PostNL (PNL) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue increased to €782 million, up 2.2% year-over-year, driven by Parcels growth but offset by a 6.9% Mail volume decline and cost pressures, with normalised EBIT at €(15) million, in line with expectations.

• Free cash flow was negative at €(33) million, impacted by lower EBIT, working capital phasing, and higher capex.

• Strategic initiatives and efficiency measures in Parcels and Mail are progressing, with targeted yield measures and cost savings achieved.

• Emission-free last-mile delivery reached 30%, up from 26% a year ago, and the company received a Platinum Award from EcoVadis.

• Transition of business mail to two-day delivery and termination of Sunday parcel delivery contributed to operational savings.

Financial highlights

• Q1 2025 revenue was €782 million, up from €765 million in Q1 2024.

• Normalised EBIT was €(15) million, down from €(9) million in Q1 2024, mainly due to Mail segment performance.

• Free cash flow was €(33) million, compared to €(7) million in Q1 2024.

• EBITDA improved to €32 million from €24 million year-over-year.

• Profit for the period was €(17) million, unchanged from Q1 2024.

Outlook and guidance

• FY 2025 outlook for normalised EBIT remains unchanged, expected in line with 2024 (€53 million).

• Free cash flow for 2025 is projected between €(10) million and €(50) million, with capex to exceed 2024 due to strategic investments.

• Dividend payment intention for 2025 is maintained, subject to performance improvement and financial position.

• Medium-term financial guidance to be provided at the September 2025 Capital Markets Update.

• Cost savings of €40–50 million in Parcels and €40–45 million in Mail expected, with largest pricing impact in Q4.