PostNL N.V.

For the first half of 2026, PostNL reported revenue of EUR 1.6 billion, almost in line with last year, slightly improved normalized EBIT, and significantly improved free cash flow. By segment, E-commerce revenue was EUR 937 million versus EUR 961 million last year, with volumes down 6.4% and the average price per parcel up 5%; normalized EBIT there was EUR 12 million versus EUR 15 million last year. Platforms revenue was EUR 379 million versus EUR 375 million last year, with normalized EBIT of minus EUR 3 million versus EUR 3 million last year. Mail revenue was EUR 623 million versus EUR 620 million last year, with volumes down 5.3% and stamp prices up 6.9% as of January 1 and 8.3% mid-2025. Free cash flow was minus EUR 17 million, a significant improvement versus last year. Management confirmed full-year 2026 outlook: normalized EBIT of EUR 40 million to EUR 70 million, free cash flow of 0 to minus EUR 30 million, revenue growth of 5% to 7% (with management saying the final outcome should be closer to the low end), CapEx around EUR 125 million, and organic cost increases around EUR 140 million.

CEO Pim Berendsen framed the quarter as resilient in a difficult market, highlighting that volume-to-value is gaining traction, cost discipline is improving, and the D+2 mail transition was executed successfully. He said the extra EUR 75 million savings program is meant to reduce cost per parcel and create more room to manage pricing and volume tradeoffs in a more competitive E-commerce market. His tone was constructive but cautious, especially on Mail, where he stressed that further political decisions are still needed to make the universal service economically viable.

CFO Linde Jansen emphasized the main financial drivers: E-commerce revenue fell 2.4% to EUR 937 million as volumes declined 6.4%, but price/mix contributed EUR 36 million, including EUR 5 million from fuel surcharges. She noted E-commerce normalized EBIT declined to EUR 12 million partly because organic costs rose EUR 38 million, while PostNL achieved EUR 24 million in cost savings in the first half. In Platforms, revenue rose to EUR 379 million but normalized EBIT moved to minus EUR 3 million due to investments and higher third-party transport and distribution costs. She also highlighted free cash flow of minus EUR 17 million and said the company is on track to land within the full-year free cash flow outlook.

Analysts focused on weaker-than-expected E-commerce volumes, whether full-year volume growth would still meet the earlier 1% to 3% assumption, and whether pricing would accelerate in the second half; management said full-year E-commerce volumes will not meet that earlier growth target and pricing should accelerate due to seasonal factors and peak charges. Questions also centered on the impact of the July 1 customs/de minimis changes on Platforms and Asian volumes; management said the near-term impact is being seen, but they do not expect a structural long-term effect and are adjusting costs accordingly. On Mail, analysts asked about ongoing disputes over universal service costs and the ACM fine/quality issues; management separated the quality-fine dispute from net-cost compensation discussions and said it is pursuing legal and regulatory remedies while continuing talks with government.