United Parcel Service, Inc. · NYSE:UPS
United Parcel Service — Q1 2025 Earnings Presentation
32 slides from United Parcel Service's earnings presentation, Apr 29, 2025
Slide 1: 1Q25 Earnings Call
1Q25 Earnings Call April 29, 2025 1
Slide 2: PJ Guido, Investor Relations Officer
PJ GUIDO Investor Relations Officer © 2025 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
Slide 3: UPS Speakers
UPS Speakers CAROL B. TOMÉ BRIAN DYKES Chief Executive Officer Chief Financial Officer © 2025 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. 3 3
Slide 4: Forward-Looking Statements and Non-GAAP Reconciliations
Forward-Looking Statements and Non-GAAP Reconciliations Forward-Looking Statements changes in exchange rates or interest rates; our ability to accurately forecast our future capital investment needs; increases in our expenses or funding This presentation and our filings with the Securities and Excha
Slide 5: Diluted EPS 1Q25 1Q24
Diluted EPS 1Q25 1Q24 $1.50 $0.05 $1.43* $0.04 $0.05 ($0.01) $1.49* $1.30 $0.04 $1.50 $1.40 $0.05 $1.00 $1.00 $0.50 $0.50 $0.00 $0.00 1Q25 EPS Goodwill & Asset Total Reversal of 1Q25 1Q24 EPS Goodwill & Total Expense for 1Q24 Impairments Transformation Income Tax Non-GAAP Adj. Asset Transformation R
Slide 6: Carol B. Tomé, Chief Executive Officer
CAROL B. TOMÉ Chief Executive Officer © 2025 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. 6
Slide 7: Thank You UPSers
Thank You UPSers
Slide 8: 1Q25 Consolidated Results
1Q25 Consolidated Results In $ Millions 1Q25 1Q24 Change Y/Y (except per share) Revenue $21,546 $21,706 -0.7% Non-GAAP Adj. Operating Profit* $1,763 $1,747 0.9% Non-GAAP Adj. Operating Margin* 8.2% 8.0% 20 bps Non-GAAP Adj. Diluted EPS* $1.49 $1.43 4.2% “Consolidated operating profit*, operating mar
Slide 9: Executing to Become More Profitable, Agile and Differentiated
Executing to Become More Profitable, Agile and Differentiated Accelerating glide down of Amazon volume ADV decline expected to be on plan in 1H25 Network reconfiguration underway. 164 operational closures expected in 2025; closing 73 buildings by the end of June and reviewing opportunities for more
Slide 10: Customer First, People Led, Innovation Driven
Customer First, People Led, Innovation Driven 1Q25 Highlights • Expanding healthcare capabilities with pending acquisition of Andlauer Healthcare Group Customer • SMBs made up 31.2% of total U.S. volume First Net Promoter Score • Global DAP revenue grew by 24.0% Y/Y • Reintroduced Ground with Freigh
Slide 11: 2025 Outlook
2025 Outlook • Market uncertainty leading to wide range of possible outcomes • Given today’s level of uncertainty, UPS is not providing any updates to our previously issued consolidated full- year outlook • Guiding for 2Q25 based on April results and our expectations for the balance of the quarter 1
Slide 12: Brian Dykes, Chief Financial Officer
BRIAN DYKES Chief Financial Officer © 2025 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. 12
Slide 13: 1Q25 Consolidated Results
1Q25 Consolidated Results In $ Millions 1Q25 1Q24 Change Y/Y (except per share) Revenue $21,546 $21,706 -0.7% Non-GAAP Adj. Operating Profit* $1,763 $1,747 0.9% Non-GAAP Adj. Operating Margin* 8.2% 8.0% 20 bps Non-GAAP Adj. Diluted EPS* $1.49 $1.43 4.2% “We are focusing on controlling what we can co
Slide 14: U.S. Domestic: 1Q Average Daily Volume Declined 3.5% Y/Y
U.S. Domestic 1Q Average Daily Volume Declined 3.5% Y/Y SMBs made up 31.2% of total U.S. volume, the highest concentration in 10 years ADV Change (Y/Y) Monthly ADV Growth (Y/Y) 12.0% 8.0% -3.5% Y/Y 4.0% 0.0% -4.0% -70 -181 -381 -8.0% -4.4% 18,075 -17.3% -12.0% -2.5% -16.0% 17,443 Jan Feb Mar Apr May
Slide 15: U.S. Domestic: 1Q Revenue of $14.5B, Up 1.4% Y/Y
U.S. Domestic 1Q Revenue of $14.5B, Up 1.4% Y/Y Revenue per piece Y/Y increase of 4.5%, strongest growth rate in eight quarters Revenue Change (Y/Y) • Revenue increased 1.4% Y/Y, driven by increases +1.4% Y/Y in air cargo -$0.7B $14.5B • Revenue per piece (RPP) improved 4.5% Y/Y, $14.3B +$0.6B +$0.3
