EX-99.23exhibit992-financialstatem.htmEX-99.2 Q3 2025 FINANCIAL STATEMENT SCHEDULES Document
Exhibit 99.2
United Parcel Service, Inc.
Selected Financial Data - Third Quarter
(unaudited)
Three Months Ended
September 30,
2025
2024
Change
% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package
$
14,220
$
14,597
$
(377)
(2.6)
%
International Package
4,673
4,411
262
5.9
%
Supply Chain Solutions
2,522
3,237
(715)
(22.1)
%
Total revenue
21,415
22,245
(830)
(3.7)
%
Operating expenses:
U.S. Domestic Package
13,617
13,754
(137)
(1.0)
%
International Package
3,997
3,613
384
10.6
%
Supply Chain Solutions
1,997
2,893
(896)
(31.0)
%
Total operating expenses
19,611
20,260
(649)
(3.2)
%
Operating profit:
U.S. Domestic Package
603
843
(240)
(28.5)
%
International Package
676
798
(122)
(15.3)
%
Supply Chain Solutions
525
344
181
52.6
%
Total operating profit
1,804
1,985
(181)
(9.1)
%
Other income (expense):
Other pension income (expense)
47
68
(21)
(30.9)
%
Investment income (expense) and other
47
87
(40)
(46.0)
%
Interest expense
(291)
(230)
(61)
26.5
%
Total other income (expense)
(197)
(75)
(122)
162.7
%
Income before income taxes
1,607
1,910
(303)
(15.9)
%
Income tax expense
296
371
(75)
(20.2)
%
Net income
$
1,311
$
1,539
$
(228)
(14.8)
%
Net income as a percentage of revenue
6.1
%
6.9
%
Per share amounts:
Basic earnings per share
$
1.55
$
1.80
$
(0.25)
(13.9)
%
Diluted earnings per share
$
1.55
$
1.80
$
(0.25)
(13.9)
%
Weighted-average shares outstanding:
Basic
848
855
(7)
(0.8)
%
Diluted
848
855
(7)
(0.8)
%
Non-GAAP Adjusted Income Data (1):
Operating profit:
U.S. Domestic Package
$
905
$
919
$
(14)
(1.5)
%
International Package
691
792
(101)
(12.8)
%
Supply Chain Solutions
536
272
264
97.1
%
Total operating profit
2,132
1,983
149
7.5
%
Total other income (expense)
$
(197)
$
(75)
$
(122)
162.7
%
Income before income taxes
$
1,935
$
1,908
$
27
1.4
%
Net income
$
1,475
$
1,503
$
(28)
(1.9)
%
Basic earnings per share
$
1.74
$
1.76
$
(0.02)
(1.1)
%
Diluted earnings per share
$
1.74
$
1.76
$
(0.02)
(1.1)
%
(1) See Non-GAAP schedules for reconciliation of adjustments.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Selected Operating Data - Third Quarter
(unaudited)
Three Months Ended
September 30,
2025
2024
Change
% Change
Revenue (in millions):
U.S. Domestic Package:
Next Day Air
$
2,381
$
2,396
$
(15)
(0.6)
%
Deferred
1,020
1,109
(89)
(8.0)
%
Ground
10,525
10,945
(420)
(3.8)
%
Cargo and Other
294
147
147
100.0
%
Total U.S. Domestic Package
14,220
14,597
(377)
(2.6)
%
International Package:
Domestic
847
771
76
9.9
%
Export
3,646
3,482
164
4.7
%
Cargo and Other
180
158
22
13.9
%
Total International Package
4,673
4,411
262
5.9
%
Supply Chain Solutions:
Forwarding
730
1,307
(577)
(44.1)
%
Logistics
1,363
1,550
(187)
(12.1)
%
Other
429
380
49
12.9
%
Total Supply Chain Solutions
2,522
3,237
(715)
(22.1)
%
Consolidated
$
21,415
$
22,245
$
(830)
(3.7)
%
Consolidated volume (in millions)
1,243
1,378
(135)
(9.8)
%
Operating weekdays
64
64
—
0.0
%
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air
1,422
1,596
(174)
(10.9)
%
Deferred
804
988
(184)
(18.6)
%
Ground
13,924
15,823
(1,899)
(12.0)
%
Total U.S. Domestic Package
