Brewer: The Group delivered a more resilient performance in the first quarter
Pos Malaysia Berhad today announced its financial performance for the first quarter (“Q1”) of 2026. The Group recorded RM501.4 million in revenue in Q1 FY2026, representing a 7.2 per cent increase quarter-on-quarter (vs Q4 FY2025) and 7.3 per cent growth year-on-year (vs Q1 FY2025). Loss before tax improved by 79.7 per cent quarter-on-quarter, and 63.7 per cent year-on-year, driven by stronger contributions from all segments, and in particular from postal, aviation and ‘other’ segments.
Charles Brewer, Group Chief Executive Officer of Pos Malaysia said: “The Group delivered a more resilient performance in the first quarter, supported by revenue growth across all segments, and particularly strong contributions from the postal and aviation segment, coupled with continued cost control initiatives. While structural challenges remain—particularly within the Postal segment, we are beginning to see the benefits of network optimisation, more disciplined revenue management and targeted digitalisation under our ongoing transformation efforts. Our focus is now firmly on sustaining this operating discipline, improving earnings quality, and positioning the Postal segment for long-term viability, including through constructive engagement on Postal Services Act reforms and funding for delivering the Universal Service Obligation.”
Postal Segment
Parcel volumes grew by 24.6% year-on-year, driven by both sustained e-commerce activity and market share gains, with management continuing to prioritise margin accretion alongside volume growth. Notwithstanding this positive momentum, the segment remains structurally challenged by the ongoing headwinds related to both the continued declines in traditional mail volumes, and reduced retail footfall amid accelerating digital adoption. The regulatory environment continues to be a key determinant of long-term financial sustainability, particularly in relation to the Postal Services Act reform and associated Universal Service Obligation funding mechanisms. Against this backdrop, the postal segment remains focused on driving cost efficiency, network optimisation, and pursuing disciplined revenue improvement initiatives to strengthen resilience and sustainability.
Pos Aviation
Pos Aviation delivered improved performance during the quarter, supported by stronger contributions from ground handling, cargo handling, and in-flight catering operations. The segment is expected to maintain stable performance subject to prevailing market conditions and operational developments.
Pos Logistics
Pos Logistics continues to make progress in the execution of its business restructuring programme, with a clear focus on selective contract rationalisation, overhead optimisation, and productivity improvements. Management remains closely focused on tracking the pace of recovery against established milestones to ensure sustained operational improvements.
Service Excellence
Pos Malaysia continues to focus on providing a ‘best in class’ service, one that is fit for purpose, fit for the future and focused on leveraging digital advancements that deliver. Through targeted network optimisation, tighter operational discipline and enhanced service monitoring, the Group strengthened on-time performance across its delivery network. These efforts delivered a step change in performance. Parcel next day delivery (D+1) performance improved to 92% in 2025, significantly enhancing delivery reliability and the overall customer experience.
Pos Malaysia’s progress in service excellence received international recognition when it secured the Gold Award for International Express Mail Service (EMS) from the Universal Postal Union (UPU), ranking third among 198 postal operators worldwide. This achievement highlights the Group’s continued drive to raise service standards, strengthen customer trust and enhance global competitiveness.
Outlook for FY2026
The Group remains focused on delivering value, through the continued execution of its transformation framework, encompassing network rationalisation, digital channel expansion, and disciplined cost management. While the operating environment is expected to remain challenging amid structural industry pressures, competitive dynamics, necessary regulatory changes and ongoing geopolitical uncertainties — including developments in the Middle East, which are influencing flight numbers, global freight rates, fuel costs, and air cargo volumes.
