Polish-headquartered parcel locker giant InPost has disclosed significant losses within its UK operations during the pivotal festive postal season, alongside a warning that earnings are projected to remain stagnant throughout the current year. This revelation arrives as the company prepares for an imminent near-£7 billion acquisition by a consortium spearheaded by delivery behemoth FedEx and private equity firm Advent.
UK Division Slumps to Substantial Quarterly Loss
The firm's UK arm experienced a dramatic reversal in fortunes, plunging to an underlying loss of 99.3 million Polish zlotys, equivalent to £20.1 million, during the fourth quarter of 2025. This starkly contrasts with earnings of 100.1 million zlotys, or £20.3 million, recorded during the same period the previous year. Company executives attributed this downturn to strategic decisions aimed at prioritising service quality and maintaining operational capacity throughout the peak Christmas season.
Strategic Shifts and Integration Costs Weigh on Performance
InPost confirmed it deliberately capped parcel delivery volumes over the busy quarter to concentrate on upholding service standards, choosing this approach over short-term cost optimisation measures. This tactical move involved pausing the ongoing restructuring of its UK division. Furthermore, earnings were adversely impacted by integration and accounting expenses stemming from its £106 million acquisition of UK parcel delivery group Yodel, completed last year.
Consequently, underlying earnings for the UK division halved to 98.8 million Polish zlotys, approximately £20 million, across the entirety of 2025. This substantial drag contributed to a 4% decline in group-wide underlying earnings for the fourth quarter, which fell to 1.1 billion zlotys, or £220 million, a figure worse than market expectations. However, on an annual basis, group earnings demonstrated resilience, climbing 12% to reach 4.1 billion zlotys, equating to £830 million.
Flat Earnings Forecast and Record Volumes
Looking ahead, InPost is forecasting zero growth in underlying earnings for 2026. This cautious outlook reflects anticipated lower profitability in its core Polish market and the increasing proportional share of UK operations within the group's total results. Despite the financial pressures, the company reported record-breaking parcel volumes. In the UK, volumes surged to 262.1 million, significantly boosted by the integration of Yodel. Group-wide volumes also hit a historic high, increasing by 25% to reach 1.4 billion parcels throughout 2025.
Imminent Takeover and Future Expansion Plans
These financial disclosures precede a monumental 7.8 billion euro, or £6.7 billion, takeover deal agreed upon in February. The acquiring consortium is led by FedEx and Advent International. Following the acquisition's completion, expected in the second half of 2026, InPost will continue to operate under its established brand as a standalone entity. Its headquarters will remain in Poland, with founder and Chief Executive Rafat Brzoska retaining leadership.
Mr Brzoska characterised 2025 as "a year of relentless acceleration for InPost," highlighting record volumes and revenues alongside an expansion of its leadership position across Europe. Regarding UK strategy, he stated, "Following the integration of Yodel, we are investing decisively to build scale and transform the business." This includes restructuring initiatives designed to enhance efficiency, service quality, and long-term profitability.
The company remains committed to rapidly expanding its automated parcel machine network and reshaping consumer delivery habits. Post-takeover, InPost plans to expand within its existing markets, including France, Spain, Portugal, Italy, Benelux, and the UK—the latter being Europe's largest e-commerce market. A key UK ambition involves more than doubling its locker points from the current 14,000 to 30,000, supplementing its existing network of 5,500 pick-up and drop-off locations.
Founded by Rafat Brzoska in 1999, InPost has grown to operate a vast network exceeding 61,000 lockers and over 33,000 pick-up and drop-off points across nine European nations: Poland, the UK, France, Italy, Spain, Portugal, Belgium, the Netherlands, and Luxembourg.
