CTT - Correios De Portugal (CTT) Q2 2026 earnings summary

Executive summary

• Revenues reached €674.3m in 1H26, up 12.9% year-over-year, driven by strong e-commerce Solutions and CEP growth, with Mail & Services showing resilience despite election-related headwinds.

• Net profit declined to €12.9m, down 41.6% year-over-year, impacted by regulatory headwinds in customs clearance, higher operating costs, and lower recurring EBIT.

• E-commerce Solutions led revenue growth (+29.6% y.o.y.), with diversification into Iberian and EU marketplaces enhancing resilience.

• Financial services and savings placements accelerated, supported by higher interest rates and digital adoption.

• Operating cash flow was €22.2m, mainly due to a reversal of working capital investment in 2Q26.

Financial highlights

• 1H26 revenues reached €674.3m (+12.9% y.o.y.), with EBITDA at €84.1m (-3.0% y.o.y.) and recurring EBIT at €41.0m (-12.5% y.o.y.).

• Organic revenue growth of 6.3% year-over-year, with CEP organic growth at 21.2%.

• Free cash flow improved to €31m sequentially, but dropped to €6.9m in 1H26 due to higher capex and working capital.

• Net debt stood at €24.0m, with net debt/EBITDA at 1.8x.

• EBITDA margin for 1H26 at 12.5%, down from 14.5% in 1H25.

Outlook and guidance

• 2026 recurring EBIT guidance (excluding non-CEP) set at €105–110m; consolidated EBIT guidance at €115–125m.

• Expecting at least mid- to high single-digit CEP volume growth for full year 2026, with continued strong performance in Mail & Services and financial services.

• Efficiency measures and restructuring charges of €10–12m planned for 2026.

• Dividend payout ratio maintained at 35–50%, with increased share buyback program.

• Cacesa/customs business outlook remains volatile due to regulatory changes, with risk of execution highlighted.