Austrian Post Lags Behind Previous Year’s Figures in the Third Quarter

After strong revenue growth in 2024, which was supported by some positive one-off effects, the first nine months of 2025 for the Austrian Post were marked by challenging macroeconomic conditions in the letter and parcel business. The year-on-year comparison is particularly affected by the major elections in Austria as well as the favorable currency effects of the Turkish lira in 2024.

(Wien) Against the backdrop of economic uncertainties, the fundamental trends in international letter and parcel business remain intact. Cost pressure and digitalization among private and public customer groups lead to declining letter and advertising volumes. At the same time, the growing parcel markets are characterized by intense competition. “The Austrian Post has developed solidly in this challenging market environment – following the positive effects of the previous year – in the first three quarters of 2025,” says Walter Oblin, CEO of the Austrian Post. “I am particularly pleased with bank99, which has generated a positive result and was able to place its first bond in the third quarter.”

Cautious Investment Climate

Revenue in the first three quarters of 2025 amounted to EUR 2,212.4 million, which is 1.1% below the level of 2024 and 12.3% above 2023. In the Letter & Advertising division, revenue decreased by 7.0% compared to the first three quarters of 2024 and by 2.3% compared to 2023, influenced by the structural decline in addressed letter volumes due to electronic substitution and the absence of the positive one-off effects from the previous year. Additionally, a cautious investment climate, efficiency measures, and lower advertising expenditures by companies are noticeable. In the Parcel & Logistics division, revenues increased by 3.9% compared to the first three quarters of the previous year on a comparable basis – before a reclassification of revenues due to restructuring in the Logistics Solutions area – and by 22.4% compared to 2023. Revenues have developed positively in the current reporting period in Austria (+5.2%) and Turkey (+5.3%). In the Southeast and Eastern European region, there was a decline in revenues following a strong increase due to Asian volumes in the same period of the previous year. Business in Turkey continues to be significantly influenced by inflation and the exchange rate of the Turkish lira. The Branch & Bank division showed a revenue decline of 4.5% (+17.6% compared to 2023). A slight increase in branch services could not fully compensate for the decline in financial services due to the lower key interest rate level.

The results development also reflects the previous year, which was supported by positive one-off effects: EBITDA decreased by 3.2% to EUR 295.1 million, and earnings before interest and taxes (EBIT) fell by 6.6% to EUR 135.1 million. Both key figures are 4.5% and 3.4% above the comparative value of 2023. A decline in results in the letter business and lower profitability in Southeast and Eastern Europe as well as Turkey contrast with an improvement in results in the Branch & Bank division. The bank99, founded in 2020, has positively contributed to the overall result with its approximately 300,000 customers in Austria. Thus, a net result of EUR 97.3 million (-8.3%) was achieved in the first three quarters of 2025, with earnings per share of EUR 1.41 compared to EUR 1.48 in the previous year’s period (-5.2%).

Structural Changes in the Letter and Parcel Business Will Continue

It is assumed that the structural change in the letter and parcel business will continue. Following the strong revenue increase of 13.9% in 2024 – characterized by positive one-off effects such as numerous elections in Austria and currency effects from the Turkish lira – a stable development is therefore forecast, with a slight decline in 2025 and a slight increase in 2026. Against the backdrop of challenging conditions, both revenue-side and cost-side initiatives have been initiated to secure the level of results. Based on current trends and assuming a steady course of the Turkish lira, a result (EBIT) for the fiscal year 2025 is expected to be slightly below the previous year, analogous to the development in the first nine months. For 2026, the Austrian Post aims for a largely stable results development in the order of the last years, despite a difficult macroeconomic environment and slightly improved economic forecasts.

Investments Will Be Around 150 Million Euros

Based on the average investment needs of recent years, the required investments (CAPEX) for 2025 will be approximately EUR 150 million. This amount includes both replacement investments and measures for the decarbonization of logistics as well as growth investments. With the completion of capacity expansion in Austria and a strengthened focus on the markets in Southeast and Eastern Europe as well as Turkey, the company is strategically setting impulses for the future. Another strategic focus is on the gradual electrification of the delivery fleet in Austria. The Austrian Post aims to fully transition its last-mile logistics to CO₂-free by 2030 at the latest. “With these steps, we will not only secure our excellent quality with increasing volumes but also continue to be a pioneer in green logistics,” Walter Oblin concludes.

Photo: © Austrian Post