EX-99.23exhibit992-financialstatem.htmEX-99.2 Q4 2025 FINANCIAL STATEMENT SCHEDULES Document
Exhibit 99.2
United Parcel Service, Inc.
Selected Financial Data - Fourth Quarter
(unaudited)
Three Months Ended
December 31,
2025
2024
Change
% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package
$
16,756
$
17,312
$
(556)
(3.2)
%
International Package
5,045
4,923
122
2.5
%
Supply Chain Solutions
2,678
3,066
(388)
(12.7)
%
Total revenue
24,479
25,301
(822)
(3.2)
%
Operating expenses:
U.S. Domestic Package
15,328
15,631
(303)
(1.9)
%
International Package
4,161
3,904
257
6.6
%
Supply Chain Solutions
2,415
2,840
(425)
(15.0)
%
Total operating expenses
21,904
22,375
(471)
(2.1)
%
Operating profit:
U.S. Domestic Package
1,428
1,681
(253)
(15.1)
%
International Package
884
1,019
(135)
(13.2)
%
Supply Chain Solutions
263
226
37
16.4
%
Total operating profit
2,575
2,926
(351)
(12.0)
%
Other income (expense):
Other pension income (expense)
47
(598)
645
N/A
Investment income (expense) and other
16
28
(12)
(42.9)
%
Interest expense
(266)
(229)
(37)
16.2
%
Total other income (expense)
(203)
(799)
596
(74.6)
%
Income before income taxes
2,372
2,127
245
11.5
%
Income tax expense
581
406
175
43.1
%
Net income
$
1,791
$
1,721
$
70
4.1
%
Net income as a percentage of revenue
7.3
%
6.8
%
Per share amounts:
Basic earnings per share
$
2.11
$
2.02
$
0.09
4.5
%
Diluted earnings per share
$
2.10
$
2.01
$
0.09
4.5
%
Weighted-average shares outstanding:
Basic
849
854
(5)
(0.6)
%
Diluted
853
858
(5)
(0.6)
%
Non-GAAP Adjusted Income Data (1):
Operating profit:
U.S. Domestic Package
$
1,706
$
1,754
$
(48)
(2.7)
%
International Package
908
1,062
(154)
(14.5)
%
Supply Chain Solutions
276
284
(8)
(2.8)
%
Total operating profit
2,890
3,100
(210)
(6.8)
%
Total other income (expense)
$
(203)
$
(134)
$
(69)
51.5
%
Income before income taxes
$
2,687
$
2,966
$
(279)
(9.4)
%
Net income
$
2,029
$
2,360
$
(331)
(14.0)
%
Basic earnings per share
$
2.39
$
2.76
$
(0.37)
(13.4)
%
Diluted earnings per share
$
2.38
$
2.75
$
(0.37)
(13.5)
%
(1) See Non-GAAP schedules for reconciliation of adjustments.
Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Selected Operating Data - Fourth Quarter
(unaudited)
Three Months Ended
December 31,
2025
2024
Change
% Change
Revenue (in millions):
U.S. Domestic Package:
Next Day Air
$
2,617
$
2,682
$
(65)
(2.4)
%
Deferred
1,353
1,385
(32)
(2.3)
%
Ground
12,465
12,937
(472)
(3.6)
%
Cargo and Other
321
308
13
4.2
%
Total U.S. Domestic Package
16,756
17,312
(556)
(3.2)
%
International Package:
Domestic
953
887
66
7.4
%
Export
3,905
3,873
32
0.8
%
Cargo and Other
187
163
24
14.7
%
Total International Package
5,045
4,923
122
2.5
%
Supply Chain Solutions:
Forwarding
728
826
(98)
(11.9)
%
Logistics
1,444
1,799
(355)
(19.7)
%
Other
506
441
65
14.7
%
Total Supply Chain Solutions
2,678
3,066
(388)
(12.7)
%
Consolidated
$
24,479
$
25,301
$
(822)
(3.2)
%
Consolidated volume (in millions)
1,458
1,619
(161)
(9.9)
%
Operating weekdays
62
62
—
0.0
%
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air
1,630
1,863
(233)
(12.5)
%
Deferred
1,077
1,209
(132)
(10.9)
%
Ground
17,263
19,310
(2,047)
(10.6)
%
Total U.S. Domestic Package
19,970
