UPS RELEASES 3Q 2025 EARNINGS (Form 8-K)

UPS RELEASES 3Q 2025 EARNINGS

•Consolidated Revenues of $21.4B

•Consolidated Operating Margin of 8.4%; Non-GAAP Adjusted* Consolidated Operating Margin of 10.0%

•Diluted EPS of $1.55; Non-GAAP Adj. Diluted EPS of $1.74

•Provides Fourth-Quarter 2025 Financial Guidance and Full-Year Capital Allocation Expectations

ATLANTA - October 28, 2025 - UPS (NYSE:UPS) today announced third-quarter 2025 consolidated revenues of $21.4 billion. Consolidated operating profit was $1.8 billion; $2.1 billion on a non-GAAP adjusted basis. Diluted earnings per share were $1.55 for the quarter; non-GAAP adjusted diluted earnings per share were $1.74.

For the third quarter of 2025, GAAP results include a net charge of $164 million, or $0.19 per diluted share, comprised of after-tax transformation strategy costs of $250 million, partially offset by an $86 million benefit from the reversal of an income tax valuation allowance.

Additionally in the third quarter, UPS entered into a sale-leaseback transaction related to five properties, which resulted in a $330 million pre-tax gain on sale within Supply Chain Solutions, and which contributed $0.30 to diluted earnings per share. This transaction was part of the company's broader capital strategy to monetize certain real estate assets to reinvest for growth with the leases structured to maintain operational continuity.

"I want to extend my gratitude to all UPSers for their dedication and steadfast commitment to serving our customers," said Carol Tomé, UPS chief executive officer. "We are executing the most significant strategic shift in our company's history, and the changes we are implementing are designed to deliver long-term value for all stakeholders. With the holiday shipping season nearly upon us, we are positioned to run the most efficient peak in our history while providing industry-leading service to our customers for the eighth consecutive year."

U.S. Domestic Segment†

3Q 2025

Non-GAAP Adjusted 3Q 2025

3Q 2024

Non-GAAP Adjusted 3Q 2024

Revenue

$14,220 M

$14,597 M

Operating profit

$603 M

$905 M

$843 M

$919 M

•Revenue declined 2.6%, primarily driven by an expected decline in volume, partially offset by higher revenue per piece and air cargo revenue.

•Operating margin was 4.2%; non-GAAP adjusted operating margin was 6.4%.

International Segment

3Q 2025

Non-GAAP Adjusted 3Q 2025

3Q 2024

Non-GAAP Adjusted 3Q 2024

Revenue

$4,673 M

$4,411 M

Operating profit

$676 M

$691 M

$798 M

$792 M

•Revenue increased 5.9%, driven by a 4.8% increase in average daily volume.

•Operating margin was 14.5%; non-GAAP adjusted operating margin was 14.8%.

Supply Chain Solutions1 †

3Q 2025

Non-GAAP Adjusted 3Q 2025

3Q 2024

Non-GAAP Adjusted 3Q 2024

Revenue

$2,522 M

$3,237 M

Operating profit

$525 M

$536 M

$344 M

$272 M

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

•Revenue declined 22.1%, primarily due to the impact from the third quarter 2024 divestiture of Coyote.

•Operating margin was 20.8%; non-GAAP adjusted operating margin was 21.3%.

2025 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 fourth-quarter of 2025, on a consolidated basis, UPS expects revenue to be approximately $24.0 billion and non-GAAP adjusted operating margin of approximately 11.0% - 11.5%.

The company 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 23.75%

•$1.4 billion in pension contributions (of which $1.3 billion have been made)

•Share repurchases of around $1.0 billion, which have been completed

* "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.

† 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.

Contacts:

UPS Media Relations: 404-828-7123 or [email protected]

UPS Investor Relations: 404-828-6059 (option 4) or [email protected]

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Conference Call Information

UPS CEO Carol Tomé and CFO Brian Dykes will discuss third-quarter results with investors and analysts during a conference call at 8:30 a.m. ET, October 28, 2025. That call will be open to others through a live Webcast. To access the call, go to the UPS Investor Relations page and click on "Earnings Conference Call." Additional financial information is included in the detailed financial schedules being posted on www.investors.ups.com under "Quarterly Earnings and Financials" and as furnished to the SEC as an exhibit to our Current Report on Form 8-K.

About UPS

UPS (NYSE: UPS) is one of the world's largest companies, with 2024 revenue of $91.1 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, "Moving our world forward by delivering what matters," the company's approximately 490,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. More information can be found at www.ups.com, about.ups.com and www.investors.ups.com.

Forward-Looking Statements

This release, our Annual Report on Form 10-K for the year ended December 31, 2024 and our other filings with the Securities and Exchange Commission contain and in the future may contain "forward-looking statements". Statements other than those of current or historical fact, and all statements accompanied by terms such as "will," "believe," "project," "expect," "estimate," "assume," "intend," "anticipate," "target," "plan," and similar terms, are intended to be forward-looking statements.

From time to time, we also include written or oral forward-looking statements in other publicly disclosed materials. Forward-looking statements may relate to our intent, belief, forecasts of, or current expectations about our strategic direction, prospects, future results, or future events; they do not relate strictly to historical or current facts. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any forward-looking statements because such statements speak only as of the date when made and the future, by its very nature, cannot be predicted with certainty.