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• Consolidated Revenue: $21.5 billion, a decrease of 0.7% year-over-year.

• Consolidated Operating Profit: $1.8 billion, an increase of 0.9% year-over-year.

• Consolidated Operating Margin: 8.2%, up 20 basis points from the previous year.

• Diluted Earnings Per Share (EPS): $1.49, up 4.2% year-over-year.

• US Domestic Segment Operating Profit: Increased by $164 million year-over-year.

• US Domestic Operating Margin: Increased by 110 basis points.

• International Segment Revenue: $4.4 billion, up 2.7% year-over-year.

• International Average Daily Volume (ADV): Increased 7.1% year-over-year.

• Supply Chain Solutions Revenue: $2.7 billion, with a decrease of $471 million due to divestiture.

• Free Cash Flow: $1.5 billion for the first quarter.

• Share Repurchases: $1 billion completed, meeting the annual target.

• Dividend Payments: $1.3 billion paid to shareholders.

• Amazon Volume Decline: ADV down 16% year-over-year in the first quarter.

• Building Closures: 73 buildings to be closed by the end of June as part of network reconfiguration.

• Warning! GuruFocus has detected 2 Warning Sign with UPS.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• United Parcel Service Inc (NYSE:UPS) reported a consolidated operating profit increase of 0.9% year-over-year, reaching $1.8 billion.

• The US Domestic segment saw a significant increase in operating profit by $164 million year-over-year, with operating margins expanding by 110 basis points.

• UPS successfully insourced SurePost's final mile delivery, replacing it with the new Ground Saver product, which offers operational flexibility.

• The company is executing a major network reconfiguration, including 164 operational closures, to optimize capacity and increase productivity.

• UPS's strategic acquisition of Andlauer Healthcare Group aims to bolster its healthcare capabilities in Canada, supporting its goal to become the leading complex healthcare logistics provider globally.

Negative Points

• Consolidated revenue for the first quarter of 2025 decreased by 0.7% compared to the previous year, totaling $21.5 billion.

• The decline in US average daily volume (ADV) for February and March was higher than expected due to uncertainties in global trade policies and muted demand.

• International operating profit decreased by 4.1% year-over-year, impacted by a mixed shift to more economy services in Europe and lower demand-related surcharges.

• Supply Chain Solutions segment experienced a revenue decline of $471 million, primarily due to the divestiture of Coyote in 2024.

• The macroeconomic environment remains highly uncertain, with potential impacts from changing trade policies and tariffs, leading UPS to withhold updates to its full-year outlook.