United Parcel Service Inc - Class B
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.53%.
Did UPS Beat Earnings? Q3 2025 Results
United Parcel Service delivered a decisive earnings beat in Q3 2025, posting adjusted diluted EPS of $1.74 against a consensus estimate of $1.30, a +33.94% surprise that underscored how aggressively the company's cost transformation is reshaping its financial profile even as top-line pressure persists. Revenue came in at $21.41 billion, edging past the $20.84 billion consensus by 2.76%, though the figure still represented a 3.6% decline year-over-year as planned volume reductions from its largest customer continued to weigh on results. The single most material driver behind the earnings strength was UPS's Network Reconfiguration and Efficiency Reimagined program, which has delivered approximately $2.20 billion in cost savings through the first nine months of the year, supported by the elimination of roughly 34,000 positions and the closure of 93 facilities. A $330 million sale-leaseback gain provided additional lift, contributing $0.30 to diluted EPS. Looking ahead, management guided Q4 revenue of approximately $24.00 billion with adjusted operating margin of 11.00%-11.50%, signaling growing confidence in the restructuring's trajectory as the holiday season approaches.
- Higher revenue per piece in U.S. Domestic (up 9.8% to $13.47)
- International average daily volume growth of 4.8%
- $330 million pre-tax gain from sale-leaseback transaction on five properties
- Cost savings of approximately $2.2 billion realized year-to-date from Network Reconfiguration and Efficiency Reimagined
- Total operating expenses declined 3.2% with purchased transportation costs down 27.0%
- Workforce reduced by approximately 34,000 operational positions and 93 building closures in first nine months of 2025
“I want to extend my gratitude to all UPSers for their dedication and steadfast commitment to serving our customers. 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.”
United Parcel Service CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, UPS expects consolidated revenue of approximately $24.0 billion and non-GAAP adjusted operating margin of approximately 11.0%-11.5%. For full-year 2025, the company confirms capital expenditures of approximately $3.5 billion, dividend payments expected around $5.5 billion (subject to Board approval), an effective tax rate of approximately 23.75%, $1.4 billion in pension contributions (of which $1.3 billion have been made), and share repurchases of around $1.0 billion (already completed). The company expects to achieve $3.5 billion in total year-over-year cost savings from its Network Reconfiguration and Efficiency Reimagined initiative in 2025. Network Reconfiguration and Efficiency Reimagined programs are expected to conclude in 2027, with potential for $400 to $650 million in non-GAAP adjusted expense during 2025.
UPS YoY Financials
UPS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.