China's ZTO Express Q2 profit up 50% on operational efficiency
ZTO•Outlook
- ZTO expects 2026 parcel volume to rise 6-10% year over year
- Company revised parcel-volume growth guidance downward due to slowing industry growth
- ZTO cites subdued growth environment and evolving market dynamics in outlook
Overview
- China express delivery firm's Q2 revenue rose 23% yr/yr, adjusted net income up 50.3%
- Parcel volume grew 6.5% to 10.5 bln, outpacing industry average
- Company updated 2026 parcel volume growth guidance to 6-10% yr/yr
Result Drivers
- Key account growth - Revenue from key account customers, including e-commerce return parcels, increased 63.6%, supporting overall revenue growth
- Higher parcel pricing - Average selling price per parcel rose 15.5% yr/yr, driven by improved revenue mix and higher-value volumes
- Operational efficiency - Combined unit sorting and transportation costs decreased, aided by digitization and lean operations, despite oil price volatility
