Australia Post posts $18.8m profit but warns of tough competition from Amazon, Temu and Shein

Australia Post has announced a small profit but cites intense competition and declining usage as key risks for the business moving forward.

The national carrier delivered a modest pre-tax profit of $18.8m for the 2025 financial year on the back of a busy Christmas period.

Strong growth out of its parcel business drove the profit haul, with more than 100 million parcels delivered in the lead-up to Christmas alone.

Overall, the parcel and services businesses achieved revenues of $7.64bn, up 2.9 per cent on last year.

Despite achieving profits, Australia Post flagged that an influx of international players, including competition from global eCommerce giants, including Amazon, Temu and Shein, took away postal demand from the national carrier.

It said there were also smaller start-up logistics providers coming into the market.

To offset this growing competition, Australia Post says it has invested significantly across its network for faster international parcel clearances and expanded its regional offering.

Australia Post group chief executive officer and managing director Paul Graham said the business earnt record revenue in FY25.

“I’m pleased Australia Post has delivered a modest profit this financial year and I want to recognise and thank the 64,000 team members across our extended workforce who continue to work hard to transform our business,” he said.

“This return to profit would not have been possible without the support of the government and our union partners, as we successfully began the execution of our modernisation reforms.”

Despite flagging growth out of its parcel business, Australia Post is facing “structural headwinds” and is not expecting future profits.

Letter volumes continued to decline by a further 5.4 per cent to 1.66 billion in FY25.

This would have been a steeper 11.7 fall if it wasn’t for the federal election.

Over-the-counter transactions in the post office network continue to decline and the majority of visits are now parcel-related.

Mr Graham said the local provider was not alone in its struggles.

“We cannot be complacent. Postal operators in the United States, Canada, France, Spain and the United Kingdom have faced the same challenges and have required billion-dollar government-funded bailouts, which Australia has so far avoided,” Mr Graham said.

“Australia Post wants to remain an essential, relevant, self-funded and financially sustainable business, but as our communities and way of life transform, so too must Australia Post.

“As letters continue to decline, customers want and need a world-class, reliable parcels business and retail network that services all Australians.”