United Parcel Service, Inc. · NYSE:UPS
United Parcel Service — Q2 2025 Earnings Presentation
29 slides from United Parcel Service's earnings presentation, Jul 29, 2025
Slide 1: 2Q25 Earnings Call
2Q25 Earnings Call July 29, 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
Diluted EPS 2Q25 2Q24 $1.79* $1.55* $1.65 $1.51 $0.01 $0.11 $1.50 $0.02 $0.08 ($0.02) ($0.02) $1.50 $1.00 $1.00 $0.50 $0.50 $0.00 $0.00 2Q25 EPS Total Gain on Reversal of 2Q25 2Q24 EPS Total Expense for One-time 2Q24 Transformation Divestiture Income Tax Non-GAAP Adj. Transformation Regulatory Payme
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: 2Q25 Consolidated Results
2Q25 Consolidated Results In $ Millions 2Q25 2Q24 Change Y/Y (except per share) Revenue $21,221 $21,818 -2.7% Non-GAAP Adj. Operating Profit* $1,876 $2,064 -9.1% Non-GAAP Adj. Operating Margin* 8.8% 9.5% -70 bps Non-GAAP Adj. Diluted EPS* $1.55 $1.79 -13.4% “Our second-quarter results reflect the im
Slide 9: 2Q25 Business Climate
2Q25 Business Climate U.S. • Economy demonstrated continued resilience • U.S. small package market unfavorably impacted by consumer buying behaviors • Manufacturing activity remained soft Outside of the U.S. • Changes in policies and increases in tariffs impacted trade flows 9 © 2025 United Parcel S
Slide 10: Strategic Actions Update
Strategic Actions Update ~$3.5 billion in expected savings in 2025 Accelerating glide down of Amazon volume and Reconfiguring U.S. Network Closed 74 buildings YTD; expect to close additional sorts and buildings in 2H25 Announced voluntary separation program for all full-time U.S. drivers UPS Ground
Slide 11: 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. 11
Slide 12: U.S. Domestic: 2Q Average Daily Volume Declined 7.3% Y/Y
U.S. Domestic 2Q Average Daily Volume Declined 7.3% Y/Y SMBs made up 32% of total U.S. volume, a 230 basis point improvement Y/Y ADV Change (Y/Y) Monthly ADV Growth (Y/Y) 12.0% 8.0% -7.3% Y/Y 4.0% 0.0% -4.0% -8.0% 17,864 -130 -12.0% -166 -8.3% -16.0% -16.8% Jan Feb Mar Apr May Jun Jul Aug Sept Oct N
Slide 13: U.S. Domestic: 2Q Revenue of $14.1B
U.S. Domestic 2Q Revenue of $14.1B Revenue per piece Y/Y increase of 5.5% Revenue Change (Y/Y) -0.8% Y/Y • Revenue per piece (RPP) improved 5.5% Y/Y: $14.2B $14.1B o Net impact of base rates and package +$0.7B +$0.2B -$1B characteristics increased the RPP growth rate 250 basis points o Customer and
Slide 14: Delivered $982M in Non-GAAP Adj. Operating Profit
U.S. Domestic Delivered $982M in Non-GAAP Adj. Operating Profit* in 2Q Non-GAAP adj. operating margin* of 7.0% U.S. Domestic Results • Total non-GAAP adj. operating expense* flat Y/Y Change 2Q25 2Q24 Y/Y • Non-GAAP adj. cost-per-piece* increased 5.6% Y/Y Revenue $14.1B $14.2B -0.8% • Primarily due t
Slide 15: 2Q International Total Average Daily Volume Increased 3.9% Y/Y
International 2Q International Total Average Daily Volume Increased 3.9% Y/Y International export ADV increased 6.1% Y/Y 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 Oct Nov Dec Jan Feb
Slide 16: Generated 2Q Non-GAAP Adj. Operating Profit of $682M
International Generated 2Q Non-GAAP Adj. Operating Profit* of $682M Revenue of $4.5B, up 2.6% Y/Y International Results Change 2Q25 2Q24 Y/Y • Non-GAAP adj. operating profit* pressured by trade lane shifts, product trade down, lower demand related surcharges and Revenue $4.5B $4.4B 2.6% investments
Slide 17: Supply Chain Solutions: Revenue of $2.7B, Down $594M Y/Y
Supply Chain Solutions Revenue of $2.7B, Down $594M Y/Y 90% of the decrease in revenue Y/Y due to 3Q24 divestiture of Coyote Supply Chain Solutions Results • Within SCS: o Air and Ocean Forwarding revenue was Change 2Q25 2Q24 down Y/Y. The decline was due to changes Y/Y in tariffs, which resulted in
Slide 18: YTD 2025 Cash Flow and Capital Allocation
YTD 2025 Cash Flow and Capital Allocation 2Q included voluntary pension contributions, accelerated network reconfiguration investments, and temporary working capital pressure primarily due to changes in tariffs Cash From Free Cash Dividends Share Operations Flow* Paid Repurchases $2.7B $742M $2.7B $
Slide 19: 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 Q1A Q2A Q3F Q4F 2025F Amazon ADV Decline 1H ~-13% ~-30% ~-30% ~-25% © 2025 United Parcel Service of America, Inc. UPS, the U
Slide 20: 2025 Guidance
2025 Guidance UPS is not providing any forward-looking revenue or operating profit guidance Assumptions 2025 Capital Allocation • Tariff and trade changes and • Capital expenditures of ~$3.5B potential impacts on consumer • Dividend payments of ~$5.5B, behavior are unknown subject to Board approval
Slide 21: 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. 21
Slide 22: Appendix
Appendix 22
Slide 23: 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 24: 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. 24
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
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