Why Is InPost (ENXTAM:INPST) Profitable Growth So Elusive Despite Surging Sales?

• InPost S.A. has announced its earnings results for the half year ended June 30, 2025, reporting sales of PLN 6,485.3 million, an increase compared to the same period last year, but net income declined to PLN 317 million from PLN 591.2 million a year earlier.
• While sales have grown, the significant decrease in net income highlights changing profitability dynamics for the company as it expands its operations.
• We'll consider how higher sales but reduced earnings impact InPost's investment narrative and growth outlook.

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InPost Investment Narrative Recap

To be an InPost shareholder, you need a strong belief in the company’s ability to convert robust sales growth into sustainable earnings as it expands in Poland and abroad. The latest earnings reveal that while revenue surged, profitability is under pressure, suggesting that the most important short-term catalyst, network expansion and parcel growth, faces a more material risk from rising costs and reduced margins in the near term.

Among recent announcements, InPost’s follow-on equity offering in July stands out as particularly relevant. Raising €231.88 million allowed the company to shore up its balance sheet amid ambitious growth plans, but with declining net profit despite increased sales, investors will likely focus on how efficiently these fresh funds are being allocated to drive returns.

But unlike prior earnings periods, this latest report puts a spotlight on one financial pressure that investors should pay close attention to...

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

InPost's outlook anticipates PLN20.9 billion in revenue and PLN2.7 billion in earnings by 2028. This is based on analysts' assumptions of 22.3% annual revenue growth and a PLN1.5 billion earnings increase from the current PLN1.2 billion.

Uncover how InPost's forecasts yield a €18.90 fair value, a 76% upside to its current price.

Exploring Other Perspectives

Ten members of the Simply Wall St Community see InPost’s fair value ranging from €10.98 to €50 per share. While some expect continued volume-led revenue growth, others may weigh the risk of shrinking profit margins more heavily, consider reading several viewpoints before drawing your own conclusions.

Explore 10 other fair value estimates on InPost - why the stock might be worth over 4x 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 4 key rewards and 1 important warning sign 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.

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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.

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