AUSTRIAN POST IN 2025: Solid revenue and earnings development in a challenging environment

AUSTRIAN POST IN 2025:
Solid revenue and earnings development in a challenging environment

Revenue

•  Revenue comparison year-on-year impacted by positive election and currency effects in 2024
•  Group revenue of EUR 3,043.3m in 2025 down by 2.6 % from 2024 but 11.0 % above 2023
•  Mail at EUR 1,155.2m (–6.8 % vs. 2024 / –3.0 % vs. 2023)
•  Parcel & Logistics at EUR 1,719.9m (+1.2 % vs. 2024 like-for-like/ +21.4 % vs. 2023)
•  Retail & Bank at EUR 183.8m (–8.8 % vs. 2024 / +9.0 % vs. 2023)

Earnings

•  Earnings performance in line with the trend of the first nine months
•  EBITDA of EUR 413.3m (–2.2 % vs. 2024 / +5.6 % vs. 2023)
•  EBIT of EUR 196.9m (–5.0 % vs. 2024 / +3.5 % vs. 2023)
•  Earnings per share from EUR 2.04 to EUR 1.96

Cash flow, balance sheet and dividend

• Operating free cash flow of EUR 280.1m (+10.3 %)
• Equity of EUR 767.6m as at 31 December 2025 (+0.8 %)
• Dividend proposal of EUR 1.83 per share

Outlook 2026

• Modest revenue growth forecast
• Broadly stable earnings development in the order of magnitude of previous years targeted
• Revenue and earnings are likely to be weaker in H1 2026 but stronger in H2 2026

The structural trends in the international mail and parcel market continued in 2025. Digitalisation and cost pressure among both private and public sector customer groups led to declining letter mail and direct mail volumes, whereas the growing parcel markets continued to be impacted by intense competition. Against this backdrop, the range of services of Austrian Post was consistently expanded and further developed. In Austria, Postal services are now available at nearly 3,000 postal points, with around 14,400 additional out‑of‑home locations internationally. Moreover, final preparations are underway for the launch of the company’s own mobile telephony brand YELLLOW in April 2026. Further important steps were also taken in the international business with two acquisitions – a parcel services provider in Hungary and an e-commerce service provider in CEE/SEE. “Despite a challenging market environment and positive special effects in the previous year, Austrian Post showed solid operational performance in the 2025 financial year,” says Walter Oblin, CEO of Austrian Post. “We continued our parcel growth in 2025 in Austria and successfully maintained our leading market position. With a 63 % share of the private customer parcel market, Austrian Post remains the clear market leader and a key partner in domestic e-commerce,” he adds.

2025 was another year in which Austrian Post performed stable in a challenging environment. Austrian Post is moving forward at high speed with the transformation of the company based on the LEAD 2030 strategy. Following the strong revenue increase in 2024, which was supported by positive one-off effects, the 2025 financial year developed well against the backdrop of challenging macroeconomic conditions. Both revenue and earnings were below the previous year’s level, but above the figures for 2023. In particular, the major elections in Austria and the favourable exchange rate of the Turkish lira had a positive impact in 2024.

Total Group revenue in 2025 equalled EUR 3,043.3m, which was 2.6 % below the level of 2024 and 11.0 % above that of 2023. The Mail division revenue declined by 6.8 % compared to 2024 and by 3.0 % compared to 2023, driven by the structural decrease in addressed letter mail volumes due to electronic substitution and the absence of positive one-off effects of the previous year. Furthermore, muted investment climate, efficiency measures and lower advertising expenditures of companies were observed. In the Parcel & Logistics division, revenue rose by 1.2 % on a like-for-like basis compared to the previous year, i.e. before a reporting change related to the reclassification of Logistics Solutions revenue, but climbed by 21.4 % from 2023. Revenue in Austria developed positively (+5.8 %) in the current reporting period. In Southeast and Eastern Europe, revenue declined following the strong increase driven by Asian volumes, particularly in the first half of the previous year. The parcel business in Türkiye remains heavily impacted by high inflation and the exchange rate fluctuations of the Turkish Lira. In 2025, this region experienced a year-on-year decline, exacerbated by temporary capacity limitations in the fourth quarter. Revenue of the Retail & Bank division fell by 8.8 % (but +9.0 % higher than 2023). Branch Services were affected by the termination of sales cooperation with the telecom partner. The financial services business also experienced a decline due to the lower ECB key interest rate.

