SingPost Q3 operating profit falls 38.3% to S$3.8m on structural headwinds
Drop comes amid continued declines in letter mail and cross-border volumes
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[SINGAPORE] Singapore Post (SingPost) group reported a 38.3 per cent drop in operating profit for the third quarter ended Dec 31, 2025, at S$3.8 million, down from S$6.2 million in the corresponding period a year ago.
The latest operating profit figures exclude businesses that are no longer part of SingPost’s reporting, such as its divested businesses. The company had previously reported a S$21.1 million operating profit for Q3 2024, before those businesses were divested.
The decline in Q3 2025 operating profit occurred as growth in domestic e-commerce delivery volumes and property leasing revenue was outweighed by continued declines in letter mail and cross-border e-commerce volumes, said the postal operator on Wednesday (Feb 25).
Consequently, revenue for the quarter fell 26.8 per cent year on year to S$92.3 million from S$126.2 million.
On the costs front, operating expenses fell 26.2 per cent year on year to S$88.5 million, from S$120 million. Volume-related expenses declined in tandem with lower cross-border e-commerce deliveries.
Furthermore, labour-related expenses decreased as the cost base was realigned with the reduced operating scale following the sale of the Australia business at the start of the financial year.
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Segment performance
In specific business segments, the domestic e-commerce business performed well during the seasonal peak period, with volume rising 11.6 per cent year on year to hit its highest monthly volume in the last two years.
Conversely, cross-border e-commerce delivery volume fell 58.9 per cent year on year as market conditions remained difficult.
Traditional letter mail also continued its structural decline, experiencing a 23.4 per cent year-on-year drop in domestic volume during the quarter.
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SingPost’s “Post Office Network” recorded lower revenue due to a decline in agency services contribution, and continued to post an operating loss.
Meanwhile, property leasing revenue improved as the overall occupancy rate at SingPost Centre increased to 98.9 per cent from 98.2 per cent a year ago.
The company is also awaiting regulatory approvals for the divestment of 10 HDB shophouses, which includes a sale-and-leaseback arrangement to maintain existing post office services.
On the balance sheet, cash and cash equivalents decreased to S$598.4 million as at Dec 31, 2025, from S$696.4 million as at Mar 31, 2025.
This reduction was largely attributable to a special dividend payment of S$202.6 million, though it was partly offset by proceeds from divestments of Quantium Solutions entities and Shenzhen 4PX.
Borrowings remained flat at S$349.6 million, while total equity stood at S$1.4 billion. The deconsolidation of subsidiaries following recent divestments contributed to the overall decrease in total assets and liabilities.
Outlook
Moving forward, SingPost said it remains focused on strengthening its core businesses and implemented a S$0.10 postage rate increase effective Jan 1.
Additionally, to increase market share in domestic e-commerce, the company is investing in new small-parcel sorting equipment at the regional e-commerce logistics hub, which remains on track to be fully operational in mid-2026.
SingPost has also expanded its network to more than 2,500 customer touchpoints across Singapore.
While the cross-border delivery business faces ongoing global trade shifts, the company said it is proactively adapting by introducing new delivery solutions and strengthening international partnerships.
SingPost’s shares ended Wednesday at S$0.385, down by S$0.005 or 1.3 per cent.
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