16,150
18,407
(2,257)
(12.3)
%
International Package:
Domestic
1,536
1,483
53
3.6
%
Export
1,733
1,637
96
5.9
%
Total International Package
3,269
3,120
149
4.8
%
Consolidated
19,419
21,527
(2,108)
(9.8)
%
Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air
$
26.16
$
23.46
$
2.70
11.5
%
Deferred
19.82
17.54
2.28
13.0
%
Ground
11.81
10.81
1.00
9.3
%
Total U.S. Domestic Package
13.47
12.27
1.20
9.8
%
International Package:
Domestic
8.62
8.12
0.50
6.2
%
Export
32.87
33.24
(0.37)
(1.1)
%
Total International Package
21.48
21.30
0.18
0.8
%
Consolidated
$
14.82
$
13.58
$
1.24
9.1
%
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Detail of Operating Expenses - Third Quarter
(unaudited)
Three Months Ended
September 30,
2025
2024
Change
% Change
(in millions)
Compensation and benefits
$
12,118
$
11,955
$
163
1.4
%
Repairs and maintenance
803
713
90
12.6
%
Depreciation and amortization
926
905
21
2.3
%
Purchased transportation
2,463
3,375
(912)
(27.0)
%
Fuel
1,071
1,068
3
0.3
%
Other occupancy
548
517
31
6.0
%
Other expenses
1,682
1,727
(45)
(2.6)
%
Total operating expenses
$
19,611
$
20,260
$
(649)
(3.2)
%
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Selected Financial Data - Year to Date
(unaudited)
Nine Months Ended
September 30,
2025
2024
Change
% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package
$
42,763
$
43,064
$
(301)
(0.7)
%
International Package
13,531
13,037
494
3.8
%
Supply Chain Solutions
7,888
9,668
(1,780)
(18.4)
%
Total revenue
64,182
65,769
(1,587)
(2.4)
%
Operating expenses:
U.S. Domestic Package
40,265
40,400
(135)
(0.3)
%
International Package
11,542
10,865
677
6.2
%
Supply Chain Solutions
7,083
8,962
(1,879)
(21.0)
%
Total operating expenses
58,890
60,227
(1,337)
(2.2)
%
Operating profit:
U.S. Domestic Package
2,498
2,664
(166)
(6.2)
%
International Package
1,989
2,172
(183)
(8.4)
%
Supply Chain Solutions
805
706
99
14.0
%
Total operating profit
5,292
5,542
(250)
(4.5)
%
Other income (expense):
Other pension income (expense)
122
202
(80)
(39.6)
%
Investment income (expense) and other
129
208
(79)
(38.0)
%
Interest expense
(751)
(637)
(114)
17.9
%
Total other income (expense)
(500)
(227)
(273)
120.3
%
Income before income taxes
4,792
5,315
(523)
(9.8)
%
Income tax expense
1,011
1,254
(243)
(19.4)
%
Net income
$
3,781
$
4,061
$
(280)
(6.9)
%
Net income as a percentage of revenue
5.9
%
6.2
%
Per share amounts:
Basic earnings per share
$
4.46
$
4.74
$
(0.28)
(5.9)
%
Diluted earnings per share
$
4.46
$
4.74
$
(0.28)
(5.9)
%
Weighted-average shares outstanding:
Basic
849
856
(7)
(0.8)
%
Diluted
849
856
(7)
(0.8)
%
Non-GAAP Adjusted Income Data (1):
Operating profit:
U.S. Domestic Package
$
2,898
$
2,762
$
136
4.9
%
International Package
2,027
2,298
(271)
(11.8)
%
Supply Chain Solutions
846
734
112
15.3
%
Total operating profit
5,771
5,794
(23)
(0.4)
%
Total other income (expense)
$
(481)
$
(221)
$
(260)
117.6
%
Income before income taxes
$
5,290
$
5,573
$
(283)
(5.1)
%
Net income
$
4,057
$
4,255
$
(198)
(4.7)
%
Basic earnings per share
$
4.78
$
4.97
$
(0.19)
(3.8)
%
Diluted earnings per share
$
4.78
$
4.97
$
(0.19)
(3.8)
%
