Ctt Correios De Portugal S.a. (portugal) Adr Stock Earnings Reports

CTT reported solid first-half 2026 commercial momentum led by CEP (parcels) and Mail & Services despite temporary headwinds in its customs business (Cacesa). Group organic revenue growth was 6.3%, driven by CEP volume growth (~+21% organic; overall e‑commerce volumes +24%). CEP revenue grew faster than volumes and CEP EBIT improved (+5.4%); however group EBIT declined ~8.4% due mainly to a sharp drop in Cacesa profitability following regulatory-driven re‑routing and anticipation of the end of de‑minimis. Management describes the Cacesa impact as temporary and is implementing workforce and facility optimizations. The DHL JV is already showing estimated synergies of EUR 17.5m (revenue and operating efficiencies). Mail & Services delivered strong results driven by accelerated savings/public debt placements (approx. EUR 1.62bn subscriptions in the quarter), health plans and business solutions, lifting recurring EBIT materially and improving margins. Banco CTT continues to grow deposits and revenues; recurring ROTE stayed ~12.1%. Cash flow improved sequentially: net debt was EUR 292.8m at period end, with net debt/EBITDA down to 1.8x. Guidance is given in two parts: core recurring EBIT (CEP, Mail, Banco CTT) targeted at EUR 105–110m, with overall recurring EBIT guidance at EUR 115–125m reflecting higher execution risk from Cacesa and potential fuel/inflation volatility. Management remains focused on cost and network optimization (including locker/out‑of‑home expansion), disciplined capital allocation, continued investment in growth, and opportunistic buybacks (adding EUR 10m to the program).