United Parcel Service, Inc. · NYSE:UPS
United Parcel Service — Q1 2026 Earnings Presentation
30 slides from United Parcel Service's earnings presentation, Apr 28, 2026
Slide 1: 1Q26 Earnings Call
1Q26 Earnings Call April 28, 2026 1
Slide 2: UPS Speakers
UPS Speakers CAROL B. TOMÉ BRIAN DYKES PJ GUIDO Chief Executive Officer Chief Financial Officer Investor Relations Officer 2 © 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 reserve
Slide 3: Forward-Looking Statements and Non-GAAP Reconciliations
Forward -Looking Statements and Non -GAAP Reconciliations Forward-Looking Statements alliances; the effects of changing prices of energy, including gasoline, diesel, jet fuel, other fuels and interruptions in supplies of these commodities; changes in This presentation and our filings with the Securi
Slide 4: Diluted EPS 1Q26 vs 1Q25
Diluted EPS 1Q26 1Q25 $0.05 $1.49 $0.05 $1.07 $0.05 $1.40 -$0.01 $1.02 1Q26 EPS Transformation 1Q26 Non -GAAP 1Q25 EPS Goodwill And Transformation Reversal of Income 1Q25 Non -GAAP Strategy Adj. EPS* Asset Impairment Strategy Tax Allowance Adj. EPS* Costs** Charges Costs** *Non -GAAP adjusted financ
Slide 5: Carol B. Tomé, Chief Executive Officer
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. 5
Slide 6: Thank You For All You Do, UPSers
THANK YOU FOR ALL YOU DO UPSERS © 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: The first quarter of 2026 marked a critical transition period for our company
The first quarter of 2026 marked a critical transition period for our company Further reduced Amazon volume by ~500K ADV and closed an additional 23 buildings Transitioned a portion of Ground Saver volume to USPS for last mile delivery Launched our voluntary Driver Choice Program; on track to achiev
Slide 8: Our underlying business performed exceptionally well in 1Q26
HEADLINE Our underlying business performed exceptionally well in 1Q26 “Our results were considerably better than our financial plan and targets, but it 1Q26 Consolidated Results is worthwhile calling out that while we planned for it, our first -quarter 1Q26 1Q25 Change Y/Y performance deviated from
Slide 9: Our #1 priority is to move the right packages and right mix of volume
Our #1 priority is to move the right packages and right mix of volume through our network Right Innovative and Higher Packages Differentiated Productivity Capabilities Prioritizing premium RFID, cold chain, Roadie, Creating strategic capacity volume and revenue Happy Returns, DAP and to fuel premium
Slide 10: Prioritizing premium volume is a global strategy
HEADLINE Prioritizing premium volume is a global strategy • Speeding up our European ground network to win premium commercial volume • Opened a major expansion to our Incheon Airport hub in South Korea • In Taiwan, opened our largest, most advanced logistics center in the region • Speeding up servic
Slide 11: Reaffirming 2026 consolidated financial goals
Reaffirming 2026 consolidated financial goals Full Year 2026 Consolidated Revenue ~$89.7 billion Non -GAAP adj. operating margin * ~ 9.6% *Non -GAAP adjusted financial measure. See Appendix for reconciliation to © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark
Slide 12: Brian Dykes, Chief Financial Officer
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. 12
Slide 13: Our strategic actions drove SMB ADV growth
U.S. U.S. Domestic Domestic Our strategic actions drove SMB ADV growth SMB was 34.5% of total U.S. volume, marking the highest SMB penetration in our history ADV Change ( -8.0% Y/Y) SMB % of Total Volume (Y/Y) 34.5% 17,443 32.8% -154 -60 16,040 32.0% -1,189 31.2% 31.2% 2Q 2026 3Q 2026 4Q 2025 1Q 202
Slide 14: Strong revenue-per-piece growth of 6.5% Y/Y largely offset lower volume
U.S. Domestic Strong revenue -per -piece growth of 6.5% Y/Y largely offset lower volume Revenue Change ( -2.3% Y/Y) $14.5B $0.9B $14.1B -$0.1B -$1.1B Revenue per piece (RPP) increased 6.5% Y/Y: • Base rates and package characteristics increased the RPP growth rate 340 basis points • Customer and pro
Slide 15: Delivered $565M in non-GAAP adj. operating profit in 1Q26
U.S. Domestic HEADLINE Delivered $565M in non -GAAP adj. operating profit * in 1Q26 Total non -GAAP adj. operating expense * nearly flat Y/Y • Higher productivity and progress on the Amazon glidedown partially offset short - 1Q26 U.S. Domestic Results term cost pressures of $350M, including: 1Q26 1Q
Slide 16: Despite the declines in U.S. inbound lanes, outside of the U.S. we see some slight improvement
International Despite the declines in U.S. inbound lanes, outside of the U.S. we see some slight improvement in volume trends Total Asia * Monthly ADV (Y/Y) Total Europe Monthly ADV (Y/Y) 30.0% 15.0% 20.0% 10.0% 10.0% 5.0% 0.0% 0.0% -10.0% -5.0% -20.0% -10.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Slide 17: Revenue growth across all regions, driven by strong revenue quality
International Revenue HEADLINEgrowth across all regions, driven by strong revenue quality and our focus on premium markets 1Q26 International Results • Generated revenue of $4.5B, up 3.8% Y/Y, 1Q26 1Q25 Change Y/Y driven by strong revenue -per-piece growth Revenue ( Ms) $4,540 $4,373 $167 $551 $654
Slide 18: Strong progress made during 1Q, highlighted by doubling non-GAAP adj. operating profit
Supply Chain Solutions Strong progress made during 1Q, highlighted by doubling HEADLINE non -GAAP adj. operating profit * Y/Y • Logistics revenue was down Y/Y, driven by 1Q26 Supply Chain Solutions Results Mail Innovations, partially offset by revenue growth in healthcare logistics 1Q26 1Q25 Change
Slide 19: We are on track to achieve our targeted $3.0 billion in savings in 2026
We are on track to achieve our targeted $3.0 billion in savings in 2026 • Total operational hours in 1Q26 paced down with volume • By the end of the quarter, we reduced operational positions by nearly 25,000 Y/Y • Initiated our Driver Choice Program, which is expected to reduce full -time driver pos
Slide 20: Reaffirming full year 2026 consolidated financial targets
Reaffirming full year 2026 consolidated financial targets • Revenue ~$89.7B • Non -GAAP adj. operating margin * ~9.6% • Non -GAAP adj. diluted EPS ~Flat Y/Y Full Year 2026 Consolidated Guidance • Capital expenditures ~$3.0B • Pension contribution $1.3B • Free cash flow * including DCP ~$5.5B • Divid
Slide 21: Questions & Answers
Questions & Answers 21
Slide 22: Appendix
S 2 as) c o 2. 2. <
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 additional workforce reductions and buildings for closure. In the first three months of 2026, we achieved approximately $600 million of program cost savings, and expect to achieve a
Slide 24: 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. 24
Slide 25: 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. 25
Slide 26: 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. 26
Slide 27: 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. 27
Slide 28: 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. 28
Slide 29: 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. 29
Slide 30: 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. 30
United Parcel Service — Q1 2026 Earnings Presentation on 6ix