CTT - Correios De Portugal (CTT) Q4 2025 earnings summary

Executive summary

• 2025 marked the completion of a major transformation, with revenues of €1,288.1m (+16.3% y.o.y.) and recurring EBIT of €115.2m (+35.3% y.o.y.), surpassing strategic targets and driven by e-commerce logistics and operational efficiency.

• E-commerce Solutions became the largest business line, representing over half of total revenues in Q4, supported by Cacesa integration and locker network expansion.

• Strategic partnerships, such as the Iberian JV with DHL, and automation investments strengthened the logistics footprint.

• Strong free cash flow generation reduced leverage to 1.9x, enabling shareholder remuneration and future growth.

• Net profit rose to €50.7m (+11.4% y.o.y.), supported by higher recurring EBIT and partially offset by restructuring costs.

Financial highlights

• FY25 revenues reached €1,288.1m (+16.3% y.o.y.), recurring EBIT €115.2m (+35.3% y.o.y.), and net profit €50.7m (+11.4% y.o.y.).

• EBITDA increased 23.8% to €198.4m; free cash flow was €83.6m (+33.2% y.o.y.).

• Dividend per share set at €0.19, with share buyback programmes totaling €66.5m since 2022 and a new €30m programme approved for 2026.

• Net financial debt at year-end was €7.9m, with leverage ratio at 1.9x.

• Operating costs rose 14.7% to €1,173m, mainly due to Cacesa consolidation and organic growth.

Outlook and guidance

• 2026 guidance: recurring EBIT of at least €125m (≥8% growth), with high single-digit to low double-digit e-commerce volume growth expected.

• Efficiency measures and restructuring in Mail & Services and central structure to continue, with €10–12m in restructuring charges.

• Bank EBIT expected to remain flat in 2026 as it prepares for a new growth phase.

• Conservative guidance due to regulatory changes, geopolitical risks, and supply chain disruptions.

• 2028 ambition: revenues €1.6–1.7b, recurring EBIT €170–195m, aiming for Iberian e-commerce logistics leadership.