United Parcel Service, Inc. · NYSE:UPS
United Parcel Service — Q4 2025 Earnings Presentation
43 slides from United Parcel Service's earnings presentation, Jan 27, 2026
Slide 1: 4Q25 Earnings Call
4Q25 Earnings Call January 27, 2026 1
Slide 2: PJ Guido, Investor Relations 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 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 © 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. 3 3
Slide 4: Forward-Looking Statements and Non-GAAP Reconciliations
Forward-Looking Statements and Non-GAAP Reconciliations Forward-Looking Statements jet fuel, other fuels and interruptions in supplies of these commodities; changes in exchange rates or interest rates; our ability to accurately forecast This presentation and our filings with the Securities and Excha
Slide 5: Diluted EPS
Diluted EPS 4Q25 4Q24 $3.00 $2.50 $0.12 $2.38 $0.59 $2.75 $0.16 $2.10 $2.50 $2.00 $0.08 $0.02 $2.01 $0.05 $2.00 $1.50 $1.50 $1.00 $1.00 $0.50 $0.50 $0.00 $0.00 4Q25 EPS Goodwill and Asset Transformation 4Q25 Impairment Charges Strategy Costs** Non-GAAP Adj. EPS* *Non-GAAP adjusted financial measure.
Slide 6: Carol B. Tomé
CAROL B. TOMÉ Chief Executive Officer © 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. 6
Slide 7: Thank You UPSers
Thank You UPSers Industry Leader in On-time Service for the 8th Year in a Row 7
Slide 8: Our Fourth-quarter 2025 Results Exceeded Our Expectations
Our Fourth-quarter 2025 Results Exceeded Our Expectations 4Q25 Consolidated Results 4Q25 4Q24 Change Y/Y Revenue $24,479 $25,301 -3.2% Non-GAAP Adj. Operating Profit* $2,890 $3,100 -6.8% Non-GAAP Adj. Operating Margin* 11.8% 12.3% -50 bps Non-GAAP Adj. Diluted EPS* $2.38 $2.75 -13.5% Full-Year 2025
Slide 9: 2025 Was a Year of Considerable Progress
2025 Was a Year of Considerable Progress Took action to strengthen revenue quality… • Reached our Amazon volume reduction target of ~1M pieces per day Strategic • Delivered $3.5B in savings from network reconfiguration efforts Execution • Closed 93 buildings and deployed automation in 57 buildings •
Slide 10: 2025 Was a Year of Considerable Progress
2025 Was a Year of Considerable Progress … and build a network that will deliver differentiated logistics • Leveraged AI and our Next Gen Brokerage capabilities to process ~90% of all cross- Complex border transactions digitally Logistics • Acquired FrigoTrans and Andlauer Healthcare Group; global h
Slide 11: Confident We Will Complete Our Network Reconfiguration While Growing in Targeted Markets
Confident We Will Complete Our Network Reconfiguration While Growing in Targeted Markets • Executing the final six months of an 18-month accelerated glidedown of Amazon volume • Expect to process 68% of U.S. volume through automated facilities by the end of 2026, up from 66.5% at the end of 2025 • A
Slide 12: 2026 Will Be the Inflection Point of the Execution of Our Strategy
2026 Will Be the Inflection Point of the Execution of Our Strategy We will exit 2026 with a leaner, more agile U.S. network built for growth and margin expansion 2026 Consolidated Outlook • Revenue of ~$89.7 billion • Non-GAAP adj. operating margin* of ~9.6% 2026 U.S. Domestic • Amazon ADV down 1M,
Slide 13: Brian Dykes
BRIAN DYKES Chief Financial Officer © 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. 13
Slide 14: U.S. Volume Declines in Line with Our Expectations
U.S. Domestic U.S. Volume Declines in Line with Our Expectations ADV Change (Y/Y) SMB % of Total Volume (Y/Y) 32.8% -10.8% Y/Y 32.0% 31.2% 31.2% 29.7% 29.4% 29.0% 22,382 27.8% -233 -132 19,970 4Q 2025 1Q 2024 1Q 2025 2Q 2024 2Q 2025 -2,047 3Q 2025 3Q 2024 4Q 2024 ADV in Thousands Quarterly B2B% of A
Slide 15: Strongest 4Q Revenue-per-piece Growth Rate in Four Years
U.S. Domestic Strongest 4Q Revenue-per-piece Growth Rate in Four Years U.S. Domestic generated revenue of $16.8B Revenue Change (Y/Y) -3.2% Y/Y Revenue per piece (RPP) increased 8.3% Y/Y: $17.3B $1.3B $0.0B $16.8B • Base rates and package -$1.8B characteristics increased the RPP growth rate 340 basi
Slide 16: Expanded Non-GAAP Adj. Operating Margin 10 Basis Points Y/Y
U.S. Domestic Expanded Non-GAAP Adj. Operating Margin* 10 Basis Points Y/Y U.S. Domestic Results • Non-GAAP adj. operating expense* declined 3.3% Y/Y, driven by Change actions to remove hours and align 4Q25 4Q24 Y/Y operational positions with volume • Non-GAAP adj. cost per piece* up Revenue $16.8B
Slide 17: Delivered Strong Top-line Growth, Driven by Revenue Quality in All Regions
International Delivered Strong Top-line Growth, Driven by Revenue Quality in All Regions Total International ADV down 4.7% Y/Y Total Asia* Monthly ADV (Y/Y) Total Europe** Monthly ADV (Y/Y) 30% 20% 15% 20% 10% 10% 5% 0% 0% -5% -10% -10% -20% -15% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan F
Slide 18: Highest 4Q Revenue in Four Years
International Highest 4Q Revenue in Four Years International Revenue of $5.0B, up 2.5% Y/Y International Results • Non-GAAP adj. operating profit* down $154M Y/Y, with more than Change 4Q25 4Q24 half of the decline related to trade Y/Y policy changes resulting in a shift away from more profitable U.
