Latest news with #PitneyBowes'
Business Wire
30-07-2025
- Business
- Business Wire
Pitney Bowes Discloses Strong Financial Results for Second Quarter 2025 and Issues CEO Letter
STAMFORD, Conn.--(BUSINESS WIRE)--Pitney Bowes Inc. (NYSE: PBI) ('Pitney Bowes' or the 'Company'), a technology-driven company that provides SaaS shipping solutions, mailing innovation, and financial services to clients around the world, today disclosed its financial results for the second quarter of 2025. In conjunction with this announcement, Pitney Bowes' CEO, Kurt Wolf, has released a letter to shareholders to provide his commentary on the quarter and updates on strategic initiatives. This letter issuance supports a format change to the Company's quarterly earnings calls, whereby management will deliver abbreviated commentary in order to devote additional time to more useful, interactive Q&A. Q2 2025 Financial Highlights Revenue was $462 million, down 6% year over year GAAP EPS was $0.17, an improvement of $0.30 year over year Adjusted EPS was $0.27, an improvement of $0.16 year over year GAAP net income of $30 million, an improvement of $55 million year over year Adjusted EBIT was $102 million, an improvement of $28 million or 37% year over year GAAP cash from operating activities was $111 million, up $31 million year over year Free Cash Flow was $106 million, and excluded $8 million of restructuring payments Earnings per share results are summarized in the table below: Second Quarter 2025 2024 GAAP EPS $0.17 ($0.14) Loss from discontinued operations, net of tax - $0.08 Restructuring charges $0.06 $0.13 Foreign currency loss on intercompany loans $0.07 - Transaction and strategic review costs $0.01 $0.04 Benefit in connection with Ecommerce Restructuring ($0.03) - Adjusted EPS $0.27 $0.11 Expand Q2 2025 CEO Commentary & Letter To read and/or download a copy of this quarter's CEO letter please click here. Q2 2025 Business Segment Reporting SendTech Solutions SendTech Solutions offers physical and digital shipping and mailing technology solutions, financing, services, supplies and other applications for small and medium businesses, retail, enterprise, and government clients around the world to help simplify and save on the sending, tracking and receiving of letters, parcels and flats. Second Quarter ($ millions) 2025 2024 % Change Reported Revenue $312 $339 (8%) Adj. Segment EBITDA $113 $108 5% Adj. Segment EBIT $101 $96 5% Expand SendTech revenue decline was driven by the end of the recent product migration, which largely concluded at the end of 2024, the ongoing shift from equipment placement to lease extensions and a decrease in mailing install base. Adjusted Segment EBITDA and EBIT improvement was driven by simplification and cost reduction initiatives. Presort Services Presort Services provides sortation services that enable clients to qualify for USPS workshare discounts in First Class Mail, Marketing Mail, Marketing Mail Flats and Bound Printed Matter. Second Quarter ($ millions) 2025 2024 % Change Reported Revenue $150 $147 2% Adj. Segment EBITDA $45 $36 25% Adj. Segment EBIT $36 $27 33% Expand Higher revenue per piece and product mix drove revenue growth. Adjusted Segment EBITDA and EBIT improvement was driven by cost reduction initiatives. Change to Segment Reporting Effective April 1, 2025, we revised our segment reporting to report the revenue and related expenses of a cross-border services contract in our SendTech Solutions reporting segment, which was previously reported in Other. Prior periods have been recast to conform to the current period presentation. 2025 Full-Year Outlook Pitney Bowes has updated its full-year revenue guidance, from a $1.95 billion to $2 billion range to a $1.90 billion to $1.95 billion range. This update, which is almost entirely attributable to Presort, stems from previously overemphasizing EBIT margins at the expense of winning and retaining certain Presort clients, which would have been profitable at lower margins. New management has reversed former management's policy to ensure Presort can leverage its strength and scale as the market leader under Debbie Pfeiffer. The Company also has raised its Adjusted EPS guidance from $1.10 to $1.30 range to a $1.20 to $1.40 range. The Company has tightened its Adjusted EBIT guidance by lowering the top end of the range and reaffirms its previously disclosed full-year guidance for Free Cash Flow. The Company's current financial guidance is as follows: $ millions, except EPS Low High Revenue $1,900 $1,950 Adjusted EBIT $450 $465 Adjusted EPS $1.20 $1.40 Free Cash Flow $330 $370 Expand Q2 2025 Earnings Conference Call Management will discuss the Company's results in a webcast today at 5:00 p.m. ET. Instructions for accessing the earnings results call are available on the Investor Relations page of the Company's website at About Pitney Bowes Pitney Bowes (NYSE: PBI) is a technology-driven company that provides SaaS shipping solutions, mailing innovation, and financial services to clients around the world – including more than 90 percent of the Fortune 500. Small businesses to large enterprises, and government entities rely on Pitney Bowes to reduce the complexity of sending mail and parcels. For the latest news, corporate announcements, and financial results, visit For additional information, visit Pitney Bowes at Adjusted Segment EBIT Adjusted Segment EBIT is the primary measure of profitability and operational performance at the segment level. Adjusted Segment EBIT includes segment revenues and related costs and expenses attributable to the segment, but excludes interest, taxes, general corporate expenses, restructuring charges, and other items not allocated to a business segment. We also report Adjusted Segment EBITDA as an additional useful measure of segment profitability and operational performance, which is calculated as Adjusted Segment EBIT plus depreciation and amortization expense of the segment. Use of Non-GAAP Measures Pitney Bowes' financial results are reported in accordance with generally accepted accounting principles (GAAP). Pitney Bowes also discloses