Posti improved both its net sales and profitability in Q3

Posti Group Corporation January-September Interim Report: Posti’s growth continued and profit improved in the third quarter

Unless otherwise stated, the figures in brackets refer to the corresponding period in the previous year. Figures presented in this report are unaudited.

Financial highlights in July–September 2026

• Net sales increased by 2.4% to EUR 352.1 (343.8) million.
• Adjusted EBITDA increased to EUR 51.1 (48.3) million, or 14.5% (14.0%) of net sales.
• Adjusted operating result (adjusted EBIT) increased to EUR 20.1 (17.1) million, representing 5.7% (5.0%) of net sales.
• Operating result (EBIT) increased to EUR 18.5 (12.0) million, representing 5.3% (3.5%) of net sales, which was negatively impacted by the special items of EUR 1.5 (5.1) million.
• Result for the period increased to EUR 10.0 (5.3) million.

 Financial highlights in January– September 2026

• Net sales increased by 0.9% to EUR 1,066.6 (1,057.2) million.
• Adjusted EBITDA decreased to EUR 133.1 (134.3) million, representing 12.5% (12.7%) of net sales.
• Adjusted operating result (adjusted EBIT) decreased to EUR 39.1 (39.3) million, representing 3.7% (3.7%) of net sales.
• Operating result (EBIT) increased to EUR 42.1 (27.5) million, representing 3.9% (2.6%) of net sales. EBIT was positively impacted by sale of investment property in the first quarter.
• Result for the period increased to EUR 18.7 (8.8) million.
• Operative free cash flow was EUR 8.7 (-64.6) million.
• Net debt to adjusted EBITDA was 2.5x (2.6x).
• Earnings per share (EPS), basic and diluted, was 0.46 (0.22).

Operational highlights in July–September 2026

• Strong operational execution in the eCommerce and Delivery Services continued, with adjusted EBIT more than doubling to EUR 15.3 (7.5) million from the comparison period and adjusted EBIT margin strengthened to 8.7% (4.7%).
• Growth in the eCommerce and Delivery Services was driven in particular by a 14.2% increase in parcel volumes.
• Fulfillment and Logistics Services’ adjusted operating result (adjusted EBIT) was positive during the seasonally strong third quarter, also reflecting the success of measures taken to improve profitability. At the same time, the segment’s net sales continued to grow, maintaining the positive trend seen throughout the year.
• In Postal Services, the decline in addressed letter volumes accelerated to 25.9% (18.0%).
• The Astra renewal program, to manage the transition from declining letter volumes to growing parcel volumes, is progressing as planned. The program is already delivering first cost savings and synergy benefits.

Guidance for 2026 unchanged (published on February 13, 2026)

Posti is expecting its net sales to be within the range of EUR 1,400–1,500 million, and adjusted EBIT to be within the range of EUR 63–79 million in 2026. In 2025, Posti’s net sales were EUR 1,447.6 million and adjusted EBIT was EUR 69.3 million.

Background for guidance for 2026

The operating environment in the logistics sector has strengthened in recent months; however, economic uncertainty remains. Economic activity has continued to improve, while geopolitical tensions, trade uncertainties and volatility in energy and financial markets continue to create risks to the outlook. In Finland, economic growth has gradually begun to recover, while economic activity in Sweden and the Baltics has strengthened.

Posti serves a broad customer base, making the Group’s business and financial performance sensitive to both GDP growth and confidence indicators. In Finland, the economy has started to recover, however, consumer demand remained constrained due to weakened consumer confidence. Given the uncertainty around recent consumer confidence, visibility into the peak season is limited. Tightening trade policies, geopolitical tensions, financial market volatility, and potential additional fiscal adjustment measures may impact Finland’s economic recovery.

Growth in ecommerce, both domestically and internationally, is expected to continue to support the expansion of the parcel market. This growth is driven in particular by increased recommerce activity and the rising number of smaller parcels. Competition in the parcel market in Finland and the Baltics is expected to remain intense.

Digitalization of letter mail is expected to continue to accelerate, and postal volumes are expected to decline further. Posti continues to develop its delivery models for paper mail and offers digital mail solutions to support customers in their transition to digital services. Legislation that came into effect in April 2026 changed the delivery of official government communications to primarily digital channels, further accelerating the decline in letter mail volumes. In these changing market conditions, Posti remains committed to customer centricity and continuously develops its services in response to evolving customer needs.

Demand in the warehousing market is expected to be influenced by ongoing economic uncertainty. Companies are expected to continue focusing on inventory optimization and cost efficiency, which is likely to keep the demand at a moderate level.

The Group’s business is characterized by seasonality, and net sales and adjusted EBIT are not accrued evenly throughout the year. The fourth quarter is typically the strongest quarter. Posti continues to improve its operational efficiency to support profitability. Concrete examples include the renewal program to strengthen our synergies and the further development of self-service points.

