United Parcel Service, Inc. (UPS) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning. My name is Matthew, and I'll be your facilitator today. I'd like to welcome everyone to the UPS First Quarter 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise, and after the speaker's remarks, there will be a question and answer period. Any analyst that wants to ask a question, now is the time to press star, then 1 on your telephone keypad. It is now my pleasure to turn the floor over to your host, Mr. P.J. Guido, Invest Good morning, and welcome to the UPS first quarter 2025 earnings call. Joining me today are Carol Tomei, our CEO, Brian Dykes, our CFO, and a few additional members of our executive leadership team. Before we begin, I want to remind you that some of the comments we'll make today are forward-looking statements and address our expectations for the future performance or operating results of our companies. These statements are subject to risks and uncertainties, which are described in our 2024 Form 10-K and other reports we file with or furnish to the Securities and Exchange Commission. These reports, when filed, are available on the UPS Investor Relations website and from the SEC. Unless stated otherwise, our discussion refers to adjusted results. For the first quarter of 2025, GAAP results included net charge of $83 million, or $0.09 per diluted share, comprised of after-tax transformation strategy costs of $44 million and a non-cash after-tax impairment charge of $49 million, primarily related to asset and investment impairment. These charges were partially offset by a $10 million benefit with a partial reversal of an income tax valuation allowance. A reconciliation of non-GAAP adjusted amounts to GAAP financial results is available in today's webcast materials. These materials are also av...