(1) See Non-GAAP schedules for reconciliation of adjustments.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Selected Operating Data - Year to Date
(unaudited)
Nine Months Ended
September 30,
2025
2024
Change
% Change
Revenue (in millions):
U.S. Domestic Package:
Next Day Air
$
7,035
$
7,021
$
14
0.2
%
Deferred
3,093
3,372
(279)
(8.3)
%
Ground
31,718
32,410
(692)
(2.1)
%
Cargo and Other
917
261
656
251.3
%
Total U.S. Domestic Package
42,763
43,064
(301)
(0.7)
%
International Package:
Domestic
2,448
2,299
149
6.5
%
Export
10,574
10,269
305
3.0
%
Cargo and Other
509
469
40
8.5
%
Total International Package
13,531
13,037
494
3.8
%
Supply Chain Solutions:
Forwarding
2,188
3,902
(1,714)
(43.9)
%
Logistics
4,411
4,638
(227)
(4.9)
%
Other
1,289
1,128
161
14.3
%
Total Supply Chain Solutions
7,888
9,668
(1,780)
(18.4)
%
Consolidated
$
64,182
$
65,769
$
(1,587)
(2.4)
%
Consolidated volume (in millions)
3,795
4,053
(258)
(6.4)
%
Operating weekdays
190
191
(1)
(0.5)
%
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air
1,456
1,582
(126)
(8.0)
%
Deferred
831
1,008
(177)
(17.6)
%
Ground
14,420
15,526
(1,106)
(7.1)
%
Total U.S. Domestic Package
16,707
18,116
(1,409)
(7.8)
%
International Package:
Domestic
1,539
1,491
48
3.2
%
Export
1,728
1,613
115
7.1
%
Total International Package
3,267
3,104
163
5.3
%
Consolidated
19,974
21,220
(1,246)
(5.9)
%
Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air
$
25.43
$
23.24
$
2.19
9.4
%
Deferred
19.59
17.51
2.08
11.9
%
Ground
11.58
10.93
0.65
5.9
%
Total U.S. Domestic Package
13.18
12.37
0.81
6.5
%
International Package:
Domestic
8.37
8.07
0.30
3.7
%
Export
32.21
33.33
(1.12)
(3.4)
%
Total International Package
20.98
21.20
(0.22)
(1.0)
%
Consolidated
$
14.46
$
13.66
$
0.80
5.9
%
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Detail of Operating Expenses - Year to Date
(unaudited)
Nine Months Ended
September 30,
2025
2024
Change
% Change
(in millions)
Compensation and benefits
$
35,571
$
35,097
$
474
1.4
%
Repairs and maintenance
2,290
2,165
125
5.8
%
Depreciation and amortization
2,774
2,690
84
3.1
%
Purchased transportation
7,715
9,894
(2,179)
(22.0)
%
Fuel
3,187
3,254
(67)
(2.1)
%
Other occupancy
1,699
1,573
126
8.0
%
Other expenses
5,654
5,554
100
1.8
%
Total operating expenses
$
58,890
$
60,227
$
(1,337)
(2.2)
%
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Consolidated Balance Sheets
September 30, 2025 (unaudited) and December 31, 2024 (amounts in millions)
September 30,
2025
December 31,
2024
ASSETS
Current Assets:
Cash and cash equivalents
$
6,764
$
6,112
Accounts receivable, net
9,967
10,871
Other current assets
2,254
2,327
Total Current Assets
18,985
19,310
Property, Plant and Equipment, Net
37,743
37,179
Operating Lease Right-Of-Use Assets
4,217
4,149
Goodwill
4,810
4,300
Intangible Assets, Net
3,455
3,064
Deferred Income Tax Assets
158
112
Other Non-Current Assets
2,024
1,956
Total Assets
$
71,392
$
70,070
LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities:
Current maturities of long-term debt, commercial paper and finance leases
$
932
$
1,838
Current maturities of operating leases
742
733
Accounts payable
5,784
6,302
Accrued wages and withholdings
3,476
3,655
Self-insurance reserves
1,024
1,086