Mid-term financial targets

Posti Group’s mid-term financial targets 2026 onwards:

•                     Average organic net sales growth (3–5-year period) of at least 2% at Group level and at least 5% outside Postal Services compared to 2025

•                     Baseline for 2025 at Group level of EUR 1,447.6 million

•                     Baseline for 2025 outside Postal Services of EUR 917.1 million

•                     Average adjusted operating result (adjusted EBIT) growth (3–5-year period) over 5% compared to 2025

•                     Net debt to adjusted EBITDA less than 2.5x.

Posti Group’s target is to pay continuously increasing ordinary dividends, and a payout ratio of at least 60 percent of net income.

Key Figures of Posti Group

*Restatement related to a change in the headcount and the FTE calculation method

President and CEO’s Review

The partial recovery in consumer demand accelerated the growth of ecommerce and parcel volumes and strengthened demand for Posti’s services during the third quarter. Posti improved both its net sales and profitability, driven by the strong performance of its eCommerce and Delivery Services. Our growth was strong as market conditions gradually improved, despite continued geopolitical uncertainty and the pressure from inflation and elevated interest rates.

Posti Group’s net sales increased by 2.4% to EUR 352.1 (343.8) million in the third quarter. Adjusted EBIT improved by EUR 3.0 million from the comparison period to EUR 20.1 (17.1) million, while the adjusted EBIT margin increased to 5.7% (5.0%). The Group’s result for the period nearly doubled to EUR 10.0 (5.3) million. Posti’s financial position remained solid; net debt to adjusted EBITDA improved to 2.5x.

Operational performance in the eCommerce and Delivery Services segment was strong. Net sales increased by 10.5%, driven by strong commercial execution, freight sales and increased demand for ecommerce and parcel deliveries. Parcel volumes grew by 14.2% during the third quarter, supporting net sales growth. The segment’s profitability more than doubled from the comparison period, and the adjusted EBIT margin increased to a record-high 8.7% (4.7%). We continuously develop Finland’s most extensive network of parcel lockers and service points based on customer needs, making sending and receiving parcels as easy as possible for our customers.

Market conditions in the Fulfillment and Logistics Services segment remained challenging in Finland and Sweden due to overcapacity and pricing pressure. Despite this, segment’s net sales grew and adjusted operating result (adjusted EBIT) was positive during the seasonally strong third quarter, also reflecting the success of the efficiency measures we have implemented. We continue to work systematically to strengthen our competitiveness and profitability.

The combined share of Posti’s strategic growth segments, eCommerce and Delivery Services and Fulfillment and Logistics Services, increased to 70% of Group net sales. Group net sales excluding the Postal Services segment increased by 8.3%, or EUR 18.9 million, during the quarter. Commercial activity remained strong during the quarter, with active sales efforts and a healthy pipeline supporting growth and our strategic transition towards a business portfolio increasingly focused on parcel, logistics and digital services. However, given the uncertainty around recent consumer confidence, visibility into the peak season is limited.

The transition of official communication from government and authorities primarily to digital channels further accelerated the decline in addressed letter volumes, which declined by 25.9% during the quarter. We were partially able to compensate for this level of decline by commercial and operational actions. The accelerated volume decline weakened Postal Services’ quarterly net sales and profitability. Segment’s adjusted EBIT margin was 7.1%.

We continue to adapt our operations to the changing market. The Astra renewal program is progressing as planned and has already delivered cost savings and synergy benefits during the third quarter. However, the ongoing market transformation and rapid digitalization also highlight the need to reform postal legislation to better reflect today’s operating environment.

The legislative reform that entered into force at the beginning of September enables letters from authorities to be distributed also through private digital postal lockers. Our digital service, OmaPosti, already has 2.8 million registered users and reaches approximately 80% of Finland’s working-age population. The reform can strengthen OmaPosti’s position as one of Finland’s most significant digital service platforms.

During the third quarter, we achieved significant sustainability milestones. We received our highest-ever score in the international EcoVadis sustainability assessment and ranked among the top 2% of all globally assessed companies. In addition, Posti became the first company in Finland to receive the Nordic Swan Ecolabel for ecommerce deliveries, covering all our consumer parcel services. This recognition demonstrates the results of our long-term sustainability efforts in reducing emissions, improving energy efficiency and modernizing our fleet.

One year has now passed since Posti’s listing, and shareholders who participated in the IPO Bonus Offering have received their bonus shares. I would like to thank our shareholders for their trust in us. During our first year as a listed company, we have made determined progress in implementing the growth and profitability initiatives outlined at the time of the listing, and this development supports our advancement towards our medium-term financial targets. We will continue on this path to strengthen our competitiveness, increase shareholder value over the long term and deliver on our progressive dividend policy. I would also like to thank all Posti employees for their commitment and contribution in driving our transformation and delivering strong results.

Antti Jääskeläinen, President and CEO, Posti Group Corporation