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domestic revenue per piece and cost per piece metrics are not impacted by this change as USPS transacts with us on a weight basis, not on a per piece basis. Unless stated otherwise, our discussion today refers to non-GAAP adjusted results. For the fourth quarter of 2024, GAAP results include a noncash after-tax mark-to-market pension charge of $506 million. Total after-tax transformation strategy cost of $73 million, after-tax asset impairment charges of $46 million and an after-tax cost related to the withdrawal from a multiemployer pension plan of $14 million.

The after-tax total for these items is $639 million or $0.74 per diluted share. Additional details regarding year-end pension charges are included in the appendix of our fourth quarter 2024 earnings presentation that is posted to the UPS investor relations website. A reconciliation of non-GAAP adjusted amounts to GAAP financial results is available in today's webcast materials. These materials are also available on the UPS investor relations website.

Following our prepared remarks, we will take questions from those joining us via the teleconference. If you wish to ask a question, press one and then zero on your phone to enter the queue. Please ask only one question so that we may allow as many as possible to participate. You may rejoin the queue for the opportunity to ask an additional question.

And now, I'll turn the call over to Carol.

Carol Tom -- Chief Executive Officer

Thank you, PJ, and good morning. We have a lot to cover today. I'll begin with a review of our fourth quarter and full year results. Then I'll provide an overview of the moves we are taking in 2025 to drive our performance.

Brian will wrap up our prepared remarks with more detail about our financial performance and our 2025 outlook, and we'll leave plenty of time for questions. But first, let me start by thanking UPSers for their hard work and efforts as we executed another outstanding peak. For the seventh year in a row, we were the industry leader in on-time service during peak season, the most important time of the year for our customers. In the face of a compressed holiday period, our people, enabled by the agility of our integrated network, did what they do best, and that's deliver for our customers.

Moving to our results. The positive momentum we saw in the third quarter continued into the fourth quarter. Compared to last year, consolidated fourth quarter revenue increased 1.5% to $25.3 billion. Operating profit was $3.1 billion, an increase of 11.2% from last year, better than we expected, and consolidated operating margin was 12.3%.

Importantly, our U.S. domestic operating margin was over 10% for the quarter, reflecting improved revenue quality and strong expense control. Looking at the full year, consolidated revenue was $91.1 billion, slightly above last year. Consolidated operating profit totaled $8.9 billion and consolidated operating margin was 9.8%.

We generated $10.1 billion in cash from operations in 2024 and we returned $5.9 billion to share owners in the form of dividends and share repurchases. Before I discuss our plans for 2025, let me share a few operational and financial highlights. In 2024, we continue to grow our U.S. SMB penetration and finished the year with SMBs making up 28.9% of our total U.S.

volume, an increase of 30 basis points from last year. DAP, our Digital Access Program, was a big driver of the increase. And in 2024, we generated $3.3 billion in global DAP revenue, a 17% increase year over year. As we discussed, we are moving from a scanning network to a sensing network through our Smart package, Smart facility, RFID initiative.

In 2024, we equipped nearly 60,000 U.S. packaged cars with sensors, which represents 66% of our fleet, eliminating 12 million manual scans per day and enhancing package visibility for our customers. Within Network of the Future, in 2024, we accelerated operational closures and completed nine more than planned, resulting in 49 operational closures, which included permanently closing 11 buildings. And we did this while continuing to deliver outstanding customer service.

Today, about 63% of our U.S. volume flows through our automated facilities compared to 60% in 2023. Finally, we took actions in our healthcare logistics business to further support our growth plans. Earlier this month, we completed the acquisition of Frigo-Trans, a European healthcare logistics company specializing in cold chain.

And in December, we opened two state-of-the-art healthcare cross-dock facilities in Italy and Germany. These moves further expand our cold chain capabilities to serve a growing European market. Before I talk about 2025, I'd like to take a short look back at the last five years. In June of 2020, in the face the COVID-19 pandemic, we launched our Better not Bigger strategy hinged on three elements: Customer first, people-led, innovation-driven.

For the first few years, we focused on growing select markets and optimizing financially attractive volume including volume from SMBs and healthcare customers. Further, we focused on making productivity a virtuous cycle by launching Transformation 2.0, and we began a portfolio optimization program including selling our LTL freight business and making a few strategically important acquisitions. From 2020 through 2022, we delivered solid financial results in line with our strategy at a time when much of the world was struggling due to the challenges presented by the pandemic. In 2023, our financial results faced unexpected challenges due to an unfavorable economic environment and a prolonged labor negotiation with the Teamsters.

