Australia Post reported a pre-tax profit of A$31.8m (US$22.7m) for the 2026 financial year, up from A$18.8m (US$13.4m) in FY25, driven by A$139.4m (US$99.6m) in profit from targeted property sales. Excluding those one-off gains, the company recorded an underlying loss before tax of A$107.6m (US$76.9m), which it attributed to the ongoing decline of its letters service, rising delivery costs and competitive pressure in parcels.
Group revenue rose 4.0% to A$9.83bn (US$7.02bn), with parcels and services revenue up 4.8% to A$8.01bn (US$5.72bn). Parcel volumes grew 5.3% over the year. Operating costs rose 3.9%, driven by wage growth, higher licensee commissions and contractor rates, and volume-related costs, partially offset by A$188.3bn (US$134.6m) in business efficiencies. The company invested A$413.3m (US$295.3m) in fleet, technology, facilities and regional network expansion, partly funded by A$173.2m (US$123.8m) in cash proceeds from property sales.
Australia Post expanded its parcel locker network by 64.3% during the year, to 1,510 locker banks nationally, and acquired delivery technology platform Rendr. It also secured a partnership with resale platform Vinted as it entered the Australian market, and received a one-off A$40.5m (US$28.9m) federal government investment to accelerate fleet electrification.
The letters service recorded a loss of A$63.2m (US$45.1m) as volumes fell a further 14.7% to 1.42 billion, partially offset by a A$0.20 (US$0.14) increase in the Basic Postage Rate (BPR) that took effect in July 2025. The Australian Competition and Consumer Commission (ACCC) did not oppose a further A$0.14 (US$0.11) BPR increase, effective September 1, taking the rate to A$1.85 (US$1.32).
Australia Post said it remains committed to maintaining 4,000 retail outlets, including 2,500 in regional, rural and remote areas, and paid A$635.1m (US$453.8m) in commissions to licensees during the year. Recent agreements with Australia’s four major banks are driving 30% higher payments to licensed post offices for Bank@Post services.
Group CEO and managing director Paul Graham said the company is “taking actions within its control to address its challenges,” pointing to the transition “from letters to a digital-first parcels network” as part of its long-term adaptation.
“We continue to do everything in our power to create a sustainable business, including simplifying operations, improving productivity, driving business efficiencies and investing in the services customers need and expect now and in the future,” Graham stated, adding that the company’s new Post30 strategy builds on the foundations of Post26.
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