Deutsche Post Stock: Shares Soar on Cost-Cutting Plan

Deutsche Post's stock surged over 12% on Thursday, reaching its highest level in a year at €43.52 before stabilizing at €42.62 with a nearly 10% gain. This remarkable performance followed the announcement of a comprehensive cost-reduction program expected to save more than €1 billion by 2027. The logistics giant's fourth-quarter results exceeded analyst expectations, with an operating profit of €1.85 billion, approximately 4% above market forecasts. The Express division particularly impressed with an €1.08 billion operating profit, surpassing expectations by 11%. Investors responded positively to these developments, with experts from Deutsche Bank noting that the announced measures significantly help restore investor confidence. The company's ability to generate €3 billion in free cash flow despite challenging economic conditions was particularly praised.

Workforce Reduction Amid Cautious Outlook

As part of its restructuring efforts, the logistics conglomerate plans to cut 8,000 positions in its German mail and parcel division this year, citing declining mail volumes, difficult regulatory conditions, and recent wage agreements. For 2025, the company forecasts a slight increase in operating profit to at least €6 billion, below analyst expectations of €6.3 billion. While maintaining a medium-term goal of exceeding €7 billion in operating profit, management has removed specific timeline commitments due to market volatility. To enhance shareholder value, the company will maintain its dividend at €1.85 per share while expanding its share buyback program to €6 billion, extended through 2026.