Core Insights - UPS is shifting its focus from volume to margin, completing a significant reduction in low-margin Amazon package volume by over 50% as part of a multi-year strategy [2][3][6] - The company aims to prioritize higher-margin sectors such as healthcare, small-and-medium-sized businesses (SMB), automotive, and international B2B [3][6] Financial Performance - UPS reported fourth-quarter revenue of $24.5 billion and provided a 2026 revenue outlook of $89.7 billion, marking the first full-year sales guidance in a year [5] - The company achieved $3.5 billion in year-over-year cost savings in 2025, with an additional $3 billion targeted for 2026 [7] Operational Changes - UPS executed workforce reductions totaling over 60,000 positions and closed or consolidated numerous facilities, which contributed to its cost-saving measures [7] - The international segment showed a 2.5% revenue growth in the fourth quarter, with a notable operating margin of 17.5% reported [8] Strategic Focus - The company is transitioning from restructuring to operational harvesting, emphasizing premium service and operational precision to generate sustainable returns [6][9] - UPS is intentionally pruning low-margin activities to align with its integrated logistics vision, resulting in a more coherent and strategically focused segment [11] Technological Advancements - UPS is investing in automation, with cost-per-piece in automated facilities being 28% less than in traditional ones, enhancing productivity [4] - The Supply Chain Solutions segment is benefiting from technology, including RFID technology for improved visibility and AI-driven planning [12]