UPS: 2025 was a year of considerable progress

 UPS today announced fourth-quarter 2025 consolidated revenues of $24.5 billion. Consolidated operating profit was $2.6 billion; non-GAAP adjusted consolidated operating profit was $2.9 billion. Diluted earnings per share were $2.10 for the quarter; non-GAAP adjusted diluted earnings per share were $2.38.

 For the fourth quarter of 2025, GAAP results include total charges of $238 million, or $0.28 per diluted share, comprised of a non-cash, after-tax charge of $137 million due to a write-off of the company’s MD-11 aircraft fleet and after-tax transformation charges of $101 million.

 Regarding the MD-11 aircraft, UPS accelerated its fleet modernization plans, completing the retirement of its MD-11 fleet during the fourth quarter of 2025.

 “I want to thank UPSers across the globe for their tireless commitment to serving our customers as we delivered best-in-class service during peak for the eighth year in a row and outperformed our financial expectations in the fourth quarter,” said Carol Tomé, UPS chief executive officer. “2025 was a year of considerable progress for UPS as we took action to strengthen our revenue quality and build a more agile network. Looking ahead, upon completion of the Amazon glide-down, 2026 will be an inflection point in the execution of our strategy to deliver growth and sustained margin expansion.”

 U.S. Domestic Segment

	4Q 2025	Non-GAAP Adjusted 4Q 2025	4Q 2024	Non-GAAP Adjusted 4Q 2024
Revenue	$16,756 M		$17,312 M
Operating profit	$1,428 M	$1,706 M	$1,681 M	$1,754 M

 

• Revenue declined 3.2%, primarily driven by an expected decline in volume. Revenue per piece grew by 8.3%.
• Operating margin was 8.5%; non-GAAP adjusted operating margin was 10.2%.

 International Segment

	4Q 2025	Non-GAAP Adjusted 4Q 2025	4Q 2024	Non-GAAP Adjusted 4Q 2024
Revenue	$5,045 M		$4,923 M
Operating profit	$884 M	$908 M	$1,019 M	$1,062 M

 

• Revenue increased 2.5%, driven by a 7.1% increase in revenue per piece.
• Operating margin was 17.5%; non-GAAP adjusted operating margin was 18.0%.

  Supply Chain Solutions¹

	4Q 2025	Non-GAAP Adjusted 4Q 2025	4Q 2024	Non-GAAP Adjusted 4Q 2024
Revenue	$2,678 M		$3,066 M
Operating profit	$263 M	$276 M	$226 M	$284 M

¹ Consists of operating segments that do not meet the criteria of a reportable segment under ASC Topic 280 – Segment Reporting.

 Revenue declined 12.7%, primarily due to a decline in volume in the Mail Innovations business.

• Operating margin was 9.8%; non-GAAP adjusted operating margin was 10.3%.

 Full-Year 2025 Consolidated Results

• Revenue was $88.7 billion.

• Operating profit was $7.9 billion; non-GAAP adjusted operating profit was $8.7 billion.

• Operating margin was 8.9%; non-GAAP adjusted operating margin was 9.8%.

• Diluted EPS totaled $6.56; non-GAAP adjusted diluted EPS of $7.16.

• Cash from operations was $8.5 billion and non-GAAP adjusted free cash flow was $5.5 billion.

 In addition, the company returned $6.4 billion of cash to shareowners through dividends and share repurchases.

 Dividend Declaration

The UPS Board of Directors has approved a first-quarter 2026 dividend of $1.64 per share on all outstanding Class A and Class B shares. The dividend is payable March 5, 2026, to shareowners of record on February 17, 2026.

 2026 Outlook

The company provides certain guidance on a non-GAAP adjusted basis because it is not possible to predict or provide a reconciliation reflecting the impact of various potential future events, including the impact of pension adjustments, certain strategic initiatives or other unanticipated events, which would be included in reported (GAAP) results and could be material.

 For the full year 2026, on a consolidated basis, UPS expects revenue to be approximately $89.7 billion and non-GAAP adjusted operating margin to be approximately 9.6%. 

 The company is planning capital expenditures of about $3.0 billion and dividend payments of around $5.4 billion, subject to board approval. The effective tax rate is expected to be approximately 23.0%.

 _{* “Non-GAAP Adjusted” or “Non-GAAP Adj.” amounts are non-GAAP adjusted financial measures. See the appendix to this release for a discussion of non-GAAP adjusted financial measures, including a reconciliation to the most closely correlated GAAP measure.}