While the labor negotiation caused volume and earnings disruption, we gained certainty regarding our labor costs for next the several years. After wrapping the first year of our new labor contract, in the third quarter of 2024, positive momentum began to build and we returned to volume, revenue and operating profit growth. We continue to drive productivity through similar programs and focused on revenue quality. And we took further actions to optimize our portfolio by selling our truckload brokerage business known as Coyote.

And we entered into agreements to acquire Estafeta, a leading Mexican logistics integrator, and Frigo-Trans. We closed out 2024 with an outstanding peak delivering best-in-class service and financial results ahead of our target. But as we wrapped up 2024, it became clear to us that if we didn't address three specific challenges facing us in the U.S., we could lose momentum. The first challenge relates to the dynamics of the U.S.

small package market. Today, it's a slow growth market with changing package characteristics. The second challenge comes from the concentration of volume and revenue we have with our largest customer. Looking ahead, we project this business if we take no action, will drive diminishing returns.

The third challenge is the reliance we have had with the USPS for our SurePost product. In this case, the USPS is changing its operating model, which we believe puts service at risk. So we've taken actions to address all three of these challenges head on, including doubling down on revenue quality and serving the customer segments we want to serve best. First, we've reached an agreement in principle with our largest customer for a significant reduction in volume, lowering their volume with us by more than 50% by the second half of 2026.

With this, we will rightsize our network and retain the volume that is nutritive for us and for our customer. Second, effective this year, on January 1, we no longer use USPS for our SurePost product. Service is a fundamental part of our value proposition. And by in-sourcing this product, we can be certain with the right service with no material impact to our financial performance.

In connection with these changes, while I'm incredibly proud of the productivity actions taken by our leaders, we've realized we're not done. We are reconfiguring our U.S. network and have launched multiyear initiatives we're calling Efficiency Reimagined, which tackle our processes from end to end, from peak hiring practices to processing payments and more. Efficiency Reimagined should drive approximately $1 billion in savings.

These significant business and operational changes, coupled with the foundational changes that we've already made, will put us further down the path to becoming a more profitable, agile and differentiated UPS that is growing in the best parts of the market namely healthcare, B2B, SMB and international. We've got some work to do to make this all happen, but there's no better team than the UPS team. We will deliver. As Brian will detail, in 2025, these actions are expected to result in expanded operating margins and an improvement in return on invested capital.

And by taking these actions, we expect by the fourth quarter of 2026 to have a U.S. domestic operating margin of at least 12%. With that, thank you for listening. And I'll now turn the call over to Brian.

Brian Dykes -- Executive Vice President, Chief Financial Officer

Thank you, Carol, and good morning, everyone. Our financial performance in the fourth quarter was better than we expected due to our focus on revenue quality and excellent cost management. The positive momentum that we began in the third quarter continued throughout our busiest time of the year. This morning, I'll cover four areas.

Starting with our fourth quarter results followed by a review of our full year 2024 results, including cash and shareowner returns. Then I'll provide more detail on the business and operational changes we are making. And I'll close with our expectations for the market and our financial outlook for 2025. Starting with our consolidated performance.

In the fourth quarter, we delivered revenue and operating profit growth and margin expansion. This is a continuation of the momentum that we showed in the third quarter and the first time in three years that we've shown growth in the fourth quarter on all three of these financial metrics. In the fourth quarter, we generated $25.3 billion in consolidated revenue, an increase of 1.5% compared to the fourth quarter of last year. Consolidated operating profit was $3.1 billion, an increase of 11.2% versus the fourth quarter of 2023.

And consolidated operating margin was 12.3%, an increase of 110 basis points compared to the fourth quarter of last year. Diluted earnings per share was $2.75, up 11.3% from the fourth quarter of 2023. Now moving to our segment performance. U.S.

domestic delivered strong fourth quarter results, driven by gains in revenue quality and outstanding cost management. During the compressed 2024 peak season, our average on-time service led the industry by 470 basis points over our closest competitor, which drove high demand for our services, allowing us to continue winning new customers throughout peak. For the quarter, U.S. average daily volume, or ADV, was flat to last year.

Ground average daily volume increased 2.1% year over year, while total air average daily volume was down 12.9%. Excluding the volume decline from our largest customer, total AR ADV grew driven by demand from healthcare and high-tech customers. Within ground, SurePost ADV, as a percentage of total ADV, increased slightly compared to the third quarter of 2024. Through the power of our matching algorithm, we increased SurePost Redirect by 660 basis points sequentially from the third quarter, which resulted in half of the surplus volume being delivered by UPS drivers.

