United Parcel Service, Inc. · NYSE:UPS
United Parcel Service — Q4 2024 Earnings Presentation
37 slides from United Parcel Service's earnings presentation, Jan 30, 2025
Slide 1: 4Q24 Earnings Call
4Q24 Earnings Call January 30, 2025 © 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.
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 Chief Executive 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. 3 3
Slide 4: Forward-Looking Statements and Non-GAAP Reconciliations
Forward-Looking Statements and Non-GAAP Reconciliations Forward-Looking Statements needs; increases in our expenses or funding obligations relating to employee health, retiree health and/or pension benefits; our ability to manage insurance This presentation and our filings with the Securities and Ex
Slide 5: Diluted EPS 4Q24 vs 4Q23
Diluted EPS 4Q24 4Q23 $3.00 $0.59 $2.75* $3.00 $2.50 $0.32 $2.47* $2.50 $0.08 $0.05 $0.02 $2.01 $0.10 $2.00 $1.87 $0.18 $2.00 $1.50 $1.50 $1.00 $1.00 $0.50 $0.50 $0.00 $0.00 4Q24 EPS Total Asset Multiemployer Pension Charges 4Q24 4Q23 EPS Total Goodwill & Asset Pension Charges 4Q23 Non-GAAP Transfor
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
Thank You Seven years in a row as industry-leader in on-time service during peak season
Slide 8: 4Q24 and Full-Year 2024 Consolidated Results
4Q24 Consolidated Results In $ Millions 4Q24 4Q23 Change Y/Y (except per share) Revenue $25,301 $24,917 1.5% Non-GAAP Adj. Operating Profit* $3,100 $2,787 11.2% Non-GAAP Adj. Operating Margin* 12.3% 11.2% 110 bps Non-GAAP Adj. Diluted EPS* $2.75 $2.47 11.3% Full-Year 2024 Consolidated Results In $ M
Slide 9: Customer First, People Led, Innovation Driven
Customer First, People Led, Innovation Driven 2024 Highlights • SMBs were 28.9% of total U.S. volume, an increase of 30 basis points Y/Y • Generated $3.3B in global DAP revenue, an increase of 17% Y/Y Customer • Equipped ~60,000 U.S. package cars with RFID sensors, eliminating 12M First manual scans
Slide 10: Taking Action in 2025 to Drive Our Performance
Taking Action in 2025 to Drive Our Performance Significantly reducing volume from our largest customer Lowering volume with UPS by more than 50% by the second half of 2026 Effective Jan 1, 2025, we have insourced all UPS SurePost volume Allows us to deliver great service with no material impact to o
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: 4Q24 Consolidated Results
4Q24 Consolidated Results In $ Millions 4Q24 4Q23 Change Y/Y (except per share) Revenue $25,301 $24,917 1.5% Non-GAAP Adj. Operating Profit* $3,100 $2,787 11.2% Non-GAAP Adj. Operating Margin* 12.3% 11.2% 110 bps Non-GAAP Adj. Diluted EPS* $2.75 $2.47 11.3% “Our financial performance in the fourth q
Slide 13: U.S. Domestic: 4Q Average Daily Volume Flat Y/Y
U.S. Domestic 4Q Average Daily Volume Was Flat Y/Y SMBs made up 27.8% of total U.S. volume, the highest 4Q concentration in 10 years ADV Change (Y/Y) Monthly ADV Growth (Y/Y) 12.0% 8.0% -0.3% Y/Y 4.0% 0.0% +389 -4.0% 22,449 -70 -386 -3.6% -24.2% +2.1% -8.0% 22,382 -12.0% -16.0% Jan Feb Mar Apr May J
Slide 14: U.S. Domestic: 4Q Revenue of $17.3B, Up 2.2% Y/Y
U.S. Domestic 4Q Revenue of $17.3B, Up 2.2% Y/Y Revenue per piece Y/Y growth rate up 460 basis points compared to 3Q Revenue Change (Y/Y) +2.2% Y/Y • 4Q revenue per piece (RPP) flipped positive for the $17.4 first time in 2024, and increased 2.4% +$0.3B $17.3B o Base rates increased the RPP growth r
Slide 15: U.S. Domestic: Delivered $1.8B in Non-GAAP Adj. Operating Profit
U.S. Domestic Delivered $1.8B in Non-GAAP Adj. Operating Profit* in 4Q Leveraged technology and proven practices to hold non-GAAP adj. cost per piece* increase to 0.9% Y/Y U.S. Domestic Results • Total Non-GAAP Adj. operating expense* up 1.3% o Through Network of the Future, completed 49 operational
