on results
Introduction & Market Context
bpost NV (BPOST) presented its third quarter 2025 results on November 5, showing stable operating income but declining profitability as the Belgian postal operator continues its transformation into an international logistics provider. The company’s stock fell 6.7% to €1.88 following the presentation, reflecting investor concerns about the negative adjusted EBIT of €3 million, which declined by €16.3 million compared to the same period last year.
The results highlight the ongoing challenges of balancing declining mail volumes with growth in parcels and e-commerce logistics, a transition that CFO Philippe Dartienne emphasized is "a long journey, not a one- or two-quarter journey."
Quarterly Performance Highlights
bpost reported stable group operating income of €1,029.6 million for Q3 2025, a slight increase of €4.5 million compared to Q3 2024. However, adjusted EBIT fell to negative €3.0 million, representing a €16.3 million decline and a negative 0.3% EBIT margin.
As shown in the following comprehensive financial overview:
The company’s free cash flow improved significantly to €58.9 million, compared to negative €1,241.1 million in Q3 2024, primarily due to last year’s cash-funded acquisition of Staci. Net debt decreased to €1,800.1 million from €1,932.3 million, and the company reduced its workforce with average FTEs and interims down to 36,542 from 38,207 a year earlier.
Segment Analysis
bpost’s performance varied significantly across its three main business segments, revealing both strengths and challenges in its transformation strategy.
The Last Mile segment, which includes domestic mail and Belgian parcels, reported an EBIT of negative €9.4 million, a decline of €4.9 million year-over-year. This segment continues to face pressure from declining mail volumes, which fell by 9.4%, while parcels volume grew by 2.8%.
The following chart illustrates the ongoing decline in mail revenues versus growth in parcels:
In the 3PL (third-party logistics) segment, which focuses on e-commerce fulfillment, EBIT improved to negative €1.7 million from negative €14.7 million in Q3 2024. This improvement was driven by the Staci acquisition in Europe, which contributed positively, while North American operations continued to face challenges with revenue churn from terminated contracts.
The breakdown of 3PL revenues shows the contrast between European growth and North American decline:
The Cross-border segment emerged as the strongest performer, with EBIT of €17.2 million, a slight increase of €0.5 million, and a healthy 11.5% EBIT margin. This success was driven primarily by strong growth in Asian volumes and positive performance in the Canadian market.
The following chart highlights the strong growth in cross-border revenues, particularly in Europe:
Strategic Initiatives
bpost highlighted several strategic initiatives aimed at accelerating its transformation and improving future performance. For the Last Mile segment, the company launched a Night Delivery product for technicians and wholesalers, expanded its bbox network to 2,000 active units, and made progress on its Future Operating Model implementation.
In the 3PL segment, bpost reported that the Staci integration is on track to overdeliver on 2025 cost synergy targets and announced the appointment of Rainer Kiefer as CEO effective January 2026. The company also noted that its Radial Fast Track rollout is exceeding plan, with in-year revenue also exceeding expectations.
These strategic initiatives are summarized in the following slide:
Financial Outlook
Despite the challenges in Q3, bpost reaffirmed its full-year 2025 EBIT outlook at approximately €180 million, suggesting stronger performance expected in Q4. The company revised its gross CAPEX guidance to around €140 million, down from the previous €180 million.
Management emphasized preparation and readiness for peak season execution across the group, with special focus on North America and BeNe Last Mile operations. However, they also noted the need for "ongoing vigilance amid challenging market conditions," signaling continued caution about the external environment.
The company’s balance sheet shows total assets of €5,025.4 million as of September 30, 2025, with cash and cash equivalents of €1,225.3 million, providing substantial liquidity as the company navigates its transformation journey.
While bpost faces significant challenges, particularly in its traditional mail business and parts of its North American operations, the company’s strategic initiatives and focus on e-commerce logistics position it to potentially benefit from continued growth in online shopping and cross-border commerce, provided it can successfully execute its transformation strategy.
Full presentation:
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