Faroese postal service reports loss but expects profit this year

The Faroese postal service Posta recorded a loss of 3.2 million krona in 2025 but anticipates a return to profitability this year following restructuring measures, the company announced Wednesday.

According to its annual report, Posta’s net loss after tax widened to 3.2 million krona last year, compared to a 1.7 million krona loss in 2024. Revenue also declined from 106 million krona in 2024 to 94 million krona in 2025.

The company cited multiple factors for the poor results, including unprofitable freight operations between the Faroe Islands and abroad, as well as prolonged delays in mail deliveries from foreign providers.

In response, Posta has streamlined operations by outsourcing freight services and reducing the handling of undeliverable mail. The company is now focusing on parcel delivery and digital services, including expanded parcel lockers, an updated app, and self-service payment options. It has also leased part of its headquarters in Óðinshædd and established a separate facility for storage management.

“The business has been simplified and made more sustainable, which should yield better results going forward,” said Posta’s director, Edvard Remberg.

Despite last year’s loss, the company expects to turn a profit in 2026.