Slide 19: Supply Chain Solutions Expanded Non-GAAP Adj. Operating Margin 100 Basis Points Y/Y
Supply Chain Solutions Supply Chain Solutions Expanded Non-GAAP Adj. Operating Margin* 100 Basis Points Y/Y Supply Chain Solutions Results • Demand softness in Air and Ocean Forwarding resulted in lower Change market rates, which drove a 4Q25 4Q24 Y/Y decline in revenue Y/Y • Logistics revenue was d
Slide 20: 2025 Cash and Shareowner Returns
2025 Cash and Shareowner Returns $8.5B $3.7B Cash from Capex Operations $5.4B $1.0B Dividends Share Paid Repurchases © 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. 20
Slide 21: Full Year 2025 Segment Results
Full Year 2025 Segment Results Supply Chain U.S. Domestic International Solutions Non-GAAP Adj. Operating Profit* $4.6B $2.9B $1.1B Non-GAAP Adj. Operating Margin* 7.7% 15.8% 10.6% *Non-GAAP adjusted financial measure. See Appendix for reconciliation to GAAP financial measure. © 2026 United Parcel S
Slide 22: Delivered $3.5B in Savings From Network Reconfiguration and Efficiency Reimagined
Delivered $3.5B in Savings From Our Network Reconfiguration and Efficiency Reimagined Initiatives Fixed & Support Functions $3.5B Semi Variable Variable U.S. Dollars Q1A Q2A Q3A Q4A 2025A • Removed 26.9M labor hours • Reduced 48K operational positions, including 15K seasonal positions • Completed 19
Slide 23: Targeting $3.0B in Savings in 2026 Related to the Amazon Glidedown
Targeting $3.0B in Savings in 2026 Related to the Amazon Glidedown Reduce operational Reduce operational Close 24 buildings in 1H26; hours by ~25 million positions by evaluating additional ~30,000 buildings to close in 2H26 Variable Semi-variable Fixed Costs Costs Costs © 2026 United Parcel Service
Slide 24: 2026 Will Be the Inflection Point of the Execution of Our Strategy
2026 Will Be the Inflection Point of the Execution of Our Strategy 2026 XXX Consolidated Outlook • Revenue of ~$89.7 billion • Non-GAAP adj. operating margin* of ~9.6% • Diluted earnings per share about flat to 2025 • 2025 EPS included $0.30 benefit from certain sale-leaseback transactions *Non-GAAP
Slide 25: U.S. Domestic Revenue and Cost Structure in 2H26 Will Be Meaningfully Different Than 1H26
U.S. Domestic U.S. Domestic Revenue and Cost Structure in 2H26 Will Be Meaningfully Different Than 1H26 1H26 2H26 FY 2026 Revenue Revenue • Expect approximately flat • Decline driven by Amazon • Non-Amazon SMB and revenue and ADV down mid- Enterprise growth single digits Y/Y Non-GAAP adj. • RPP grow
Slide 26: Lapping Trade Policy Changes in 2H26
International Lapping Trade Policy Changes in 2H26 Supply Chain Solutions International Supply Chain Solutions • Expect revenue growth in the low-single digits • Expect revenue to be up high-single digits, Y/Y, driven by a solid increase in revenue per which includes revenue from our Andlauer piece
Slide 27: 2026 Will Be the Inflection Point of the Execution of Our Strategy
2026 Will Be the Inflection Point of the Execution of Our Strategy 2026 Consolidated Outlook XXX • Revenue of ~$89.7 billion • Non-GAAP adj. operating margin* of ~9.6% • Diluted earnings per share about flat to 2025 • 2025 EPS included $0.30 benefit from certain sale lease back transactions • Total
Slide 28: Questions & Answers
Questions & Answers 28
Slide 29: Appendix
Appendix 29
Slide 30: 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 Goodwill and Asset Impairments We supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP adju
Slide 31: Reconciliations
Reconciliations © 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. 31
Slide 32: Reconciliations
Reconciliations © 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. 32
Slide 33: Reconciliations
Reconciliations © 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. 33
Slide 34: Reconciliations
Reconciliations © 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. 34
Slide 35: Reconciliations
Reconciliations © 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. 35
Slide 36: Reconciliations
Reconciliations © 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. 36
Slide 37: Reconciliations
Reconciliations © 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. 37
Slide 38: Reconciliations
Reconciliations © 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. 38
Slide 39: Reconciliations
Reconciliations © 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. 39
Slide 40: Reconciliations
Reconciliations © 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. 40
Slide 41: Reconciliations
Reconciliations © 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. 41
Slide 42: Reconciliations
Reconciliations © 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. 42
Slide 43: Reconciliations
Reconciliations © 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. 43
United Parcel Service — Q4 2025 Earnings Presentation on 6ix