UPS Earnings Report Showed Progress in Shipping Giant's Turnaround Effort

Core Insights - UPS reported better-than-expected third-quarter results, with adjusted earnings of $1.74 per share and revenue of $21.42 billion, despite a 3.7% year-over-year decline in revenue [2][3] - The company's turnaround plan, "Efficiency Reimagined," is showing positive results, leading to a 7% increase in shares, reaching their highest levels in three months [1][3] Financial Performance - UPS's adjusted earnings surpassed analysts' expectations, who had predicted an EPS of $1.31 and revenue of $20.89 billion [2] - The company achieved cost savings of approximately $2.2 billion this year and anticipates total savings of $3.5 billion by the end of 2025 compared to the previous year [5][6] Operational Changes - As part of the "Efficiency Reimagined" initiative, UPS has reduced its operational workforce by about 34,000 positions and closed 93 facilities in the first nine months of 2025 [4] - The company has cut nearly 50,000 jobs this year, which has contributed to boosting profits [7] Future Outlook - UPS provided guidance for fourth-quarter revenue of $24 billion, slightly above consensus estimates, and reinstated its full-year outlook expecting 4% to 6% revenue growth [6] - The company plans to spin off its freight business by June 2026, indicating a strategic shift in operations [6]