22,382
(2,412)
(10.8)
%
International Package:
Domestic
1,688
1,749
(61)
(3.5)
%
Export
1,864
1,978
(114)
(5.8)
%
Total International Package
3,552
3,727
(175)
(4.7)
%
Consolidated
23,522
26,109
(2,587)
(9.9)
%
Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air
$
25.90
$
23.22
$
2.68
11.5
%
Deferred
20.26
18.48
1.78
9.6
%
Ground
11.65
10.81
0.84
7.8
%
Total U.S. Domestic Package
13.27
12.25
1.02
8.3
%
International Package:
Domestic
9.11
8.18
0.93
11.4
%
Export
33.79
31.58
2.21
7.0
%
Total International Package
22.06
20.60
1.46
7.1
%
Consolidated
$
14.60
$
13.44
$
1.16
8.6
%
Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Detail of Operating Expenses - Fourth Quarter
(unaudited)
Three Months Ended
December 31,
2025
2024
Change
% Change
(in millions)
Compensation and benefits
$
13,034
$
12,996
$
38
0.3
%
Repairs and maintenance
817
775
42
5.4
%
Depreciation and amortization
972
919
53
5.8
%
Purchased transportation
2,873
3,695
(822)
(22.2)
%
Fuel
1,129
1,112
17
1.5
%
Other occupancy
570
544
26
4.8
%
Other expenses
2,509
2,334
175
7.5
%
Total operating expenses
$
21,904
$
22,375
$
(471)
(2.1)
%
Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Selected Financial Data - Year to Date
(unaudited)
Twelve Months Ended
December 31,
2025
2024
Change
% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package
$
59,519
$
60,376
$
(857)
(1.4)
%
International Package
18,576
17,960
616
3.4
%
Supply Chain Solutions
10,566
12,734
(2,168)
(17.0)
%
Total revenue
88,661
91,070
(2,409)
(2.6)
%
Operating expenses:
U.S. Domestic Package
55,593
56,031
(438)
(0.8)
%
International Package
15,703
14,769
934
6.3
%
Supply Chain Solutions
9,498
11,802
(2,304)
(19.5)
%
Total operating expenses
80,794
82,602
(1,808)
(2.2)
%
Operating profit:
U.S. Domestic Package
3,926
4,345
(419)
(9.6)
%
International Package
2,873
3,191
(318)
(10.0)
%
Supply Chain Solutions
1,068
932
136
14.6
%
Total operating profit
7,867
8,468
(601)
(7.1)
%
Other income (expense):
Other pension income (expense)
169
(396)
565
N/A
Investment income (expense) and other
145
236
(91)
(38.6)
%
Interest expense
(1,017)
(866)
(151)
17.4
%
Total other income (expense)
(703)
(1,026)
323
(31.5)
%
Income before income taxes
7,164
7,442
(278)
(3.7)
%
Income tax expense
1,592
1,660
(68)
(4.1)
%
Net income
$
5,572
$
5,782
$
(210)
(3.6)
%
Net income as a percentage of revenue
6.3
%
6.3
%
Per share amounts:
Basic earnings per share
$
6.56
$
6.76
$
(0.20)
(3.0)
%
Diluted earnings per share
$
6.56
$
6.75
$
(0.19)
(2.8)
%
Weighted-average shares outstanding:
Basic
849
855
(6)
(0.7)
%
Diluted
850
856
(6)
(0.7)
%
Non-GAAP Adjusted Income Data (1):
Operating profit:
U.S. Domestic Package
$
4,604
$
4,516
$
88
1.9
%
International Package
2,935
3,360
(425)
(12.6)
%
Supply Chain Solutions
1,122
1,018
104
10.2
%
Total operating profit
8,661
8,894
(233)
(2.6)
%
Total other income (expense)
$
(684)
$
(355)
$
(329)
92.7
%
Income before income taxes
$
7,977
$
8,539
$
(562)
(6.6)
%
Net income
$
6,086
$
6,615
$
(529)
(8.0)
%
Basic earnings per share
$
7.17
$
7.73
$
(0.56)
(7.2)
%
Diluted earnings per share
$
7.16
$
7.72
$
(0.56)
(7.3)
%
(1) See Non-GAAP schedules for reconciliation of adjustments.
Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Selected Operating Data - Year to Date
(unaudited)
Twelve Months Ended
December 31,
2025
2024
Change
% Change
Revenue (in millions):
U.S. Domestic Package:
Next Day Air
$
9,652
$
9,703
$
(51)
(0.5)
%
Deferred
4,446
4,757
(311)
(6.5)
%
Ground
44,183
45,347
(1,164)
(2.6)
%
Cargo and Other
1,238
569
669
117.6
%
Total U.S. Domestic Package
59,519
60,376
(857)
(1.4)
%
International Package:
Domestic
3,401
3,186
215
6.7
%
Export
14,479
14,142
337
2.4
%
Cargo and Other
696
632
64
10.1
%
Total International Package
18,576
17,960
616
3.4
%
Supply Chain Solutions:
Forwarding
2,916
4,728
(1,812)
(38.3)
%
Logistics
5,855
6,437
(582)
(9.0)
%
Other
1,795
1,569
226
14.4
%
Total Supply Chain Solutions
10,566
12,734
(2,168)
(17.0)
%
Consolidated
$
88,661
$
91,070
$
(2,409)
(2.6)
%
Consolidated volume (in millions)
5,253
5,672
(419)
(7.4)
%
Operating weekdays
252
253
(1)
(0.4)
%
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air
1,499
1,651
(152)
(9.2)
%
Deferred
892
1,058
(166)
(15.7)
%
Ground
15,119
16,452
(1,333)
(8.1)
%
Total U.S. Domestic Package
17,510
19,161
(1,651)
(8.6)
%
International Package:
Domestic
1,575
1,554
21
1.4
%
Export
1,762
1,703
59
3.5
%
Total International Package
3,337
3,257
80
2.5
%
Consolidated
20,847
22,418
(1,571)
(7.0)
%
Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air
$
25.55
$
23.23
$
2.32
10.0
%
Deferred
19.78
17.77
2.01
11.3
%
Ground
11.60
10.89
0.71
6.5
%
Total U.S. Domestic Package
13.21
12.34
0.87
7.1
%
International Package:
Domestic
8.57
8.10
0.47
5.8
%
Export
32.61
32.82
(0.21)
(0.6)
%
Total International Package
21.26
21.03
0.23
1.1
%
Consolidated
$
14.50
$
13.60
$
0.90
6.6
%
Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Detail of Operating Expenses - Year to Date
(unaudited)
Twelve Months Ended
December 31,
2025
2024
Change
% Change
(in millions)
Compensation and benefits
$
48,605
$
48,093
$
512
1.1
%
Repairs and maintenance
3,107
2,940
167
5.7
%
Depreciation and amortization
3,746
3,609
137
3.8
%
Purchased transportation
10,588
13,589
(3,001)
(22.1)
%
Fuel
4,316
4,366
(50)
(1.1)
%
Other occupancy
2,269
2,117
152
7.2
%
Other expenses
8,163
7,888
275
3.5
%
Total operating expenses
$
80,794
$
82,602
$
(1,808)
(2.2)
%
Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Consolidated Balance Sheets
December 31, 2025 (unaudited) and December 31, 2024 (amounts in millions)
December 31,
2025
December 31,
2024
ASSETS
Current Assets:
Cash and cash equivalents
$
5,887
$
6,112
Accounts receivable, net
11,209
10,871
Other current assets
1,949
2,327
Total Current Assets
19,045
19,310
Property, Plant and Equipment, Net
37,731
37,179
Operating Lease Right-Of-Use Assets
4,263
4,149
Goodwill
5,837
4,300
Intangible Assets, Net
4,021
3,064
Deferred Income Tax Assets
140
112
Other Non-Current Assets
2,053
1,956
Total Assets
$
73,090
$
70,070
LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities:
Current maturities of long-term debt, commercial paper and finance leases
$
608
$
1,838
Current maturities of operating leases
763
733
Accounts payable
6,633
6,302
Accrued wages and withholdings
3,715
3,655
Self-insurance reserves
1,137
1,086
Accrued group welfare and retirement plan contributions
1,389
1,390
Other current liabilities
1,375
1,437
Total Current Liabilities
15,620
16,441
Long-Term Debt and Finance Leases
23,519
19,446
Non-Current Operating Leases
3,700
3,635
Pension and Postretirement Benefit Obligations
6,567
6,859
Deferred Income Tax Liabilities
3,690
3,595
Other Non-Current Liabilities
3,739
3,351
Shareowners' Equity:
Class A common stock
1
2
Class B common stock
8
7
Additional paid-in capital
275
136
Retained earnings
20,151
20,882
Accumulated other comprehensive loss
(4,208)
(4,309)
Deferred compensation obligations
