Financial Data and Key Metrics Changes - For Q4 2025, consolidated revenue was $24.5 billion, with an operating profit of $2.9 billion and an operating margin of 11.8% [7][21][22] - Full year 2025 consolidated revenue reached $88.7 billion, with an operating profit of $8.7 billion and an operating margin of 9.8% [7][31] - The company incurred total charges of $238 million in Q4, including a $137 million non-cash after-tax charge for the write-off of the MD-11 aircraft fleet [4][22] Business Segment Data and Key Metrics Changes - U.S. Domestic segment generated $16.8 billion in revenue for Q4, a decrease of 3.2% year-over-year, with an average daily volume decline of 10.8% [26][27] - International segment revenue was $5 billion in Q4, up 2.5% year-over-year, despite a 4.7% decline in average daily volume [29] - Supply Chain Solutions revenue was $2.7 billion in Q4, down $388 million year-over-year, with operating profit of $276 million and an operating margin of 10.3% [30][31] Market Data and Key Metrics Changes - U.S. small package market growth is expected to be low single digits in 2026, with export volume growth outside the U.S. anticipated to be subdued [16][39] - The company increased SMB penetration to 31.8% of total U.S. volume, driven by a 25% year-over-year revenue growth in the Digital Access Program [9][10] - U.S. imports were down 24.4% year-over-year, with significant declines from Canada and Mexico [29] Company Strategy and Development Direction - The company aims to reduce Amazon volume in its network by 50% over an 18-month period, with plans to glide down another 1 million pieces per day in 2026 [11][34] - The strategy focuses on delivering differentiated value to customers and improving long-term profitability through effective capital allocation [19][41] - The company plans to further automate its network, increasing the percentage of U.S. volume processed through automated facilities to 68% by the end of 2026 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in completing network reconfiguration plans without hindering growth in targeted markets, despite challenges from global trade policies and geopolitical concerns [7][12] - For 2026, the company expects consolidated revenue of approximately $89.7 billion and an operating margin of about 9.6% [17][35] - The first half of 2026 is expected to see revenue decline due to the Amazon glide down plan, with a recovery anticipated in the second half [18][38] Other Important Information - The company generated $8.5 billion in cash from operations in 2025 and returned $6.4 billion to shareholders through dividends and share repurchases [10][31] - The company completed acquisitions of Frigo-Trans and Andlauer Healthcare Group to expand healthcare logistics capabilities [10] Q&A Session Summary Question: Guidance and exit rate for 2026 - Management indicated that the first half of 2026 will experience margin pressure due to costs associated with the MD-11 retirement and the transition of GroundSaver to USPS, with expectations for recovery in the second half [43][46] Question: Domestic package growth expectations post-glide down - Management expects mid-single digit growth in enterprise and SMB volumes in the second half of 2026, with revenue per piece growth normalizing [51][53] Question: Rate increases for domestic and international - Revenue per piece growth is expected to be around 4.5% for the year, with a normalization to about 3% in the second half [62] Question: Cost per piece trends - Management anticipates a normalization of cost per piece as automation and network reconfiguration efforts take effect, aiming for a return to inflation-level increases [68][70]

Financial Data and Key Metrics Changes - For Q4 2025, consolidated revenue was $24.5 billion, with an operating profit of $2.9 billion and an operating margin of 11.8% [6][21] - Full year 2025 consolidated revenue reached $88.7 billion, with an operating profit of $8.7 billion and an operating margin of 9.8% [30][31] - The company incurred total charges of $238 million in Q4, including a $137 million write-off for the MD-11 aircraft fleet [3][21] Business Segment Data and Key Metrics Changes - U.S. Domestic revenue for Q4 was $16.8 billion, a decrease of 3.2% year-over-year, with an average daily volume decline of 10.8% [26][27] - International segment revenue was $5 billion, up 2.5% year-over-year despite a 4.7% decline in average daily volume [28] - Supply Chain Solutions revenue was $2.7 billion, down $388 million year-over-year, with operating profit of $276 million and an operating margin of 10.3% [29][30] Market Data and Key Metrics Changes - U.S. average daily volume decreased by 2.4 million pieces, or 10.8%, with SMB penetration increasing to 31.2% of total U.S. volume [24][25] - International average daily volume decreased by 4.7%, with significant declines in U.S. imports, particularly from Canada and Mexico [28] - The company reported a 300% increase in daily customs entries in the U.S. compared to the previous year [9] Company Strategy and Development Direction - The company aims to reduce Amazon's volume in its network by 50% over an 18-month period, with a target of gliding down another 1 million pieces per day in 2026 [11][34] - The strategy focuses on enhancing revenue quality and operational agility through network reconfiguration and automation [7][12] - The company plans to increase the percentage of U.S. volume processed through automated facilities to 68% by the end of 2026 [13] Management's Comments on Operating Environment and Future Outlook - Management highlighted a dynamic macro environment in 2025, including changes in global trade policies and geopolitical concerns [6][7] - For 2026, the company expects U.S. small package market growth to be low single digits, with overall revenue expected to be approximately flat year-over-year [15][17] - Management expressed confidence in completing network reconfiguration plans without hindering growth in targeted markets [12][19] Other Important Information - The company generated $8.5 billion in cash from operations and returned $6.4 billion to shareholders through dividends and share repurchases in 2025 [10][30] - The company plans to invest in further automation and has identified 24 buildings for closure in the first half of 2026 [34][35] Q&A Session Summary Question: Guidance and exit rate for 2026 - Management indicated that the first half of 2026 will see margin pressure due to costs associated with the MD-11 retirement and the transition of GroundSaver to USPS, with expectations for recovery in the second half [44][46] Question: Domestic package growth and margin improvement - Management expects mid-single digit growth in enterprise and SMB volume in the second half of 2026, with revenue per piece growth normalizing [50][52] Question: Rate increases for domestic and international - Revenue per piece growth is projected at about 4.5% for the year, with expectations for higher rates in the first half and normalization in the second half [60][61] Question: Cost per piece trends - Management anticipates a normalization of cost per piece as the year progresses, with expectations to align with inflation levels [64][65] Question: International segment pressures - Management noted that international segment EBIT is expected to decline year-over-year due to volume pressures and trade lane shifts, with gradual recovery anticipated [72][73]