Accrued group welfare and retirement plan contributions
1,221
1,390
Other current liabilities
1,373
1,437
Total Current Liabilities
14,552
16,441
Long-Term Debt and Finance Leases
23,850
19,446
Non-Current Operating Leases
3,687
3,635
Pension and Postretirement Benefit Obligations
6,187
6,859
Deferred Income Tax Liabilities
3,581
3,595
Other Non-Current Liabilities
3,687
3,351
Shareowners' Equity:
Class A common stock
2
2
Class B common stock
7
7
Additional paid-in capital
178
136
Retained earnings
19,753
20,882
Accumulated other comprehensive loss
(4,117)
(4,309)
Deferred compensation obligations
5
7
Less: Treasury stock
(5)
(7)
Total Equity for Controlling Interests
15,823
16,718
Noncontrolling interests
25
25
Total Shareowners' Equity
15,848
16,743
Total Liabilities and Shareowners' Equity
$
71,392
$
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)
Nine Months Ended
September 30,
2025
2024
Cash Flows From Operating Activities:
Net income
$
3,781
$
4,061
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization
2,774
2,690
Pension and postretirement benefit expense
763
774
Pension and postretirement benefit contributions
(1,338)
(1,434)
Self-insurance reserves
76
14
Deferred tax (benefit) expense
(34)
24
Stock compensation expense (benefit)
41
(21)
Other (gains) losses
(155)
61
Changes in assets and liabilities, net of effects of business acquisitions:
Accounts receivable
854
1,395
Other assets
(80)
116
Accounts payable
(801)
(829)
Accrued wages and withholdings
(202)
348
Other liabilities
(528)
(335)
Other operating activities
(3)
(57)
Net cash from operating activities
5,148
6,807
Cash Flows From Investing Activities:
Capital expenditures
(2,969)
(2,811)
Proceeds from disposal of businesses, property, plant and equipment
585
1,070
Purchases of marketable securities
(90)
(52)
Sales and maturities of marketable securities
229
2,725
Acquisitions, net of cash acquired
(479)
(66)
Other investing activities
(10)
(26)
Net cash (used in) from investing activities
(2,734)
840
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
(1,145)
(1,944)
Purchases of common stock
(1,000)
(500)
Issuances of common stock
133
184
Dividends
(4,045)
(4,049)
Other financing activities
(43)
(207)
Net cash used in financing activities
(1,947)
(5,003)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
185
5
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
652
2,649
Cash, Cash Equivalents and Restricted Cash:
Beginning of period
6,112
3,206
End of period
$
6,764
$
5,855
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)
Nine Months Ended
September 30,
2025
2024
Cash flows from operating activities
$
5,148
$
6,807
Capital expenditures
(2,969)
(2,811)
Proceeds from disposals of property, plant and equipment
585
68
Other investing activities
(20)
(26)
Free Cash Flow (Non-GAAP measure)
$
2,744
$
4,038
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 GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
September 30,
(amounts in millions)
2025
2024
2025
2024
Operating Profit (GAAP)
$
1,804
$
1,985
Operating Margin (GAAP)
8.4
%
8.9
%
Transformation Strategy Costs:
Transformation Strategy Costs:
Transformation 2.0
Transformation 2.0