The development of earnings was in line with the trend of the first nine months of 2025. EBITDA was down by 2.2 % to EUR 413.3m and earnings before interest and taxes (EBIT) fell by 5.0 % to EUR 196.9m. However, both indicators were 5.6 % and 3.5 % higher, respectively, than the comparable figures for 2023. The earnings decline in the mail business and the lower profitability of parcel operations in Southeast and Eastern Europe as well as in Türkiye were in contrast to the earnings improvement in the Retail & Bank Division. Founded in 2020, bank99 with its 300,000 customers in Austria made a positive contribution to Austrian Post’s overall business results. Accordingly, the profit for the period of the Austrian Post Group in the year 2025 totalled EUR 134.0m (–8.1 %) and earnings per share were EUR 1.96 from EUR 2.04 in the prior-year period (–4.1 %). On the basis of the solid performance and balance sheet position, a dividend at the prior-year level of EUR 1.83 per share will be proposed to the Annual General Meeting on 15 April 2026. This corresponds to a dividend yield of 5.9 % based on the closing share price on 31 December 2025.

The underlying trends in the international mail and parcel markets will continue in 2026. A slight modest revenue increase is expected for the current year. At the same time, further cost increases due to inflation are anticipated. For this reason, comprehensive initiatives are being undertaken to safeguard Group earnings. For 2026, Austrian Post is targeting a broadly stable earnings development in the order of magnitude of previous years, despite a difficult macroeconomic environment and slightly improved economic forecasts. bank99 will continue to positively contribute to earnings, also due to the completion of the core banking migration initiative. A weaker first half of the year and a stronger second half are expected in terms of both revenue and earnings compared to the previous year. In the first quarter of 2026 in particular, Austrian Post's business will be affected by the shift from the previous telecommunications cooperation to the own mobile brand YELLLOW, a challenging market environment in Southeast and Eastern Europe, and a regulatory-driven reduction in Asian parcel volumes in Türkiye.

“We owe our top-quality service primarily to our employees, who work with great dedication and professionalism on a daily basis. We would like to express our special thanks to them. Together we will further strengthen our position as the preferred partner of our customers,” CEO Walter Oblin concludes.

KEY FIGURES

^{1 Includes the intra-Group cost allocation procedure
2 Undiluted earnings per share in relation to 67.552.638 shares
3 Free cash flow before acquisitions/securities/money market investments, Growth CAPEX and core banking assets}

Vienna, 12 March 2026


EXCERPTS FROM THE MANAGEMENT REPORT 2025

REVENUE DEVELOPMENT IN DETAIL

Revenue of the Austrian Post Group in 2025 of EUR 3,043.3m was 2.6 % below the 2024 level but 11.0 % above the 2023 level. The year-on-year revenue comparison is influenced by positive special effects in 2024, such as numerous elections in Austria, but also currency effects associated with the Turkish lira. 2025 also had two fewer working days than the previous year. Revenue in the Mail Division fell by 6.8 %

(–3.0 % as against 2023), while the Parcel & Logistics Division reported a slight 0.4 % increase (+21.4 % as against 2023) and the Retail & Bank Division recorded an 8.8 % drop (+9.0 % as against 2023).

