ODP Corp's One-Off $107M Loss Threatens Margin Recovery Narratives

ODP Corp reported a one-off $107M loss, weighing on net profit margins, which dropped to 0.7% from 2% a year ago. Despite this, the company managed an average annual earnings growth rate of 12.3% over the past five years. Analysts expect profit margins to rise to 2.5% in three years, driven by strategic investments in solutions-focused B2B offerings and digital infrastructure. However, revenue is projected to decline 2.5% annually over the next three years.