Can InPost (ENXTAM:INPST) Sustain Growth as Profit Margins Narrow Amid Rising Sales?

• InPost S.A. recently reported its financial results for the third quarter and nine months ended September 30, 2025, showing sales of PLN 3,768.9 million and PLN 10,254.2 million, respectively, with net income and earnings per share declining compared to the previous year.
• A key insight from these results is that while sales continued to grow significantly, profitability and earnings per share both decreased from the prior period, highlighting a complex picture for the company's financial performance.
• We'll explore how higher sales paired with lower profitability could influence InPost's investment narrative moving forward.

The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

InPost Investment Narrative Recap

To be a shareholder in InPost, you need confidence in its ability to convert rapid parcel volume and revenue growth into sustainable earnings, particularly as competition and costs increase. The latest earnings update, which saw strong sales gains but declining profitability and earnings per share, does not materially shift the short-term focus: the primary catalyst remains successful integration of recent acquisitions, while the main risk is persistent margin pressure from higher investment and cost inflation.

Among recent developments, InPost’s sizable refinancing effort in September, including the redemption of PLN 500,000,000 in bonds, is especially relevant. This move increases financial flexibility, which could be vital for ongoing expansion and the push for margin improvement, but also highlights the importance of balancing growth ambitions with debt management as a catalyst for near-term confidence.

However, as the company grows, investors should be aware that rising operational costs in new markets could make it harder to sustain recent growth in earnings and...

Read the full narrative on InPost (it's free!)

InPost's narrative projects PLN21.9 billion revenue and PLN2.9 billion earnings by 2028. This requires 21.0% yearly revenue growth and a PLN1.93 billion earnings increase from the current earnings of PLN971.5 million.

Uncover how InPost's forecasts yield a €17.36 fair value, a 73% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members offered 11 fair value estimates for InPost from €11.55 to €21.32 per share. While opinions differ, the recurring challenge of margin pressure could shape outcomes for both optimistic and cautious market participants.

Explore 11 other fair value estimates on InPost - why the stock might be worth over 2x more than the current price!

Build Your Own InPost Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your InPost research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free InPost research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate InPost's overall financial health at a glance.

Looking For Alternative Opportunities?

Our top stock finds are flying under the radar-for now. Get in early:

• Outshine the giants: these 24 early-stage AI stocks could fund your retirement.
• This technology could replace computers: discover 27 stocks that are working to make quantum computing a reality.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com