🔹 EPS: $2.75 (Est. $2.53) 🟢; UP +11.3% YoY
🔹 Revenue: $25.3B (Est. $25.39B) 🟡; UP +1.5% YoY
🔹 Operating Profit: $2.9B; UP +18.1% YoY
🔹 Non-GAAP Adj. Operating Margin: 12.3%
FY25 Outlook:
🔹 Revenue: ~$89.0B (Est. $94.9B) 🔴
🔹 Operating Margin: ~10.8%
🔹 Capital Expenditures: ~$3.5B
🔹 Dividend Payments: ~$5.5B (subject to board approval)
🔹 Share Repurchases: ~$1.0B
🔹 Effective Tax Rate: ~23.5%
Q4 Segment Performance:
U.S. Domestic Package:
🔹 Revenue: $17.31B (Est. $17.26B) 🟡; UP +2.2% YoY
🔹 Operating Profit: $1.75B (Est. $1.68B) 🟢; UP +21.1% YoY
🔹 Operating Margin: 9.7%; Non-GAAP Adj. Operating Margin: 10.1%
🔸 Growth driven by a 2.4% increase in revenue per piece and higher air cargo volume.
International Package:
🔹 Revenue: $4.92B (Est. $4.85B) 🟢; UP +6.9% YoY
🔹 Operating Profit: $1.06B (Est. $1.02B) 🟢; UP +18.2% YoY
🔹 Operating Margin: 20.7%; Non-GAAP Adj. Operating Margin: 21.6%
🔸 Average daily volume increased 8.8%, driving revenue growth.
Supply Chain Solutions:
🔹 Revenue: $3.07B (Est. $3.36B) 🔴; DOWN -9.1% YoY
🔹 Operating Profit: $284M (Est. $226M) 🟢
🔹 Operating Margin: 7.4%; Non-GAAP Adj. Operating Margin: 9.3%
🔸 Decline due to the divestiture of Coyote, partially offset by growth in air and ocean forwarding.
Strategic Business Updates:
🔸 Agreement with largest customer to lower volume by over 50% by 2H26.
🔸 Insourced 100% of UPS SurePost starting Jan 1, 2025.
🔸 Launching “Efficiency Reimagined” cost-saving initiative, targeting $1B in savings.
🔸 Reconfiguring U.S. network to optimize long-term profitability.
CEO Carol Tomé's Commentary:
🔸 "We delivered a strong peak season and financial performance ahead of targets. With strategic business shifts and efficiency initiatives, we are positioning UPS for long-term profitability and growth in key markets."
