PostNL Q3 loss widens on weak mail volumes, higher costs

Investing.com -- PostNL (AS:PTNL) on Monday reported a wider operating loss in the third quarter as higher costs and declining mail volumes offset modest parcel growth, keeping results under pressure despite a slight rise in revenue.

Revenue for the quarter rose to €762 million from €756 million a year earlier. Normalised EBIT fell to a loss of €21 million from a loss of €18 million a year earlier, while free cash flow improved to a negative €18 million from a negative €68 million in the same quarter of 2024.

Normalised comprehensive income declined to a loss of €23 million from €19 million.

For the first nine months of 2025, PostNL reported revenue of €2.35 billion, compared with €2.32 billion in the same period last year. Year-to-date normalised EBIT fell to a loss of €26 million from a loss of €9 million.

Total comprehensive income for the period declined to a loss of €60 million from €26 million in 2024.

Parcel volumes increased 1.0% in the quarter, driven by 5% growth from international customers, while domestic volumes were flat. Revenue at the Parcels segment rose to €581 million from €575 million, and normalised EBIT declined to €4 million from €6 million. 

The Dutch mail, parcel and e-commerce company said regular price increases were implemented according to plan, but a less favorable customer mix within domestic volumes weighed on results. 

Additional efficiency improvements in depots, supply chain and transport, along with €9 million in cost savings, helped mitigate the impact.

Mail in the Netherlands saw volumes decline 5.0% due to ongoing substitution, supported by the first batch of election mail and other one-off mailings. Revenue remained stable at €289 million, while normalised EBIT stayed at €(23) million. 

PostNL said it achieved €10 million in cost savings through process adjustments, including the transition of business mail to a standard two-day delivery framework.

Chief Executive Officer Pim Berendsen said the decline in normalised EBIT to a loss of €43 million for the first nine months of 2025 in Mail in the Netherlands highlights the need for changes to postal regulation.

He noted that the government has proposed adjusting the Universal Service Obligation to extend the delivery framework to D+2 at 90% quality from July 2026 and to D+3 at 92% a year later. He said that while this is a step forward, the proposal remains insufficient to offset the net costs of the obligation.

Revenue in PostNL Other increased to €63 million from €57 million, while normalised EBIT showed a loss of €2 million compared with a loss of €1 million last year.

Operating income for the quarter showed a loss of €23 million, compared with a loss of €21 million a year earlier.

The company reported a quarterly loss of €23 million, the same as the loss recorded for the prior-year quarter.

Adjusted net debt rose to €572 million as of September 27, 2025, from €474 million at December 31, 2024. 

Consolidated equity declined to €128 million from €202 million. Reported results for the year to date included a €40 million goodwill impairment related to Mail in the Netherlands, which was recorded in the second quarter.

In September, PostNL issued €300 million in five-year notes carrying an annual coupon of 4%. The company said proceeds will be used for general corporate purposes, including refinancing. 

PostNL accepted €195 million for repurchase from a tender offer on its 0.625% notes maturing in September 2026.

Free cash flow in the quarter improved to a negative €18 million from a negative €68 million last year.

The company attributed the change mainly to timing effects in working capital and a non-recurring tax settlement paid in the third quarter of 2024.

PostNL reported continued progress on sustainability, with emission-free last-mile delivery reaching 33%, up from 28% in the same period last year. 

The company began deploying more than 40 electric vans in its transport services and continued expanding its automated parcel locker network, which reached a utilisation rate of 50%, compared with 36% for full-year 2024.

PostNL reaffirmed its full-year 2025 outlook, expecting normalised EBIT to be in line with 2024’s €53 million and free cash flow between a negative €10 million and a negative €50 million.

The company said it expects a larger contribution from the fourth quarter due to seasonal effects.