PostNL stock drops following mixed 1Q25 results

Published 06/05/2025, 09:28
PostNL stock drops following mixed 1Q25 results

Investing.com -- Shares of PostNL (AS:PTNL) ( AMS (VIE:AMS2):PNL) fell 4% as the company’s first quarter results for 2025 showed mixed performance, with parcel volume growth lagging expectations and a fiscal year outlook that became more back end loaded.

Despite broadly meeting consensus expectations and maintaining unchanged full-year guidance, investors reacted to the weaker parcel volumes and a significantly lower free cash flow than anticipated.

PostNL reported a first quarter EBIT of -€15 million, aligning with the consensus. However, the parcel volumes grew only by 2.0% year-over-year (YoY), which was below the consensus co-consensus of 3%, with domestic volumes dropping by 2.4%.

International volumes increased by 19%, but this was a slowdown from the 42% growth seen in the previous quarter. The company’s revenue from spring was solid, with a 10% YoY increase, suggesting some cost and pricing discipline in a challenging environment.

Mail volumes continued to decline, registering a 6.9% drop, although this was slightly better than the consensus and Barclays (LON:BARC)’ estimate of an 8% decline. The majority of non-USO mail business has transitioned to a standard D+2 delivery time.

The ’Other’ segment of PostNL’s business performed better than expected, with EBIT at -€1 million against the co-consensus of -€4 million. However, free cash flow was a point of concern, coming in at -€33 million, which was far below the consensus estimate of -€4 million, impacted by negative net working capital related to payments due.

The company’s outlook for the full year 2025 remains unchanged despite the ongoing macroeconomic uncertainty. The normalized EBIT is expected to be in line with the previous year, but it is too early to assess the impact of recent global developments on macro and e-commerce flows.

Barclays commented on the results, stating, "View: We see this set of results as neutral to small negative."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.