Posti Group Corporation Stock Exchange Release February 13, 2025, at 8.30
a.m. EET
Financial highlights in October-December 2025
· Net sales decreased by 3.3% to EUR 390.4 (403.6) million.
· Adjusted EBITDA increased to EUR 62.1 (54.2) million, or 15.9% (13.4%) of
net sales.
· EBITDA increased to EUR 57.0 (52.8) million, or 14.6% (13.1%) of net sales.
· Adjusted operating result (adjusted EBIT) increased to EUR 30.0 (21.7)
million, representing 7.7% (5.4%) of net sales.
· Operating result (EBIT) increased to EUR 24.8 (19.2) million, representing
6.4% (4.8%) of net sales. Operating result was negatively impacted by special
items of EUR 5.2 (2.5) million including listing-related costs.
Financial highlights in January-December 2025
· Net sales decreased by 4.8% to EUR 1,447.6 (1,521.4) million.
· Adjusted EBITDA decreased to EUR 196.4 (207.6) million, or 13.6% (13.6%) of
net sales.
· EBITDA decreased to EUR 180.4 (196.6) million, or 12.5% (12.9%) of net
sales.
· Adjusted operating result (adjusted EBIT) decreased to EUR 69.3 (80.1)
million, representing 4.8% (5.3%) of net sales.
· Operating result (EBIT) decreased to EUR 52.3 (68.0) million, representing
3.6% (4.5%) of net sales. Operating result was negatively impacted by special
items of EUR 17.0 (12.2) million including listing related costs.
· Net debt to adjusted EBITDA was 2.6x (1.2x).
Operational highlights in October-December 2025
· Trading of Posti Group's shares commenced on Nasdaq Helsinki on October 14,
2025.
· Record-high Group's adjusted EBITDA margin and adjusted EBIT margin in ten
years.
· Operationally successful peak season, during which Posti delivered 7.8
million parcels and 8.9 million Christmas greetings.
· Strong execution in delivery model, resource optimization and high-level
sorting automatization in Postal Services increased the segment's profitability
significantly. The adjusted EBITDA of Postal Services was 23.9% (20.5%) of net
sales. Addressed letter volumes decreased by 19.8% (18.1%).
· Growth in Finland's consumer recommerce market boosted parcel volumes in the
eCommerce and Delivery Services segment. Total parcel volumes in Finland and the
Baltic countries increased by 11.1% (-2.0%). Change in product mix had a
negative impact on the segment's net sales and profitability.
· Enhanced operational efficiency and higher demand in warehousing market
drove growth in net sales and profitability for Fulfillment and Logistics
Services.
Board of Director's proposal for dividend
Board of Director's proposes a dividend of EUR 34.0 million, or a dividend of
EUR 0.84 per share for the 2025. Dividend to be distributed in two installments.
Guidance for 2026
Posti is expecting its net sales to be within the range of EUR 1,400-1,500
million, and adjusted EBIT to be within the range of EUR 63-79 million in 2026.
In 2025, Posti's net sales were EUR 1,447.6 million and adjusted EBIT was EUR
69.3 million.
Posti is revising the way its full‑year guidance is provided. Going forward,
Posti will no longer include adjusted EBITDA in the guidance range. Posti will
guide expected full‑year net sales and adjusted EBIT.
Background for guidance for 2026
The operating environment in the logistics sector is expected to remain
challenging. Growth in trade and industry continues to be constrained by
uncertainty, while consumer confidence remain subdued.
As Posti serves a broad customer base, both GDP growth and confidence indicators
have a direct impact on the sector's performance. GDP growth forecasts in
Finland for 2026 are moderate, while in Sweden and the Baltics growth is
expected to continue. Tightening trade policies, geopolitical tensions,
financial market volatility, and potential additional fiscal adjustment measures
may further slow Finland's economic recovery.
Growth in ecommerce, both domestically and internationally, continues to support
the expansion of the parcel market. This growth is driven by increased
recommerce trade and the rising number of smaller parcels. Competition in the
parcel market in both Finland and the Baltics is expected to remain intense.
