United Parcel Service (UPS), one of the world’s largest logistics companies, released its financial results for the fourth quarter of 2025, reporting consolidated revenue of US$24.5 billion. The company also presented its projections for the year 2026, indicating a strategic path focused on network optimization and sustainable growth in an evolving market environment.
UPS’s consolidated operating profit reached $2.6 billion, while non-GAAP adjusted operating profit was $2.9 billion. Paralelamente, diluted earnings per share recorded $2.10, with non-GAAP adjusted diluted earnings per share reaching $2.38, reflecting a solid year-end performance.
Carol Tomé, CEO of UPS, expressed gratitude to employees for their commitment to serving customers and delivering excellent service, exceeding financial expectations in the fourth quarter. The company’s leadership reinforces that the year ahead will be a crucial point for the execution of the growth and margin expansion strategy.
Fourth Quarter Financial Highlights
UPS’s fourth quarter 2025 results include total charges of $238 million, equivalent to $0.28 per diluted share. Estes charges comprise a non-monetary expense of US$137 million related to the retirement of the MD-11 aircraft fleet and US$101 million in transformation charges. The decision to modernize the fleet and the restructuring initiatives reflect a continuous effort to improve the company’s efficiency and competitiveness. The consolidated revenue demonstrates UPS’s ability to maintain a strong market presence and generate value, even in scenarios of global economic challenges and internal adjustments.
Performance of business segments
The U.S. segment Essa decrease was mainly driven by an expected reduction in delivery volume, as part of the company’s strategy to focus on revenue quality and network optimization. However, piece revenue in this segment demonstrated resilience and growth of 8.3%, highlighting UPS’s ability to extract greater value from each package and efficiently manage its operating costs to maintain a robust margin.
On the other hand, UPS’s Internacional segment reported positive growth, with revenue of $5.045 billion, an increase of 2.5%. Este advancement was driven by a 7.1% increase in revenue per piece, indicating strong demand and strategic pricing across its global markets. The international segment operating margin was 17.5%, with a non-GAAP adjusted margin of 18.0%, demonstrating the high profitability of operations outside the Estados Unidos.
Annual consolidated balance sheet
For the full fiscal year 2025, UPS achieved consolidated revenue of $88.7 billion, solidifying its position in the global logistics industry. Operating profit totaled US$7.9 billion, while non-GAAP adjusted operating profit reached US$8.7 billion, demonstrating financial consistency in a year of significant transformation.
Consolidated operating margin for the year was 8.9%, and non-GAAP adjusted operating margin was 9.8%, underscoring continued management efficiency. Diluted earnings per share closed at $6.56, and non-GAAP adjusted diluted earnings per share were $7.16, reflecting the success of optimization and performance improvement initiatives.
The company generated $8.5 billion in cash from operations and non-GAAP adjusted free cash flow of $5.5 billion. Estes annual financial results highlight UPS’s ability to generate substantial cash for future investments and shareholder returns, even in a dynamic economic environment.
Shareholder remuneration
UPS’s Conselho of Administração approved a dividend of $1.64 per share for the first quarter of 2026, to be distributed to all outstanding shares of Classe A and Classe B. Este dividend is a demonstration of the company’s commitment to returning value to its investors, maintaining a robust remuneration policy.
Dividend payment is scheduled for March 5, 2026, to shareholders of record as of February 17, 2026.
Projections for the following fiscal year
For the full year 2026, UPS projects consolidated revenue of approximately $89.7 billion, with an estimated non-GAAP adjusted operating margin of approximately 9.6%. The expectation is for a capital investment of approximately US$3.0 billion, aimed at improving infrastructure and technology. The company also anticipates dividend payments of around $5.4 billion, subject to board approval, and an effective tax rate of approximately 23.0% for the period.
Optimization and restructuring strategies
UPS is engaged in a multi-pronged transformation strategy to optimize its operations and organizational structure. Iniciativas as the “Fit to Serve” sought to reduce management layers, resulting in the elimination of approximately 14,000 positions to create a more agile and efficient operating model.
Concurrently, the “Network Reconfiguration and Efficiency Reimagined” program aims to improve network efficiency through automation and operational consolidation across the U.S. domestic network. Esta reconfiguration led to the reduction of approximately 48,000 operational positions, including 15,000 seasonal ones, and the closure of daily operations in 93 leased and owned buildings during 2025.
These strategic efforts have resulted in significant cost savings, estimated at approximately US$3.5 billion in 2025. By the year 2026, the company anticipates additional savings of approximately US$3 billion, highlighting the positive impact of restructuring initiatives on financial performance.
The ongoing volume review and process reengineering aims to align the organization with a strategic customer volume landscape and greater end-to-end operational efficiency, preparing UPS for future industry challenges and opportunities.
Challenges and adaptations in Supply Chain
UPS’s Soluções to Cadeia from Suprimentos (Supply Esse decline was mainly driven by the decrease in the volume of the Mail Innovations business, which underwent strategic and operational adjustments.
Despite the decline in revenue, the segment’s operating margin of Supply Chain Solutions remained at 9.8%, with the non-GAAP adjusted operating margin at 10.3%. Este result demonstrates UPS’s ability to effectively manage costs and sustain profitability even in segments facing volume pressures, adapting its operations to specific market demands.
