Loading...
•
Jun 30
Pitney Bowes Q2 2025 Earnings Report
Pitney Bowes disclosed strong financial results for the second quarter of 2025, with improvements in GAAP EPS, Adjusted EPS, GAAP net income, and Adjusted EBIT, while also increasing share repurchase authorization and dividend.
Key Takeaways
Pitney Bowes reported a revenue of $462 million for Q2 2025, a 6% decrease year-over-year. Despite the revenue decline, the company saw significant improvements in profitability, with GAAP EPS at $0.17 and Adjusted EPS at $0.27. Net income reached $30 million, and Adjusted EBIT improved by 37% to $102 million, driven by strong performance in SendTech Solutions and Presort Services.
Revenue for Q2 2025 was $462 million, a 6% decrease year-over-year, primarily due to the conclusion of a product migration in SendTech Solutions.
GAAP EPS improved to $0.17 and Adjusted EPS increased to $0.27, reflecting a $0.30 and $0.16 improvement respectively year-over-year.
Adjusted EBIT significantly increased by 37% to $102 million, and Free Cash Flow was strong at $106 million, excluding restructuring payments.
The company increased its share repurchase authorization from $150 million to $400 million and raised its dividend for the third consecutive quarter, demonstrating confidence in its financial health.
Pitney Bowes
Pitney Bowes
Pitney Bowes Revenue by Segment
Revenue by Segment
SendTech Solutions Revenue
CapyFin.comPresort Services Revenue
CapyFin.com Forward Guidance
Pitney Bowes has updated its full-year 2025 outlook, slightly reducing revenue guidance but raising Adjusted EPS guidance. The company reaffirms its Free Cash Flow guidance.
Positive Outlook
- Raised Adjusted EPS guidance from $1.10-$1.30 to $1.20-$1.40.
- Reaffirmed previously disclosed full-year guidance for Free Cash Flow ($330 million - $370 million).
- New management has reversed former policy to ensure Presort can leverage its strength and scale as the market leader.
- Focus on winning and retaining certain Presort clients, even at lower margins, to drive overall profitability.
- Strategic review priorities and timeline updates shared by CEO Kurt Wolf.
Challenges Ahead
- Slight reduction to full-year revenue guidance from $1.95 billion-$2 billion to $1.90 billion-$1.95 billion.
- Reduction to the top-end of Adjusted EBIT guidance (tightened range to $450 million - $465 million).
- Revenue update almost entirely attributable to Presort, stemming from previous overemphasis on EBIT margins.
- Potential for accelerated or sudden decline in physical mail volumes or shipping volumes.
- Risks associated with changes in postal regulations, trade policies, and global supply chain issues.