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UPS reported fourth-quarter 2025 revenue of $24.5 billion and operating profit of $2.6 billion
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Non-GAAP adjusted operating profit reached $2.9 billion; adjusted EPS rose to $2.38
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Results included $238 million in charges tied to MD-11 fleet retirement and transformation costs
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Full-year 2025 revenue totaled $88.7 billion, with $8.7 billion in adjusted operating profit
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UPS returned $6.4 billion to shareholders in dividends and share buybacks in 2025
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The UPS board approved a $1.64 per share dividend payable in March 2026
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UPS forecasts 2026 revenue of about $89.7 billion and an adjusted operating margin of 9.6%
United Parcel Service Inc. (UPS) reported a consolidated revenue of $24.5 billion in the fourth quarter of 2025, with operating profit reaching $2.6 billion, the company reported on January 27.
Non-GAAP adjusted consolidated operating profit stood at $2.9 billion for the quarter. Diluted earnings per share were $2.10, while non-GAAP adjusted diluted earnings per share (EPS) amounted to $2.38.
Fourth-quarter GAAP results included total charges of $238 million, or $0.28 per diluted share, consisting of a non-cash, after-tax charge of $137 million related to the write-off of UPS’s MD-11 aircraft fleet and $101 million in after-tax transformation charges.
UPS said it accelerated its fleet modernization program during the quarter, completing the retirement of its MD-11 aircraft.
“I want to thank UPSers across the globe for their tireless commitment to serving our customers as we delivered best-in-class service during peak for the eighth year in a row and outperformed our financial expectations in the fourth quarter,” said Carol Tomé, UPS chief executive officer.
“2025 was a year of considerable progress for UPS as we took action to strengthen our revenue quality and build a more agile network. Looking ahead, upon completion of the Amazon glide-down, 2026 will be an inflection point in the execution of our strategy to deliver growth and sustained margin expansion,” said Tomé.
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For the full-year 2025, UPS posted consolidated revenue of $88.7 billion. Operating profit totaled $7.9 billion, while non-GAAP adjusted operating profit reached $8.7 billion.
Operating margin stood at 8.9%, or 9.8% on an adjusted basis. Diluted earnings per share were $6.56, with adjusted diluted EPS of $7.16.
Cash from operations for the year amounted to $8.5 billion, while non-GAAP adjusted free cash flow reached $5.5 billion. The company returned $6.4 billion to shareholders through dividends and share repurchases.
The UPS board approved a first-quarter 2026 dividend of $1.64 per share on all outstanding Class A and Class B shares. The dividend will be paid on March 5, 2026, to shareholders of record as of February 17, 2026.
Looking ahead, UPS said it expects full-year 2026 consolidated revenue of approximately $89.7 billion and a non-GAAP adjusted operating margin of about 9.6%.
The company plans capital expenditures of around $3.0 billion and dividend payments of approximately $5.4 billion, subject to board approval. The effective tax rate for 2026 is expected to be about 23%.
