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United Parcel Service, Inc.
Selected Financial Data - First Quarter
(unaudited)
Three Months Ended
March 31,
20262025Change% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
  U.S. Domestic Package$14,125 $14,460 $(335)(2.3)%
  International Package4,540 4,373 167 3.8 %
  Supply Chain Solutions2,537 2,713 (176)(6.5)%
  Total revenue21,202 21,546 (344)(1.6)%
Operating expenses:
  U.S. Domestic Package13,610 13,481 129 1.0 %
  International Package3,993 3,732 261 7.0 %
  Supply Chain Solutions2,332 2,667 (335)(12.6)%
  Total operating expenses19,935 19,880 55 0.3 %
Operating profit:
  U.S. Domestic Package515 979 (464)(47.4)%
  International Package547 641 (94)(14.7)%
  Supply Chain Solutions205 46 159 345.7 %
  Total operating profit1,267 1,666 (399)(23.9)%
Other income (expense):
 Other pension income (expense)67 37 30 81.1 %
  Investment income (expense) and other56 42 14 33.3 %
  Interest expense(266)(222)(44)19.8 %
  Total other income (expense)(143)(143)— 0.0 %
Income before income taxes1,124 1,523 (399)(26.2)%
Income tax expense260 336 (76)(22.6)%
Net income$864 $1,187 $(323)(27.2)%
Net income as a percentage of revenue4.1 %5.5 %
Per share amounts:
  Basic earnings per share$1.02 $1.40 $(0.38)(27.1)%
  Diluted earnings per share$1.02 $1.40 $(0.38)(27.1)%
Weighted-average shares outstanding:
  Basic850 850 — 0.0 %
  Diluted850 850 — 0.0 %
Non-GAAP Adjusted Income Data (1):
Operating profit:
  U.S. Domestic Package $565 $1,011 $(446)(44.1)%
  International Package 551 654 (103)(15.7)%
  Supply Chain Solutions206 98 108 110.2 %
  Total operating profit 1,322 1,763 (441)(25.0)%
Total other income (expense)$(143)$(124)$(19)15.3 %
Income before income taxes $1,179 $1,639 $(460)(28.1)%
Net income $906 $1,270 $(364)(28.7)%
Basic earnings per share $1.07 $1.49 $(0.42)(28.2)%
Diluted earnings per share$1.07 $1.49 $(0.42)(28.2)%

(1) See Non-GAAP schedules for reconciliation of adjustments.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Selected Operating Data - First Quarter
(unaudited)
Three Months Ended
March 31,
20262025Change% Change
Revenue (in millions):
U.S. Domestic Package:
   Next Day Air$2,354 $2,361 $(7)(0.3)%
   Deferred1,045 1,049 (4)(0.4)%
   Ground10,438 10,709 (271)(2.5)%
Cargo and Other288 341 (53)(15.5)%
      Total U.S. Domestic Package14,125 14,460 (335)(2.3)%
International Package:
   Domestic835 771 64 8.3 %
   Export3,548 3,444 104 3.0 %
   Cargo and Other157 158 (1)(0.6)%
      Total International Package4,540 4,373 167 3.8 %
Supply Chain Solutions:
   Forwarding656 726 (70)(9.6)%
Logistics1,409 1,572 (163)(10.4)%
   Other472 415 57 13.7 %
      Total Supply Chain Solutions2,537 2,713 (176)(6.5)%
Consolidated$21,202 $21,546 $(344)(1.6)%
Consolidated volume (in millions)1,189 1,289 (100)(7.8)%
Operating weekdays62 62 — 0.0 %
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
   Next Day Air1,366 1,520 (154)(10.1)%
   Deferred806 866 (60)(6.9)%
   Ground13,868 15,057 (1,189)(7.9)%
      Total U.S. Domestic Package16,040 17,443 (1,403)(8.0)%
International Package:
   Domestic1,471 1,575 (104)(6.6)%
   Export1,673 1,771 (98)(5.5)%
      Total International Package3,144 3,346 (202)(6.0)%
Consolidated19,184 20,789 (1,605)(7.7)%
Average Revenue Per Piece:
U.S. Domestic Package:
   Next Day Air$27.79 $25.05 $2.74 10.9 %
   Deferred20.91 19.54 1.37 7.0 %
   Ground12.14 11.47 0.67 5.8 %
      Total U.S. Domestic Package13.91 13.06 0.85 6.5 %
International Package:
   Domestic9.16 7.90 1.26 15.9 %
   Export34.21 31.37 2.84 9.1 %
      Total International Package22.49 20.32 2.17 10.7 %
Consolidated$15.32 $14.22 $1.10 7.7 %
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Detail of Operating Expenses - First Quarter
(unaudited)
Three Months Ended
March 31,
20262025Change% Change
(in millions)
Compensation and benefits$11,545 $11,827 $(282)(2.4)%
Repairs and maintenance792 732 60 8.2 %
Depreciation and amortization985 912 73 8.0 %
Purchased transportation2,764 2,730 34 1.2 %
Fuel1,083 1,058 25 2.4 %
Other occupancy674 607 67 11.0 %
Other expenses2,092 2,014 78 3.9 %
Total operating expenses$19,935 $19,880 $55 0.3 %
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Consolidated Balance Sheets
March 31, 2026 (unaudited) and December 31, 2025 (amounts in millions)

