United Parcel Service Inc - Class B
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.33%.
Did UPS Beat Earnings? Q1 2025 Results
United Parcel Service delivered a stronger-than-expected first quarter, posting adjusted diluted EPS of $1.49 against a consensus estimate of $1.38, a beat of 7.91%, while revenue of $21.55 billion cleared the $21.02 billion estimate by 2.51%, even as sales slipped 0.6% from a year ago. The standout driver was a sharp recovery in U.S. Domestic Package margins, where non-GAAP adjusted operating margin expanded to 7.0% from 5.9%, powered by a 4.5% improvement in revenue per piece and aggressive cost discipline under the company's ongoing transformation strategy, which generated roughly $80 million in benefits during the quarter alone. UPS is targeting $3.50 billion in total cost savings for 2025 through network reconfiguration and workforce reductions of approximately 20,000 positions, with 73 facility closures slated by June. Against that constructive operational backdrop, however, macro headwinds loomed large; UPS declined to update its full-year 2025 outlook, citing tariff-driven uncertainty, with shares nonetheless rising on the earnings beat.
- 4.5% improvement in U.S. Domestic revenue per piece
- 7.1% increase in International average daily volume
- Air cargo revenue growth in U.S. Domestic segment
- Network Reconfiguration and Efficiency Reimagined delivered approximately $80 million in benefits in Q1
- Total operating expenses declined 1.1% year-over-year
- Purchased transportation costs declined 15.9% due to Coyote divestiture
“I want to thank all UPSers for their hard work and efforts in this very dynamic environment. As a trusted leader in global logistics, we will leverage our integrated network and trade expertise to assist our customers as they adapt to a changing trade environment. Further, the actions we are taking to reconfigure our network and reduce cost across our business could not be timelier. The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.”
United Parcel Service CEO, on the earnings call
Forward Guidance & Outlook
Given current macro-economic uncertainty, UPS is not providing any updates to its previously issued consolidated full-year 2025 outlook. The company noted it would provide expectations for second-quarter financial performance during the earnings conference call. UPS anticipates $3.5 billion of total cost savings from Network Reconfiguration and Efficiency Reimagined in 2025, and expects to record between $400 and $600 million in related expenses during the year. The company plans to close 73 buildings by the end of June 2025 and reduce its operational workforce by approximately 20,000 positions during 2025.
UPS YoY Financials
UPS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.