certain non-GAAP measures, such as revenue growth on a constant currency basis, adjusted earnings before interest and taxes (Adjusted EBIT), adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA), adjusted earnings per share (Adjusted EPS) and free cash flow. Revenue growth on a constant currency basis excludes the impact of changes in currency exchange rates from the prior period under comparison. Constant currency change is calculated by converting the current period non-U.S. dollar denominated revenue using the prior year's exchange rate. We believe that excluding the impacts of currency exchange rates provides a better understanding of the underlying revenue performance. Adjusted EBIT, Adjusted EBITDA and Adjusted EPS exclude the impact of restructuring charges, foreign currency gains and losses on intercompany loans, certain costs associated with the Ecommerce Restructuring, gains and losses on debt redemptions and other unusual items that we believe are not indicative to our core business operations. Free cash flow adjusts cash flow from operations calculated in accordance with GAAP for capital expenditures, restructuring payments and other special items. Management believes free cash flow provides better insight into the amount of cash available for other discretionary uses. Reconciliations of non-GAAP measures to comparable GAAP measures can be found in the attached financial schedules and at the Company's web site at: Forward-Looking Statements This document contains 'forward-looking statements' about the Company's expected or potential future business and financial performance, including, but not limited to, statements about future revenue and profitability, earnings guidance, future events or conditions, capital allocation strategy, expected cost savings and efficiency improvements, and strategic initiatives and priorities. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from those projected. Factors which could cause future financial performance to differ materially from expectations include, without limitation, changes in postal regulations or the operations and financial health of posts in the U.S. or other major markets or changes to the broader postal or shipping markets; accelerated or sudden decline in physical mail volumes or shipping volumes; the loss of some of our larger clients; changes in trade policies, tariffs and regulations;; global supply chain issues adversely impacting our third party suppliers' ability to provide us products and services; periods of difficult economic conditions, the impacts of inflation and rising prices, higher interest rates and a slow-down in economic activity, including a global recession, or a U.S. government shutdown, to the Company and our clients; changes in foreign currency exchange rates; changes in labor and transportation availability and costs; inability to successfully execute on our strategic initiatives; and other factors as more fully outlined in the Company's 2024 Form 10-K Annual Report and other reports filed with the Securities and Exchange Commission during 2025. Pitney Bowes assumes no obligation to update any forward-looking statements contained in this document as a result of new information, events, or developments. Pitney Bowes Inc. Consolidated Statements of Operations (Unaudited; in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue: Services $ 290,423 $ 297,253 $ 608,855 $ 619,943 Products 90,880 108,262 184,070 222,386 Financing and other 80,606 84,230 162,404 168,685 Total revenue 461,909 489,745 955,329 1,011,014 Costs and expenses: Cost of services 144,240 158,196 300,113 322,677 Cost of products 54,487 60,672 105,406 123,426 Cost of financing and other 15,656 20,398 33,163 41,685 Selling, general and administrative 170,542 192,804 336,457 379,636 Research and development 3,601 7,259 8,364 14,885 Restructuring charges 13,806 30,399 15,206 34,165 Interest expense, net 24,937 28,253 49,207 55,559 Other components of net pension and postretirement cost 1,947 (382 ) 3,801 (769 ) Other (income) expense (6,578 ) - 17,609 - Total costs and expenses 422,638 497,599 869,326 971,264 Income (loss) from continuing operations before taxes 39,271 (7,854 ) 86,003 39,750 Provision for income taxes 9,296 2,271 20,606 17,771 Income (loss) from continuing operations 29,975 (10,125 ) 65,397 21,979 Loss from discontinued operations, net of tax - (14,742 ) - (49,731 ) Net income (loss) $ 29,975 $ (24,867 ) $ 65,397 $ (27,752 ) Basic earnings (loss) per share: Continuing operations $ 0.17 $ (0.06 ) $ 0.36 $ 0.12 Discontinued operations - (0.08 ) - (0.28 ) Net income (loss) $ 0.17 $ (0.14 ) $ 0.36 $ (0.16 ) Diluted earnings (loss) per share: Continuing operations $ 0.17 $ (0.06 ) $ 0.36 $ 0.12 Discontinued operations - (0.08 ) - (0.27 ) Net income (loss) $ 0.17 $ (0.14 ) $ 0.36 $ (0.15 ) Weighted-average shares used in diluted earnings per share 181,005 178,696 182,708 181,342 The sum of the earnings per share amounts may not equal the totals due to rounding. Expand Pitney Bowes Inc. Consolidated Balance Sheets (Unaudited; in thousands) Assets June 30, 2025 December 31, 2024 Current assets: Cash and cash equivalents $ 285,177 $ 469,726 Short-term investments 15,606 16,374 Accounts and other receivables, net 155,317 159,951 Short-term finance receivables, net 506,989 535,608 Inventories 79,001 59,836 Current income taxes 1,300 10,429 Other current assets and prepayments 82,600 66,030 Total current assets 1,125,990 1,317,954 Property, plant and equipment, net 193,264 218,657 Rental property and equipment, net 23,004 24,587 Long-term finance receivables, net 638,625 610,316 Goodwill 748,530 721,003 Intangible assets, net 16,767 15,780 Operating lease assets 113,136 113,357 Noncurrent income taxes 103,767 99,773 Other assets 275,755 276,089 Total assets $ 3,238,838 $ 3,397,516 Liabilities and stockholders' deficit Current liabilities: Accounts payable and accrued liabilities $ 742,804 $ 873,626 Customer deposits at Pitney Bowes Bank 608,937 645,860 Current operating lease liabilities 27,276 26,912 Current portion of long-term debt 15,150 53,250 Advance