Business portfolio review
—
34
Business portfolio review
—
%
0.1
%
Financial systems
13
12
Financial systems
0.1
%
0.1
%
Transformation 2.0 total
13
46
Transformation 2.0 total
0.1
%
0.2
%
Fit to Serve
19
108
Fit to Serve
0.1
%
0.5
%
Network Reconfiguration and Efficiency Reimagined
296
—
Network Reconfiguration and Efficiency Reimagined
1.4
%
—
%
Total Transformation Strategy Costs
328
154
Total Transformation Strategy Costs
1.6
%
0.7
%
Gain on Divestiture (6)
—
(156)
Gain on Divestiture (6)
—
%
(0.7)
%
Non-GAAP Adjusted Operating Profit
$
2,132
$
1,983
Non-GAAP Adjusted Operating Margin
10.0
%
8.9
%
(6) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
September 30,
(amounts in millions)
2025
2024
(amounts in millions)
2025
2024
Income Before Income Taxes (GAAP)
$
1,607
$
1,910
Income Tax Expense (GAAP)
$
296
$
371
Transformation Strategy Costs:
Transformation Strategy Costs:
Transformation 2.0
Transformation 2.0
Business portfolio review
—
34
Business portfolio review
—
8
Financial systems
13
12
Financial systems
3
3
Transformation 2.0 total
13
46
Transformation 2.0 total
3
11
Fit to Serve
19
108
Fit to Serve
4
27
Network Reconfiguration and Efficiency Reimagined
296
—
Network Reconfiguration and Efficiency Reimagined
71
—
Total Transformation Strategy Costs
328
154
Total Transformation Strategy Costs
78
38
Gain on Divestiture (6)
—
(156)
Gain on Divestiture (6)
—
(4)
Reversal of Income Tax Valuation Allowance (7)
86
—
Non-GAAP Adjusted Income Before Income Taxes
$
1,935
$
1,908
Non-GAAP Adjusted Income Tax Expense
$
460
$
405
(6) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(7) Reflects the reversal of an income tax valuation allowance.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
September 30,
(amounts in millions)
2025
2024
2025
2024
Net Income (GAAP)
$
1,311
$
1,539
Diluted Earnings Per Share (GAAP)
$
1.55
$
1.80
Transformation Strategy Costs:
Transformation Strategy Costs:
Transformation 2.0
Transformation 2.0
Business portfolio review
—
26
Business portfolio review
—
0.03
Financial systems
10
9
Financial systems
0.01
0.01
Transformation 2.0 total
10
35
Transformation 2.0 total
0.01
0.04
Fit to Serve
15
81
Fit to Serve
0.02
0.10
Network Reconfiguration and Efficiency Reimagined
225
—
Network Reconfiguration and Efficiency Reimagined
0.26
—
Total Transformation Strategy Costs
250
116
Total Transformation Strategy Costs
0.29
0.14
Gain on Divestiture (6)
—
(152)
Gain on Divestiture (6)
—
(0.18)
Reversal of Income Tax Valuation Allowance (7)
(86)
—
Reversal of Income Tax Valuation Allowance (7)
(0.10)
—
Non-GAAP Adjusted Net Income
$
1,475
$
1,503
Non-GAAP Adjusted Diluted Earnings Per Share
$
1.74
$
1.76
(6) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(7) Reflects the reversal of an income tax valuation allowance.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. 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
September 30,
2025
2024
2025
2024
2025
2024
U.S. Domestic Package
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
13,617
$
13,754
(1.0)
%
$
603
$
843
(28.5)
%
4.2
%
5.8
%
Adjusted for:
Transformation Strategy Costs
(302)
(76)
302
76
2.2
%
0.5
%
