UPS outlines steady outlook after mixed performance in late 2025
The parcel major reported stable earnings and margins in the final quarter while setting cautious revenue and profit targets for 2026.
United Parcel Service (UPS) announced that it earned consolidated revenues of $24.5 billion in the fourth quarter of 2025 and confirmed its financial guidance for the full year 2026. The company reported an operating profit of $2.6 billion and diluted earnings per share of $2.10 for the quarter, and declared a quarterly dividend of $1.64 per share.
For the last three months of 2025, UPS recorded a non-GAAP adjusted operating profit of $2.9 billion and non-GAAP adjusted diluted earnings per share of $2.38. The results include total charges of $238 million, largely due to the write-off of the company’s MD-11 aircraft fleet and transformation-related costs. During the quarter, UPS completed its retirement of the MD-11 fleet as part of its fleet modernisation plans.
In segment performance, the U.S. domestic business saw revenue fall by 3.2 per cent amid lower volumes, though revenue per piece rose. The international segment delivered a 2.5 per cent rise in revenue driven by higher revenue per piece.
For the full year 2025, UPS reported revenues of $88.7 billion, an operating profit of $7.9 billion and a diluted earnings per share of $6.56. The company also returned $6.4 billion to its shareowners through dividends and share repurchases.
Looking ahead to 2026, UPS expects consolidated revenue of about $89.7 billion and a non-GAAP adjusted operating margin of around 9.6 per cent. It plans capital expenditures of approximately $3.0 billion and dividend payments of about $5.4 billion, subject to board approval, with an expected effective tax rate of about 23 per cent.
