UPS Q1 2025 Earnings Summary

- Revenue: $21.5 billion (–0.7% year-over-year)
- Operating profit: $1.67 billion (GAAP), up 3.3%
- Adjusted operating profit: $1.76 billion (non-GAAP)
- Operating margin: 7.7% (GAAP); 8.2% (non-GAAP)
- Diluted EPS: $1.40 (GAAP); $1.49 adjusted (up 4.2% from $1.43 last year)
- Free cash flow: $1.49 billion (up sharply from prior year)
- Transformation and impairment charges totaled $83 million pre-tax

Segment Performance

*U.S. Domestic*
- Revenue: $14.46 billion (+1.4%)
- Operating margin: 6.8% (GAAP); 7.0% (adjusted)
- Volume declined; offset by a 4.5% increase in revenue per piece

*International*
- Revenue: $4.37 billion (+2.7%)
- Operating margin: 14.7% (GAAP); 15.0% (adjusted)
- Volume rose 7.1% year-over-year

*Supply Chain Solutions*
- Revenue: $2.71 billion (–14.8%), due to divestiture of Coyote
- Operating margin: 1.7% (GAAP); 3.6% (adjusted)

Key Notes
- Transformation Strategy initiatives (e.g. Fit to Serve, Efficiency Reimagined) are ongoing; UPS expects $3.5 billion in cost savings in 2025
- $23 million in Q1 costs tied to network consolidation; 20,000 jobs and 73 facilities expected to be cut/closed in 2025
- Company maintained full-year outlook; more guidance expected in Q2 call