Belgium's Bpost lowers capital expenditure plans after surprise loss in Q3 (updated)

Bpost SA

05/11/2025 06:33

Rephrases lead, adds division miss in paragraph 3, 4, division performance in paragraph 5, broker comments in paragraph 7, 8, shares in paragraph 6

Shares fall nearly 11% after unexpected operating loss in Q3

Radial US revenue hit by seasonal effects and client churn

Bpost lowers capital expenditure forecast, maintains profit outlook

By Olivier Cherfan

Nov 5 (Reuters) - Belgian postal operator Bpost BPOST.BR reported an unexpected operating loss for the seasonally slower third quarter on Wednesday, slammed by weak revenue at Radial US, a part of its third-party logistics division.

Its shares fell nearly 11% by 0937 GMT and could see their biggest one-day drop since late February if the losses hold.

Adjusted loss before interest and taxes was 3.0 million euros ($3.5 million), compared to a profit of 10.3 million euros a year earlier. Analysts polled by Bpost had expected an adjusted operating profit of 6.7 million euros.

The miss was largely caused by the third-party logistics business, which handles inventory and distribution. The unit's adjusted operating loss was 1.7 million euros, while analysts were expecting a profit of 10.5 million euros for the division.

Radial's revenue in North America was impacted by seasonal effects and client churn, which meant Bpost could not fully absorb fixed costs in the quarter, it said.

Results from other units were broadly in line or ahead of consensus.

The postal operator has in recent years grappled with the end of a press contract in Belgium, a structural decline in mail volumes, and major client losses at Radial US, analysts from KBC Securities said in a note.

"While early signs of the new Radial US strategy look promising, we first need confirmation that the new strategy at Radial US, and the acquisition of Staci are paying off," they added.

Bpost also lowered its forecast for gross capital expenditures to around 140 million euros this year, from the previously planned 180 million euros, emphasizing disciplined spending with a phased approach towards 2026.

It, however, still expects its full-year adjusted operating profit to be around 180 million euros.

($1 = 0.8575 euros)

(Reporting by Olivier Cherfan in Gdansk, editing by Milla Nissi-Prussak)

((olivier.Cherfan@thomsonreuters.com;))