Oblin on Q1: In view of the difficult market environment, Austrian Post held up well

Austrian Post has published its Q1 figures, which reveal sales slightly improved and earnings below previous year’s level, as expected.

Revenue

• Consolidated revenue +0.9% to EUR 770.7m
• Mail, Branch & Services –7.6% to EUR 289.9m
• E-Commerce & Logistics +6.9% to EUR 447.4m
• Bank –7.6% to EUR 35.2m

Result

• EBITDA from EUR 101.6m in the previous year to EUR 93.8m in Q1 2026
• EBIT from EUR 48.4m in the previous year to EUR 36.8m in Q1 2026

Cash flow and balance sheet

• Operating free cash flow of EUR 73.4m
• Equity of EUR 722.4m as of 31 March 2026

Outlook for 2026 unchanged

• Slight increase in sales expected
• Capital expenditure (CAPEX) of EUR 140–160 million
• Earnings development (EBIT) largely stable in the order of the last few years

The start of 2026 was marked by a difficult geopolitical and economic environment. Digitization and cost pressure among important customer groups led to a further decline in letter and advertising volumes in the first quarter, which must be countered by regulatory and process-related adjustments. E-commerce continues to be the growth driver in the parcel market, combined with high quality requirements and intense competition in the markets.

“In view of the difficult market environment, Austrian Post held up well in the first quarter. Sales improved slightly – driven by e-commerce growth – and earnings in the first quarter of 2026 are below the previous year’s level, as expected,” says CEO Walter Oblin. “Highlights of the first few months were also the successful launch of our mobile phone brand YELLLOW, the good development of bank99 and the integration of the e-commerce service provider euShipments.com.”

Revenue in the first quarter of 2026 increased by 0.9% to EUR 770.7m. In the Mail Division, Branch & Services, revenue fell by 7.6% to EUR 289.9m, impacted by the structural decline in addressed letter mail volume due to electronic substitution. In addition, a reduction was recorded in the addressed advertising business in particular, which is due to cost-cutting measures by advertising customers. The E-Commerce & Logistics Division’s revenue of EUR 447.4m (+6.9%) developed very satisfactorily in Austria and in the South-East and Eastern Europe region, with volume growth of 10% and 9% respectively, while in the Turkey+ region (which includes Turkey, Azerbaijan, Georgia and Uzbekistan) there were regulatory declines in volumes from Asia (volume development –2%). Although the Bank Division, with revenues of EUR 35.2m, recorded a decline in income from financial services due to the lower interest rate environment, it was able to increase net interest income and generate a sustained positive result.

As expected, the result for the first quarter of 2026 was below the previous year’s level due to the transformation in the telecommunications sector, the challenging competitive environment in Southeastern and Eastern Europe and the regulatory loss of volumes in Turkey due to restrictive import rules for parcels from Asia. EBITDA fell from EUR 101.6m in the previous year to EUR 93.8m in the reporting period, and earnings before interest and taxes (EBIT) fell from EUR 48.4m to EUR 36.8m. In the first quarter of 2026, Austrian Post’s net profit for the period amounted to EUR 15.3m, compared with EUR 39.6m in the previous year (based on inflation and exchange rates) due to a negative valuation effect on the remaining 20% of the shares in Aras Kargo. This results in earnings per share of EUR 0.22 for the first quarter of 2026, compared to EUR 0.56 in the same quarter of the previous year.

For 2026 as a whole, the underlying trends remain unchanged against the backdrop of ongoing economic uncertainties. While declining volumes can be observed in the mail business as a result of major customers’ ongoing digitalization efforts, the continued strong e-commerce trend is ensuring continued growth in parcel volumes. At the same time, intense competition is to be expected in numerous markets. Additional uncertainties arise from regulatory restrictions on international trade. Despite the existing geopolitical uncertainties, Austrian Post expects a slight increase in revenue in 2026. In addition, the company expects inflation-related cost increases. Comprehensive initiatives are therefore being taken to safeguard the Group’s earnings level. For 2026, Austrian Post continues to aim for a largely stable earnings development in the order of magnitude of recent years despite the difficult macroeconomic environment. The expectations of a weaker first half of the year and a stronger second half of the year are confirmed.

For 2026, investments in property, plant and equipment are also expected to be in the range of EUR 140 million to EUR 160 million, as in recent years. The focus is on the expansion and modernization of the Salzburg logistics center, the expansion of parcel terminals in Southeastern and Eastern Europe and the ongoing electrification of the delivery fleet. The goal is a completely CO₂-free last mile in Austria by 2030.