PostNL expanded its cost-reduction program to as much as €180 million as the Dutch delivery company increases its use of artificial intelligence, automates support functions, and builds a larger network of parcel lockers.
The company identified approximately €75 million of additional savings for 2027 and 2028.
The new initiatives bring PostNL’s total planned savings during those years to between €170 million and €180 million.
The program will focus primarily on E-commerce, information technology, procurement, support functions, and changes to specialized network flows.
PostNL said the rapid adoption of AI agents is accelerating process automation and standardization, particularly within administrative and support operations.
The company is moving toward what it describes as an AI-first strategy.
PostNL is evaluating AI applications across the organization to optimize processes, reduce manual activity, and personalize the customer experience.
The cost program is intended to create a leaner organization and a structurally lower expense base while providing additional flexibility in an increasingly competitive delivery market.
PostNL is also expanding its Out-of-Home delivery infrastructure.
The company plans to build a network of approximately 7,500 automated parcel lockers by 2031.
PostNL is developing an integrated platform connecting merchant checkouts, digital customer journeys, and its high-density parcel network.
The strategy is designed to move more parcels away from relatively expensive home deliveries and toward centralized locations that allow drivers to deliver multiple packages in a single stop.
PostNL believes greater Out-of-Home adoption can improve network utilization, reduce delivery costs, and create additional value for merchants and consumers.
The new initiatives follow a first half in which PostNL maintained nearly flat revenue despite substantial parcel and mail volume declines.
Total revenue reached €1.59 billion, compared with €1.589 billion during the prior-year period.
Normalized EBIT improved slightly to a €3 million loss from a €5 million loss.
Free cash flow improved significantly to a negative €17 million from a negative €80 million.
PostNL attributed the €63 million improvement primarily to proactive working-capital management and timing effects that negatively affected the prior-year comparison.
The E-commerce segment generated €937 million in revenue, declining 2.4%, as parcel volume fell 6.4%.
PostNL partly offset the volume decline by increasing its average price per parcel by 5%.
The company recorded a €36 million price-and-mix benefit, including €5 million from fuel surcharges.
The performance reflects PostNL’s transition from pursuing parcel volume to prioritizing the value and profitability of the packages moving through its network.
Domestic parcel volumes declined 4.2%, while international volume, primarily involving Asian web shops, fell almost 15%.
The international decline reflected weaker market conditions, additional competitors, PostNL’s value-focused strategy, and preparations for new European import charges.
A fixed European import duty of €3 per product category took effect on July 1 for shipments entering the European Union from outside the region.
An additional €2 fee is scheduled to take effect in November, while VAT and handling charges may also apply.
E-commerce normalized EBIT declined to €12 million from €15 million.
The €50 million revenue effect of lower parcel volumes was partly offset by €34 million of lower volume-dependent expenses and €36 million of improved pricing and mix.
PostNL also generated €24 million in E-commerce cost savings.
Those gains were partly offset by €38 million of organic cost increases, including €7 million associated with higher fuel costs.
The Platforms segment generated €379 million in revenue, increasing 1%, or 2.7% at constant currencies.
European e-commerce volumes increased 28%, but total Platforms volume declined 7.1% because of lower Asian parcel and mail activity.
Normalized Platforms EBIT shifted to a €3 million loss from a €3 million profit as PostNL invested in intra-European growth, marketing, technology, MyParcel, and fulfillment services.
Mail revenue increased slightly to €623 million, even though underlying volume declined 7.9% after excluding election-related mail.
Normalized Mail losses narrowed to €9 million from €20 million, helped by regular price increases and €12 million of operational savings.
PostNL has completed its transition to standard mail delivery within two days and is preparing to move toward delivery within three business days.
The company said regulatory changes and compensation for the costs of its Universal Service Obligation are necessary to make the postal service financially sustainable.
PostNL has initiated legal proceedings involving compensation for those costs, withdrawal of its current service designation, and a regulatory fine.
Adjusted net debt increased to €528 million from €501 million at the end of 2025.
Consolidated equity declined to €157 million from €176 million.
PostNL maintained its 2026 outlook for normalized EBIT of between €40 million and €70 million.
Free cash flow is expected to range from break-even to negative €30 million.
The expanded savings plan and parcel-locker strategy are central to PostNL’s Breakthrough 2028 program.
The company is attempting to protect profitability by combining higher parcel pricing, a more efficient physical network, and technology-driven reductions in administrative and operating costs.
KEY QUOTES:
“Our solid foundation enables us to accelerate cost savings initiatives, resulting in a more competitive cost base and more commercial flexibility.”
“We re-defined our Out-of-Home strategy. These measures will strengthen our competitive position and support the path to our Breakthrough 2028 ambition.”
Pim Berendsen, Chief Executive Officer Of PostNL
