CTT - Correios De Portugal (CTT) investor relations material

Executive summary

• Revenues rose 14.1% year-over-year to €329.4m in Q1 2026, driven by strong e-commerce Solutions and Banco CTT, partially offset by a decline in Mail & Services.

• Profitability was impacted by temporary events, including the Middle East crisis, regulatory changes, and severe weather disruptions.

• Recurring EBIT fell 24% year-over-year to €15.3m, with margin contracting to 4.7% due to higher costs and operational disruptions.

• April showed strong recovery signs with accelerating e-commerce volumes and improved recurring EBIT.

Financial highlights

• Revenues reached €329.4m, up 14.1% year-over-year, with e-commerce solutions contributing nearly half.

• EBITDA declined 7.9% to €36.7m; recurring EBIT dropped 24% to €15.3m; net profit was €4.5m, down 17.6%.

• Free cash flow was negative at -€24.1m, impacted by seasonality, CapEx, and working capital outflows.

• EBIT margin compressed to 3.3% in Q1 2026 from 6.0% in Q1 2025.

• Operating costs increased 17.7% year-over-year to €292.6m, mainly due to Cacesa consolidation and higher external supplies and services.

Outlook and guidance

• April and early May indicate strong recovery in volumes and profitability, especially in e-commerce and public debt placements.

• Full-year 2026 guidance reiterated, targeting recurring EBIT of at least €125m (≥8% growth), with ≥11% growth excluding Banco CTT.

• Leverage expected to improve post-DHL JV closing in May 2026, with further deleveraging anticipated.

• Focus remains on e-commerce growth, cost control, and leveraging changes in public debt certificates.