UPS Q2: We are making meaningful progress
UPS today announced second-quarter 2025 consolidated revenues of $21.2 billion. Consolidated operating profit was $1.8 billion; $1.9 billion on a non-GAAP adjusted basis. Diluted earnings per share were $1.51 for the quarter; non-GAAP adjusted diluted earnings per share were $1.55.
For the second quarter of 2025, GAAP results include a net charge of $29 million, or $0.04 per diluted share, comprised of after-tax transformation strategy costs of $57 million, partially offset by a $15 million gain from the divestiture of a business within Supply Chain Solutions and a $13 million benefit from the partial reversal of an income tax valuation allowance.
“I want to thank all UPSers for their dedication and hard work in what continues to be a dynamic and evolving trade environment,” said Carol Tomé, UPS chief executive officer. “Our second quarter results reflect both the complexity of the landscape and the strength of our execution. We are making meaningful progress on our strategic initiatives, and we’re confident these actions are positioning the company for stronger long-term financial performance and enhanced competitive advantage.”
U.S. Domestic Segment†
|
2Q 2025
|
Non-GAAP
Adjusted
2Q 2025
|
2Q 2024
|
Non-GAAP
Adjusted
2Q 2024
|
|
|
Revenue
|
$14,083 M
|
$14,201 M
|
||
|
Operating profit
|
$916 M
|
$982 M
|
$988 M
|
$996 M
|
- Revenue declined 0.8%, primarily driven by the expected decline in volume, partially offset by increases in air cargo and revenue per piece.
- Operating margin was 6.5%; non-GAAP adjusted operating margin was 7.0%.
International Segment
|
2Q 2025
|
Non-GAAP
Adjusted
2Q 2025
|
2Q 2024
|
Non-GAAP
Adjusted
2Q 2024
|
|
|
Revenue
|
$4,485 M
|
$4,370 M
|
||
|
Operating profit
|
$672 M
|
$682 M
|
$718 M
|
$824 M
|
- Revenue increased 2.6%, driven by a 3.9% increase in average daily volume.
- Operating margin was 15.0%; non-GAAP adjusted operating margin was 15.2%.
Supply Chain Solutions1 †
|
2Q 2025
|
Non-GAAP
Adjusted
2Q 2025
|
2Q 2024
|
Non-GAAP
Adjusted
2Q 2024
|
|
|
Revenue
|
$2,653 M
|
$3,247 M
|
||
|
Operating profit
|
$234 M
|
$212 M
|
$238 M
|
$244 M
|
1 Consists of operating segments that do not meet the criteria of a reportable segment under ASC Topic 280 – Segment Reporting.
- Revenue declined 18.3%, primarily due to the impact from the third quarter 2024 divestiture of Coyote.
- Operating margin was 8.8%; non-GAAP adjusted operating margin was 8.0%.
2025 Outlook
Given the current macro-economic uncertainty, the company is not providing revenue or operating profit guidance, but confirms the following for the full year 2025:
- Capital expenditures of approximately $3.5 billion
- Dividend payments expected to be around $5.5 billion, subject to Board approval
- Effective tax rate of approximately 23.5%
- $1.4 billion in pension contributions (of which $921 million have been made)
- Share repurchases of around $1.0 billion, which have been completed
- $3.5 billion in expected expense reductions due to its network reconfiguration and Efficiency Reimagined initiatives
