U.S. Postal Service reports $9 billion net loss for fiscal 2025
Investing.com -- The U.S. Postal Service reported a $9.0 billion net loss for fiscal year 2025, which ended September 30, showing a slight improvement from the $9.5 billion net loss recorded in the previous year.
The postal agency’s controllable loss, which excludes expenses outside management control, widened to $2.7 billion from $1.8 billion a year earlier.
Total operating revenue rose to $80.5 billion, an increase of $916 million or 1.2 percent compared to fiscal 2024. The revenue growth was primarily driven by the USPS Ground Advantage shipping service and strategic price increases across mail and shipping categories.
First-Class Mail revenue increased by $370 million (1.5 percent) despite a volume decline of 2.2 billion pieces (5.0 percent). Marketing Mail revenue grew by $350 million (2.3 percent) while volume fell by 764 million pieces (1.3 percent). Shipping and Packages revenue rose by $315 million (1.0 percent) even as volume decreased by 415 million pieces (5.7 percent).
Operating expenses totaled nearly $89.8 billion, up $317 million or 0.4 percent from the prior year. The increase was mainly due to higher compensation costs and other operating expenses, including costs related to voluntary early retirement offers. These increases were partially offset by lower workers’ compensation costs due to discount rate impacts and reduced transportation expenses.
"In surveying the results of the past year, the occasional appearance of financial progress – such as our profitable first quarter – is far outweighed by the reality of our significant systemic annual revenue and cost imbalance," said Postmaster General David Steiner.
The Postal Service is pursuing administrative and legislative reforms to address financial and regulatory burdens, including changes to pension funding rules, diversification of pension assets, raising the statutory debt ceiling, and workers’ compensation administration reform.
Chief Financial Officer Luke Grossmann noted that the financial results reflect challenges from the agency’s mandated cost structure and declining volume, partially offset by cost management efforts and pricing strategies.
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