CTT - Correios De Portugal (CTT) Q2 2025 earnings summary

Executive summary

• Revenues grew 13.9% year-over-year to €597.3m in 1H25, driven by Express & Parcels, Financial Services, and the integration of Cacesa.

• Recurring EBIT rose 33.9% year-over-year to €46.9m, with margin expansion, especially in Express & Parcels.

• All business divisions contributed to growth, with Financial Services and Bank showing strong performance.

• Free cash flow increased 138.5% year-over-year to €25.2m in 1H25, supporting balance sheet flexibility.

• The acquisition and integration of Cacesa strengthened Express & Parcels and customs clearance capabilities.

Financial highlights

• 1H25 revenues reached €597.3m (+13.9% y.o.y.), with Express & Parcels revenues up 28.6% to €270.6m.

• Recurring EBIT margin improved to 7.9% from 6.7% in 1H24, and net profit rose 34.3% year-over-year in 2Q25.

• Free cash flow for 1H25 at €25.2m (+138.5% y.o.y.), and operating cash flow up 74.1% to €23.3m.

• Net debt increased to €44.5m, with leverage at 2.4x net debt to EBITDA post-Cacesa acquisition.

• EBITDA increased 22.5% year-over-year to €86.7m.

Outlook and guidance

• 2025 recurring EBIT guidance upgraded to over €115m, including eight months of Cacesa.

• Revenues for 2025 expected between €1.1bn and €1.25bn, with Express & Parcels and Banco CTT as main growth drivers.

• Express & Parcels volume growth expected to remain above 15% for the rest of the year.

• Mail volumes expected to decline 6–8% for the full year, with seasonality favoring Q4.

• DHL joint venture antitrust review ongoing, with completion expected by year-end.