5
7
Less: Treasury stock
(5)
(7)
Total Equity for Controlling Interests
16,227
16,718
Noncontrolling interests
28
25
Total Shareowners' Equity
16,255
16,743
Total Liabilities and Shareowners' Equity
$
73,090
$
70,070
Certain prior year amounts have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Statements of Consolidated Cash Flows
(In millions, unaudited)
Twelve Months Ended
December 31,
2025
2024
Cash Flows From Operating Activities:
Net income
$
5,572
$
5,782
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization
3,746
3,609
Pension and postretirement benefit expense
1,009
1,698
Pension and postretirement benefit contributions
(1,361)
(1,524)
Self-insurance reserves
236
44
Deferred tax benefit
(8)
(15)
Stock compensation expense
73
24
Other losses
113
262
Changes in assets and liabilities, net of effects of business acquisitions:
Accounts receivable
(382)
(566)
Other assets
65
70
Accounts payable
(190)
262
Accrued wages and withholdings
27
501
Other liabilities
(517)
(11)
Other operating activities
67
(14)
Net cash from operating activities
8,450
10,122
Cash Flows From Investing Activities:
Capital expenditures
(3,685)
(3,909)
Proceeds from disposal of businesses, property, plant and equipment
700
1,115
Purchases of marketable securities
(90)
(76)
Sales and maturities of marketable securities
293
2,748
Acquisitions, net of cash acquired
(1,968)
(71)
Other investing activities
15
(24)
Net cash used in investing activities
(4,735)
(217)
Cash Flows From Financing Activities:
Net change in short-term debt
—
(1,272)
Proceeds from long-term borrowings
4,153
2,785
Repayments of long-term borrowings
(2,069)
(2,487)
Purchases of common stock
(1,000)
(500)
Issuances of common stock
159
232
Dividends
(5,398)
(5,399)
Other financing activities
14
(209)
Net cash used in financing activities
(4,141)
(6,850)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
201
(149)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
(225)
2,906
Cash, Cash Equivalents and Restricted Cash:
Beginning of period
6,112
3,206
End of period
$
5,887
$
6,112
Certain prior year amounts have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Reconciliation of Free Cash Flow (Non-GAAP measure)
(In millions, unaudited)
Twelve Months Ended
December 31,
2025
2024
Cash flows from operating activities
$
8,450
$
10,122
Capital expenditures
(3,685)
(3,909)
Proceeds from disposals of property, plant and equipment
700
113
Other investing activities
5
(24)
Free Cash Flow (Non-GAAP measure)
$
5,470
$
6,302
Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
December 31,
(amounts in millions)
2025
2024
2025
2024
Operating Profit (GAAP)
$
2,575
$
2,926
Operating Margin (GAAP)
10.5
%
11.6
%
Transformation Strategy Costs:
Transformation Strategy Costs:
Transformation 2.0
Transformation 2.0
Financial systems
11
13
Financial systems
0.1
%
0.1
%
Transformation 2.0 total
11
13
Transformation 2.0 total
0.1
%
0.1
%
Fit to Serve
—
47
Fit to Serve
—
0.2
%
Network Reconfiguration and Efficiency Reimagined
122
35
Network Reconfiguration and Efficiency Reimagined
0.5
%
0.1
%
Total Transformation Strategy Costs
133
95
Total Transformation Strategy Costs
0.6
%
0.4
%
Goodwill and Asset Impairment Charges (1,2)
182
60
Goodwill and Asset Impairment Charges (1,2)
0.7
%
0.2
%
Multiemployer Pension Plan Withdrawal (3)
—
19
Multiemployer Pension Plan Withdrawal (3)
—
%
0.1
%
Non-GAAP Adjusted Operating Profit
$
2,890
$
3,100
Non-GAAP Adjusted Operating Margin
11.8
%
12.3
%
(amounts in millions)
2025
2024
Other Income (Expense) (GAAP)
$
(203)
$
(799)
Pension Adjustment (4)
—
665
Non-GAAP Adjusted Other Income (Expense)
$
(203)
$
(134)
(1) Reflects a pre-tax impairment charge of $182 million related to the retirement of the MD-11 aircraft fleet.
