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Introduction & Market Context
bpostgroup (BPOST) released its second quarter 2025 results on August 8, showing a 10.5% increase in group operating income, primarily driven by the Staci acquisition, while facing challenges in its Last Mile segment. The company’s stock responded positively, rising 5.66% to €2.21 following the announcement, continuing the recovery from its 52-week low of €1.25.
The Belgian postal and logistics company reported group operating income of €1,092.3 million for Q2 2025, up €104.1 million from the same period last year, with the recently acquired Staci contributing €195.3 million. Despite the revenue growth, net profit declined significantly to just €1.3 million, down 77.4% from €31.7 million in Q2 2024.
Quarterly Performance Highlights
bpostgroup’s Q2 2025 performance showed divergent results across its business segments, with the Staci acquisition significantly boosting the 3PL segment while the Last Mile segment faced continued pressure from declining mail volumes and new Press contracts.
As shown in the following highlights slide from the company’s presentation:
Group adjusted EBIT reached €58.3 million, representing a 5.3% margin and a slight increase of €0.5 million compared to Q2 2024. The 3PL segment showed the strongest improvement, with EBIT increasing by €26.3 million to €20.8 million, while the Last Mile segment saw EBIT decline by €33.1 million to €22.3 million.
The detailed financial results provide a comprehensive view of the company’s performance:
The significant decline in net profit to €1.3 million (down 77.4%) despite stable EBIT reflects higher financial costs, likely related to increased debt from acquisitions. Free Cash Flow improved to -€20.1 million from -€89.5 million in Q2 2024, while Net Debt increased substantially to €1,796.9 million from €392.1 million a year earlier.
Detailed Financial Analysis
The Last Mile segment, which includes domestic mail and parcel delivery in Belgium and the Netherlands, continued to face challenges with revenues decreasing due to new Press contracts and mail volume decline. Operating income for this segment fell by 6.2% to €558.9 million.
The 3PL segment showed strong growth driven by the Staci acquisition, offsetting pressure in North American operations. The segment’s performance is illustrated in the following slide:
The contribution of Staci to the 3PL segment’s EBIT was substantial, as shown in this detailed breakdown:
The 3PL segment’s total operating income increased by 53.9% to €405.1 million, including Staci’s contribution of €195.3 million. However, excluding Staci, the segment would have seen a decline due to continued challenges in North America, where revenues fell by €58.8 million.
The Cross-border segment demonstrated resilience with EBIT increasing by €4.7 million to €23.0 million, representing a strong 15.2% margin. This improvement was driven by strong Asian volume growth and North American productivity gains, despite revenue pressures.
Cash Flow and Balance Sheet
bpostgroup’s cash flow showed improvement in Q2 2025, with the company highlighting that higher EBITDA and lower corporate tax payments contributed to the better performance:
The company’s balance sheet reflects significant changes, particularly with the issuance of a €750 million bond in June 2025, which increased cash and cash equivalents by €499.1 million compared to year-end 2024:
The company’s financing structure and liquidity position remain solid despite the increased debt level:
Strategic Initiatives
bpostgroup is accelerating its transformation to become an international logistics parcel operator, with a focus on creating value for clients. The company’s strategic initiatives include:
1. Expanding its 3PL business in Europe through the Staci acquisition
2. Implementing cost-control measures in Radial US to improve profitability amid topline pressures
3. Reorganizing the BeNe Last Mile segment to enable FTE reduction and improve efficiency
4. Leveraging real estate management at Radial US to better cover fixed lease costs
5. Capitalizing on strong Asian volumes in the Cross-border segment
These initiatives align with CEO Chris Peters’ statement from the Q1 earnings call that "We have a portfolio with multiple strengths and we can capitalize on that to provide alternative trade lanes."
Forward-Looking Statements
bpostgroup has reaffirmed its Group EBIT outlook for 2025, now trending toward the high end of the €150-180 million range, as shown in the following slide:
This represents an improvement from the Q1 2025 guidance, when the company stated it had "reduced exposure to the lower end of the range." The more optimistic outlook is supported by Radial US real estate management enabling better coverage of fixed lease costs and the resumption of BeNe Last Mile reorganizations following April strikes.
The company’s half-year results, while showing similar trends to the quarterly performance, provide additional context for the full-year outlook:
For the first half of 2025, group operating income increased by 11.6% to €2,211.3 million, while adjusted EBIT declined by €27.6 million to €99.9 million, representing a 4.5% margin. The guidance for the high end of the full-year EBIT range suggests the company expects stronger performance in the second half of 2025.
As bpostgroup continues its transformation journey, investors will be watching closely to see if the company can successfully navigate the challenges in its traditional mail business while capitalizing on growth opportunities in logistics and e-commerce.
Full presentation:
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