In its latest financial report, US Postal Service (USPS) has announced controllable losses of US$1.6bn in Q3 2025 – an increase of US$522m compared to the same quarter last year.
Total operating revenue was US$18.8bn for the quarter, essentially flat compared to the same quarter last year, while net losses for rose to US$3.1bn compared to US$2.5bn in Q3 the previous year. USPS attributed the losses to unfavorable non-cash workers’ compensation adjustments of US$237m, increased compensation and benefits expense of US$360m, and higher other operating expenses of US$205m.
Postmaster General David Steiner commented, “The Postal Service continues to play an important role in the American economy and society, and in the daily lives of the American public, as it has for 250 years.
“America needs a financially strong Postal Service to continue to meet the needs of the nation far into the future. To restore our financial strength, we must continue to evolve amid a changing business environment so that we can provide high-quality service at a reasonable cost. Growing our revenue and cutting our costs to serve is the only path to financial health.”
Shipping and packages revenue increased US$58m (0.8%) on a volume decline of 114 million pieces (6.5%) year-on-year (YoY); marketing mail revenue fell by US$29m (0.8%) on a volume increase of 65 million pieces (0.5%) YoY; and First Class mail revenue decreased US$86m (1.4%) on a volume decline of 568 million pieces (5.4%) YoY, with strategic price increases offsetting the declining volume impact.
“Our top priorities are improving performance and addressing and fixing the larger trends driving our financial losses,” said Steiner. “I believe strongly that the Postal Service is capable of operating as Congress intended as an independent entity of the executive branch, that can compete effectively and operate efficiently in the performance of our public service mission and fully fund our operations.”
USPS chief financial officer Luke Grossmann added, “While the Postal Service continues to face financial challenges, we are an organization pursuing continuous improvements and innovation. We remain focused on moving toward financial sustainability through operational efficiency, product strategies that will generate growth, and pricing adjustments.”
For the full financial results, visit https://about.usps.com/what/financials/
In related news, DHL Group has reported its revenues fell 3.9% to €19.8bn (US$23bn) in the second quarter of 2025 compared to the same period the previous year. Read the full story