Deutsche Post AG - ADR

Strong Financial Performance: For full year 2024, EBIT reached €5,886 million with a strong fourth quarter. Free cash flow remained high at approximately €3 billion, and a stable dividend of €1.85 per share was proposed alongside a €2 billion share buyback program. This demonstrates confidence in cash generation and commitment to shareholder returns.

2025 Guidance and Growth Expectations: The company forecasts EBIT of over €6 billion for 2025, with key growth coming from Post & Parcel Germany (P&P) and continuing momentum in the Express division. The absence of drastic policy changes in Germany has been accounted for in the guidance, though potential impacts from defense spending are noted as subdued.

Fit for Growth Program: A major initiative aimed at achieving over €1 billion in cost savings by the end of 2026, with a net neutral to positive impact expected for 2025. The program is designed to enhance efficiency across divisions, particularly in Express through capacity optimization and cost cutting measures, although certain reinvestments might occur depending on market dynamics.