billings 76,231 70,131 Current income taxes 18,508 2,948 Total current liabilities 1,488,906 1,672,727 Long-term debt 1,881,565 1,866,458 Deferred taxes on income 41,063 49,187 Tax uncertainties and other income tax liabilities 12,538 13,770 Noncurrent operating lease liabilities 100,244 100,804 Noncurrent customer deposits at Pitney Bowes Bank 51,977 57,977 Other noncurrent liabilities 199,354 215,026 Total liabilities 3,775,647 3,975,949 Stockholders' deficit: Common stock 270,338 270,338 Retained earnings 2,669,992 2,671,868 Accumulated other comprehensive loss (764,276 ) (839,171 ) Treasury stock, at cost (2,712,863 ) (2,681,468 ) Total stockholders' deficit (536,809 ) (578,433 ) Total liabilities and stockholders' deficit $ 3,238,838 $ 3,397,516 Expand Pitney Bowes Inc. Business Segment Revenue (Unaudited; in thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 % Change 2025 2024 % Change Sending Technology Solutions $ 311,716 $ 339,273 (8 %) $ 627,322 $ 686,094 (9 %) Presort Services 150,193 146,858 2 % 328,007 316,665 4 % Total reportable segments 461,909 486,131 (5 %) 955,329 1,002,759 (5 %) Other - 3,614 (100 %) - 8,255 (100 %) Total revenue, as reported 461,909 489,745 (6 %) 955,329 1,011,014 (6 %) Impact of currency on revenue (2,686 ) (551 ) Total revenue, constant currency $ 459,223 $ 489,745 (6 %) $ 954,778 $ 1,011,014 (6 %) Expand Pitney Bowes Inc. Adjusted Segment EBIT & EBITDA (Unaudited; in thousands) Three Months Ended June 30, 2025 2024 % change Adjusted Segment EBIT (1) D&A Adjusted Segment EBITDA Adjusted Segment EBIT (1) D&A Adjusted Segment EBITDA Adjusted Segment EBIT Adjusted Segment EBITDA Sending Technology Solutions $ 101,255 $ 11,731 $ 112,986 $ 96,023 $ 11,524 $ 107,547 5 % 5 % Presort Services 35,940 9,139 45,079 27,048 8,955 36,003 33 % 25 % Total reportable segments $ 137,195 $ 20,870 158,065 $ 123,071 $ 20,479 143,550 11 % 10 % Reconciliation of Adjusted Segment EBITDA to income or loss from continuing operations before taxes: Other operations (2) - (4,121 ) Depreciation and amortization - reportable segments (20,870 ) (20,479 ) Interest expense, net (37,499 ) (44,218 ) Corporate expenses (34,902 ) (44,293 ) Restructuring charges (13,806 ) (30,399 ) Foreign currency (loss) gain on intercompany loans (17,029 ) 712 Transaction and Strategic review costs (1,266 ) (8,606 ) Benefit in connection with Ecommerce Restructuring 6,296 - Gain on debt redemption/refinancing 282 - Income (loss) from continuing operations before taxes $ 39,271 $ (7,854 ) Six Months Ended June 30, 2025 2024 % change Adjusted Segment EBIT (1) D&A Adjusted Segment EBITDA Adjusted Segment EBIT (1) D&A Adjusted Segment EBITDA Adjusted Segment EBIT Adjusted Segment EBITDA Sending Technology Solutions $ 198,282 $ 23,412 $ 221,694 $ 191,937 $ 23,429 $ 215,366 3 % 3 % Presort Services 90,719 18,408 109,127 67,377 17,713 85,090 35 % 28 % Total reportable segments $ 289,001 $ 41,820 330,821 $ 259,314 $ 41,142 300,456 11 % 10 % Reconciliation of Adjusted Segment EBITDA to income or loss from continuing operations before taxes: Other operations (2) - (4,831 ) Depreciation and amortization - reportable segments (41,820 ) (41,142 ) Interest expense, net (75,384 ) (88,127 ) Corporate expenses (67,019 ) (86,495 ) Restructuring charges (15,206 ) (34,165 ) Foreign currency (loss) gain on intercompany loans (24,624 ) 5,350 Transaction and Strategic review costs (3,156 ) (11,296 ) Benefit in connection with Ecommerce Restructuring 6,755 - Loss on debt redemption/refinancing (24,364 ) - Income from continuing operations before taxes $ 86,003 $ 39,750 Expand (1) Adjusted segment EBIT excludes interest, taxes, general corporate expenses, restructuring charges, foreign currency gains and losses from the revaluation of intercompany loans and other items that are not allocated to a business segment. (2) Other operations includes the revenue and related expenses of our former Global Ecommerce business that did not qualify for discontinued operations treatment. Expand Pitney Bowes Inc. Reconciliation of Reported Consolidated Results to Adjusted Results (Unaudited; in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Reconciliation of reported net income (loss) to adjusted EBIT and adjusted EBITDA Net income (loss) $ 29,975 $ (24,867 ) $ 65,397 $ (27,752 ) Loss from discontinued operations, net of tax - 14,742 - 49,731 Provision for income taxes 9,296 2,271 20,606 17,771 Income (loss) from continuing operations before taxes 39,271 (7,854 ) 86,003 39,750 Restructuring charges 13,806 30,399 15,206 34,165 Foreign currency loss (gain) on intercompany loans 17,029 (712 ) 24,624 (5,350 ) Transaction and Strategic review costs 1,266 8,606 3,156 11,296 Benefit in connection with Ecommerce Restructuring (6,296 ) - (6,755 ) - (Gain) loss on debt redemption/refinancing (282 ) - 24,364 - Adjusted net income before tax 64,794 30,439 146,598 79,861 Interest, net 37,499 44,218 75,384 88,127 Adjusted EBIT 102,293 74,657 221,982 167,988 Depreciation and amortization 28,762 28,483 57,086 57,332 Adjusted EBITDA $ 131,055 $ 103,140 $ 279,068 $ 225,320 Reconciliation of reported diluted earnings (loss) per share to adjusted diluted earnings per share Diluted earnings (loss) per share $ 0.17 $ (0.14 ) $ 0.36 $ (0.15 ) Loss from discontinued operations, net of tax - 0.08 - 0.27 Restructuring charges 0.06 0.13 0.06 0.15 Foreign currency loss (gain) on intercompany loans 0.07 - 0.10 (0.02 ) Transaction and Strategic review costs 0.01 0.04 0.01 0.05 Benefit in connection with Ecommerce Restructuring (0.03 ) - (0.03 ) Loss on debt redemption/refinancing - - 0.10 Adjusted diluted earnings per share $ 0.27 $ 0.11 $ 0.61 $ 0.29 The sum of the earnings per share amounts may not equal the totals due to rounding. Reconciliation of reported net cash from operating activities to free cash flow Net cash from operating activities - continuing operations $ 111,388 $ 79,910 $ 94,709 $ 78,895 Capital expenditures (13,343 ) (16,466 ) (30,230 ) (30,783 ) Restructuring payments 8,412 11,708 21,518 26,697 Free cash flow $ 106,457 $ 75,152 $ 85,997 $ 74,809 Expand
Business Wire
