USPS reports financial results for first quarter of fiscal year 2025

By Linn’s Staff

The United States Postal Service reported financial results for the first quarter of fiscal year 2025, which began Oct. 1, 2024, and ended Dec. 31, 2024.

According to the Feb. 6 press release, “controllable income, which excludes certain expenses that are not controllable by management, doubled to $968 million for the quarter, compared to $472 million for the same quarter last year.”

Net income for the first quarter was $114 million, compared to a substantial loss of $2.1 billion in the first quarter of fiscal 2024.

“This increase in net income is attributed to our operating revenue increase of $885 million, transportation expense reductions of $326 million, and favorable non-cash workers’ compensation adjustments of nearly $1.8 billion, partially offset by increased compensation and benefits expense of $618 million,” the Postal Service said.

Operating revenue was $22.5 billion for the first quarter, an increase of $885 million compared to the same period last year.

Marketing mail jumped to $450 million, on a volume increase of 1.1 billion pieces, compared to the first quarter in fiscal 2024.

“First-Class Mail revenue increased $284 million, or 4.2 percent, on a volume decline of 464 million pieces, or 3.9 percent, compared to the same quarter last year,” according to the USPS. “Shipping and Packages revenue increased $272 million, or 3.0 percent, on a volume decline of 19 million pieces, or 0.9 percent, compared to the same quarter last year.”

The Postal Service said the increase in mail revenue was due to strategic price increases. The revenue increase for package mail was spurred by the strong performance of USPS Ground Advantage, “which has been met with strong acceptance in the marketplace,” according to the USPS.

“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,” Postmaster General Louis DeJoy said. “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,” DeJoy said. “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.”

For the first quarter of fiscal 2025, total operating expenses were $22.5 billion, a drop of $1.3 billion compared to the same quarter in fiscal 2024.

“The overall decrease in operating expenses was due to lower transportation costs and favorable non-cash workers’ compensation adjustments, partially offset by inflationary impacts on compensation costs and retirement costs,” the Postal Service said.

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