ZTO Express (NYSE: ZTO) reported unaudited results for the fourth quarter and fiscal year ended December 31, 2025, showing revenue of RMB 49,098.7 million (US$ 7,021.0 million) and adjusted net income of RMB 9.5 billion, which translates to an earnings per share of US$ 0.39. Cash generated from operating activities reached RMB 11,968.4 million, underscoring the company’s strong liquidity position. Parcel volume for the full year rose 13.3% year‑over‑year to 38.5 billion parcels, a figure that exceeds the prior year’s 33.7 billion and demonstrates continued market‑share gains.
Core express revenue climbed 11.3% to RMB 44,280.7 million, driven by a 13.3% increase in parcel volume and a 1.7% decline in the average unit price. Key‑account revenue surged 111.8% as e‑commerce return parcels expanded, reflecting the company’s successful penetration of high‑margin key‑account customers. The company’s unit‑price decline was offset by volume growth, allowing it to maintain revenue momentum while managing pricing pressure in a highly competitive market.
Gross profit margin contracted 3.7 percentage points in Q4 and 6 percentage points for the full year, largely due to an 18.2% rise in total cost of revenue in Q4 and a 20.5% rise for the year. The cost increase was driven by higher expenses associated with key‑account customers, which, while boosting top‑line growth, eroded profitability. Operating margin fell to 9.9% from 10.2% in the prior year, reflecting the same cost‑pressure dynamics. Despite margin compression, operating cash flow remained robust, indicating effective cash‑generation capability.
The company declared a semi‑annual cash dividend of US$ 0.39 per ADS, correcting the earlier misstatement of US$ 1.5 billion. In addition, ZTO approved a new share‑repurchase program of US$ 1.5 billion to be executed over the next 24 months, reinforcing its commitment to returning value to shareholders while preserving strong cash flow.
Management highlighted the “anti‑involution” policy as a key driver of volume growth, noting that it has helped the company capture market share in the core express segment. CFO Huiping Yan emphasized that the rise in core express average selling price was supported by key‑account contracts, while the company’s productivity gains have reduced combined unit sorting and transportation costs. CEO Lai Meisong underscored the company’s focus on quality growth and its strategy to balance high‑margin key‑account expansion with cost discipline.
Investors reacted positively to the results, citing the earnings and revenue beats, the robust cash generation, and the new share‑buyback program as primary catalysts. The EPS beat of US$ 0.39 versus consensus of US$ 0.34, and the revenue beat of 10.9% versus expectations, reinforced confidence in ZTO’s execution and its ability to navigate cost pressures while sustaining growth.
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