Non-GAAP Adjusted Measure
$
13,315
$
13,678
(2.7)
%
$
905
$
919
(1.5)
%
6.4
%
6.3
%
2025
2024
2025
2024
2025
2024
International Package
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
3,997
$
3,613
10.6
%
$
676
$
798
(15.3)
%
14.5
%
18.1
%
Adjusted for:
Transformation Strategy Costs
(15)
6
15
(6)
0.3
%
(0.1)
%
Non-GAAP Adjusted Measure
$
3,982
$
3,619
10.0
%
$
691
$
792
(12.8)
%
14.8
%
18.0
%
2025
2024
2025
2024
2025
2024
Supply Chain Solutions
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
1,997
$
2,893
(31.0)
%
$
525
$
344
52.6
%
20.8
%
10.6
%
Adjusted for:
Transformation Strategy Costs
(11)
(84)
11
84
0.5
%
2.6
%
Gain on Divestiture
—
156
—
(156)
—
%
(4.8)
%
Non-GAAP Adjusted Measure
$
1,986
$
2,965
(33.0)
%
$
536
$
272
97.1
%
21.3
%
8.4
%
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. 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
September 30,
2025
2024
% Change
Operating Days
64
64
Average Daily U.S. Domestic Package Volume (in thousands)
16,150
18,407
U.S. Domestic Package Cost Per Piece (GAAP)
$
12.92
$
11.50
12.3
%
Transformation Strategy Costs
(0.29)
(0.06)
U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece
$
12.63
$
11.44
10.4
%
Note: Cost per piece excludes expense associated with cargo and other activity.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Nine Months Ended
September 30,
(amounts in millions)
2025
2024
2025
2024
Operating Profit (GAAP)
$
5,292
$
5,542
Operating Margin (GAAP)
8.2
%
8.4
%
Transformation Strategy Costs:
Transformation Strategy Costs:
Transformation 2.0
Transformation 2.0
Business portfolio review
(18)
29
Business portfolio review
—
%
—
%
Financial systems
44
41
Financial systems
0.1
%
0.1
%
Transformation 2.0 total
26
70
Transformation 2.0 total
0.1
%
0.1
%
Fit to Serve
47
157
Fit to Serve
0.1
%
0.2
%
Network Redesign and Efficiency Reimagined
387
—
Network Redesign and Efficiency Reimagined
0.6
%
—
%
Total Transformation Strategy Costs
460
227
Total Transformation Strategy Costs
0.8
%
0.3
%
Gain on Divestiture (1) (6)
(20)
(156)
Gain on Divestiture (1) (6)
(0.1)
%
(0.2)
%
Goodwill and Asset Impairment Charges (2) (3)
39
48
Goodwill and Asset Impairment Charges (2) (3)
0.1
%
0.1
%
Expense for Regulatory Matter (4)
—
45
Expense for Regulatory Matter (4)
—
%
0.1
%
One-Time Payment for Int'l Regulatory Matter (5)
—
88
One-Time Payment for Int'l Regulatory Matter (5)
—
%
0.1
%
Non-GAAP Adjusted Operating Profit
$
5,771
$
5,794
Non-GAAP Adjusted Operating Margin
9.0
%
8.8
%
(amounts in millions)
2025
2024
Other Income (Expense) (GAAP)
$
(500)
$
(227)
Goodwill and Asset Impairment Charges (2) (3)
19
—
One-Time Payment for Int'l Regulatory Matter (5)
—
6
Non-GAAP Adjusted Other Income (Expense)
$
(481)
$
(221)
(1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions.
(2) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and the write-down of an equity investment in 2025.
(3) Reflects pre-tax impairment charges of $41 million for acquired trade names within Supply Chain Solutions and $7 million for software licenses in 2024.
(4) Reflects expense related to the settlement of a regulatory matter.
(5) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.
