ZTO Express (Cayman) (ZTO) Q1 2025 earnings summary

Executive summary

• Achieved 8.5 billion parcels in Q1 2025, representing 19.1% year-over-year growth and maintaining #1 market share in China's express delivery industry at 18.9%, with high service quality and profitability despite intense price competition and a higher proportion of low-value parcels.

• Adjusted net income rose 1.6% year-over-year to RMB 2.3 billion, with total revenue up 9.4% to RMB 10.9 billion.

• Retail parcel volume surged 46% and reverse logistics volume grew over 150% year-over-year, driven by deeper e-commerce partnerships.

• Maintained industry-leading profitability, with net profit share among Tongdas at ~63% in 2023 and strong operating margins.

• Continued expansion into adjacent logistics segments, including international, cold chain, LTL, and cloud warehousing, and advanced ESG initiatives with a 5% GHG emissions reduction in 2024.

Financial highlights

• Q1 2025 revenue was RMB 10.9 billion, up 9.4% year-over-year; adjusted net income was RMB 2.3 billion, up 1.6%.

• Gross profit was RMB 2.7 billion, down 10.4%; gross margin decreased to 24.7%.

• Adjusted EBITDA was RMB 3.7 billion, up 0.7%; operating cash flow was RMB 2.4 billion, up 16.3%.

• Capital expenditure for Q1 was RMB 2 billion; cash and cash equivalents at quarter-end were RMB 12.42 billion.

• SG&A expenses as a percentage of revenue were 4.7%.

Outlook and guidance

• 2025 full-year parcel volume guidance reiterated at 40.8–42.2 billion, representing 20–24% year-over-year growth.

• Management remains focused on outpacing industry average volume growth while maintaining reasonable profit levels and long-term stability.

• Plans to expand last-mile presence, upgrade logistics infrastructure, and invest in clean-energy transportation.