UPS posts $21.4 billion revenue in Q3 2025 amid global transformation

UPS has reported consolidated revenues of $21.4 billion for the third quarter of 2025, alongside a consolidated operating profit of $1.8 billion, or $2.1 billion on a non-GAAP adjusted basis. The company’s diluted earnings per share stood at $1.55, while the adjusted figure reached $1.74.

The results reflect the company’s ongoing strategic transformation and capital optimisation initiatives. During the quarter, UPS executed a sale-leaseback transaction involving five properties, generating a pre-tax gain of $330 million within its Supply Chain Solutions segment. The move, which added $0.30 to diluted earnings per share, forms part of UPS’s broader capital strategy to monetise select real estate assets while maintaining operational continuity.

Chief Executive Officer Carol Tomé credited employees for their continued dedication amid significant internal changes. She noted that UPS is implementing the most substantial strategic shift in its history to drive long-term value for stakeholders. With the peak holiday season approaching, the company expects to deliver its most efficient operations to date while maintaining industry-leading service for an eighth consecutive year.

In the U.S. Domestic Segment, revenue totalled $14.22 billion, a 2.6% decline year-on-year due to lower volumes, partially offset by higher revenue per piece and air cargo income. Operating profit stood at $603 million, with a non-GAAP adjusted margin of 6.4%.

International operations generated $4.67 billion in revenue, marking a 5.9 percent increase driven by a 4.8% rise in average daily volume. The segment’s operating profit reached $676 million, reflecting a non-GAAP adjusted margin of 14.8%.

Supply Chain Solutions recorded $2.52 billion in revenue, down 22.1% primarily due to the divestiture of Coyote in 2024. The segment posted an operating profit of $525 million, with an adjusted margin of 21.3%.

Looking ahead, UPS expects consolidated revenue of approximately $24 billion in the fourth quarter of 2025, with a non-GAAP adjusted operating margin between 11.0 and 11.5%. For the full year, the company anticipates capital expenditures of around $3.5 billion, dividend payments of about $5.5 billion (subject to Board approval), and an effective tax rate of roughly 23.75 percent. It also confirmed $1.4 billion in pension contributions—$1.3 billion of which have been made—and completed $1.0 billion in share repurchases.