CTT - Correios De Portugal (CTT) Q1 2025 earnings summary

Executive summary

• Recurring EBIT grew 19.5% year-over-year, driven by strong recovery in financial services and logistics, with revenue up 9.5% to €288.5m; net income declined 25.9% due to restructuring, real estate, and M&A costs.

• The acquisition of Cacesa was completed for €106.8m, with integration underway and expected to deliver synergies within 3–6 months.

• Shareholder remuneration included a €25 million share buyback, a €0.17 per share dividend payable 15 May, and capital reduction via share cancellation.

• Banco CTT business volumes and revenues grew, with profit before tax stable at €5.1m; investments in digital and staff impacted margins.

• Strategic partnership with DHL to create a leading Iberian parcel network, with completion expected in 2H25.

Financial highlights

• Revenue increased 9.5% year-over-year to €288.5m; EBITDA rose 17.2% to €39.9m; recurring EBIT up 19.5% to €20.2m.

• Express & Parcels revenue grew 23% to €124.7m on 15% volume growth; recurring EBIT up 24.5% to €7m.

• Financial Services revenue surged 122.9% to €12.5m, recurring EBIT up 125.9%, driven by public debt placements.

• Mail & Other revenues declined 6% year-over-year, with recurring EBIT stabilizing due to cost control and price increases.

• Operating costs rose 8.4% to €248.7m, mainly from investments in capacity and quality.

Outlook and guidance

• 2025 guidance reaffirmed: revenues between €1.1bn and €1.25bn, recurring EBIT above €100m.

• Synergies from Cacesa integration expected within 3–6 months; DHL antitrust review ongoing, completion expected 4Q25.

• E&P margin expected to exceed last year’s level; financial services contribution to remain strong.

• Bank profitability growth will be modest in 2025 due to investment phase, with stronger growth expected in 2026.

• Continued vigilance on macro risks: geopolitical uncertainty, inflation, energy costs, and tariffs.