The Mail Division accounted for 37.8 % of Austrian Post’s revenue in the 2025 financial year. The division’s revenue of EUR 1,155.2m was dominated by the structural decline in the volume of addressed letters due to electronic substitution, but also by the fact that the positive special effects seen in the previous year, particularly associated with elections in the amount of around EUR 40m, no longer applied. Weaker performance in individual retail segments also translated into a cautious investment climate and, as a result, lower corporate advertising spending.

The Parcel & Logistics Division generated 56.2 % of Group revenue, or EUR 1,719.9m, in the reporting period. Revenue in Austria showed positive development. In Türkiye, a decline was recorded due to difficult market conditions, strong competition and capacity restrictions due to a disruption in the IT infrastructure in the fourth quarter of 2025. In Southeast and Eastern Europe, there was a slight decline in revenue due to lower parcel volumes from Asia in the first half of 2025. These volumes had risen sharply in the same period of the previous year.

The Retail & Bank Division achieved a 6.0 % share of Group revenue in the 2025 financial year with revenue of EUR 183.8m, a drop of 8.8 %. The termination of the previous telecommunications distribution cooperation and a decline in the ECB interest rate contributed to this development.

Revenue in the Mail Division amounted to EUR 1,155.2m in 2025, 62.0 % of which can be attributed to the Letter Mail & Business Solutions business, 26.4 % to Direct Mail and 11.6 % to Media Post.

At EUR 716.6m, revenue in the Letter Mail & Business Solutions business fell short of the prior-year level by 7.2 % in the 2025 financial year. Volumes continued to decline as a result of the substitution of letters by electronic forms of communication. The volume of addressed letters in Austria fell by 8 % in 2025 (adjusted for elections). The previous year had been dominated in particular by numerous elections in Austria (Chamber of Labour, European Parliament and National Parliamentary elections). International letter mail and the Business Solutions segment reported a slight decrease in revenue.

Revenue from Direct Mail fell by 6.6 % to EUR 305.0m in the 2025 financial year. Direct mail business remains subdued due to economic conditions, with structural declines in specific customer segments (e. g. furniture shipments and mail order). Adjustments to the price structure were unable to fully compensate for the decline in revenue volume.

The revenue from Media Post, i. e. the delivery of newspapers and magazines, fell by 5.2 % year-on-year to EUR 133.6m.

Revenue in the Parcel & Logistics Division rose slightly by 0.4 % to EUR 1,719.9m in the 2025 financial year. In comparable terms – i. e. before a change in the presentation of revenue due to reclassification in Logistics Solutions – the year-on-year increase came in at 1.2 %. Revenue increased in Austria, while revenue in Türkiye declined after a strong increase in the previous year (2024: +45.5 %) and also dropped in Southeast and Eastern Europe, influenced by exceptionally high volumes from Asia in the prior-year period (volume increase in Asia in 2024: +37 %).

The Austrian parcel business saw revenue increase by 5.8 % to EUR 982.6m in the reporting period, with volume growth in the parcel business of 3 %.

Revenue in the Türkiye+ parcel region (Türkiye, Azerbaijan, Georgia, Uzbekistan) fell by 6.0 % as against 2024 to EUR 485.9m, but was 36.8 % higher than in 2023. The Turkish market is dominated by intense competition and a tendency among major e-commerce players to opt for self-delivery. Business performance remains heavily influenced by inflation trends and the exchange rate of the Turkish lira. In addition, the Turkish subsidiary experienced capacity constraints due to an incident affecting its IT infrastructure in the fourth quarter of 2025.

The parcel business in Southeast and Eastern Europe Parcel (CEE/SEE) is subject to fierce competition and volatile volume developments among Asian senders. Revenue fell by 0.9 % to EUR 211.6m in the 2025 financial year. Parcel volumes in these countries have remained constant compared to the previous year.

Revenue in Logistics Solutions declined from EUR 67.6m to EUR 54.7m in the reporting period due to a change in presentation; approximately EUR 14m in revenue was reclassified to intra-Group assets as a result of company integration measures.

