2.5 Cash flow performance
Accounting policies
The consolidated statement of cash flows is prepared in accordance with IAS 7 using the indirect method. Cash flows in foreign currencies are translated at average exchange rates. Receipts and payments with respect to taxation on profits and interest payments are included in the cash flow from operating activities. Interest receipts and the cost of acquisition of subsidiaries, associates and investments, insofar as it was paid for in cash, are included in cash flows from investing activities. Acquisitions of subsidiaries are presented net of cash balances acquired. Cash flows from derivatives are recognised in the statement of cash flows in the same category as those of the hedged item.
2.5.1 Net cash (used in)/from operating activities
In 2025, net cash from operating activities of €142 million (2024: €168 million) resulted from €168 million of cash generated from operations (2024: €227 million) and €8 million income tax received (2024: €31 million income tax paid) reduced by €35 million interest paid (2024: €28 million).
Cash generated from operations
The decrease in cash generated from operations of €59 million is explained by a lower change in working capital of €60 million and a lower change in other provisions of €16 million, partly offset by €18 million higher profit before income tax adjusted for non-cash items and investment income.
PostNL Cash generated from operations in € million
Year ended at 31 December | 2024 | 2025 |
|---|---|---|
Total profit before tax adjusted for non cash items and investment income | 224 | 242 |
Additions to/releases from provisions | 31 | 15 |
Withdrawals | (11) | (11) |
Change in other provisions | 21 | 5 |
Changes in working capital | (17) | (78) |
Total cash generated from operations | 227 | 168 |
For the changes in provisions, reference is made to note 3.5 Other provisions. The higher investments in working capital mainly relate to decreases in accruals for terminal dues and social security contributions payable.
Interest paid
The interest paid is explained as follows:
PostNL Interest paid in € million
Year ended at 31 December | 2024 | 2025 |
|---|---|---|
Interest on long-term borrowings | 9 | 21 |
Interest on leases | 10 | 11 |
Interest on taxes | 7 | 1 |
Bank charges and other | 3 | 3 |
Total | 28 | 35 |
Income taxes received/(paid)
The income taxes received of €8 million (2024: €31 million income taxes paid) and the interest paid on taxes of €1 million (2024: €7 million) mainly related to income tax settlements in the Netherlands concerning prior years.
2.5.2 Net cash (used in)/from investing activities
PostNL Net cash investing activities in € million
Year ended at 31 December | 2024 | 2025 |
|---|---|---|
Disposal of subsidiaries | 0 | 10 |
Capital expenditure on intangible assets and property, plant and equipment | (99) | (106) |
Proceeds from sale of property, plant and equipment | 16 | 8 |
Interest received | 21 | 17 |
Changes in short-term investments | (150) | 50 |
Changes in other loans receivable | 2 | 2 |
Other | 0 | 2 |
Net cash (used in)/from investing activities | (211) | (18) |
Disposal of subsidiaries
In 2025, the disposal of subsidiaries of €10 million related to the proceeds of the sale of PS Nachtdistributie.
Capital expenditure on intangible assets and property, plant and equipment
In 2025, capital expenditures on intangible assets of €71 million (2024: €69 million) mostly related to software. Capital expenditures on property, plant and equipment of €35 million (2024: €31 million) mainly related to automated parcel lockers, the sorting and delivery centres within Parcels and to various other equipment. Capital expenditures are funded primarily by cash generated from operations and are part of strict cash control and review.
Proceeds from sale of property, plant and equipment
In 2025, proceeds from the sale of property, plant and equipment amounted to €8 million (2024: €16 million) and mainly related to the sale of real estate in the Netherlands.
Interest received
In 2025, interest received decreased by €4 million mainly due to lower interest on cash, cash equivalents and short-term investments.
Changes in short-term investments
In 2025, changes in short-term investments related to time deposits and repos with a lifetime at investment date longer than three months.
Changes in other loans receivable
In 2025, changes in other loans receivable mainly related to proceeds from a lessor loan relating to the lease of a sorting machine by Bol.com.
Other
In 2025, an amount of €4 million is included for a dividend received from our stake in Whistl, a financial asset at fair value through OCI (2024: €1 million for the disposal of CB Healthcare, an associated company).
2.5.3 Net cash (used in)/from financing activities
PostNL Net cash financing activities in € million
Year ended at 31 December | 2024 | 2025 |
|---|---|---|
Dividends paid | (22) | (15) |
Changes related to non-controlling interests | (1) | 0 |
Net cash from debt financing activities | (67) | 194 |
Repayments of leases/incentives | (84) | (89) |
Net cash (used in)/from financing activities | (173) | 90 |
In 2025, net cash from financing activities of €90 million (2024: €(173) million) mainly related to the final 2024 cash dividend paid of €15 million (2024: €22 million related to the final 2023 and interim 2024 cash dividend), net cash from debt financing activities of €194 million (2024: €(67) million) and the repayments of leases of €89 million (2024: €84 million).
In 2025, net cash from debt financing activities included proceeds of new Schuldschein loans of €100 million and a new eurobond loan of €298 million (2024: €297 million), partly offset by the buyback of a eurobond loan of €195 million (2024: repayment of a eurobond loan of €353 million) and the repayment of (legal) lease loans relating to Parcels' sorting centres and sorting machines of €10 million (2024: €10 million). Refer to note 3.4 for further information on leases. Reference is also made to note 4.1 Adjusted net debt and note 4.5 Financial instruments.