Australia Post achieved A$18.8m (US$12.3m) in pre-tax profit for the 2025 financial year despite losing A$230.4m (US$151m) in its letter service, a continuing decline in post office foot traffic and increased competition in e-commerce delivery.
According to the post, the modest profit was driven by a record Christmas Peak period with 102.8 million parcels delivered, continued business simplification through the Post26 Strategy, and modernization reforms.
Australia Post’s parcels business achieved solid growth of 4.3% during the year, despite an influx of new competitors and further penetration of the Australian market by global e-commerce platforms. The post reports that over-the-counter transactions in the Post Office network continued to decline, and most visits are now parcels-related.
Letter volumes fell 5.4% to 1.66 billion in FY25, bolstered only by the federal, state and local elections. Excluding these election activities, letter volumes saw an 11.7% decline compared to FY24 on a like-for-like basis, according to Australia Post.
The postal operator has also reported savings of A$158.8m (US$104m) thanks to prudent cost management and productivity improvements, along with the sale or closure of non-core businesses. It also invested A$371.9m (US$243.7m) in new facilities, fleet and technology in FY25.
Australia Post achieved its 2025 target of sourcing 100% renewable electricity across all operational sites, marking a major milestone in its decarbonization strategy. A continued focus on data and technology has seen greater efficiency and faster delivery speeds with enhanced tracking and updates via the AusPost app, according to the post.
No room for complacency
Commenting on the FY25 results, group chief executive officer and managing director Paul Graham said that while the business earned record revenue in FY25, the structural headwinds experienced over the past few years have continued to intensify and any future profitability is likely to be temporary.
“I’m pleased Australia Post has delivered a modest profit this financial year and I want to recognize and thank the 64,000 team members across our extended workforce who continue to work hard to transform our business,” he stated. “This return to profit would not have been possible without the support of the government and our union partners, as we successfully began execution of our modernization reforms.
“However, we cannot be complacent. Postal operators in the United States, Canada, France, Spain and the United Kingdom have faced the same challenges and have required billion-dollar government-funded bailouts, which Australia has so far avoided.
“Australia Post wants to remain an essential, relevant, self-funded and financially sustainable business, but as our communities and way of life transforms, so too must Australia Post. As letters continue to decline, customers want and need a world-class, reliable parcels business and retail network that services all Australians.
“Australia Post has an opportunity to take a different path from other international postal operators. We need to build a modern, contemporary parcels business that will support Australia’s growing e-commerce sector while delivering world-class service for our customers and the Australian communities who rely on us for a range of important services especially in regional and remote Australia.”
POAAL response
The Post Office Agents Association Limited (POAAL) voiced its concern over the continuing fall in letter volumes, and urged Australia Post not to focus solely on parcel business growth.
“Changes to letter delivery frequency may have helped Australia Post gain efficiency in its delivery network, but the continuing fall in letter volumes is concerning – especially as the Australian population increases,” said POAAL director Bob Chizzoniti OAM.
“Australia Post is a vital service for Australians and Australian businesses. Its letter and parcel delivery services are available to all Australians. The letters service connects Australians wherever they are, and it must continue to meet the needs of all Australians – including the digitally disadvantaged.
“Being competitive in the parcel delivery business is important, but it is also important that Australia Post provides relevant and viable over-the-counter services at post offices.
“POAAL members, who own and operate licensed post offices and who hold mail contracts, want to operate profitable businesses as part of the Australia Post network. A profitable Australia Post is critical for our members.”