Slide 16: Delivered $1.0B in Non-GAAP Adj. Operating Profit in 1Q
U.S. Domestic Delivered $1.0B in Non-GAAP Adj. Operating Profit* in 1Q Non-GAAP adj. operating profit* increased 19.4% U.S. Domestic Results • Total non-GAAP adj. operating expense* up 0.2% o Reduced purchased transportation by insourcing 100% of Ground Saver volume for final mile Change 1Q25 1Q24 d
Slide 17: 1Q International Average Daily Volume Increased 7.1% Y/Y
International 1Q International Average Daily Volume Increased 7.1% Y/Y 15 of our top 20 export countries demonstrated Y/Y export ADV growth Total Asia* Monthly ADV (Y/Y) Total Europe** Monthly ADV (Y/Y) 30% 16% 20% 12% 10% 8% 4% 0% 0% -10% -4% -20% -8% -30% -12% Jan Feb Mar Apr May Jun Jul Aug Sep O
Slide 18: Generated 1Q Non-GAAP Adj. Operating Profit of $0.7B
International Generated 1Q Non-GAAP Adj. Operating Profit* of $0.7B Revenue of $4.4B, up 2.7% Y/Y International Results • Non-GAAP adj. operating profit* down -4.1% Change 1Q25 1Q24 Y/Y Y/Y, driven by mix shift to more economy services in Europe, lower demand related Revenue $4.4B $4.3B 2.7% surchar
Slide 19: Supply Chain Solutions: Revenue of $2.7B, Down $471M Y/Y
Supply Chain Solutions Revenue of $2.7B, Down $471M Y/Y Revenue impacted by $563M reduction in revenue from Coyote Y/Y Supply Chain Solutions Results • Within SCS: Change o Air and Ocean Forwarding revenue was flat 1Q25 1Q24 Y/Y Y/Y. Air Freight revenue was slightly lower Y/Y, and was more than offs
Slide 20: 1Q25 Cash Flow and Capital Allocation
1Q25 Cash Flow and Capital Allocation Cash From Free Cash Dividends Share Operations Flow* Paid Repurchases $2.3B $1.5B $1.3B $1.0B Completed 2025 share repurchase target © 2025 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parc
Slide 21: $3.5 Billion in Cost Reductions Planned in 2025
$3.5 Billion in Cost Reductions Planned in 2025 Undertaking largest network reconfiguration in our history to enable U.S. Domestic operating margin expansion and increase profitability Reduce total Reduce operational Phase 1: 164 operational operational hours by positions by closures with 73 buildin
Slide 22: Savings Accelerate Through the Year to Deliver $3.5B Cost Reduction
Savings Accelerate Through the Year to Deliver $3.5B Cost Reduction Aligned with Amazon volume reductions Fixed & Support Functions $3.5B Semi Variable Variable U.S. Dollars Q1 Q2 Q3 Q4 2025 Expected Amazon ADV ~16% ~16% ~30% ~30% ~25% Decline © 2025 United Parcel Service of America, Inc. UPS, the U
Slide 23: 2025 Guidance
2025 Guidance UPS is not providing any updates to previously issued full-year consolidated outlook until there is more certainty in the macro environment 2Q25 Assumptions 2Q25 Outlook • International: factored in announced • Consolidated • Revenue of ~$21.0 billion tariffs and changes to de minimis
Slide 24: Questions & Answers
Questions & Answers © 2025 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. 24
Slide 25: Appendix
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Slide 26: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Reconciliation of GAAP and Non-GAAP Adjusted Financial Measures initiatives to undertake the end-to-end process redesign effort which will align our organizational processes to the network reconfiguration. We expect to reduce our operational wor
Slide 27: Reconciliations
Reconciliations © 2025 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. 27
Slide 28: Reconciliations
Reconciliations © 2025 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. 28
Slide 29: Reconciliations
Reconciliations © 2025 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. 29
Slide 30: Reconciliations
Reconciliations © 2025 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. 30
Slide 31: Reconciliations
Reconciliations © 2025 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. 31
Slide 32: Reconciliations
Reconciliations © 2025 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. 32
United Parcel Service — Q1 2025 Earnings Presentation on 6ix