March 31,
2026		December 31,
2025
ASSETS
Current Assets:
Cash and cash equivalents$5,802 $5,887 
Accounts receivable, net
9,948 11,209 
Other current assets2,044 1,949 
 Total Current Assets17,794 19,045 
Property, Plant and Equipment, Net38,029 37,731 
Operating Lease Right-Of-Use Assets4,084 4,263 
Goodwill5,796 5,837 
Intangible Assets, Net3,981 4,021 
Deferred Income Tax Assets154 140 
Other Non-Current Assets1,971 2,053 
Total Assets $71,809 $73,090 
LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities:
Current maturities of long-term debt, commercial paper and finance leases$637 $608 
Current maturities of operating leases742 763 
Accounts payable5,913 6,633 
Accrued wages and withholdings3,238 3,715 
Self-insurance reserves1,095 1,137 
Accrued group welfare and retirement plan contributions1,414 1,389 
Other current liabilities 1,635 1,375 
Total Current Liabilities14,674 15,620 
Long-Term Debt and Finance Leases23,749 23,519 
Non-Current Operating Leases3,534 3,700 
Pension and Postretirement Benefit Obligations6,665 6,567 
Deferred Income Tax Liabilities3,772 3,690 
Other Non-Current Liabilities3,624 3,739 
Shareowners' Equity:
Class A common stock1 1 
Class B common stock8 8 
Additional paid-in capital382 275 
Retained earnings19,622 20,151 
Accumulated other comprehensive loss(4,250)(4,208)
Deferred compensation obligations5 5 
Less: Treasury stock(5)(5)
Total Equity for Controlling Interests15,763 16,227 
Noncontrolling interests28 28 
Total Shareowners' Equity15,791 16,255 
Total Liabilities and Shareowners' Equity$71,809 $73,090 
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Statements of Consolidated Cash Flows
(In millions, unaudited)

Three Months Ended
March 31,
20262025
Cash Flows From Operating Activities:
Net income$864 $1,187 
Adjustments to reconcile net income to net cash from operating activities:
 Depreciation and amortization 985 912 
 Pension and postretirement benefit expense 215 257 
 Pension and postretirement benefit contributions (79)(67)
 Self-insurance reserves 16 1 
 Deferred tax (benefit) expense
45 (40)
 Stock compensation expense
24 21 
 Other (gains) losses
73 22 
Changes in assets and liabilities, net of effects of business acquisitions:
 Accounts receivable 1,085 960 
 Other assets (27)7 
 Accounts payable (495)(906)
 Accrued wages and withholdings (453)(370)
 Other liabilities 29 301 
Other operating activities(58)33 
 Net cash from operating activities 2,224 2,318 
Cash Flows From Investing Activities:
Capital expenditures(1,031)(876)
Proceeds from disposal of businesses, property, plant and equipment82 65 
Purchases of marketable securities— (90)
Sales and maturities of marketable securities— 34 
Acquisitions, net of cash acquired— (478)
Other investing activities5 (10)
Net cash used in investing activities
(944)(1,355)
Cash Flows From Financing Activities:
Proceeds from long-term borrowings— 25 
Repayments of long-term borrowings(46)(32)
Purchases of common stock— (1,000)
Issuances of common stock28 55 
Dividends(1,352)(1,348)
Other financing activities42 (13)
Net cash used in financing activities(1,328)(2,313)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash(37)40 
Net Decrease in Cash, Cash Equivalents and Restricted Cash
(85)(1,310)
Cash, Cash Equivalents and Restricted Cash:
Beginning of period5,887 6,112 
End of period$5,802 $4,802 
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of Free Cash Flow (Non-GAAP measure)
(In millions, unaudited)

