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Mar 31
ZTO Express Q1 2025 Earnings Report
ZTO Express reported higher parcel volume and net income in Q1 2025, despite lower gross profit margins.
Key Takeaways
In Q1 2025, ZTO Express delivered strong growth in parcel volume and net income. Despite a dip in gross profit, the company maintained a solid operating margin and reiterated its full-year volume guidance.
Parcel volume surged 19.1% to 8.54 billion units
Net income rose 40.9% to $281 million
Adjusted net income reached $311.3 million
Gross margin declined due to increased operating costs
ZTO Express
ZTO Express
ZTO Express Revenue by Segment
Revenue by Segment
Express Delivery Revenue
CapyFin.comFreight Forwarding Revenue
CapyFin.comAccessories Sales Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
ZTO maintained its parcel volume growth forecast for 2025, expecting strong momentum in e-commerce and operational efficiencies to support performance.
Positive Outlook
- Projected 2025 volume of 40.8B–42.2B parcels
- 46% YoY increase in retail volume
- Improved productivity in cost centers
- Higher KA pricing supports revenue
- Reinforced partner stability and growth initiatives
Challenges Ahead
- Gross margin fell to 24.7% from 30.1%
- Unit parcel prices declined by 7.8%
- Rising costs to serve enterprise clients
- Intensified competition impacts pricing power
- Lower cross-border e-commerce pricing hurt freight revenue
Revenue & Expenses
Visualization of income flow from segment revenue to net income