4Q25 Earnings Call January 27, 2026 1 | . | | --- | | . | | . | | . | | • | | . | | •• | | . | © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 2 UPS Speakers CAROL B. TOMÉ Chief Executive Officer BRIAN DYKES Chief Financial Officer PJ GUIDO Investor Relations Officer © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks ...

分组1 - UPS reported quarterly earnings of $2.38 per share, exceeding the Zacks Consensus Estimate of $2.22 per share, but down from $2.75 per share a year ago, representing an earnings surprise of +7.15% [1] - The company posted revenues of $24.48 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.95%, compared to $25.3 billion in the same quarter last year [2] - UPS shares have increased approximately 7.8% since the beginning of the year, outperforming the S&P 500's gain of 1.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.45 on revenues of $20.85 billion, and for the current fiscal year, it is $7.33 on revenues of $87.93 billion [7] - The Transportation - Air Freight and Cargo industry is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] 分组3 - The estimate revisions trend for UPS was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6] - GXO Logistics, another company in the same industry, is expected to report quarterly earnings of $0.83 per share, reflecting a year-over-year decline of -17%, with revenues anticipated to be $3.47 billion, up 6.8% from the previous year [9][10]

Group 1 - The company trades at a 30% discount to the S&P 500 based on a price-to-earnings ratio [1] - The company offers a dividend yield of approximately 6% [1]

Core Insights - United Parcel Service (UPS) reported an increase in profit for the fourth quarter, despite incurring a charge related to the retirement of one of its aircraft fleets [1] - The company has provided guidance for higher revenue in the upcoming year, indicating positive growth expectations [1] Financial Performance - UPS experienced higher profit in the fourth quarter, showcasing resilience in its financial performance [1] - The profit increase occurred even with the financial impact of retiring an aircraft fleet, suggesting effective cost management and operational efficiency [1] Future Outlook - The guidance for higher revenue in the coming year reflects the company's optimistic outlook and potential for growth in the logistics and delivery sector [1]

UPS forecasts full-year sales above Wall Street’s expectations as it forges ahead with plans to cut less-profitable package volume out of its network https://t.co/Qcqo5cEJBO ...

Core Insights - United Parcel Service (UPS) has forecasted higher revenue for 2026, indicating a positive outlook for the company as it continues to optimize its delivery operations [1] Group 1: Revenue Forecast - UPS anticipates increased revenue in 2026, driven by a strategic shift away from low-margin deliveries [1] - The company is focusing on higher-paying shipments, which is expected to enhance overall profitability [1] Group 2: Customer Strategy - UPS is reducing its reliance on low-margin deliveries for its largest customer, Amazon, as part of its operational adjustments [1] - This strategic move aims to improve the company's financial performance by prioritizing more lucrative delivery options [1]

Exhibit 99.2 United Parcel Service, Inc. Selected Financial Data - Fourth Quarter (unaudited) | | | | Three Months Ended | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | December 31, | | | | | | | | 2025 | | 2024 | | Change | % Change | | (amounts in millions, except per share data) | | | | | | | | | Statement of Income Data: | | | | | | | | | Revenue: | | | | | | | | | U.S. Domestic Package | $ | 16,756 | $ | 17,312 | $ | (556) | (3.2)% | | International Package | | 5,045 | | 4,923 | | 1 ...

ATLANTA--(BUSINESS WIRE)---- $UPS #UPSearnings--UPS (NYSE:UPS) today announced fourth-quarter 2025 consolidated revenues of $24.5 billion. Consolidated operating profit was $2.6 billion; non-GAAP adjusted consolidated operating profit was $2.9 billion. Diluted earnings per share were $2.10 for the quarter; non-GAAP adjusted diluted earnings per share were $2.38. For the fourth quarter of 2025, GAAP results include total charges of $238 million, or $0.28 per diluted share, comprised of a non-cash, after-tax ...