Postal volumes are expected to continue declining due to digitalization. Posti
has continued to develop its delivery models for paper mail and offers digital
mail solutions to support customers in their transition to digital services. In
2026, legislation introducing the digital priority of official Government letter
mail will come into effect, further negatively impacting addressed letter
volumes.
Posti remains committed to customer centricity and continuously develops its
services in response to evolving customer needs. The Group's key priorities are
commercial growth, stronger network synergies, and improved operational
efficiency.
The Group's business is characterized by seasonality, and net sales and adjusted
EBIT are not accrued evenly throughout the year. The fourth quarter is typically
the strongest quarter. Accelerating digitalization is expected to impact
negatively letter volumes especially in the first quarter.
Mid-term financial targets
The Board of Directors of Posti Group has set the following mid-term financial
targets 2026 onwards:
· Average organic net sales growth (3-5-year period) of at least 2% at Group
level and at least 5% outside Postal Services compared to 2025
· Baseline for 2025 at Group level of EUR 1,447.6 million
· Baseline for 2025 outside Postal Services of EUR 917.1 million
· Average adjusted operating result (adjusted EBIT) growth (3-5-year period)
over 5% compared to 2025
· Net debt/adjusted EBITDA less than 2.5x
Posti Group's target is to pay continuously increasing ordinary dividends, and a
payout ratio of at least 60 percent of net income based on Board of Directors
approved dividend policy.
Key Figures of Posti Group
10-12 10-12 1-12 1-12
EUR million 2025 2024 2025 2024
Financial development and
profitability
Net sales, EUR million 390.4 403.6 1,447.6 1,521.4
Change in net sales, % -3.3% -6.1% -4.8% -4.1%
Adjusted EBITDA, EUR 62.1 54.2 196.4 207.6
million
Adjusted EBITDA margin, % 15.9% 13.4% 13.6% 13.6%
EBITDA, EUR million 57.0 52.8 180.4 196.6
EBITDA margin, % 14.6% 13.1% 12.5% 12.9%
Adjusted operating result 30.0 21.7 69.3 80.1
(adjusted EBIT), EUR
million
Adjusted operating result 7.7% 5.4% 4.8% 5.3%
(adjusted EBIT) margin, %
Operating result (EBIT), 24.8 19.2 52.3 68.0
EUR million
Operating result margin 6.4% 4.8% 3.6% 4.5%
(EBIT), %
Result for the period, EUR 14.7 12.4 23.5 43.8
million
Financial position
Equity ratio, % 24.6% 25.2%
Return on capital employed 7.8% 11.2%
(12 months), %
Net debt, EUR million 517.0 257.5
Net debt / adjusted EBITDA 2.6x 1.2x
Financial net debt / 1.1x -0.1x
adjusted EBITDA
Other key figures
Operative free cash flow, -37.0 -2.9
EUR million
Investments, EUR million 175.1 183.5
Personnel, end of period 13,751 14,764
Personnel on average, FTE 11,638 12,777 11,845 13,095
Earnings per share, basic 0.37 0.31 0.59 1.10
and diluted, EUR
Dividend per share, EUR 0.84* 0.83
Dividend, EUR million 34.0* 33.0
*Board of Directors' proposal to the Annual General Meeting
Calculation, use and reconciliations of Key figures are presented in section Key
Figures
Antti Jääskeläinen, President and CEO
In the fourth quarter we delivered a successful peak season with high service
quality and resource efficiency. Our operations ran smoothly and efficiently,
reflecting Posti's strengths in planning, customer service and continuous
improvement.
In the fourth quarter, the Group's net sales decreased by 3.3%. Net sales were
negatively impacted by the 19.8% decline in addressed letter volumes in Postal
Services; however, parcel volumes increased by 11.1%. Adjusted EBITDA and
adjusted EBIT both increased clearly from the previous year, driven by strong
operational execution. In fact, our relative profitability — the adjusted EBITDA
and adjusted EBIT margins — reached their highest level in over ten years in the
fourth quarter. I am pleased to note the clear sequential improvement in the
Group's overall profitability throughout the year. Full year net result was
negatively impacted by higher financial items and listing related costs.
