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ZTO Express Q3 Earnings Up Y/Y, 2025 Parcel Volume View Lowered

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Key Takeaways

  • ZTO Express Q3 EPS of 43 cents and revenues of $1.66 billion rose year over year.
  • ZTO cut 2025 parcel volume forecast to 38.2-38.7 billion from the prior 38.8-40.1 billion.
  • ZTO's third-quarter 2025 gross margin rate fell to 24.9% from 31.2% in the year-ago period.

ZTO Express(ZTO - Free Report) reported third-quarter 2025 earnings of 43 cents per share, which improved from the year-ago quarter. Total revenues of $1.66 billion improved year over year.

Based on current market and operating conditions, ZTO Express lowered its 2025 parcel volume guidance to the range of 38.2 billion to 38.7 billion (reflecting 12.3-13.8% year-over-year growth) from the previously guided range of 38.8 billion to 40.1 billion (reflecting 14-18% year-over-year growth).

ZTO Express (Cayman) Inc. Price, Consensus and EPS Surprise

ZTO Express (Cayman) Inc. Price, Consensus and EPS Surprise

ZTO Express (Cayman) Inc. price-consensus-eps-surprise-chart | ZTO Express (Cayman) Inc. Quote

Detailed Operational Statistics

Revenue from the core express delivery business increased 11.6% year over year, owing to 9.8% growth in parcel volume and a 1.7% increase in parcel unit price. Key account revenues, generated by direct sales organizations, rose 141.2% year over year owing to an increase in e-commerce return parcels.

Revenue from freight forwarding services fell 7.4% year over year.

Revenue from sales of accessories, which largely consisted of sales of digital thermal paper waybills, rose 0.5% year over year. Other revenues were derived mainly from financing services.

Gross profit decreased 11.4% from the year-ago reported quarter. Gross margin rate fell to 24.9% from 31.2% in the year-ago period.

Total operating expenses were RMB550.9 million (US$77.4 million) compared with RMB493.0 million in the year-ago period.

ZTO’s board has approved its share repurchase program in November 2018 and made subsequent modifications, whereby the latest modification increased the aggregate value of shares that may be repurchased to $2.0 billion and extended the effective period through June 30, 2026.

As of Sept. 30, 2025, ZTO had purchased an aggregate of 52,919,506 ADSs for $1.3 billion on the open market, including repurchase commissions. ZTO has $0.7 billion remaining funds available under its share repurchase program.

ZTO Express exited the third quarter of 2025 with cash and cash equivalents of $1.31 billion compared with $1.85 billion at the end of the prior quarter.

Currently, ZTO Express carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q3 Performances of Other Transportation Companies

Delta Air Lines (DAL - Free Report) reported third-quarter 2025 earnings (excluding 46 cents from non-recurring items) of $1.71 per share, which beat the Zacks Consensus Estimate of $1.52. Earnings increased 14% on a year-over-year basis due to low fuel costs.

Revenues in the September-end quarter were $16.67 billion, beating the Zacks Consensus Estimate of $15.79 billion and increasing 6.4% on a year-over-year basis. Due to improving air-travel demand, adjusted operating revenues (excluding third-party refinery sales) increased 4.1% year over year to $15.2 billion. 

J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported third-quarter 2025 earnings of $1.76 per share, which surpassed the Zacks Consensus Estimate of $1.47 and improved 18.1% year over year.

Total operating revenues of $3.05 billion surpassed the Zacks Consensus Estimate of $3.02 billion and were down 0.5% year over year. JBHT’s third-quarter revenue performance was hurt by a 1% and 4% decline in gross revenue per load in Intermodal (JBI) and Truckload (JBT), respectively, a decrease in load volume of 8% and 1% in Integrated Capacity Solutions (ICS) and Dedicated Contract Services (DCS), and 8% fewer stops in Final Mile Services (FMS). These items were partially offset by a 3 % improvement in DCS productivity, a 9% increase in revenue per load in ICS and 14% load growth in JBT. Total operating revenue, excluding fuel surcharge revenue, fell less than 1% year over year.

United Airlines Holdings, Inc. (UAL - Free Report) reported mixed third-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.

UAL's third-quarter 2025 adjusted earnings per share (EPS) (excluding 12 cents from non-recurring items) of $2.78 surpassed the Zacks Consensus Estimate of $2.64 but declined 16.5% on a year-over-year basis. The reported figure lies above the guided range of $2.25 and $2.75.

Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.3 billion but increased 2.6% year over year. Passenger revenues (which accounted for 90.7% of the top line) increased 1.9% year over year to $13.8 billion. UAL flights transported 48,382 passengers in the third quarter, up 6.2% year over year.

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