(2) Reflects pre-tax impairment charges of $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(3) Reflects a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(4) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
December 31,
(amounts in millions)
2025
2024
(amounts in millions)
2025
2024
Income Before Income Taxes (GAAP)
$
2,372
$
2,127
Income Tax Expense (GAAP)
$
581
$
406
Transformation Strategy Costs:
Transformation Strategy Costs:
Transformation 2.0
Transformation 2.0
Financial systems
11
13
Financial systems
3
3
Transformation 2.0 total
11
13
Transformation 2.0 total
3
3
Fit to Serve
—
47
Fit to Serve
—
11
Network Reconfiguration and Efficiency Reimagined
122
35
Network Reconfiguration and Efficiency Reimagined
29
8
Total Transformation Strategy Costs
133
95
Total Transformation Strategy Costs
32
22
Goodwill and Asset Impairment Charges (1,2)
182
60
Goodwill and Asset Impairment Charges (1,2)
45
14
Multiemployer Pension Plan Withdrawal (3)
—
19
Multiemployer Pension Plan Withdrawal (3)
—
5
Pension Adjustment (4)
—
665
Pension Adjustment (4)
—
159
Non-GAAP Adjusted Income Before Income Taxes
$
2,687
$
2,966
Non-GAAP Adjusted Income Tax Expense
$
658
$
606
(1) Reflects a pre-tax impairment charge of $182 million related to the retirement of the MD-11 aircraft fleet.
(2) Reflects pre-tax impairment charges of $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(3) Reflects a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(4) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
December 31,
(amounts in millions)
2025
2024
2025
2024
Net Income (GAAP)
$
1,791
$
1,721
Diluted Earnings Per Share (GAAP)
$
2.10
$
2.01
Transformation Strategy Costs:
Transformation Strategy Costs:
Transformation 2.0
Transformation 2.0
Financial systems
8
10
Financial systems
0.01
0.01
Transformation 2.0 total
8
10
Transformation 2.0 total
0.01
0.01
Fit to Serve
—
36
Fit to Serve
—
0.04
Network Reconfiguration and Efficiency Reimagined
93
27
Network Reconfiguration and Efficiency Reimagined
0.11
0.03
Total Transformation Strategy Costs
101
73
Total Transformation Strategy Costs
0.12
0.08
Goodwill and Asset Impairment Charges (1,2)
137
46
Goodwill and Asset Impairment Charges (1,2)
0.16
0.05
Multiemployer Pension Plan Withdrawal (3)
—
14
Multiemployer Pension Plan Withdrawal (3)
—
0.02
Pension Adjustment (4)
—
506
Pension Adjustment (4)
—
0.59
Non-GAAP Adjusted Net Income
$
2,029
$
2,360
Non-GAAP Adjusted Diluted Earnings Per Share
$
2.38
$
2.75
(1) Reflects a pre-tax impairment charge of $182 million related to the retirement of the MD-11 aircraft fleet.
(2) Reflects pre-tax impairment charges of $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(3) Reflects a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(4) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment
(unaudited)
Three Months Ended
December 31,
2025
2024
2025
2024
2025
2024
U.S. Domestic Package
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
15,328
$
15,631
(1.9)
%
$
1,428
$
1,681
(15.1)
%
8.5
%
9.7
%
Adjusted for:
Transformation Strategy Costs
(105)
(54)
105
54
0.7
%
0.3
%
Goodwill and Asset Impairment Charges
(173)
—
173
—
1.0
%
—
%
Multiemployer Pension Plan Withdrawal
—
(19)
—
19
—
%
0.1
%
Non-GAAP Adjusted Measure
$
15,050
$
15,558
(3.3)
%
$
1,706
$
1,754
(2.7)
%
10.2
%
10.1
%
2025
2024
2025
2024
2025
2024
International Package
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
4,161
$
3,904
6.6
%
$
884
$
1,019
(13.2)
%
17.5
%
20.7
%
Adjusted for:
Transformation Strategy Costs
(15)
(43)
15
43
0.3
%
0.9
%
Goodwill and Asset Impairment Charges
(9)
—
9
—
0.2
%
—
%
Non-GAAP Adjusted Measure
$
4,137
$
3,861
7.1
%
$
908
$
1,062
(14.5)
%
18.0
%
21.6
%
2025
2024
2025
2024
2025
2024
Supply Chain Solutions
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
2,415
$
2,840
(15.0)
%
$
263
$
226
16.4
%
9.8
%
7.4
%
Adjusted for:
Transformation Strategy Costs
(13)
2
13
(2)
0.5
%
(0.1)
%
Goodwill and Asset Impairment Charges
—
(60)
—
60
—
%
2.0
%
Non-GAAP Adjusted Measure
$
2,402
$
2,782
(13.7)
%
$
276
$
284
(2.8)
%
10.3
%
9.3
%
Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece
(unaudited)
Three Months Ended
December 31,
2025
2024
% Change
Operating Days
62
62
Average Daily U.S. Domestic Package Volume (in thousands)
19,970
22,382
U.S. Domestic Package Cost Per Piece (GAAP)
$
12.14
$
11.00
10.4
%
Transformation Strategy Costs
(0.08)
(0.04)
Goodwill and Asset Impairment Charges
(0.14)
—
Multiemployer Pension Plan Withdrawal
—
(0.01)
U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece
$
11.92
$
10.95
8.9
%
Note: Cost per piece excludes expense associated with cargo and other activity.
Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Year Ended
December 31,
(amounts in millions)
2025
2024
2025
2024
Operating Profit (GAAP)
$
7,867
$
8,468
Operating Margin (GAAP)
8.9
%
9.3
%
Transformation Strategy Costs:
Transformation Strategy Costs:
Transformation 2.0
Transformation 2.0
Business portfolio review
(18)
29
Business portfolio review
—
%
—
%
Financial systems
55
54
Financial systems
0.1
%
0.1
%
Transformation 2.0 total
37
83
Transformation 2.0 total
0.1
%
0.1
%
Fit to Serve
47
204
Fit to Serve
0.1
%
0.3
%
Network Redesign and Efficiency Reimagined
509
35
Network Redesign and Efficiency Reimagined
0.6
%
—
%
Total Transformation Strategy Costs
593
322
Total Transformation Strategy Costs
0.8
%
0.4
%
Goodwill and Asset Impairment Charges (1,2)
182
108
Goodwill and Asset Impairment Charges (1,2)
0.1
%
0.2
%
Net Loss (Gain) on Divestiture (7,3)
19
(156)
Net Loss (Gain) on Divestiture (7,3)
—
%
(0.2)
%
One-Time Payment for Int'l Regulatory Matter (4)
—
88
One-Time Payment for Int'l Regulatory Matter (4)
—
%
0.1
%
Expense for Regulatory Matter (5)
—
45
Expense for Regulatory Matter (5)
—
%
—
%
Multiemployer Pension Plan Withdrawal (6)
—
19
Multiemployer Pension Plan Withdrawal (6)
—
%
—
%
Non-GAAP Adjusted Operating Profit
$
8,661
$
8,894
Non-GAAP Adjusted Operating Margin
9.8
%
9.8
%
(amounts in millions)
2025
2024
Other Income (Expense) (GAAP)
$
(703)
$
(1,026)
Goodwill and Asset Impairment Charges (1)
19
—
One-Time Payment for Int'l Regulatory Matter (4)
—
6
Pension Adjustment (8)
—
665
Non-GAAP Adjusted Other Income (Expense)
$
(684)
$
(355)
(1) Reflects pre-tax impairment charges of $182 million related to the retirement of the MD-11 aircraft fleet and $19 million for the write-down of an equity investment in 2025.
(2) Reflects pre-tax impairment charges of $41 million for acquired trade names, $7 million for software licenses and $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(3) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(4) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.
(5) Reflects expense related to the settlement of a regulatory matter.
(6) Reflects a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(7) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions.
