Justine Weiss's questions to United Parcel Service Inc (UPS) leadership • Q2 2025
Question
Justine Weiss of Bernstein asked for the rationale behind withdrawing financial guidance, questioning if it signals worsening conditions or simply uncertainty, and inquired about the progress on cost-cutting initiatives aimed at achieving double-digit domestic margins.
Answer
CEO Carol Tomé explained that the guidance withdrawal stems from significant uncertainty around trade policies, consumer demand, and the financial impact of internal initiatives like the driver buyout and Groundsaver cost optimization. She noted that while July volume was strong, it was likely skewed by temporary factors. CFO Brian Dykes added that Q3 margins could face more pressure than previously expected due to lower-than-anticipated employee attrition and higher Groundsaver costs, with more clarity expected by the end of Q3.