21-05-2025
- Business
- Business Wire
Pitney Bowes Appoints Kurt Wolf as Chief Executive Officer and Announces Value-Enhancing Actions
STAMFORD, Conn.--(BUSINESS WIRE)--Pitney Bowes Inc. (NYSE: PBI) ('Pitney Bowes' or the 'Company'), a technology-enabled services company that provides SaaS shipping solutions, mailing innovation and financial services to clients around the world, is announcing today that its Board of Directors (the 'Board') has appointed sitting director Kurt Wolf as the Company's Chief Executive Officer ('CEO'), effective immediately. Mr. Wolf succeeds Lance Rosenzweig, who is retiring from his CEO and director roles to become a consultant to the Company. The Company thanks Mr. Rosenzweig for his contributions during an important period of transformation. The Board determined that Mr. Wolf, who is an architect of Pitney Bowes' turnaround and a major shareholder, is best positioned to refine the Company's strategy, effectively allocate capital, and empower and support the organization's talented business leaders and employees. Since Mr. Wolf joined the Board and subsequently became Chair of the Value Enhancement Committee, the Company's total shareholder returns have exceeded 200%. The Board believes his contributions and deep knowledge of Pitney Bowes, as well as his past success as an operating executive, entrepreneur and strategic consultant, represent the ideal qualifications for the Company's next CEO. Capital Returns and Deleveraging The Company is also announcing today that, based on its strong outlook for free cash flow and other financial metrics, it intends to repurchase $150 million in shares in 2025. This amount represents the entirety of the Board's previously disclosed share repurchase authorization. The Board expects to establish another share repurchase authorization once the existing one is exhausted. The Company also intends to continue evaluating increases to its dividend. Furthermore, the Company is now on track to achieve its 3.0x adjusted leverage ratio target by the end of the second quarter, a quarter sooner than previously announced and without needing to retire additional debt. This will give Pitney Bowes significantly greater flexibility with respect to use of cash on a go forward basis. Strategic Review Mr. Wolf and relevant members of leadership will conduct a comprehensive strategic review over the remainder of 2025. This process will be supported by independent advisors. The goal of the review is to produce a clear strategy for maximizing the value of the businesses for shareholders and other stakeholders. Under Mr. Wolf, Pitney Bowes will establish a new Executive Planning Group ('EPG') that also includes: Shemin Nurmohamed (EVP and President, Sending Technology Solutions) Debbie Pfeiffer (EVP and President, Presort Services) Christopher Johnson (SVP and President, Global Financial Services) Lauren Freeman-Bosworth (EVP, General Counsel & Corporate Secretary) Robert Gold (EVP, Chief Financial Officer and Treasurer). The EPG will primarily focus on ensuring each of Pitney Bowes' individual businesses has the access, resources and support necessary to enhance cash flow, profitability, and service for the Company's clients and government partners. The Company believes that establishing the EPG will enable key leaders to have stronger connectivity with the CEO, enabling them to run businesses in an autonomous, efficient manner. Milena Alberti-Perez, Chair of the Board, commented: 'As the Board looked to accelerate value creation and bring stability to the organization, it became clear that Kurt is the right CEO to achieve those objectives. Kurt's capital markets acumen, strategic mindset and vast knowledge of the organization have enabled him to help guide our Board to many value-enhancing decisions in recent years. Moreover, his ability to build lasting and trusting relationships throughout all levels of Pitney Bowes gives us confidence that he will be a steady hand atop the organization. It is also important to take this moment to thank Lance for his contributions over the past year, including implementing important efficiency measures, helping reduce debt and overseeing the exit of our former Global Ecommerce segment. We look forward to continuing to work with Lance in his consulting role.' Mr. Wolf added: 'It is an honor to become the CEO of an iconic and historic American business such as Pitney Bowes. For more than a century, the Company has demonstrated its adaptability, ingenuity and willingness to make tough choices to advance the collective interests of all stakeholders. I am especially humbled to hold a position once held by the legendary Walter H. Wheeler Jr., who became a corporate luminary during his three decades leading Pitney Bowes. He made a profound mark on business by establishing a culture of accountability that aligned employees' interests with shareholders' interests. Mr. Wheeler's longevity and success largely stemmed from his ability to establish a constructive and value-focused culture decades before it was fashionable. I will work tirelessly to build on that culture at Pitney Bowes by empowering our people to operate with more autonomy and introducing new levels of transparency around our goals, strategy and expectations. When it comes to engaging with our investors, I pledge to listen to feedback and take decisive steps that are in our collective best interests. When it comes to supporting our business leaders and employees, I am equally committed to learning what has made Pitney Bowes great over the past century in the pursuit of superior results. Looking ahead, my agenda is simple: Set a clear strategy to effectively allocate capital and ensure our people are supported so they can deliver profitable services for one of the world's most enviable client bases. After spending several years getting to know every facet of this organization, I am excited to apply that knowledge to helping propel careers and unlocking value. There is so much opportunity at Pitney Bowes, and we have the right business leaders and employees to realize the potential in front of