(8) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Year Ended
December 31,
(amounts in millions)
2025
2024
(amounts in millions)
2025
2024
Income Before Income Taxes (GAAP)
$
7,164
$
7,442
Income Tax Expense (GAAP)
$
1,592
$
1,660
Transformation Strategy Costs:
Transformation Strategy Costs:
Transformation 2.0
Transformation 2.0
Business portfolio review
(18)
29
Business portfolio review
(5)
7
Financial systems
55
54
Financial systems
14
13
Transformation 2.0 total
37
83
Transformation 2.0 total
9
20
Fit to Serve
47
204
Fit to Serve
10
49
Network Redesign and Efficiency Reimagined
509
35
Network Redesign and Efficiency Reimagined
122
8
Total Transformation Strategy Costs
593
322
Total Transformation Strategy Costs
141
77
Goodwill and Asset Impairment Charges (1,2)
201
108
Goodwill and Asset Impairment Charges (1,2)
45
27
Net Loss (Gain) on Divestiture (7,3)
19
(156)
Net Loss (Gain) on Divestiture (7,3)
4
(4)
One-Time Payment for Int'l Regulatory Matter (4)
—
94
Multiemployer Pension Plan Withdrawal (6)
—
5
Expense for Regulatory Matter (5)
—
45
Pension Adjustment (8)
—
159
Multiemployer Pension Plan Withdrawal (6)
—
19
Reversal of Income Tax Valuation Allowance (9)
109
—
Pension Adjustment (8)
—
665
Non-GAAP Adjusted Income Before Income Taxes
$
7,977
$
8,539
Non-GAAP Adjusted Income Tax Expense
$
1,891
$
1,924
(1) Reflects pre-tax impairment charges of $182 million related to the retirement of the MD-11 aircraft fleet and $19 million for the write-down of an equity investment in 2025.
(2) Reflects pre-tax impairment charges of $41 million for acquired trade names, $7 million for software licenses and $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(3) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(4) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.
(5) Reflects expense related to the settlement of a regulatory matter.
(6) Reflects a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(7) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions.
(8) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
(9) Reflects the reversal of an income tax valuation allowance.
Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Year Ended
December 31,
(amounts in millions)
2025
2024
2025
2024
Net Income (GAAP)
$
5,572
$
5,782
Diluted Earnings Per Share (GAAP)
$
6.56
$
6.75
Transformation Strategy Costs:
Transformation Strategy Costs:
Transformation 2.0
Transformation 2.0
Business portfolio review
(13)
22
Business portfolio review
(0.02)
0.03
Financial systems
41
41
Financial systems
0.05
0.05
Transformation 2.0 total
28
63
Transformation 2.0 total
0.03
0.08
Fit to Serve
37
155
Fit to Serve
0.04
0.18
Network Redesign and Efficiency Reimagined
387
27
Network Redesign and Efficiency Reimagined
0.46
0.03
Total Transformation Strategy Costs
452
245
Total Transformation Strategy Costs
0.53
0.29
Goodwill and Asset Impairment Charges (1,2)
156
81
Goodwill and Asset Impairment Charges (1,2)
0.18
0.09
Net Loss (Gain) on Divestiture (7,3)
15
(152)
Net Loss (Gain) on Divestiture (7,3)
0.02
(0.18)
One-Time Payment for Int'l Regulatory Matter (4)
—
94
One-Time Payment for Int'l Regulatory Matter (4)
—
0.11
Expense for Regulatory Matter (5)
—
45
Expense for Regulatory Matter (5)
—
0.05
Multiemployer Pension Plan Withdrawal (6)
—
14
Multiemployer Pension Plan Withdrawal (6)
—
0.02
Pension Adjustment (8)
—
506
Pension Adjustment (8)
—
0.59
Reversal of Income Tax Valuation Allowance (9)
(109)
—
Reversal of Income Tax Valuation Allowance (9)
(0.13)
—
Non-GAAP Adjusted Net Income
$
6,086
$
6,615
Non-GAAP Adjusted Diluted Earnings Per Share
$
7.16
$
7.72
(1) Reflects pre-tax impairment charges of $182 million related to the retirement of the MD-11 aircraft fleet and $19 million for the write-down of an equity investment in 2025.
(2) Reflects pre-tax impairment charges of $41 million for acquired trade names, $7 million for software licenses and $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(3) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(4) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.
(5) Reflects expense related to the settlement of a regulatory matter.
(6) Reflects a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(7) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions.
(8) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
(9) Reflects the reversal of an income tax valuation allowance.
Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment
(unaudited)
Year Ended
December 31,
2025
2024
2025
2024
2025
2024
U.S. Domestic Package
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
55,593
$
56,031
(0.8)
%
$
3,926
$
4,345
(9.6)
%
6.6
%
7.2
%
Adjusted for:
Transformation Strategy Costs
(505)
(147)
505
147
0.8
%
0.3
%
Goodwill and Asset Impairment Charges
(173)
(5)
173
5
0.3
%
—
%
Multiemployer Pension Plan Withdrawal
—
(19)
—
19
—
%
—
%
Non-GAAP Adjusted Measure
$
54,915
$
55,860
(1.7)
%
$
4,604
$
4,516
1.9
%
7.7
%
7.5
%
2025
2024
2025
2024
2025
2024
International Package
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
15,703
$
14,769
6.3
%
$
2,873
$
3,191
(10.0)
%
15.5
%
17.8
%
Adjusted for:
Transformation Strategy Costs
(53)
(79)
53
79
0.3
%
0.4
%
Goodwill and Asset Impairment Charges
(9)
(2)
9
2
—
%
—
%
One-Time International Regulatory Matter
—
(88)
—
88
—
%
0.5
%
Non-GAAP Adjusted Measure
$
15,641
$
14,600
7.1
%
$
2,935
$
3,360
(12.6)
%
15.8
%
18.7
%
2025
2024
2025
2024
2025
2024
Supply Chain Solutions
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
9,498
$
11,802
(19.5)
%
$
1,068
$
932
14.6
%
10.1
%
7.3
%
Adjusted for:
Transformation Strategy Costs
(35)
(96)
35
96
0.3
%
0.8
%
Net (Loss) Gain on Divestiture
(19)
156
19
(156)
0.2
%
(1.2)
%
Goodwill and Asset Impairment Charges
—
(101)
—
101
—
%
0.7
%
Expense for Regulatory Matter
—
(45)
—
45
—
%
0.4
%
Non-GAAP Adjusted Measure
$
9,444
$
11,716
(19.4)
%
$
1,122
$
1,018
10.2
%
10.6
%
8.0
%
Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece
(unaudited)
Year Ended
December 31,
2025
2024
% Change
Operating Days
252
253
Average Daily U.S. Domestic Package Volume (in thousands)
17,510
19,161
U.S. Domestic Package Cost Per Piece (GAAP)
$
12.35
$
11.42
8.1
%
Transformation Strategy Costs
(0.11)
(0.04)
Goodwill and Asset Impairment Charges
(0.04)
—
U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece
$
12.20
$
11.38
7.2
%
Note: Cost per piece excludes expense associated with cargo and other activity.
Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Aircraft Fleet - As of December 31, 2025
(unaudited)
Description
UPS Owned and/or Operated
Charters & Leases Operated by Others
On Order
Under Option
Boeing 757-200
75
—
—
—
Boeing 767-300
89
—
18
—
Boeing 767-300BCF
6
—
—
—
Boeing 767-300BDSF
4
—
—
—
Airbus A300-600
52
—
—
—
Boeing MD-11(1)
26
—
—
—
Boeing 747-400F
11
—
—
—
Boeing 747-400BCF
2
—
—
—
Boeing 747-8F
30
—
—
—
Other
—
221
—
—
Total
295
221
18
—
(1) MD-11 aircraft fleet shown above has been retired as of December 31, 2025.
Certain amounts are calculated based on unrounded numbers.
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | 0 | 0 |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | 0 |
| Recession recession, downturn, contraction, slowdown | 0 | 0 | 0 |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | 0 | 0 |
| Buybacks share repurchase, buyback program | 0 | — | 0 |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Not placed in the text
These quotes are stored with a score, but no passage here matches them closely enough to highlight. Rather than point at the wrong passage, they are listed as stored.
Theme · Revenue decline
“Total revenue decreased 3.2% to $24,479 million.”
Theme · Volume contraction
“Consolidated volume decreased 9.9% to 1,458 million.”
Theme · Supply Chain Solutions revenue drop
“Supply Chain Solutions revenue decreased 12.7% to $2,678 million.”
Theme · Yield improvement
“Average Revenue Per Piece increased 8.6% to $14.60.”
Theme · Transformation costs
“Transformation Strategy Costs were $133 million.”
Theme · Free cash flow decrease
“Free Cash Flow was $5,470 million compared to $6,302 million.”
Theme · Cost per piece increase
“U.S. Domestic Package Cost Per Piece increased 10.4% to $12.14.”
Theme · Asset impairments
“Goodwill and Asset Impairment Charges were $182 million.”
Source: SEC EDGAR · public domain · Highlights by Palanor