Post Office on the Brink of Financial Collapse: Loss Soars to R$ 4.3 Billion in Six Months and Triples in Just One Year

Written by Fabio Lucas Carvalho

Published on 06/09/2025 at 10:19

Updated on 06/09/2025 at 10:22

Foto; Reprodução

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Amid Falling Revenues and Rising Expenses, State Company Announces Recovery Plan, Seeks External Financing and Faces Strong Political Pressure.

The Brazilian Post and Telegraph Company (ECT) reported a loss of R$ 4.3 billion in the first half of 2025. The amount more than tripled compared to 2024, when the result was negative at R$ 1.3 billion.

The main issue is the decline in revenues. Between January and June, net revenue dropped from R$ 9.283 billion last year to R$ 8.185 billion this year. At the same time, expenses increased, rising from R$ 1.959 billion to R$ 3.414 billion in the same period.

The state-owned company stated that the difficulties are a reflection of external factors, particularly in the international segment.
Regulatory changes in the procurement of imported products reduced the volume of shipments, increasing competition and decreasing revenue.

ARTICLE CONTINUES BELOW

Management Under Pressure

The lawyer Fabiano Silva, president of the company, submitted a resignation letter to President Luiz Inácio Lula da Silva in July. Despite this, he remains in charge of the state company.

Prior to this move, União Brasil was already seeking more space within the Post Office. Political pressure adds to the criticism regarding the current management’s slowness in adopting structural adjustments.

Even with ongoing measures, such as selling real estate, a voluntary dismissal program, and the launch of a marketplace in partnership with Infracommerce, the initiatives are still considered insufficient to reverse the situation.

Strategies to Balance the Accounts

In the financial statements, the Post Office claims to have implemented a recovery plan. The strategy includes the creation of a Contingency Executive Committee, formed by the management team, to monitor and coordinate emergency measures.

According to the state-owned company, the goal is to restore immediate liquidity and lead an economic rebalancing program. The priority is to increase revenues through service diversification and commercial expansion, as well as to reduce operational costs.

The statement also emphasizes that, even in crisis, the company seeks to preserve the universalization of services while trying to ensure productivity gains and financial sustainability.

International Loan as a Solution

In addition to internal measures, the Post Office is trying to secure financing of R$ 4 billion from the New Development Bank (NDB), also known as the Brics Bank.

The request has already received approval from the External Financing Commission (Cofiex). The contract provides for a term of 240 months, with a 60-month grace period.

According to the state-owned company, the funds would be used for decarbonization projects, logistics modernization, process automation, and the construction of new operational centers.

Investments in digital transformation, artificial intelligence, and institutional capacity building are also planned.

Therefore, the expectation is that this external credit will give the company momentum, creating conditions to face the sector’s contraction and seek financial balance.

Uncertain Future

Despite the announced actions, the scenario remains challenging. The accumulated deficit is growing, while revenues are falling at an accelerated pace. Furthermore, political disputes and pressure from parties for space in the state company increase instability.

The coming months will be decisive in determining whether the measures can contain the losses or if the crisis will continue to deepen.

Post Office on the Brink of Financial Collapse: Loss Soars to R$ 4.3 Billion in Six Months and Triples in Just One Year

Amid Falling Revenues and Rising Expenses, State Company Announces Recovery Plan, Seeks External Financing and Faces Strong Political Pressure.

Management Under Pressure

Strategies to Balance the Accounts

International Loan as a Solution

Uncertain Future

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Post Office on the Brink of Financial Collapse: Loss Soars to R$ 4.3 Billion in Six Months and Triples in Just One Year

Amid Falling Revenues and Rising Expenses, State Company Announces Recovery Plan, Seeks External Financing and Faces Strong Political Pressure.

Management Under Pressure

Strategies to Balance the Accounts

International Loan as a Solution

Uncertain Future

With billions in loans, China is rebuilding Nigeria’s railway network from scratch, abandoning the British colonial tracks that have turned to scrap and creating a corridor of over 1,300 km to take the load off the roads of Africa’s largest economy.

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Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

Australia prepares to dredge 96.5 million m³ in Moreton Bay to deepen, widen, and realign channels of the Port of Brisbane, in a project of up to 25 years designed to accommodate larger ships and enhance maritime safety and regional port efficiency.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

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