Slide 16: International: 4Q Average Daily Volume Up 8.8% Y/Y
International 4Q International Average Daily Volume Up 8.8% Y/Y 17 of our top 20 export countries demonstrated Y/Y average daily volume 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 Se
Slide 17: International: Generated 4Q Non-GAAP Adj. Operating Profit of $1.1B
International Generated 4Q Non-GAAP Adj. Operating Profit* of $1.1B All regions grew revenue Y/Y International Results Change 4Q24 4Q23 Y/Y • Generated positive operating leverage, driven by ongoing network optimization and cost management efforts Revenue $4.9B $4.6B 6.9% Non-GAAP • Non-GAAP Adj. op
Slide 18: Supply Chain Solutions: Revenue of $3.1B, Down $306M Y/Y
Supply Chain Solutions Revenue of $3.1B, Down $306M Y/Y Revenue impacted by $588M reduction in revenue from Coyote Y/Y Supply Chain Solutions Results • Revenue within Forwarding and Logistics increased $282M, driven by: 4Q24 4Q23 Change o Air and Ocean Forwarding revenue up Y/Y 10.3%, led by continu
Slide 19: 2024 Cash Flow and Capital Allocation
2024 Cash Flow and Capital Allocation Cash From CapEx Dividends Debt Share Operations Paid Repayment Repurchases $10.1B $3.9B $5.4B $3.8B $500M Non-GAAP Adj. Debt to Non-GAAP Adj. EBITDA* Ratio of 2.25 Turns © 2025 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark bro
Slide 20: Full-year 2024 Segment Highlights
Full-year 2024 Segment Highlights Supply Chain U.S. Domestic International Solutions Non-GAAP Adj. $4.5B $3.4B $1.0B Operating Profit* Non-GAAP Adj. 7.5% 18.7% 8.0% Operating Margin* © 2025 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of
Slide 21: Agreement in Principle With Largest Customer to Accelerate ADV Glide-down
Reached an Agreement in Principle With Our Largest Customer to Accelerate ADV Glide-down Past Volume Volume Reduction Future Volume Average Daily Volume Add vertical axis Horizontal axis breaks (maybe a dotted line) 2020A 2024A 2025E 2026E © 2025 United Parcel Service of America, Inc. UPS, the UPS b
Slide 22: Path to a More Profitable, Agile and Differentiated UPS
Our Set of Actions Will Put Us Further Down the Path to Becoming a More Profitable, Agile and Differentiated UPS Free Cash Flow Lower Increase in Lower Lower Operating Overall Revenue Costs Capex Margin Volume Per Piece Take out fixed and semi- variable costs >50% Improved Fewer volume customer buil
Slide 23: 2025 Full-year Consolidated Outlook
2025 Full-year Consolidated Outlook Expect to expand U.S. Domestic Non-GAAP Adj. operating margin every quarter Assumptions Full-year 2025 Outlook • S&P Global forecasts • Consolidated: GDP growth of 2.5% • Revenue of ~$89.0B vs. 2024 • Non-GAAP Adj. operating margin* ~10.8% • Real exports and globa
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
Appendix © 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: 2024 Mark-to-Market Impact to Shareowners' Equity
2024 Mark-to-Market (MTM) Impact to Shareowners’ Equity (in millions) Unrecognized Loss Within Shareowners’ Equity as of 12/31/2023 $1,869 Net loss due to changes in demographic data and assumptions 323 Including turnover, salaries, medical claims costs, other Gain due to discount rate change (2,826
Slide 27: 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 We s
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
Slide 33: 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. 33
Slide 34: 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. 34
Slide 35: 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. 35
Slide 36: 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. 36
Slide 37: 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. 37
United Parcel Service — Q4 2024 Earnings Presentation on 6ix