For the quarter, total B2B average daily volume was down 1% year over year. However, we saw B2B growth from healthcare customers, including healthcare SMBs. On the B2C side, average daily volume was up slightly year over year and made up 64.7% of our volume. In terms of customer mix, we saw strong ADV growth from SMB customers, which grew 4.5% in the fourth quarter, driven by double-digit growth in December.

In the fourth quarter, SMBs made up 27.8% of total U.S. volume. This was the highest fourth quarter concentration we've seen in 10 years. For the quarter, U.S.

domestic generated revenue of $17.3 billion, up 2.2% compared to last year, due to the strength of small package in December and increases in air cargo. In the fourth quarter, the revenue per piece growth rate flipped positive for the first time this year and was up 2.4% year over year, which was a sequential improvement of 460 basis points from the third quarter of this year. Breaking down the components of the 2.4% revenue per piece improvement, base rates increased the revenue per piece growth rate around 250 basis points. Strong keep rates on our holiday demand surcharge increased the revenue per piece growth rate by 110 basis points.

The net impact of customer mix combined with product mix and lighter weights decreased the revenue per piece growth rate by 80 basis points. Lastly, fuel drove a 40-basis-point decline in the revenue per piece growth rate. Turning to cost. Total expense increased 1.3%.

Since we lapped the first year of our labor contract at the end of July, this was the first full quarter at a lower contractual union wage growth rate. In fact, the average increase over the prior four quarters was 10.5%. In the fourth quarter of this year, union wage rates increased by only 3%. Through our Network of the Future initiative, we exceeded our initial target by completing 49 operational closures this year, including 11 buildings.

By leveraging our technology and increasing automation, we processed and delivered the same amount of volume in the fourth quarter as last year, but we did it with three million fewer hours, while delivering excellent service. We lowered small package block hours within our air network in response to changing volume levels. Purchased transportation and other expenses declined as we insource 50% of SurePost volume during the fourth quarter, and we tightly manage rental equipment through peak. Lastly, our safety performance was better than we expected and drove a benefit in casualty expense.

Looking at cost per piece, throughout the fourth quarter and the peak period, we leveraged technology and our proven practices to hold the increase to just 0.9%. The U.S. domestic segment delivered $1.8 billion in operating profit, an 11% increase compared to the fourth quarter of 2023, and the operating margin was 10.1%, a year-over-year increase of 80 basis points. Moving to our international segment.

For the second quarter in a row, our international business grew revenue and operating profit and expanded operating margin. Total international average daily volume growth flipped positive for the first time in three years and was up 8.8% year over year. International domestic average daily volume increased 5.8% compared to last year, driven by strong performance in Canada. And on the export side, average daily volume increased 11.7% year over year with all regions delivering ADV growth.

Asia export average daily volume was up 15.4%, delivering growth for the third consecutive quarter. And at the country level, 17 of our top 20 export countries grew export ADV, led by Mexico and Germany. And in Germany, which is our largest export market, export average daily volume increased 8.6% compared to last year. In the fourth quarter, international revenue was $4.9 billion, up 6.9% from last year, with all regions growing revenue year over year.

International generated positive operating leverage driven by our ongoing network optimization and cost management efforts. Operating profit in the international segment was $1.1 billion, an increase of 18.1% year over year. Operating margin in the fourth quarter was 21.6%, an increase of 210 basis points from a year ago. Moving to Supply Chain Solutions.

In the fourth quarter, revenue was $3.1 billion. Revenue decreased $306 million, with the reduction impacted by $588 million in revenue from Coyote in the 2023 period. Revenue within our forwarding and logistics businesses increased $282 million. Looking at the key drivers, air and ocean forwarding revenue was up 10.3% led by continued strong market demand out of Asia.

And logistics revenue grew by 16.2%. In the fourth quarter, Supply Chain Solutions generated operating profit of $284 million, down $24 million year over year, which included an impact of $13.5 million of operating profit from Coyote in the same period in 2023. Operating margin in the fourth quarter was 9.3%, an increase of 20 basis points compared to last year. Walking through the rest of the income statement, we had $229 million of interest expense.

Our pension income was $67 million, and our effective tax rate for the fourth quarter was approximately 20.5%, lower than our expectations due to discrete items. Now let me comment on our full year 2024 results. For the full year 2024, revenue was $91.1 billion, a slight increase over 2023. We delivered operating profit of $8.9 billion and a consolidated operating margin of 9.8%.