Revenue in the Retail & Bank Division fell by 8.8 % to EUR 183.8m in the 2025 financial year, with 77.9 % attributable to income from financial services and 22.1 % to branch services. Income from financial services declined by 9.8 % to EUR 143.3m in the current reporting period, mainly due to a lower key interest rate than in the previous year. Branch services fell by 5.0 % to EUR 40.5m in the 2025 financial year due to the termination of the previous telecommunications distribution cooperation.

EARNINGS DEVELOPMENT

The structure of expenses at Austrian Post features a high share of staff costs. Accordingly, 46.8 % of total operating expenses incurred by Austrian Post in 2025 were accounted for staff costs. The second largest expense item, at 30.5 %, was the cost of raw materials, consumables and services used, which largely includes outsourced transport services. Furthermore, 14.2 % was attributed to other operating expenses and 7.3 % to write-downs. Expenses for financial services account for 1.3 % of total operating expenses.

Staff costs in the 2025 financial year amounted to EUR 1,391.1m, down by 1.0 % or EUR 14.4m. Changes result from the efficiency and cost measures implemented, which compensate for the cost increase from salary adjustments under collective bargaining agreements within operating staff costs in Austria and internationally. In 2025, the Austrian Post Group employed an average of 28,081 full-time equivalents, thanks to increased insourcing activities such as freight services and more employees working at its international subsidiaries, compared with an average of 27,802 employees in the previous year (+1.0 %).

Non-operating staff costs relate to termination benefits and changes in provisions, which can be attributed primarily to the specific employment situation of civil servant employees. In contrast to the previous year, no additional provisions had to be set up in the 2025 financial year.

Raw materials, consumables and services used fell by 1.4 % to EUR 907.5m in 2025. An increase in relation to transport is offset by a decline in fuels as well as in leasing staff due to the move to step up insourcing activities.

Other operating income rose by 15.0 % to EUR 119.7m in 2025. Other operating expenses fell by 3.6 % to EUR 421.4m.

Any comparison with the previous year is only of limited significance, as the result in 2024 was heavily influenced by positive special effects, such as the three major elections in Austria and the currency effect of the Turkish lira. EBITDA in 2025 came to EUR 413.3m, 2.2 % below the previous year’s level of EUR 422.7m, corresponding to an EBITDA margin of 13.6 %. Depreciation and amortisation in 2025 were up by 3.1 % or EUR 6.4m year-on-year to EUR 216.2m. EBIT totalled EUR 196.9m in the financial year under review, as against EUR 207.3m in the previous year (–5.0 %). The EBIT margin came to 6.5 %.

The Group’s financial result declined from minus EUR 10.5m to minus EUR 15.9m in 2025 due to a year-on-year drop in interest income. Income tax fell from EUR 50.8m to EUR 47.0m, producing a tax rate of 26.0 % for the 2025 financial year. The profit for the period for the 2025 financial year totalled EUR 134.0m compared with EUR 145.9m a year earlier (–8.1 %). Earnings per share were EUR 1.96 compared to EUR 2.04 in the prior-year period (–4.1 %).

EARNINGS BY DIVISION

In terms of divisional result, the Mail Division achieved EBIT of EUR 129.7m in 2025 as against EUR 159.1m in the previous year (–18.5 %). The lower result is attributable to the decline in shipment volumes and the positive special effects from elections seen in the previous year.

The Parcel & Logistics Division generated EBIT of EUR 81.5m in the 2025 financial year, compared to EUR 103.3m in the previous year (–21.1 %). While Austria saw positive development in the parcel business, Austrian Post experienced a downward trend in its international markets. In addition, currency effects had a positive impact on earnings in the previous year.

The Retail & Bank Division reported EBIT of EUR 6.9m in 2025, as against minus EUR 11.8m in the previous year. The improvement in earnings is attributable to the positive performance of bank99 on the one hand and to good results in branch business on the other.

