The Postal Service has announced its financial results for the first quarter of fiscal year 2025 (Oct. 1-Dec. 31, 2024). Here are some highlights:
• Revenue. Total operating revenue was $22.5 billion, an increase of 4.1 percent compared with the same quarter during the previous fiscal year. First-Class Mail revenue increased 4.2 percent, while Marketing Mail revenue increased 10.9 percent. Shipping and packages revenue increased 3 percent.
• Volume. Total volume was 31 billion pieces, up 1.8 percent compared with the same quarter one year ago. First-Class Mail volume declined 3.9 percent, while Marketing Mail volume increased 7 percent. The Marketing Mail increases were driven by the effects of higher revenue and volume associated with the 2024 general election and strategic price increases. Shipping and packages volume declined 0.9 percent.
• Expenses. Under generally accepted accounting principles, total operating expenses were $22.5 billion, a decrease of 5.7 percent compared with the same quarter last year. The overall decrease in operating expenses was because of lower transportation costs and favorable noncash workers’ compensation adjustments, partially offset by inflationary effects on compensation costs and retirement costs.
• Net income. Net income was $144 million — in substantial part because of the success of strategic initiatives under the Delivering for America plan — compared with a net loss of $2.1 billion for the same quarter last year. This increase in net income is attributed to the Postal Service’s operating revenue increase of $885 million, transportation expense reductions of $326 million, and favorable noncash workers’ compensation adjustments of nearly $1.8 billion, partially offset by increased compensation and benefits expense of $618 million.
“We are encouraged by our strong revenue and cost control trajectory, as we continue to implement the Delivering for America transformation and modernization plan, which contributed to our net income during the quarter,” said Postmaster General Louis DeJoy.
“By steadily improving our product portfolio, we are increasing our competitive position in the shipping marketplace. We are also expanding the capability and efficiency of our operations through our network modernization and by rebalancing our workforce through the recent retirement incentives offered to certain eligible employees. This combination of factors demonstrates that the Postal Service is making strides toward financial sustainability and that we are taking concrete actions to make further improvements.”
The Postal Service’s Feb. 6 news release has more information.
