UNITED PARCEL SERVICE (UPS) Company Report

Reiterated 2026 guidance for slightly higher revenue and flat EPS, with first-half headwinds from Amazon volume reductions, USPS outsourcing and MD-11 write-offs, and anticipated margin recovery in the second half to fuel long-term growth and margin expansion.
Accelerating network reconfiguration by right-sizing U.S. capacity—closing 93 buildings in 2025 and 24 more in H1 2026—removing 2 million Amazon pieces/day over two years, and investing in automation to build a leaner, more productive ground network.
Launched a Driver Choice Program, offering lump-sum payouts to over 100,000 union drivers to accelerate voluntary attrition; related charges expected in Q2 2026 with labor cost savings thereafter.
Prioritizing capital allocation with $6.5 billion in free cash flow guidance, $3 billion in CapEx (3–3.5% of revenue), maintaining ~2.5× debt/EBITDA leverage, and a flat dividend to stabilize payout ratios.

6 days ago

Transcript

UPS outlines 2026 guidance and network transformation at RJ conference

UPS

Guidance Update

New Projects/Investments

Layoffs

2026 guidance sees slightly up revenue and flat EPS, with H1 headwinds from the Amazon drawdown, MD-11 fleet write-off, and USPS volume transition, and H2 recovery with low-single-digit revenue growth and margin expansion
Three strategic pillars: Amazon volume reduction of 2 M pieces/day (~$5 B revenue) to boost network efficiency; the largest network reconfiguration in UPS’s 118-year history with automation and capacity right-sizing; and partial outsourcing of Ground Saver (SurePost) back to USPS
2026 cost-reduction targets include removing 25 M operational hours, cutting 30 k positions, and closing 24 buildings in H1, supported by the Driver Choice Program for early retirements
CapEx guided at $3 B (~3% of revenue) focused on automation and new air hubs, with $6.5 B free cash flow, dividend held flat at ~50% payout, and debt/EBITDA ~2.5x

6 days ago

Transcript

UPS outlines 2026 guidance and network transformation at Raymond James conference

UPS

Guidance Update

Layoffs

New Projects/Investments

UPS reiterated its 2026 guidance for slightly higher revenue and flat EPS, with first‐half margin pressure from the Amazon volume reduction, network reconfiguration and tariff headwinds, followed by low-single-digit revenue growth and margin recovery in the second half.
The company will shed ~$5 billion of Amazon revenue (about 2 million pieces/day) over two years, cutting 25 million operational hours, closing 73 buildings and eliminating 30,000 positions in 2025, with another 1 million pieces/day reduction, 24 facility closures and a Driver Choice Program for ~100,000 drivers in 1H26.
UPS is executing the largest network reconfiguration in its 118-year history, right-sizing ground and air capacity and investing in automation to build a leaner, more productive network optimized for B2B, SMB and healthcare logistics.
The Ground Saver (SurePost) economy product will be partially outsourced back to USPS after service-driven insourcing in 2024, with rate adjustments and the shedding of low-value Chinese e-commerce volume now largely wrapped.
Capital allocation priorities include generating $6.5 billion of free cash flow in 2026, maintaining ~2.5× debt/EBITDA, investing $3 billion in CapEx (a 10-year low), holding the dividend flat to rebuild to a 50–60% payout ratio, and pursuing tuck-in M&A in healthcare.

6 days ago

Transcript

UPS plans 30,000 operational job cuts in 2026

UPS

Hiring

Layoffs

Guidance Update

UPS will eliminate 30,000 operational roles in 2026 via attrition and a voluntary separation program for full-time drivers, alongside closure of roughly two dozen facilities and network consolidation.
These cuts follow approximately 48,000 job eliminations in 2025 as UPS continues to unwind about 1 million Amazon packages per day, shifting toward higher-margin shipments.
The restructuring delivered $3.5 billion in savings in 2025 and is expected to yield an additional $3 billion in cost reductions in 2026.
UPS recorded a $137 million non-cash after-tax charge to retire its MD-11 fleet and projected 2026 revenue of about $89.7 billion, sending its shares up roughly 2.8% in early trading.

Jan 27, 2026, 2:25 PM

WSJ

UPS announces Q4 2025 results

UPS

Earnings

Guidance Update

UPS reported Q4 2025 consolidated revenue of $24.5 billion, operating profit of $2.9 billion (11.8% margin), and diluted EPS of $2.38; FY 2025 revenue was $88.7 billion with $8.7 billion in operating profit (9.8% margin).
U.S. Domestic Q4 revenue declined 3.2% YoY to $16.8 billion on a 10.8% ADV drop, offset by an 8.3% increase in revenue per piece; operating margin was 10.2%.
International segment Q4 revenue rose 2.5% YoY to $5.0 billion (ADV down 4.7%), delivering an 18% operating margin; Supply Chain Solutions revenue was $2.7 billion (–$388 million YoY) with a 10.3% margin.
For full-year 2026, UPS expects revenue of $89.7 billion, operating margin of 9.6%, and flat EPS vs. 2025.

