Both Australia Post and NZ Post have published their financial results for the half year to December 31, 2025, revealing modest profits as both posts focus on commercial sustainability.
Business investment
Following a record-breaking peak, Australia Post has reported an interim profit of A$50.4m (US$35.4m), a fall of A$198.7m (US$139.9m) compared to H1 2025. According to the post, this reflects the “strategic decision to accelerate investment in the business to remain competitive”. It also highlights increased costs for energy, enterprise agreement wage increases and property.
Australia Post saw its letter service continue to run at a loss as volumes remain in decline, but the post’s performance in the first half year was driven by a record 111 million parcels delivered in November and December 2025.
Paul Graham, Australia Post’s group chief executive officer and managing director, commented, “Our half-year results reflect a deliberate strategy to invest now to secure Australia Post’s long-term future. We’re upgrading our business so we can continue to deliver world-class services to our customers and the community.
“While Australia Post delivered a modest half-year profit, our parcels business has performed well amid growing headwinds in a rapidly evolving competitive environment and, for now, is able to support our letters service, which is in steep structural decline. However, we operate in an environment where competition from mega marketplaces and gig economy logistics providers is intensifying, margins are tightening and our market share is shrinking.
“We’re responding to this challenge by investing for our future and making hard decisions now. We’re significantly increasing our strategic investment to streamline operations, upgrade legacy facilities and systems, and recycle capital where it makes sense, ensuring we invest in vital national infrastructure that keeps communities connected. However, we will need to work with the government and our union partners on further reform to avoid becoming a long-term burden on the Australian taxpayer.
“As we look ahead, we expect the competitive environment to only get tougher, and we may incur a loss in FY26 as we accelerate our investment program and deal with the ongoing structural challenges of our legacy businesses. These are conscious choices – by fighting hard and planning for the future now, we’re building a modern, sustainable Australia Post that will continue to serve all Australians for generations to come.”
Modest profit
Meanwhile, NZ Post chief executive David Walsh expects the post to achieve a “modest profit” by the end of financial year 2026, driven by a successful peak period where it delivered 17.1 million parcels during November and December.
Commenting on the NZ$33m (US$19.4m) profit achieved in the first half of the year, Walsh said, “This result was achieved despite the backdrop of a slow economy, with revenue improving by 3.7%. Alongside this, ongoing tight cost control and efficiencies from our investment in automation saw total operating costs reduce by 1.2%.
“NZ Post is on target to return a modest profit at the FY 26 full year, noting that the seasonal nature of revenues and volumes sees the group earnings profile weighted toward the first half of the financial year.
“NZ Post is committed to continuing to deliver a year-on-year earnings improvement by maintaining our focus on efficiency, strong cost controls and working with our customers to deliver exceptional products and services.
“With seasonally lower volumes in the second half of the year, achieving our full year targets will require ongoing strong cost discipline and continued realization of benefits from our investments in automation.”
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