WS Investor
28 Oct 2025, 19:03
UPS Reports Q3 2025 Results, Issues Strong Q4 Outlook
United Parcel Service (NYSE: UPS) reported third-quarter 2025 revenue of $21.4 billion, reflecting continued operational discipline amid softer U.S. volumes. Operating profit reached $1.8 billion (or $2.1 billion adjusted), with a GAAP operating margin of 8.4% and a non-GAAP adjusted margin of 10.0%. Diluted EPS was $1.55, and adjusted EPS came in at $1.74.
UPS recorded a $330 million pre-tax gain from a property sale-leaseback transaction, contributing $0.30 per share. CEO Carol Tomé said the company is “executing the most significant strategic shift in its history” and is well-positioned for an efficient holiday peak season.
By segment:
• U.S. Domestic revenue declined 2.6% to $14.2 billion, with adjusted operating margin at 6.4%.
• International revenue rose 5.9% to $4.7 billion, driven by higher daily volumes and a 14.8% adjusted margin.
• Supply Chain Solutions revenue fell 22% to $2.5 billion due to the prior year’s Coyote divestiture, but margins strengthened to 21.3% adjusted.
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For Q4 2025, UPS expects revenue around $24 billion and an adjusted operating margin of 11.0–11.5%. Full-year plans include $3.5 billion in capital expenditures, $5.5 billion in dividends, $1 billion in share repurchases, and an effective tax rate of 23.75%.
United Parcel Service (NYSE: UPS) reported third-quarter 2025 revenue of $21.4 billion, reflecting continued operational discipline amid softer U.S. volumes. Operating profit reached $1.8 billion (or $2.1 billion adjusted), with a GAAP operating margin of 8.4% and a non-GAAP adjusted margin of 10.0%. Diluted EPS was $1.55, and adjusted EPS came in at $1.74.
UPS recorded a $330 million pre-tax gain from a property sale-leaseback transaction, contributing $0.30 per share. CEO Carol Tomé said the company is “executing the most significant strategic shift in its history” and is well-positioned for an efficient holiday peak season.
By segment:
• U.S. Domestic revenue declined 2.6% to $14.2 billion, with adjusted operating margin at 6.4%.
• International revenue rose 5.9% to $4.7 billion, driven by higher daily volumes and a 14.8% adjusted margin.
• Supply Chain Solutions revenue fell 22% to $2.5 billion due to the prior year’s Coyote divestiture, but margins strengthened to 21.3% adjusted.
•
For Q4 2025, UPS expects revenue around $24 billion and an adjusted operating margin of 11.0–11.5%. Full-year plans include $3.5 billion in capital expenditures, $5.5 billion in dividends, $1 billion in share repurchases, and an effective tax rate of 23.75%.