(6) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Nine Months Ended
September 30,
(amounts in millions)
2025
2024
(amounts in millions)
2025
2024
Income Before Income Taxes (GAAP)
$
4,792
$
5,315
Income Tax Expense (GAAP)
$
1,011
$
1,254
Transformation Strategy Costs:
Transformation Strategy Costs:
Transformation 2.0
Transformation 2.0
Business portfolio review
(18)
29
Business portfolio review
(5)
7
Financial systems
44
41
Financial systems
11
10
Transformation 2.0 total
26
70
Transformation 2.0 total
6
17
Fit to Serve
47
157
Fit to Serve
10
38
Network Redesign and Efficiency Reimagined
387
—
Network Redesign and Efficiency Reimagined
93
—
Total Transformation Strategy Costs
460
227
Total Transformation Strategy Costs
109
55
Gain on Divestiture (1) (6)
(20)
(156)
Gain on Divestiture (1) (6)
(5)
(4)
Goodwill and Asset Impairment Charges (2) (3)
58
48
Goodwill and Asset Impairment Charges (2) (3)
9
13
Expense for Regulatory Matter (4)
—
45
Reversal of Income Tax Valuation Allowance (7)
109
—
One-Time Payment for Int'l Regulatory Matter (5)
—
94
Non-GAAP Adjusted Income Before Income Taxes
$
5,290
$
5,573
Non-GAAP Adjusted Income Tax Expense
$
1,233
$
1,318
(1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions.
(2) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and the write-down of an equity investment in 2025.
(3) Reflects pre-tax impairment charges of $41 million for acquired trade names within Supply Chain Solutions and $7 million for software licenses in 2024.
(4) Reflects expense related to the settlement of a regulatory matter.
(5) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.
(6) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(7) Reflects the reversal of an income tax valuation allowance.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Nine Months Ended
September 30,
(amounts in millions)
2025
2024
2025
2024
Net Income (GAAP)
$
3,781
$
4,061
Diluted Earnings Per Share (GAAP)
$
4.46
$
4.74
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
33
31
Financial systems
0.04
0.04
Transformation 2.0 total
20
53
Transformation 2.0 total
0.02
0.07
Fit to Serve
37
119
Fit to Serve
0.04
0.14
Network Redesign and Efficiency Reimagined
294
—
Network Redesign and Efficiency Reimagined
0.35
—
Total Transformation Strategy Costs
351
172
Total Transformation Strategy Costs
0.41
0.21
Gain on Divestiture (1) (6)
(15)
(152)
Gain on Divestiture (1) (6)
(0.02)
(0.18)
Goodwill and Asset Impairment Charges (2) (3)
49
35
Goodwill and Asset Impairment Charges (2) (3)
0.06
0.04
Expense for Regulatory Matter (4)
—
45
Expense for Regulatory Matter (4)
—
0.05
One-Time Payment for Int'l Regulatory Matter (5)
—
94
One-Time Payment for Int'l Regulatory Matter (5)
—
0.11
Reversal of Income Tax Valuation Allowance (7)
(109)
—
Reversal of Income Tax Valuation Allowance (7)
(0.13)
—
Non-GAAP Adjusted Net Income
$
4,057
$
4,255
Non-GAAP Adjusted Diluted Earnings Per Share
$
4.78
$
4.97
(1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions.
(2) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and the write-down of an equity investment in 2025.
(3) Reflects pre-tax impairment charges of $41 million for acquired trade names within Supply Chain Solutions and $7 million for software licenses in 2024.
(4) Reflects expense related to the settlement of a regulatory matter.
(5) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.
(6) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(7) Reflects the reversal of an income tax valuation allowance.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment
(unaudited)
Nine Months Ended
September 30,
2025
2024
2025
2024
2025
2024
U.S. Domestic Package
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
40,265
$
40,400
(0.3)
%
$
2,498
$
2,664
(6.2)
%
5.8
%
6.2
%
Adjusted for:
Transformation Strategy Costs
(400)
(93)
400
93
1.0
%
0.2
%
Goodwill and Asset Impairment Charges
—
(5)
—
5
—
%
—
%
Non-GAAP Adjusted Measure
$
39,865
$
40,302
(1.1)
%
$
2,898
$
2,762
4.9
%
6.8
%
6.4
%
2025
2024
2025
2024
2025
2024
International Package
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
11,542
$
10,865
6.2
%
$
1,989
$
2,172
(8.4)
%
14.7
%
16.7
%
Adjusted for:
Transformation Strategy Costs
(38)
(36)
38
36
0.3
%
0.2
%
Goodwill and Asset Impairment Charges
—
(2)
—
2
—
%
—
%
One-Time Int'l Regulatory Matter
—
(88)
—
88
—
%
0.7
%
Non-GAAP Adjusted Measure
$
11,504
$
10,739
7.1
%
$
2,027
$
2,298
(11.8)
%
15.0
%
17.6
%
2025
2024
2025
2024
2025
2024
Supply Chain Solutions
Operating Expenses
% Change
Operating Profit
% Change
Operating Margin
GAAP
$
7,083
$
8,962
(21.0)
%
$
805
$
706
14.0
%
10.2
%
7.3
%
Adjusted for:
Transformation Strategy Costs
(22)
(98)
22
98
0.3
%
1.0
%
Gain on Divestiture
20
156
(20)
(156)
(0.3)
%
(1.6)
%
Goodwill and Asset Impairment Charges
(39)
(41)
39
41
0.5
%
0.4
%
Expense for Regulatory Matter
—
(45)
—
45
—
%
0.5
%
Non-GAAP Adjusted Measure
$
7,042
$
8,934
(21.2)
%
$
846
$
734
15.3
%
10.7
%
7.6
%
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. 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)
Nine Months Ended
September 30,
2025
2024
% Change
Operating Days
190
191
Average Daily U.S. Domestic Package Volume (in thousands)
16,707
18,116
U.S. Domestic Package Cost Per Piece (GAAP)
$
12.43
$
11.59
7.2
%
Transformation Strategy Costs
(0.13)
(0.03)
U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece
$
12.30
$
11.56
6.4
%
Note: Cost per piece excludes expense associated with cargo and other activity.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.
United Parcel Service, Inc.
Aircraft Fleet - As of September 30, 2025
(unaudited)
Description
UPS Owned and/or Operated
Charters & Leases Operated by Others
On Order
Under Option
Boeing 757-200
75
—
—
—
Boeing 767-300
87
—
20
—
Boeing 767-300BCF
6
—
—
—
Boeing 767-300BDSF
4
—
—
—
Airbus A300-600
52
—
—
—
Boeing MD-11(1)
27
—
—
—
Boeing 747-400F
11
—
—
—
Boeing 747-400BCF
2
—
—
—
Boeing 747-8F
30
—
—
—
Other
—
222
—
—
Total
294
222
20
—
(1) None of the MD-11 aircraft shown above have been retired from operational use as of September 30, 2025. We anticipate retiring one (1) of the MD-11 aircraft shown above during 2025.
Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. 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 | — | 1 |
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 3.7% to $21.4 billion”
Theme · Volume pressure
“Consolidated volume decreased 9.8% to 1,243 million packages”
Theme · Operating profit decline
“Operating profit decreased 9.1% to $1,804 million”
Theme · Supply Chain contraction
“Supply Chain Solutions revenue decreased 22.1% to $2.5 billion”
Theme · Transformation costs
“Total Transformation Strategy Costs were $328 million”
Theme · Pricing power
“Average Revenue Per Piece increased 9.1% to $14.82”
Theme · Free cash flow decrease
“Free Cash Flow (Non-GAAP measure) was $2,744 million”
Theme · Share repurchase
“Purchases of common stock were $1,000 million”
Source: SEC EDGAR · public domain · Highlights by Palanor