- Total Revenue Growth: Group revenue grew 6.3% organically in the first half of 2026.
- E-commerce Solutions Revenue: Grew 20.2 million, with organic growth of 12.7% for the combined SEP and non-SEP businesses.
- SEP (E-commerce) Revenue: Organic growth of 21.2%, with volumes growing almost 21% organically (24% including DHL Portugal).
- SEP EBIT: Grew 5.4% with a robust margin.
- Customs Clearance (Casella) Revenue: Declined by 6.3 million, with a strong EBIT decline due to regulatory changes (end of de minimis exemption).
- Mail & Services Revenue: Reached 127.9 million in Q2 2026, down from 130.4 million year-over-year, but grew 5% quarter-on-quarter excluding the one-off effect of 2025 legislative elections.
- Mail & Services Recurring EBIT: Reached 9.6 million, up 37.3% year-on-year, with margin improving from 5.4% to 7.5%.
- Address Mail Revenue: Declined 7.5% to 88.9 million, but would have declined only 0.9% excluding election effects.
- Bank Revenue: Grew 7.4% in the quarter, contributing 2.6 million to group growth.
- Bank Recurring EBIT: Slightly decreased from 5.6 to 5.2 in Q2 2026, maintaining ROTE at around 12.1%.
- Group Recurring EBIT: Declined 8.4%, with margin remaining robust at 7.5%.
- Free Cash Flow: Improved to 31 million in Q2, up 35% versus the last quarter.
- Net Debt: Decreased to 292.8 million, with leverage ratio improving to 1.8 times net debt to EBITDA from 2.4 times.
- Guidance: Recurring EBIT guidance for core business (SEP, Mail, and Bank CTT) set at 105-110 million, with overall group guidance between 115 and 125 million.
Release Date: July 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Strong organic growth of 6.3% in core business, with SEP (e-commerce) volumes growing 21% organically and 24% overall, driven by diversification into Iberian and EU marketplaces.
- Mail and services segment delivered strong profitability, with recurring EBIT margin improving from 5.4% to 7.5% year-on-year, excluding the one-off effect of 2025 elections.
- Banking segment showed robust growth with double-digit increases in deposits, off-balance savings, and loan book, and banking revenues up 7.4%.
- DHL joint venture synergies are on track at EUR 17.5 million, with 40% from revenue and 50% from operational efficiencies, enhancing the e-commerce platform in Iberia.
- Net debt to EBITDA leverage ratio improved significantly to 1.8x from 2.4x, providing strategic flexibility for capital allocation and opportunistic share buybacks.
Negative Points
- Customs clearance business (Casella) experienced a significant EBIT decline due to regulatory changes, including the end of de minimis exemption and new fees, leading to volume shifts and market share loss.
- Overall EBIT declined 8.4% in the quarter, primarily due to the temporary headwinds in the customs business, which has high incremental margins.
- SEP margins are under pressure from fuel inflation (EUR 2.4 million impact) and a shift in product mix towards heavier parcels from European players, which have lower incremental margins.
- The bank's recurring EBIT decreased slightly to 5.2 million as the company reinvests proceeds into technology and commercial capabilities, with a high non-performing loan ratio that remains above industry trends.
- Guidance for the full year is cautious, with a broad range for EBIT (EUR 115-125 million) due to limited visibility on customs volumes and the upcoming implementation of a new levy in November, which poses execution risks.
Q & A Highlights
Q: Can you provide more color on the unsolicited non-binding offer for Banco CTT? Was this the first approach, and are you now more willing to accept offers?
A: CEO Guy Pacheco confirmed the receipt of an unsolicited non-binding offer for a potential transaction on Banco CTT. He stated that this is leading the company to evaluate strategic alternatives across its portfolio of assets, and confirmed that a financial advisor has been engaged to look into these strategic matters. He declined to provide further details at this point.
Q: Regarding the SEP volumes, can you give additional visibility on July volumes after the de minimis regulation changes, and why is the second-half guidance so conservative given the strong first-half growth?
A: CEO Guy Pacheco explained that July is expected to be the bottom, with a projected 2%-3% overall decline in volumes. This is driven by Chinese e-commerce platforms (like Shein and Temu) refraining from marketing as they adapt to the new regulations, with their GMVs declining 30-40%. However, this is being offset by strong growth from European and Iberian accounts, as well as local-to-local Chinese marketplaces like TikTok. He noted that based on past similar events (US de minimis and 2021 changes), the impact on non-European marketplaces typically lasts 6-9 months before resuming normal growth. The guidance assumes high single-digit SEP volume growth for the full year, reflecting this expected normalization.
