UPS(US:UPS)2025-04-29 10:09Revenue Performance - Total revenue for Q1 2025 was $21,546 million, a decrease of 0.7% compared to $21,706 million in Q1 2024[2] - U.S. Domestic Package revenue increased by 1.4% to $14,460 million from $14,266 million year-over-year[2] - International Package revenue rose by 2.7% to $4,373 million, up from $4,256 million in the previous year[2] - Supply Chain Solutions revenue decreased by 14.8% to $2,713 million, down from $3,184 million in Q1 2024[2] Profitability - Operating profit for Q1 2025 was $1,666 million, reflecting a 3.3% increase from $1,613 million in Q1 2024[2] - Net income for Q1 2025 was $1,187 million, a 6.6% increase compared to $1,113 million in Q1 2024[2] - Basic earnings per share increased by 7.7% to $1.40 from $1.30 year-over-year[2] - Operating profit for Q1 2025 was $1,666 million, with an operating margin of 7.7%, up from 7.4% in Q1 2024[15] Cash Flow and Expenses - Free cash flow for Q1 2025 was $1,487 million, down from $2,280 million in Q1 2024, reflecting a decrease of 34.8%[13] - Total operating expenses decreased by 1.1% to $19,880 million from $20,093 million in Q1 2024[7] - U.S. Domestic Package Operating Expenses for Q1 2025 were $13,481 million, a 0.4% increase from $13,433 million in Q1 2024, with an operating profit of $979 million, up 17.5%[26] - International Package Operating Expenses increased by 3.7% to $3,732 million in Q1 2025, with an operating profit of $641 million, down 2.3% from $656 million in Q1 2024[26] - Supply Chain Solutions Operating Expenses decreased by 12.8% to $2,667 million in Q1 2025, resulting in an operating profit of $46 million, down 62.9% from $124 million in Q1 2024[26] Asset and Liability Management - Total current assets decreased to $17,090 million in Q1 2025 from $19,310 million in Q4 2024, a decline of 11.5%[9] - Total liabilities decreased to $52,782 million in Q1 2025 from $53,327 million in Q4 2024, a reduction of 1.0%[9] - Cash and cash equivalents at the end of Q1 2025 were $4,802 million, down from $6,112 million at the end of Q4 2024, a decrease of 21.4%[9] - The company reported a total equity for controlling interests of $15,660 million in Q1 2025, down from $16,718 million in Q4 2024, a decline of 6.3%[9] Capital Expenditures - Capital expenditures for Q1 2025 were $876 million, compared to $1,035 million in Q1 2024, a decrease of 15.4%[13] Transformation Strategy - The company incurred total transformation strategy costs of $58 million in Q1 2025, compared to $46 million in Q1 2024, an increase of 26.1%[15] - Transformation Strategy Costs for U.S. Domestic Package were $32 million in Q1 2025, compared to $9 million in Q1 2024[26] Volume and Efficiency - Average Daily Package Volume decreased by 3.5% to 17,443 thousand packages in Q1 2025 from 18,075 thousand in Q1 2024[5] - Average Daily U.S. Domestic Package Volume was 17,443 thousand in Q1 2025, down from 18,075 thousand in Q1 2024[28] - The average revenue per piece for U.S. Domestic Package increased by 4.5% to $13.06 from $12.50 in the previous year[5] - U.S. Domestic Package Cost Per Piece (GAAP) increased by 3.7% to $12.22 in Q1 2025, while the Non-GAAP Adjusted Cost Per Piece was $12.19, also a 3.7% increase[28] Aircraft Fleet - The total aircraft fleet as of March 31, 2025, included 292 owned and operated by UPS and 240 operated by others, with 24 aircraft on order[31] - The company anticipates retiring three MD-11 aircraft during 2025[31] Goodwill and Impairment - Goodwill and Asset Impairment Charges were not recorded in Q1 2025, while $5 million was recorded in Q1 2024[26] Reclassification - The company has reclassified certain prior year amounts to conform to the current year presentation, including air cargo results[24]