U.S. Postal Service results took a turn for the worse in the second quarter, with net loss more than doubling to $3.3 billion from $1.5 billion year over year, primarily due to accounting adjustments for mandated workforce benefits. The negative growth comes on the heels of a rare profit in the first quarter.
The adjusted loss, which excludes nonoperating expenses the agency can’t control, also more than doubled to $848 million from $317 million for the same quarter last year. In the first quarter, the Postal Service had controllable income of $968 million.
The bottom line was hurt by noncash worker’s compensation adjustments of $1.2 billion due to an actuarial revaluation and changes to the discount rate – the percentage used to calculate the present value of future payments – as well as increased compensation and benefits of $449 million, and higher operating expenses of $124 million. The cost increases were partially offset by lower transportation expenses of $116 million, a byproduct of a 10-year strategic efficiency plan begun in 2021. The Postal Service also saved 10 million work hours in the quarter.
The national mail operator previously projected a $6.9 billion net loss for fiscal year 2025, down from $9.5 billion last year.
