United Parcel Service, Inc. · NYSE:UPS
United Parcel Service — Q3 2025 Earnings Presentation
31 slides from United Parcel Service's earnings presentation, Oct 28, 2025
Slide 1: 3Q25 Earnings Call
3Q25 Earnings Call October 28, 2025
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 3Q25 vs 3Q24
Diluted EPS 3Q25 3Q24 $2.00 $2.00 ($0.18) $0.29 $1.74* $1.80 $0.14 $1.76* $1.55 ($0.10) $1.50 $1.50 $1.00 $1.00 $0.50 $0.50 $0.00 $0.00 3Q25 EPS Reversal of Income Transformation 3Q25 3Q24 EPS Gain on Divestiture Transformation 3Q24 Tax Valuation Strategy Costs** Non-GAAP Adj. Strategy Costs** Non-G
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: 3Q25 Consolidated Results
3Q25 Consolidated Results In $ Millions 3Q25 3Q24 Change Y/Y (except per share) Revenue $21,415 $22,245 -3.7% Non-GAAP Adj. Operating Profit* $2,132 $1,983 7.5% Non-GAAP Adj. Operating Margin* 10.0% 8.9% 110 bps Non-GAAP Adj. Diluted EPS* $1.74 $1.76 -1.1% “Our focus on revenue quality yielded solid
Slide 9: Operational Update
Operational Update • Integrated Agentic AI into our Next Gen Brokerage capabilities to streamline formal entry processes • Expect to close on our acquisition of Andlauer Healthcare Group in early November • Digital Access Program (DAP) generated over $2.8B in global revenue in the first nine months
Slide 10: 2025 Peak Season
2025 Peak Season Seven consecutive years of industry-leading service… confident we’ll make it eight • Top 100 customers drive ~80% of our peak volume surge each year • Expect total peak ADV in the U.S. to be down Y/Y, given our Amazon glide-down plan • Operating more efficiently due to strategic enh
Slide 11: 4Q25 Outlook
4Q25 Outlook • Consolidated revenue of approximately $24.0 billion • Consolidated non-GAAP adj. operating margin* of approximately 11.0%-11.5% *Non-GAAP adjusted financial measure. See Appendix for reconciliation to GAAP financial measure. 11 © 2025 United Parcel Service of America, Inc. UPS, the UP
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: U.S. Domestic: 3Q Average Daily Volume Declined 12.3% Y/Y
U.S. Domestic 3Q Average Daily Volume Declined 12.3% Y/Y SMBs made up 32.8% of total U.S. volume, a 340 basis point improvement Y/Y ADV Change (Y/Y) SMB % of Total Volume (Y/Y) 34.0% -12.3% Y/Y 32.0% 30.0% 28.0% 18,407 -174 -184 26.0% -10.9% -18.6% 24.0% 1Q 2Q 3Q 4Q ADV in Thousands 2024 2025 3Q25 -
Slide 14: U.S. Domestic: 3Q Revenue of $14.2B
U.S. Domestic 3Q Revenue of $14.2B Revenue down just 2.6% against an ADV decline of 12.3% Revenue Change (Y/Y) -2.6% Y/Y • Revenue per piece (RPP) improved 9.8% Y/Y, the strongest RPP growth rate in three years $14.6B +$0.1B $14.2B -$1.8B +$1.2B • The components of the 9.8% RPP improvement include:
Slide 15: U.S. Domestic: Delivered $905M Non-GAAP Adj. Operating Profit
U.S. Domestic Delivered $905M in Non-GAAP Adj. Operating Profit* in 3Q Non-GAAP adj. operating margin* of 6.4% U.S. Domestic Results • Total non-GAAP adj. operating expense* declined Change 2.7% Y/Y, driven by actions to reduce hours and 3Q25 3Q24 Y/Y operational positions with volume Revenue $14.2B
Slide 16: International: 3Q Total Average Daily Volume Increased 4.8% Y/Y
International 3Q International Total Average Daily Volume Increased 4.8% Y/Y International export ADV increased 5.9% Y/Y Total Asia* Monthly ADV (Y/Y) Total Europe** Monthly ADV (Y/Y) 40% 16% 30% 12% 20% 8% 4% 10% 0% 0% -4% -10% -8% -20% -12% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb M
Slide 17: International: Generated 3Q Non-GAAP Adj. Operating Profit of $691M
International Generated 3Q Non-GAAP Adj. Operating Profit* of $691M Revenue of $4.7B, up 5.9% Y/Y International Results Change 3Q25 3Q24 Y/Y • Non-GAAP adj. operating profit pressured by trade lane shifts, product trade down Revenue $4.7B $4.4B 5.9% and lower demand related surcharges Non-GAAP Adj.
Slide 18: Supply Chain Solutions: Revenue of $2.5B, Down $715M Y/Y
Supply Chain Solutions Revenue of $2.5B, Down $715M Y/Y $465M of the decrease in revenue Y/Y due to 3Q24 divestiture of Coyote Supply Chain Solutions Results • Within SCS: o Demand softness in Air and Ocean Change 3Q25 3Q24 Forwarding resulted in lower market rates, Y/Y which drove a decline in reve
Slide 19: YTD 2025 Cash Flow and Capital Allocation
YTD 2025 Cash Flow and Capital Allocation Finished 3Q25 with strong liquidity and no outstanding commercial paper Cash From Free Cash Dividends Share Operations Flow* Paid Repurchases $5.1B $2.7B $4.0B $1.0B Completed 2025 share repurchase target in 1Q © 2025 United Parcel Service of America, Inc. U
Slide 20: Reduced Expense Related to Amazon Glidedown by $2.2B YTD
Reduced Expense Related to Amazon Glidedown by $2.2B* YTD On track to achieve 2025 expense reduction target of approximately $3.5B* Fixed & Support Functions Semi Variable ~$3.5B Variable U.S. Dollars Q1A Q2A Q3A Q4F 2025F Total Amazon volume declined 21.2% in 3Q25 Y/Y. Achieved our reduction target
Slide 21: Outlook
Outlook 4Q25 Outlook Following the completion of our • Consolidated acquisition of Andlauer Healthcare • Revenue of approximately $24.0 billion Group, we expect to end the year • Non-GAAP adj. operating margin* of approximately with ~$5.0 billion in cash 11.0%-11.5% • U.S. Domestic • Revenue of arou
Slide 22: 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. 22
Slide 23: Appendix
Appendix 23
Slide 24: 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 We supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP Network Reconfiguration and Efficie
Slide 25: 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. 25
Slide 26: 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. 26
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
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