Jan 27, 2026, 1:30 PM

Transcript

UPS reports Q4 2025 results and 2026 outlook

UPS

Earnings

Guidance Update

UPS reported Q4 2025 consolidated revenue of $24.5 billion, operating profit of $2.9 billion, and an operating margin of 11.8%; full-year 2025 revenue was $88.7 billion with operating profit of $8.7 billion and a 9.8% margin
U.S. Domestic Q4 revenue was $16.8 billion (–3.2% YoY) on an average daily volume decline of 10.8%, offset by 8.3% growth in revenue per piece; segment operating margin was 10.2%
International Q4 revenue rose 2.5% to $5.0 billion despite a 4.7% volume decline, delivering an operating margin of 18%; Supply Chain Solutions generated $2.7 billion in revenue with a 10.3% margin
For 2026, UPS expects consolidated revenue of ~$89.7 billion, operating margin of ~9.6%, and diluted EPS to be flat to 2025; the company will reduce Amazon volume by another 1 million pieces/day and target $3 billion in related savings

Jan 27, 2026, 1:30 PM

Transcript

UPS reports Q4 2025 results

UPS

Earnings

Guidance Update

M&A

Q4 consolidated revenue of $24.5 billion, operating profit of $2.9 billion, and operating margin of 11.8%; FY 2025 revenue $88.7 billion, operating profit $8.7 billion, margin 9.8%.
Delivered $3.5 billion in savings from network reconfiguration, reduced Amazon volume by ~1 million pieces/day, and grew U.S. revenue per piece by 7.1%; SMB penetration reached 31.8% of U.S. volume.
Took a $137 million after-tax charge to retire the MD-11 fleet, planning to take delivery of 18 Boeing 767 aircraft over the next 15 months.
Issued 2026 guidance: revenue ~$89.7 billion, operating margin ~9.6%, EPS ~flat to 2025; expects U.S. ADV down mid-single digits offset by mid-single-digit revenue-per-piece growth, with first-half margin pressure and second-half profit rebound.
Completed acquisitions of Frigo-Trans and Andlauer Healthcare, expanding healthcare cold chain capabilities, with global healthcare revenue of $11.2 billion in 2025.

Jan 27, 2026, 1:30 PM

Transcript

UPS completes MD-11 fleet retirement

UPS

Accounting Changes

UPS completed accelerated retirement of its McDonnell Douglas MD-11 freighters during Q4 2025, as part of a broader fleet modernization after the Nov. 4, 2025 crash.
The retirements led to a $137 million noncash, after-tax charge, contributing to $238 million in total special charges for the quarter.
UPS will replace much of the retired capacity with newer Boeing 767s and other freighters over the coming year, underscoring a safety-driven fleet pivot.

Jan 27, 2026, 12:33 PM

WSJ

UPS reports Q4 earnings beat

UPS

Earnings

Guidance Update

UPS delivered adjusted EPS of $2.38 on $24.5 billion in revenue, topping expectations and driving a ~4% stock rise on the upbeat outlook.
Reported diluted EPS of $2.10 after $0.28 per share in one-off charges from MD-11 fleet write-offs and restructuring costs.
Domestic U.S. package revenue declined about 3.2% to $16.8 billion, while international package revenue rose 2.5% to $5.1 billion, with revenue per piece up 7.1%.
Issued 2026 guidance of $89.7 billion in revenue and a non-GAAP adjusted operating margin near 9.6%, alongside planned capital spending and dividends; CEO Tomé labels 2026 an “inflection point” as Amazon business declines.

Jan 27, 2026, 11:30 AM

WSJ

UPS announces Q4 2025 earnings

UPS

Earnings

Dividends

Consolidated revenue of $24.5 billion and GAAP operating margin of 10.5%; diluted EPS of $2.10 (non-GAAP $2.38) for Q4 2025.
Fiscal-year 2025 revenue of $88.7 billion, operating profit of $7.9 billion (non-GAAP $8.7 billion), and diluted EPS of $6.56 (non-GAAP $7.16).
GAAP Q4 results include $238 million in charges (or $0.28/share) for the write-off of the MD-11 aircraft fleet and transformation costs.
Board declares first-quarter 2026 dividend of $1.64 per share, payable March 5, 2026.