Looking at the fourth quarter, on the segment level. Sustained increase in
consumer parcel volumes in eCommerce and Delivery Services continued, driven by
recommerce. This was consistent with the previous quarters. The B2B parcel
market was weaker. As a result of product mix developments, the net sales in
eCommerce and Delivery Services increased slightly, whereas adjusted EBITDA
decreased. Fulfillment and Logistics Services achieved growth in net sales,
driven by increased customer demand in warehousing. This positive momentum and
improved operational efficiency contributed to the increase of the segment's
adjusted EBITDA. In addition, Postal Services recorded a significant improvement
in adjusted EBITDA, despite continuously lower addressed letter volumes and our
earlier decision to discontinue unaddressed mail services. Strong execution in
delivery model changes, resource optimization, and high sorting automation rate
increased the segment's profitability significantly. This underscores the team's
ability to adapt to changing market conditions and deliver good results.
The operating environment remained challenging during 2025, with heightened
competition. Market transformation continues. Ongoing digitalization across both
public and private sectors has led to a clear reduction in letter volumes, a
structural shift that is expected to continue. Also, general economic
conditions, particularly in Finland, were softer than anticipated. In response,
we continued our customer centric commercial actions, network optimization and
improved efficiency. We see further synergy potential in our network operations
and will continue to pursue these initiatives going forward.
As consumer and market behaviors evolve it is crucial that the Postal Act in
Finland adapts accordingly to support a sustainable universal service model. We
continue to work with and inform the relevant stakeholders and regulators of
market development. We operate in full compliance with current legislation.
The fourth quarter was historic for Posti Group as our shares began trading on
Nasdaq Helsinki. The successful listing was an intensive project for many Posti
employees. The whole Posti organization made it possible through several years
of hard work when developing Posti to where we are today.
Thanks to our strong operational resilience and reflecting our dividend policy
to provide a continuously increasing ordinary dividend, the Posti Group's Board
of Director's proposes a dividend of EUR 0.84 per share for the 2025 financial
year. The dividend will be distributed in two installments.
I am also proud to note that in our first CDP Climate Change Assessment as a
publicly listed company, Posti received a B rating, placing us in the second
highest category. This achievement reflects our progress and systematic approach
to managing climate risks. I am also satisfied that the employee satisfaction
scores in our recent employee survey continued an upward trend despite
persistently changing market conditions.
Looking ahead, accelerated digitalization continues. This will further drive the
decline in postal volumes, and it has had a clear impact already in the first
quarter compared to previous years. We remain committed to customer centricity
and continuously develop our services as customer needs evolve. Our key
priorities are growth and commercial excellence, stronger network synergies, and
improved operational efficiency. My sincere thanks to all employees for their
exceptional work during 2025, and to our customers for their continued trust and
partnership.
Audiocast for investors, analysts and media
An English-language audiocast for investors, analysts and media will be held on
February 13, 2025, at 11.00 a.m. EET. Link for the audiocast will be available
on www.posti.com/en/investors .
In the audiocast Posti Group's President and CEO Antti Jääskeläinen and CFO Timo
Karppinen will go through Posti's Q4 and full year 2025 financial results.
A recording of the event will be available on www.posti.com/en/investors later
on the same day.
Further information
Antti Jääskeläinen, President and CEO
Timo Karppinen, CFO
Tel. +358 20 452 3366 (MediaDesk)
Distribution
Key media
www.posti.com/en/investors
Images and logos
https://www.posti.com/en/corporate/media
Posti Group Corporation in brief
Posti is one of the leading delivery and fulfillment companies in Finland,
Sweden, and the Baltics. We make our customers' everyday lives smoother with a
wide range of services, which include parcels, freight, and postal services as
well as warehouse, fulfillment, and logistics services. Our goal is to transport
completely fossil-free throughout the value chain by 2030 and zero our own
emissions by 2040. Our net sales in 2025 amounted to EUR 1,447.6 million and we
have approximately 13,700 employees. Posti Group's shares are listed on the
Nasdaq Helsinki official list in Finland. www.posti.com .