EBIT in the Corporate Division (incl. Consolidation and the intra-group apportionment procedure) changed from minus EUR 43.4m to minus EUR 21.2m (+51.1 %). The improve-ment in earnings is attributable, on the one hand, to negative effects in the previous year, such as provisions that were set up and write-downs that were recognised, and, on the other, to cost savings and higher income from the sale of properties not required for operations in the current report-ing period compared with the previous year. The Corporate Division provides non-operating services which are essential for the purpose of the administration and financial control of a corporate group. In addition to conventional governance tasks, these activities include the management and devel-opment of properties not required for operations, the manage-ment of significant financial investments, the provision of IT services, the development of new business models and the administration of the Internal Labour Market of Austrian Post.

CASH FLOW AND BALANCE SHEET

Cash flow from earnings amounted to EUR 349.3m in the 2025 financial year, compared with EUR 395.5m in 2024 (–11.7 %). Cash flow from operating activities totalled EUR 362.4m in the reporting period as against the previous year’s figure of EUR 121.7m. This item includes the changes in the core banking assets of bank99 amounting to minus EUR 14.3m, as against minus EUR 237.6m in the previous year. Core banking assets include the change in the balance sheet items financial assets from financial services and financial liabilities from financial services, excluding cash, cash equivalents and central bank balances, meaning that they encompass the deposit and investment business of bank99. Cash flow from operating activities excluding core banking assets amounted to EUR 376.7m in the 2025 financial year as against EUR 359.3m a year earlier (+4.8 %).

Cash flow from investing activities amounted to minus EUR 127.1m in 2025 after minus EUR 150.5m in the previous year. Expenses for the acquisition of property, plant and equipment and investment property (CAPEX for property, plant and equipment) amounted to EUR 126.0m in the reporting period as against EUR 143.1m in 2024 (–12.0 %).

Austrian Post relies on operating free cash flow as an indicator in order to assess the financial strength of its operating business and to cover the dividend for the financial year. Operating free cash flow, excluding the change in core banking assets, amounted to EUR 280.1m in the current reporting period, compared to EUR 253.9m in the previous year (+10.3 %). The increase also includes a positive tax effect from a previous period.

Cash flow from financing activities totalled minus EUR 212.4m in 2025 as against minus EUR 152.7m in the previous year, and included distributions of EUR 127.0m in the current financial year, EUR 123.6m of which related to the dividend payment to Austrian Post shareholders.

Austrian Post’s total assets of EUR 6.6bn as at 31 December 2025 have expanded significantly since the inclusion of bank99 in 2020. On the assets side, the consolidated balance sheet as at 31 December 2025 showed cash and cash equivalents of bank99 amounting to EUR 0.6bn and loans (mortgage loans, consumer loans) of bank99 amounting to EUR 2.0bn. On the liabilities side, the consolidated balance sheet includes customer deposits of bank99 amounting to EUR 3.8bn.

Including bank99, the balance sheet is as follows: property, plant and equipment of EUR 1,368.1m was one of the largest balance sheet items and included right-of-use assets under leases of EUR 365.3m. In addition, there were intangible assets and goodwill, which are reported in the amount of EUR 156.9m as at 31 December 2025. The balance sheet shows receivables of EUR 489.7m, which include current trade receivables of EUR 348.4m. Other financial assets amounted to EUR 57.5m as at 31 December 2025. Financial assets from financial services amounted to EUR 4,134.7m at the end of 2025 and mainly result from the business activities of bank99.

On the equity and liabilities side of the balance sheet, the equity of the Austrian Post Group amounted to EUR 767.6m as at 31 December 2025 (equity ratio of 11.7 %). Excluding the financial services business from the Austrian Post Group, the logistics equity ratio (equity to total capital excluding financial liabilities from financial services) was 30 % at the end of December 2025. Provisions of EUR 512.9m are shown on the equity and liabilities side as at 31 December 2025, other financial liabilities amounted to EUR 666.0m and trade and other payables totalled EUR 652.9m. Financial liabilities from financial services amounting to EUR 3,959.9m result from the business activities of bank99 (deposit and investment business of bank99’s customers).

