ZTO Express (Cayman) (ZTO) Q3 2025 earnings summary

Executive summary

• Parcel volume grew 9.8% year-over-year to 9.6 billion in Q3 2025, with retail parcel volume surging nearly 50% and strong contributions to margins.

• Adjusted net income increased 5% to RMB 2.5 billion, with total revenue up 11.1% to RMB 11.9 billion.

• Maintained industry-leading service quality, operational efficiency, and customer satisfaction, with a strategic focus on high-quality growth and digital transformation.

• Achieved the largest market share at 19.4% in China, covering over 99% of county-level cities and 100,000+ terminal stations.

• Net cash from operating activities reached RMB 3.2 billion, up 3.2% year-over-year.

Financial highlights

• Total revenue increased 11.1% to RMB 11.9 billion, driven by both volume and price increases.

• Adjusted net income rose 5% year-over-year to RMB 2.5 billion.

• Gross profit decreased 11.4% to RMB 3 billion, with gross margin dropping to 24.9%.

• Operating cash flow was RMB 3.2 billion, up 3.2% year-over-year.

• Adjusted EBITDA decreased 4.2% to RMB 3.6 billion.

Outlook and guidance

• Annual parcel volume guidance for 2025 adjusted to 38.2–38.7 billion, representing 12.3%–13.8% year-over-year growth.

• Industry volume growth expected to stabilize around 10% in 2026, with a shift from volume to quality-focused competition.

• Continued investment in automation, digitalization, and green logistics to support long-term growth.

• Emphasis on expanding market share, maintaining profitability, and enhancing service quality.