us.' The Company has reaffirmed all aspects of its previously announced 2025 financial guidance. There are no additional changes at this time. Additional details around today's announcements will be filed with the Securities and Exchange Commission on a Form 8-K. About Pitney Bowes Pitney Bowes (NYSE: PBI) is a technology-driven company that provides SaaS shipping solutions, mailing innovation, and financial services to clients around the world – including more than 90 percent of the Fortune 500. Small businesses to large enterprises, and government entities rely on Pitney Bowes to reduce the complexity of sending mail and parcels. For the latest news, corporate announcements, and financial results, visit For additional information, visit Pitney Bowes at Forward-Looking Statements This press release contains 'forward-looking statements' within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including those relating to capital allocation priorities, the timing and amount of repurchases of common stock, the Company's financial outlook and reaffirmation of its financial guidance, the Company's timing for achieving its deleveraging targets, the Company's strategic objective discussed above as well as other statements concerning future events. Forward-looking statements are subject to inherent risks and uncertainties, including those discussed throughout the 'Risk Factors' section of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission on February 21, 2025, that could cause actual results to differ materially from those expressed in such forward-looking statements. Forward-looking statements in this press release speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Yahoo
19-05-2025
- Business
- Yahoo
Retail Logistics Market to Worth Over US$ 850.37 Billion By 2033
Retail logistics market is reshaped by soaring parcel volumes, omnichannel orchestration, warehouse automation, greener transport, real-time data, last-mile innovation, geopolitical rerouting, and talent upskilling—turning logistics from cost center into agile, data-driven growth engine. Chicago, May 19, 2025 (GLOBE NEWSWIRE) -- The global retail logistics market was valued at US$ 285.34 billion in 2024 and is expected to reach US$ 850.37 billion by 2033, growing at a CAGR of 12.90% during the forecast period 2025–2033. Global parcel volumes continue to soar, catapulting the retail logistics market into a new era of network design. Pitney Bowes' 2024 Parcel Shipping Index estimates 195 billion packages will move worldwide this year—13 billion more than in 2023—fuelled mainly by marketplaces and social-commerce checkouts. Amazon's same-day footprint now spans 175 U.S. metropolitan areas, giving 125 million residents access to sub-10-hour delivery windows. Shein has compressed its average factory-to-door cycle to eight calendar days by tagging every pallet with IoT temperature and tilt sensors that trigger automatic customs pre-clearance. Such data-rich flows force retailers, 3PLs and software vendors to rethink facility spacing, because a five-hour lead-time gap now determines whether a cart converts or abandons. Download Sample Pages: Responding to that pressure, the retail logistics market is scaling decentralized assets at record speed. Real estate firm Prologis confirms 312 micro-fulfilment centers (MFCs) were leased in the United States during the last four quarters, a jump from just 96 sites in 2021. DHL eCommerce has doubled its dual-coast network density, adding six facilities within 40 kilometers of major ports to shorten inbound drayage. In India, Flipkart opened 19 regional hubs that collectively hold 45 million stock keeping units and can push 8 million orders per day during peak festivals. These hard numbers illustrate how fulfilment nodes are no longer experimental pilots; they have become the primary competitive lever that anchors customer loyalty and repeat spending across the modern markets. Key Findings in Retail Logistics Market Market Forecast (2033) US$ 850.37 Billion CAGR 12.90% Largest Region (2024) Asia Pacific (26%) By Type Conventional Retail Logistics (55%) By Solution Type Supply Chain Solutions (35%) By Mode of Transport Railways (52%) Top Drivers Accelerating omnichannel adoption demanding faster, flexible fulfillment proximity solutions nationwide Rising consumer expectations for free, two-day shipping driving network optimization Retailers investing heavily in automation to reduce labor costs, errors Top Trends Micro-fulfillment centers within urban zones expanding 40 percent annually nationwide AI routing platforms optimizing last-mile deliveries, lowering fuel spending double-digits Electric medium-duty trucks gaining traction post-California Clean Fleets regulatory rollout Top Challenges Warehouse labor shortages inflate wages, turnover nationwide, straining peak fulfillment Port congestion from Red Sea disruptions extending times, spiking rates Volatile cardboard, diesel prices complicate budgeting, eroding already thin margins Omnichannel Complexity Elevates Inventory Orchestration In Retail Logistics Market Omnichannel retailing has blurred the once-rigid boundary between store inventory and online allocation, creating fresh challenges for the retail logistics market. Target disclosed that customers collected 108 million Drive Up orders in 2023, translating to a curbside hand-off roughly every three seconds. Meanwhile, Walmart processed 1.8 billion store-fulfilled e-commerce units, underlining how brick-and-mortar locations have become miniature distribution points. These volumes complicate safety-stock math because a single SKU can now exit through five distinct paths—home delivery, locker, ship-from-store, click-and-collect, or third-party marketplace drop-ship. To tame the sprawl, solution providers are embedding machine-learning allocation engines deep inside order-management systems. Manhattan Associates reports its leading client reduced split shipments from 6.7 million to 4.1 million in six months after adopting dynamic sourcing rules that factor labor availability, carrier cut-offs and real-time aisle