OUTLOOK 2026

The underlying trends in the international letter mail and parcel markets remain unchanged. The letter mail business is experiencing volume declines, driven by digitalisation efforts on the part of private and public-sector customers in a weak economic environment.

E-commerce, on the other hand, is the driving force behind rising parcel volumes. Many markets are simultaneously facing intense competition and uncertainties due to regulatory restrictions on international trade flows.

Revenue in 2026
Following a decline in revenue in 2025 of 2.6 % as against 2024, but an increase of 11.0 % compared to 2023, 2026 is expected to bring a return to a slight upward revenue trend. Divisional reporting will change in the 2026 financial year:

Revenue from branch services will no longer be reported under financial services, and will be moved to the new division: Mail, Retail & Services (formerly Mail). In this division, declining letter mail and advertising volumes will continue to dominate business development. Product and price adjustments will make a positive contribution to revenue, as will branch services of around EUR 35m (formerly in Retail & Bank Division). This includes the establishment of the new in-house mobile phone brand YELLLOW in Austria and the loss of approximately EUR 20m in revenue contributions from the terminated telecommunications distribution cooperation. All in all, a decline in revenue in the low single-digit range is expected for 2026.

In the E-Commerce & Logistics Division (formerly Parcel & Logistics), on the other hand, growth is expected to be in the upper single-digit range. If the overall economic environment remains stable,
e-commerce is expected to continue to provide momentum, with growth among international senders in particular. Uncertainties regarding predicted future trade flows has arisen due to European and national ideas to relocate international value creation by taking regulatory measures. Growth is expected for the markets in Austria, Southeast and Eastern Europe, and Türkiye, but will depend on the momentum from online retail and the competitive environment in each market. While steady positive development is expected in Austria, additional revenue contributions resulting from the acquisition of a Hungarian parcel service provider are anticipated in Southeast and Eastern Europe. In addition, the acquisition of euShipments.com, the leading e-commerce service provider in Southeast and Eastern Europe, should be completed. Transactions for both companies are expected to close at the end of the first quarter of 2026. Inflation and currency developments will remain critical revenue factors in the Turkish market.

The new Bank Division (formerly Retail & Bank) will report only income from financial services provided by bank99 in 2026. Based on the low key interest rates compared to the previous year, we expect revenue to remain at the same level as the previous year.

Earnings in 2026
In addition to a slightly positive revenue trend, cost increases due to inflation are expected to continue. Comprehensive initiatives are therefore being launched to secure the Group’s earnings level. In 2026, faced with a difficult macroeconomic environment and a slightly improved economic outlook, Austrian Post is aiming to achieve largely stable earnings development in line with recent years. bank99 will continue to make a positive contribution to earnings, due in part to the discontinuation of the core banking migration.

Revenue and earnings are expected to be weaker in the first half of the year and stronger in the second half. This is subject to the completion of the corporate transactions that have already been announced, and takes into account the terminated telecommunications distribution cooperation and the establishment of the company’s own mobile phone brand.

Investments in 2026
Investments in property, plant and equipment (CAPEX) for 2026 will be in the range of EUR 140m to EUR 160m, plus approximately EUR 20m for intangible assets. The focus in 2026 and 2027 will be on expanding and modernising the logistics centre in Salzburg and increasing the number of parcel machines, primarily in Southeast and Eastern Europe. Another key focus is the gradual electrification of the delivery fleet in order to achieve last-mile delivery in Austria completely CO₂-free by 2030.

Austrian Post will continue to strive to combine growth with an attractive dividend policy. The Management Board will propose a stable dividend of EUR 1.83 per share to the Annual General Meeting on 15 April 2026. The company is thus continuing its dividend policy and remains committed to the goal of distributing at least 75 % of the net profit to shareholders.