We generated $10.1 billion in cash from operations and continue to follow our capital allocation priorities. We invested $3.9 billion in capex. We distributed $5.4 billion in dividends. We repaid $3.8 billion in debt that matured during the year.

And at the end of the year, our debt-to-EBITDA ratio was 2.25 turns. Lastly, we completed $500 million in share buybacks in 2024. And in the segments for the full year, the U.S. domestic operating profit was $4.5 billion and operating margin was 7.5%.

The international segment generated $3.4 billion in operating profit and operating margin was 18.7%. And Supply Chain Solutions delivered operating profit of $1 billion and operating margin was 8%, which brings us to 2025. As Carol described, we are taking a set of strategic actions to address the challenges facing our U.S. business head on.

Execution is already well underway, and these actions together will create a more agile and profitable UPS. Let me provide more detail on what we're doing. I'll start with the agreement in principle we've reached with our largest customer to significantly reduce the volume we deliver for them. The accelerated decline has already begun and will step up meaningfully so that by the second half of 2026, their volume will be down by more than 50% of what it was at the beginning of the year.

The speed of the glide down is 5x faster than our initial glide down efforts between 2021 and 2024. The result of this change will be lower overall volume levels but an improved customer mix at a significantly higher revenue per piece. We are deliberately shifting our business and increasing our focus on growing higher-yielding volume and value share. Lower overall volume levels from this customer will lead to lower revenue dollars in the near term.

However, we expect to grow revenue per piece through shifting our customer mix and by leveraging our architecture of tomorrow pricing technology. This will enable us to continue the strong base rate improvements in 2025 that we delivered from our enterprise and SMB customers in the second half of 2024. Additionally, we will double down on growing volume and revenue in the best parts of the market for us, including SMB, healthcare and B2B. And in terms of SMBs, this year, we expect to take the SMB percent of our U.S.

volume to 32%, and the momentum will continue for the longer term. Now looking at costs. As we bring volume down, we will not only reduce the hours of miles associated with this volume, we will be able to take out fixed costs to match our capacity to our new expected volume levels. All facets of the network are included in the reconfiguration.

And we expect to close up to 10% of our building, cut back our vehicle and aircraft fleets and reduce labor. The rightsizing of our U.S. capacity allows us to accelerate our Network of the Future initiative. We will be able to more quickly bring down less efficient capacity while further investing in automation across the network, getting us to a more efficient U.S.

networks faster. The capital requirements to run our reconfigured network will also decrease. We will share more details on our execution plan on our first quarter earnings call in April. Now turning to the changes we made with SurePost.

As of January 1, we began delivering 100% of our SurePost volume, and in mid-January, we implemented a 9.9% average rate increase on SurePost. Offering a reliable economy service is an important part of our product portfolio and overall value proposition. The changes we made give us greater point-to-point operational control and the ability to provide better service to our customers, which brings me to our Efficiency Reimagined initiatives. Lower overall volume and a reconfigured U.S.

network created opportunity for us to increase efficiency by redesigning processes from end to end. Through Efficiency Reimagined, we expect to deliver approximately $1 billion in savings. Pulling it all together, even while we're undergoing the largest network reconfiguration in our history, we expect to expand U.S. domestic operating margin in every quarter of 2025 with the full year operating margin approaching 9%.

As the impact of our cost-out efforts increase over the next 18 months, we expect the pace of operating margin improvement to accelerate into 2026, where we expect by the fourth quarter to generate a 12% U.S. operating margin and we see even more upside potential in the longer term. Turning to guidance for 2025. Starting with the macro, S&P Global forecast global GDP of 2.5% compared to 2024.

Real exports and global industrial production are both expected to increase around 2% year over year. In the U.S., manufacturing is expected to turn positive for the first quarter of 2025 after seven quarters of negative year-over-year growth, and the consumer is expected to remain resilient. Moving to our 2025 financial outlook. For the full year 2025, on a consolidated basis, revenue is expected to be approximately $89 billion and operating margin is expected to be approximately 10.8%.

Our guidance for 2025 does not reflect any significant potential global trade implications due to changes in tariffs. Now let me give you a little color on the segments. Looking at U.S. domestic.

As a result of the actions we're taking, full year 2025 revenue is expected to decline 2.3% year over year, driven by an ADV reduction of about 8.5%, partially offset by strong expected revenue per piece growth of approximately 6%, and we will wrap the newly onboarded USPS air cargo business. We expect the intended volume and revenue declines to accelerate as we progress throughout the year. Full year operating margin is expected to be approximately 8.8%, an increase of 130 basis points compared to 2024. And to provide a little shape for the first quarter, which has one fewer operating day compared to the first quarter of 2024, we expect revenue to increase nearly 1% year over year despite ADV being down approximately 4%, and we expect to expand operating margin by approximately 140 basis points year over year.