congestion. European fashion giant Inditex refreshes RFID reads every two hours across 6,200 stores, enabling 98 percent SKU accuracy at shelf level and cutting oversells during viral TikTok surges. At the contract level, 1,400 North American retailers renegotiated small-parcel agreements in Q1 2024 alone to secure weekend pickups. Such concrete moves show decision-makers that mastering omnichannel orchestration is no longer IT fine-tuning; it is a board-level mandate that directly shapes future profitability within the retail logistics market. Warehouse Automation Adoption Accelerates Across Diverse Market Sites Warehouse automation once lived only in mega-sheds, but 2024 evidence reveals broad-based traction throughout the retail logistics market. CBRE notes 42 million square feet of new U.S. warehouse space broke ground with autonomous mobile robot (AMR) capability already specified in the blueprints. Amazon's Wroclaw facility operates 3,000 Proteus units that lift picks per associate from 105 to 170, while Australian grocer Woolworths sliced average cycle time by 42 minutes per order after installing Knapp shuttle systems in Sydney. AutoStore, the cube-based specialist, shipped its 1,500th grid in January, and nearly half of those deployments sit in footprints under 60,000 square feet, signaling adoption even among mid-tier merchants. Labor dynamics are evolving accordingly. The U.S. Bureau of Labor Statistics recorded 114,000 unfilled warehouse jobs at the close of 2023, punching up wages and spurring automation ROI. Walmart redeployed 1,200 pickers into exception-handling roles after rolling Symbotic systems across 12 regional DCs, while DHL launched a two-year apprenticeship that trains veterans to maintain mixed robot fleets. LinkedIn shows 3,600 active postings titled 'Robotics Technician—Supply Chain,' up from 2,100 a year earlier. The takeaway for executives is clear: blending people with versatile automation is no longer futuristic—it is a pragmatic route to greater throughput, better employee retention and sustained competitiveness in the ever-evolving retail logistics market. Sustainability Regulations Propel Greener Transport Within Retail Logistics Market Environmental mandates introduced this year are rewriting freight calculus across the retail logistics market. The EU Corporate Sustainability Reporting Directive now obligates more than 50,000 companies to publish Scope 3 freight emissions, driving shippers to book low-carbon capacity. California's Advanced Clean Fleets rule has already placed 1,350 zero-emission drayage trucks on order, with Home Depot piloting 12 Nikola hydrogen tractors between the Ports of LA and Inland Empire DCs. Singapore's carbon tax climbed to S$25 per ton of CO₂ on 1 January, prompting local 3PLs to shift 2,400 containers per month from truck to barge along the Jurong corridor. Cost and compliance are converging. Maersk's first methanol-powered vessel introduced a US$175 surcharge per forty-foot equivalent unit, yet 180 apparel and electronics brands still queued for its July west-bound sailing to secure Science-Based Targets alignment. Project44 users who activated 'eco-mode' route optimization avoided roughly 3.2 million liters of diesel during the 2023 holiday surge. Book-and-claim frameworks now let shippers retire verified credits when physical green slots are scarce, turning sustainability into an auditable KPI. These tangible shifts prove that environmental stewardship has progressed from a marketing talking point to an operational imperative woven directly into procurement playbooks across the global market. Real-Time Visibility Tools Drive Data-Led Retail Logistics Market Decisions Information symmetry is rapidly becoming the lifeblood of the market. Gartner's April 2024 survey of 403 retailers found that 246 operate predictive ETA engines ingesting ELD pings, satellite AIS signals and hyper-local weather feeds. Shopify's Logistics Cloud publishes SKU-level status every 15 minutes, which trimmed 55,000 customer service tickets in its first full quarter. Over in the Middle East, marketplace Noon monitors vessel transits through the Suez Canal using exactEarth imagery; when Houthi attacks diverted ships south, its control tower pivoted 2,800 high-value SKUs to emergency airfreight, preserving launch dates. Data sharing is no longer optional. Snowflake reports that market customers uploaded 1.2 petabytes of supply-chain data during the last fiscal year, a 72 percent jump that underscores growing analytics maturity. Machine-learning models now flag potential container detention fees 36 hours before invoices post, giving finance teams enough runway to contest erroneous charges. Generative-AI chat extensions inside TMS dashboards—like Maersk's Microsoft-powered Copilot—save planners roughly 28 hours of manual report building per week. By weaving those insights into procurement, inventory and transport decisions, leaders convert fragmented hand-offs into a single high-margin value chain, demonstrating why data fluency is fast becoming table stakes throughout the retail logistics market. Last-Mile Innovation Addresses Speed And Cost In Retail Logistics Market Tight delivery windows and urban congestion are forcing last-mile reinvention within the market. Same-day parcel consignments in the United States climbed to 3.4 billion pieces in 2023, and industry trackers expect the figure to eclipse 4 billion this year as rapid-commerce apps add pharmacy and electronics assortments. UPS is rolling out 4,000 smart lockers at CVS stores, diverting roughly 350,000 doorstep drops each week and cutting failed-delivery claims. In Latin America, Mercado Libre operates 230 electric vans around São Paulo, removing an estimated 1,900 tons of CO₂ annually and sidestepping Brazil's US$0.19-per-litre diesel surcharge. Technology widens the toolkit. Drone Express, freshly certified under FAA Part 135, now flies 132 sorties per day across two Ohio suburbs, with an average door-step touchdown of 22 minutes after order confirmation. Crowd-sourced platforms are becoming more professionalized: Stuart delivers 97 percent on-time performance in Paris, enticing luxury retailers once wary of gig models. To tame density economics, route-clustering algorithms blend B2C parcels with B2B replenishment; early adopters see van utilization rise from 1.6 to 2.2 stops per kilometer. These quantitative gains validate that last-mile excellence is no longer a customer-experience add-on—it is a core profitability lever anchoring success in the fiercely competitive market. Geopolitical Realignments Influence Sourcing And Routes In Retail Logistics Market Geopolitical turbulence is redrawing supply routes and inventory strategies across the retail logistics market. Red Sea security threats extended Shanghai-to-Rotterdam voyages by 11 days between December 2023 and February 2024, prompting apparel brands to rail 40,000 TEUs of spring merchandise through Xi'an during that window. The U.S. CHIPS Act has shifted semiconductor-linked imports: Vietnam shipped 18.6 billion microelectronic units to America last year, up from 13.5 billion in 2022, driving retailers to open two new consolidation hubs in Hải Phòng and Đà Nẵng. Nearshoring trends provide hard evidence of network redesign. Mexican ports processed 3.2 million Asia-origin TEUs in 2023, while Laredo's World Trade Bridge handled 10.1 million truck crossings—the first time the corridor has breached eight digits. Forwarders now market 48-hour expedited trans-load services that shave two days off U.S. east-bound transit. Inventory buffers, however, are thinning: Gartner shows fashion days-of-supply dropped from 112 to 94 in 18 months as brands strive to stay lean amid high freight rates. These figures confirm that resilience planning has become an executive-level KPI, further elevating the strategic weight of the market as firms navigate a more fragmented world. Request Report Customization: Talent Development And Partnerships Sustain Competitive Retail Logistics Market People strategy is emerging as the pivotal differentiator within the r market. The U.S. Bureau of Labor Statistics projects the country will need 300,000 additional logisticians by 2032, a growth trajectory triple the national occupational average. Walmart's supply-chain degree created with the University of Arkansas already counts 1,100 enrolled associates, while Europe's Logistics Academy issued 2,700 micro-credentials in green freight over the last six months. These investments reflect a widening recognition that advanced robotics, AI-driven planning and carbon accounting demand new skill sets, not just more hires. Collaboration magnifies impact. The Global Logistics Emissions Council's 2024 pilot brought nine retailers, four carriers and three software vendors together to publish an open Scope 3 API that slashed data-integration time from 16 weeks to four. Retailer-supplier scorecards now center on fill-rate, ASN accuracy and carton compliance, fostering upstream transparency that ripples through distribution. UPSIDE Partners' recent cross-docking round-tables attracted 600 executives who collectively control 1.1 billion annual parcels, indicating strong appetite for pre-competitive knowledge sharing. Leaders who champion continuous learning and open collaboration will unlock better service, lower emissions and lasting resilience, cementing their organizations' stature in the dynamic, innovation-driven retail logistics market. Global Retail Logistics Market Major Players: DHL International GmbH A.P. Moller - Maersk APL Logistics Ltd DSV C.H. Robinson Worldwide, Inc. Kuehne + Nagel International FedEx Nippon Express United Parcel Service Schneider XPO Logistics, Inc. Other Prominent Players Key Market Segmentation: By Type E-Commerce Retail Logistics Conventional Retail Logistics By Solution Type Supply Chain Solutions Commerce Enablement Transportation Management Reverse logistics & liquidation Others By Mode of Transport Type Airways Railways Waterways Roadways By Region North America Europe Asia Pacific Middle East & Africa (MEA) South America Need More Info? Ask Before You Buy: About Astute Analytica Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements. With a team of experienced business analysts, economists, and industry experts, we deliver accurate, in-depth, and actionable research tailored to meet the strategic needs of our clients. At Astute Analytica, our clients come first, and we are committed to delivering cost-effective, high-value research solutions that drive success in an evolving marketplace. 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3 Dividend Stocks to Buy Now That Are Crushing the S&P 500 in 2025
Home security specialist Allegion is a company with secure long-term growth prospects. Pitney Bowes' cost-cutting has delivered results, and shareholders are benefiting. In times of uncertainty, investors tend to gravitate toward utility stocks like Southern. 10 stocks we like better than Allegion › The S&P 500 has rocketed higher in recent weeks but is still down year to date at the time of this writing. Trade tensions have eased somewhat, but there remains a great deal of macroeconomic uncertainty -- not to mention the ongoing "stroke of the pen risk," which refers to the dangers that companies can face from sudden changes in national policy. In these uncertain times, investors who might be looking for reliable sources of passive income that they'll be able to count on no matter what the economy does may want to take a closer look at Allegion (NYSE: ALLE), Pitney Bowes (NYSE: PBI), and Southern Company (NYSE: SO). All three companies regularly raise their dividends and are outperforming the S&P 500 so far in 2025. Here's why they stand out as top buys now. Lee Samaha (Allegion): Allegion is a provider of security products for homes and businesses. Its dividend sports a higher yield than the S&P 500 and an 11-year streak of annual payout increases. Moreover, if management's forecast for long-term double-digit percentage earnings growth is anything to go by, those dividends will likely grow significantly in the coming years. In addition, during Allegion's recent investor day presentation, management told investors it plans to deploy 30% of its available cash flow toward the dividend, up from just 23% in recent years. Its growth plans center on the secular growth opportunity in the convergence of mechanical and electronic security products and software. This means locks, electronic panels/readers, door accessories, frames, windows, and automatic closing doors -- a wide range of products. These higher-tech versions of everyday hardware are becoming increasingly essential in institutional buildings (education, healthcare, etc.), commercial spaces (offices, industrial facilities, etc.), and multifamily residences, as web-enabled technology brings more functionality to its solutions. For example, with Allegion's security products, access to areas can be monitored and controlled remotely, creating more secure environments and more efficient workplaces. Organic revenue growth of 4% aligns with management's long-term expectations (which assume mid-single-digit percentage growth plus a few points of growth from consolidating a fragmented market via mergers and acquisitions). Management recently affirmed its guidance for 2025 adjusted earnings per share (EPS) in the $7.65 to $7.85 range. That guidance factors in $80 million in costs associated with tariffs. The midpoint of that range would put Allegion on a price-to-earnings multiple of slightly more than 18, which is a good value for a company with such excellent long-term growth prospects. Scott Levine (Pitney Bowes): Except for some time in the middle of January, shares of Pitney Bowes have traded firmly higher in 2025 than where they ended 2024. As of this writing, shares of the shipping solutions specialist -- best known for its postage meters and other mailing equipment -- have soared by about 30% since the start of the year. Between this resilience during the market downturn and the fact that its stock offers a forward-dividend yield of about 3% at the current share price, Pitney Bowes is a passive income play that should be on your radar. One catalyst for the stock's rise came in February, when the company reported its fourth-quarter 2024 results. Illustrating management's commitment to reducing costs, the company announced another $30 million reduction in annualized costs during the quarter, bringing its run rate for annualized savings for the year to $120 million. Plus, the benefits from the cost-reduction initiative are expected to increase. Management projects that it will achieve $170 million to $190 million in annualized cost savings as a result of the plan. With its expenses coming down, Pitney Bowes is in a stronger position to reward shareholders. In addition to authorizing $150 million in stock buybacks, the company recently hiked its quarterly dividend from $0.06 per share to $0.07 per share. Lest investors fear that the company is being hasty in returning capital to shareholders, it's worth noting that the company currently has a conservative 43% payout ratio. While its free cash flow had steadily fallen for years, management seems to have righted the ship with the decision to sell its global e-commerce business and implement its cost-cutting initiative. Now, free cash flow is expected to rise from $290 million in 2024 to between $330 million and $370 million in 2025. Even after the stock's recent rise, this seems like a great time to pick up shares in this shipping specialist. Daniel Foelber (Southern Company): The utilities sector is up 5.6% year to date compared to a 3.7% decline in the S&P 500 at the time of this writing. Regulated electric utilities like Southern Company are a big reason the sector has been immune to this year's sell-off. Southern operates traditional electric companies in the Southeast U.S., and wind, solar, and natural gas generation facilities across the country. Thanks to economic and population growth, it's benefiting from the gradual increase in demand for electricity and natural gas. Southern works with regulators and government agencies to set prices so that customers have manageable utility bills. In exchange, the company enjoys steady cash flows, some of which it reinvests in new infrastructure, and some of which it distributes to shareholders through dividends. Management has embraced the clean energy transition by reducing its dependence on fossil fuels and investing in renewable energy sources. Last year, Southern completed Unit 4 of its Vogtle Electric Generating Plant in Waynesboro, Georgia -- which is now the largest nuclear plant in the country. Vogtle will provide Southern's customers with reliable power -- and the company with steady cash flows -- for decades to come. On May 7, Southern Company announced that construction was underway on four new battery energy storage systems (BESS) across Georgia. -- and more BESS investments are planned for the coming years. Investing in a diverse mix of projects is all well and good, but shareholders want to see that utilities are managing their projects well and getting good returns on their invested capital. Among its peer group, Southern Company consistently has a high return on invested capital and return on equity -- demonstrating its effective project development and operational efficiency. In April, Southern raised its dividend for the 24th consecutive year -- boosting the payout to an annualized rate of $2.96 per share, giving it a forward yield of 3.2% at the current share price. Southern Company's business model and growing payouts make it a relatively recession-proof dividend stock ideally suited for risk-averse investors. Before you buy stock in Allegion, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Allegion wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $620,719!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,511!* Now, it's worth noting Stock Advisor's total average return is 959% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool recommends Dominion Energy and Duke Energy. The Motley Fool has a disclosure policy. 3 Dividend Stocks to Buy Now That Are Crushing the S&P 500 in 2025 was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