Three Months Ended
March 31,
20262025
Cash flows from operating activities$2,224 $2,318 
Capital expenditures(1,031)(876)
Proceeds from disposals of property, plant and equipment82 65 
Other investing activities5 (20)
   Free Cash Flow (Non-GAAP measure)$1,280 $1,487 
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
March 31,
(amounts in millions)2026202520262025
Operating Profit (GAAP)$1,267 $1,666 Operating Margin (GAAP)6.0 %7.7 %
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0— 16 Transformation 2.0— 0.1 %
Fit to Serve— 19 Fit to Serve— %0.1 %
Network Reconfiguration and Efficiency Reimagined55 23 Network Reconfiguration and Efficiency Reimagined0.2 %0.1 %
Total Transformation Strategy Costs55 58 Total Transformation Strategy Costs0.2 %0.3 %
Goodwill and Asset Impairment Charges (1)
— 39 
Goodwill and Asset Impairment Charges (1)
— %0.2 %
Non-GAAP Adjusted Operating Profit$1,322 $1,763 Non-GAAP Adjusted Operating Margin6.2 %8.2 %
(1) Reflects impairment charges for long-lived assets for a business within Supply Chain Solutions in 2025.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
March 31,
(amounts in millions)20262025(amounts in millions)20262025
Other Income (Expense) (GAAP)$(143)$(143)Income Before Income Taxes (GAAP)$1,124 $1,523 
Goodwill and Asset Impairment Charges (1)
— 19 Transformation Strategy Costs:
Transformation 2.0— 16 
Non-GAAP Adjusted Other Income (Expense)(143)(124)
Fit to Serve— 19 
Network Reconfiguration and Efficiency Reimagined55 23 
Total Transformation Strategy Costs55 58 
Goodwill and Asset Impairment Charges (1)
— 58 
Non-GAAP Adjusted Income Before Income Taxes1,179 1,639 
(1) Reflects impairment charges for long-lived assets for a business within Supply Chain Solutions as well the write-down of an equity method investment in 2025.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)

Three Months Ended
March 31,
(amounts in millions)20262025
Income Tax Expense (GAAP)$260 $336 
Transformation Strategy Costs:
Transformation 2.0— 4 
Fit to Serve— 4 
Network Reconfiguration and Efficiency Reimagined13 6 
Total Transformation Strategy Costs13 14 
Goodwill and Asset Impairment Charges (1)
— 9 
Reversal of Income Tax Valuation Allowance (2)
— 10 
Non-GAAP Adjusted Income Tax Expense$273 $369 
(1) Reflects impairment charges for long-lived assets for a business within Supply Chain Solutions in 2025.
(2) Reflects the partial 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)
Three Months Ended
March 31,
(amounts in millions)2026202520262025
Net Income (GAAP)$864 $1,187 Diluted Earnings Per Share (GAAP)$1.02 $1.40 
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0— 12 Transformation 2.0— 0.01
Fit to Serve— 15 Fit to Serve— 0.02
Network Reconfiguration and Efficiency Reimagined42 17 Network Reconfiguration and Efficiency Reimagined0.050.02
Total Transformation Strategy Costs42 44 Total Transformation Strategy Costs0.050.05
Goodwill and Asset Impairment Charges (1)
— 49 
Goodwill and Asset Impairment Charges (1)
— 0.05
Reversal of Income Tax Valuation Allowance (2)
— (10)
Reversal of Income Tax Valuation Allowance (2)
— (0.01)
Non-GAAP Adjusted Net Income$906 $1,270 Non-GAAP Adjusted Diluted Earnings Per Share$1.07 $1.49 
(1) Reflects impairment charges for long-lived assets for a business within Supply Chain Solutions as well the write-down of an equity method investment in 2025.
(2) Reflects the partial 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)

Three Months Ended
March 31,
202620252026202520262025
U.S. Domestic PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$13,610 $13,481 1.0 %$515 $979 (47.4)%3.6 %6.8 %
Adjusted for:
Transformation Strategy Costs(50)(32)50 32 0.4 %0.2 %
Non-GAAP Adjusted Measure$13,560 $13,449 0.8 %$565 $1,011 (44.1)%4.0 %7.0 %
202620252026202520262025
International PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$3,993 $3,732 7.0 %$547 $641 (14.7)%12.0 %14.7 %
Adjusted for:
Transformation Strategy Costs(4)(13)4 13 0.1 %0.3 %
Non-GAAP Adjusted Measure$3,989 $3,719 7.3 %$551 $654 (15.7)%12.1 %15.0 %
202620252026202520262025
Supply Chain SolutionsOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$2,332 $2,667 (12.6)%$205 $46 345.7 %8.1 %1.7 %
Adjusted for:
Transformation Strategy Costs(1)(13)1 13 — %0.5 %
Goodwill and Asset Impairment Charges— (39)— 39 — %1.4 %
Non-GAAP Adjusted Measure$2,331 $2,615 (10.9)%$206 $98 110.2 %8.1 %3.6 %

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
March 31,
20262025% Change
Operating Days62 62 
Average Daily U.S. Domestic Package Volume (in thousands)16,040 17,443 
U.S. Domestic Package Cost Per Piece (GAAP)$13.40 $12.22 9.7 %
Transformation Strategy Costs(0.05)(0.03)
U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece$13.35 $12.19 9.5 %

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 March 31, 2026
(unaudited)

DescriptionUPS Owned and/or OperatedCharters & Leases Operated by OthersOn OrderUnder Option
Boeing 757-20075 — — — 
Boeing 767-30092 — 15 — 
Boeing 767-300BCF6 — — — 
Boeing 767-300BDSF4 — — — 
Airbus A300-60052 — — — 
Boeing 747-400F11 — — — 
Boeing 747-400BCF2 — — — 
Boeing 747-8F30 — — — 
Other— 218 — — 
          Total272 218 15 — 

































Certain amounts are calculated based on unrounded numbers.