ZTO Express (Cayman) (ZTO) Q4 2025 earnings summary

Executive summary

• Q4 2025 parcel volume grew 9.2% year-over-year to 10.6 billion, with full-year volume reaching 38.5 billion and market share at 19.6%, maintaining industry leadership.

• Adjusted net income for 2025 was CNY 9.5 billion, with consistent profitability and customer satisfaction leadership since 2016.

• Retail parcel volume surged 46% year-over-year, with daily retail volume nearing 10 million in Q4, supporting revenue growth and brand recognition.

• Strategic focus on high-quality development, cost efficiency, network stability, and technology-driven efficiencies amid industry transition.

• Strategic expansion into adjacent logistics segments and international markets.

Financial highlights

• FY2025 revenues increased 10.9% to RMB49,098.7 million; Q4 revenue rose 12.3% to RMB14,510.7 million.

• Parcel volume reached 38.5 billion for 2025, up 13% year-over-year.

• Gross profit for FY2025 was RMB12,271.4 million (down 10.5%), with gross margin at 25% (down from 31%).

• Operating cash flow surged 50.6% to CNY 4.2 billion in Q4 and reached CNY 12 billion for the year.

• Capital expenditures totaled CNY 6.1 billion for the year, focused on automation and facility expansion.

Outlook and guidance

• 2026 parcel volume expected to grow 10%-13% year-over-year, reaching 42.37–43.52 billion, outpacing industry average.

• Enhanced shareholder return plan targets at least 50% of adjusted net income as annual return via dividends and buybacks.

• Continued investment in logistics ecosystem, automation, and green initiatives.