Q: What is driving the improvement in the second-half guidance for CASESA (customs business), considering the uncertainty around the new regulations?
A: CEO Guy Pacheco explained that the guidance is based on normal business seasonality, which is heavily weighted towards the peak season in the fourth quarter. He also noted that the effects of the regulatory changes were front-loaded and anticipated, with players reducing marketing investments and reorganizing supply chains ahead of the July 1st implementation. The company is seeing opportunities in B2B clearance and fulfillment as the market reorganizes, and operations have run smoothly, giving confidence that volumes will improve. However, he acknowledged the lack of visibility, particularly with the additional handling fee expected in November, which is why this part of the guidance carries higher execution risk.
Q: Can you explain the moving parts behind the SEP margin improvement and when we can expect to see margins above 6% again?
A: CEO Guy Pacheco attributed the margin pressure to two main factors: fuel inflation (impacting €2.4 million in the quarter) and a changing product mix. The shift from non-European to Iberian and European players has resulted in heavier parcels with different incremental margins compared to lighter packages. He expects normalization as fuel inflation subsides and as the company continues to gain scale, which should lead to margin improvements in the SEP business.
Q: Regarding the strong mail and services recurring EBIT performance, was it driven more by financial services or mail, and is this sustainable?
A: CEO Guy Pacheco highlighted three positive drivers: financial services (with strong incremental margins), business solutions (including PPO call centers and social services), and resilience in mail revenues coupled with efficiency measures. He noted that the first two drivers will continue to accrete to EBIT, while the pure mail EBIT should see stabilization due to positive trends in price per unit and ongoing efficiency initiatives. CFO Joana Freitas added that the "other revenues" increase was partly due to a social mobility allowance payment and the DecoPharma business, which only became part of CTT's scope in August 2025.
Q: Can you provide more insights on the high non-performing loans (NPL) ratio at Banco CTT, which remains above industry trends?
A: CFO Joana Freitas explained that the high ratio is partly because, contrary to industry practice, the bank does not routinely sell NPL portfolios. However, the bank is moving in that direction and will be doing these operations more regularly. She noted that last year's second quarter included one such sale (impacting the "other" revenue line), and another is planned for the second half of this year. The ratio will be actively managed through these routine portfolio sales.
Q: What proportion of current parcel volumes is out-of-home versus to-door, and what are the ambitions for Spain?
A: CEO Guy Pacheco stated that out-of-home volumes currently represent 16% of SEP volumes, with the rest being to-door distribution. The company expects the market to reach 20%-30% out-of-home distribution within three years. CTT is investing in its locker network, which is the largest in Portugal, and is accelerating deployment in Spain, where it already has around 200 lockers. This is part of the strategy to capture the growing out-of-home opportunity and establish a stronger position in the Spanish parcel market.
Q: Regarding the fulfillment business, is this a line of business CTT can build organically, or does it require acquisitions given the competitive market?
A: CEO Guy Pacheco acknowledged that CTT has fulfillment operations, though not large, and sees the opportunity as an integrated play combining clearance, fulfillment, and last-mile services. This integrated approach differentiates CTT in the market and creates operational synergies. He confirmed that the company remains open to M&A on the fulfillment front if it makes sense, but also sees organic growth opportunities in Iberia as the market shifts from B2C to B2B clearance and fulfillment models.
Q: What level of public debt placements are you assuming for the second half, and should we expect higher or lower than the strong second quarter?
A: CEO Guy Pacheco indicated that the company is assuming growth in financial service placements year-on-year, driven by the new long-term treasury certificate product that is adding a new class of demand without cannibalizing existing savings certificate placements. While not providing specific guidance on the breakdown, he confirmed the positive outlook for savings products through the end of the year, supported by both physical and digital channels.
Q: Can you elaborate on the consistency between SEP volume targets and CASESA targets for the second half?
A: CEO Guy Pacheco clarified that while there is correlation between the two dynamics in a steady state, CASESA has a very depressed starting point as most impacts were front-loaded. The SEP business has other growth areas like European accounts that help offset declines, whereas customs is only for out-of-Europe volumes. He sees normalization on CASESA but highlighted that visibility remains low, while parcels should see growth from European players and eventual normalization from Chinese customers as they resume normal behavior.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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