Moving to the international segment. We expect mid-single-digit ADV growth throughout the year, but with lower demand-related surcharges than we've seen in prior years. For the year, we expect 2025 revenues to increase approximately 2.5% year over year with an operating margin of around 18.6%. And looking at the first quarter, we expect revenue to be flattish compared to the same period last year and operating margin to be moderately down year over year due to lower demand-related surcharges.

And in Supply Chain Solutions, for the full year 2025, we expect revenue to be approximately $11 billion and operating margin to be approximately 8.5%. And SCS in the first quarter, revenue is expected to decline about $500 million due to the reduction in revenue associated with Coyote in the same period last year. Operating margin in SCS in the first quarter is anticipated to be low to mid-single digits due to pressure from purchase transportation costs related to our mail innovations business. We expect the first quarter to be the lowest SCS operating margin in 2025.

For modeling purposes, in total below the line, we expect approximately $780 million in expense with a little more than half in the back half of the year. We expect pension expense to be approximately $37 million for the full year 2025, which is $306 million higher than in 2024, primarily due to the impact of market shifts in interest rates on our pension assets last year. We included a slide in the appendix of today's webcast deck to provide you more detail on pension. The webcast deck is available on the UPS investor relations website.

Now let's turn to our expectations for cash and the balance sheet. We expect free cash flow to be approximately $5.7 billion, including our annual pension contribution of $1.4 billion. Capital expenditures are expected to be about $3.5 billion. While we are accelerating our Network of the Future initiative, our reconfigured U.S.

network should require less investment in vehicles and aircraft as we rightsize the capital base. We are planning to pay out around $5.5 billion in dividends in 2025, subject to board approval. We expect to buy back around $1 billion of our shares. And lastly, we expect the tax rate for the full year to be approximately 23.5% as we expect the current U.S.

corporate tax regime to remain. We've covered a lot today. We are moving quickly to continue our momentum. The results of our actions will be an even stronger, more agile and more profitable UPS that's growing in the best parts of the market that value our end-to-end integrated network.

With that, operator, please open the lines for questions.

Questions & Answers:

Operator

Thank you. Your first question today comes from the line of Tom Wadewitz from UBS. Please go ahead.

Thomas Wadewitz -- Analyst

Yeah, good morning. You got a lot of big things going on. Wanted to see if you could talk a little bit more about how can we build confidence that against a pretty meaningful drop in revenue from the Amazon change that you're able to, I guess, quickly enough, get out the fixed costs so that as opposed to seeing deleveraging and margin pressure, that you're seeing the margin improvement that you're talking about? So yes, I think just a bit more of kind of how that equation can play out, recognizing that we think of the network as a fair bit of fixed cost to start with. Thank you.

Carol Tom -- Chief Executive Officer

Tom, happy to do that. But maybe I'll just start by talking about the Amazon announcement. We've been partnered to Amazon for nearly 30 years, and we hold that company in high regard. Amazon is our largest customer but it's not our most profitable customer.

Its margin is very dilutive to the U.S. domestic business. Our contract with Amazon came up this year. And so we said it's time to step back for a moment and reassess our relationship.

Because if we take no action, it will likely result in diminishing returns. So we considered a number of different options and landed on what we think is the best option for our company, and that is to accelerate the glide down of their volume with us, as we commented in our prepared remarks by more than 50% by June of 2026. As you pointed out, Tom, there are a lot of assets and resources that support that Amazon volume. But as we glide down the volume, we'll also be gliding out those assets and resources, which gives us the margin expansion that we've explained.

Now I'll turn it over to Brian, so you can explain how the cost will come out.

Brian Dykes -- Executive Vice President, Chief Financial Officer

Sure. Thank you. And Tom, as we said before, clearly, there's a lot of stakeholders that are involved here. And we needed to make this announcement so we can engage with those stakeholders.

But you're absolutely right in your intuition that this is going to require a reconfiguration of the network, so that we bring the fixed asset base, the buildings, the vehicles, the aircraft, in line with the new volume levels. And we'll give you a lot more color on how we're going to roll that schedule out on the first quarter earnings call once we have a chance to engage all the stakeholders involved. But I do think that is the key here, that is the mission. And quite frankly, it's already underway with our teams.

Carol Tom -- