Deutsche Post Profit Rises on AI-Driven Shipping Demand

Deutsche Post AG’s Q3 profit rose 8% year-over-year to €907 million, fueled by a surge in demand for express shipping services linked to the global expansion of data centers supporting the artificial intelligence boom. The company highlighted that daily shipment weights in its express network were, on average, 10% heavier than the prior year, as customers increasingly opt for faster, more expensive delivery for critical hardware components. This premium demand contributed €100 million to operating profit in the third quarter, though down from €150 million in the second quarter.

The increased profitability from the express division – now accounting for more than half of the Group’s operating profit – comes as Deutsche Post battles declining volumes in its domestic mail and parcel business. The company reported an average of 30 million letters delivered per workday in Q3, half the volume seen a decade ago. This decline, coupled with rising costs for labor, energy, and materials, is driving the need for a significant price increase. Management is advocating for a 20% increase in inland letter postage, a historically large adjustment, currently under review by the Bundesnetzagentur.

Despite the positive impact from the express division, the overall profit figure fell slightly short of analyst expectations. Concerns remain regarding the sustainability of this growth, as CFO Melanie Kreis acknowledged that price increases could further accelerate the decline in letter volumes, presenting a complex dilemma. The company also faces scrutiny from the Monopolkommission regarding the proposed price hike, which deemed it too high.

The strong results and cash flow allow Deutsche Post to continue investing in growth and confirm its previously released preliminary figures and upwardly revised 2026 targets. The company’s stock rose slightly on the news, with year-to-date gains exceeding 25%. While the AI-driven express business offers a bright spot, Deutsche Post’s overall performance remains tethered to its ability to navigate the challenges of a shrinking domestic mail market and secure adequate pricing power.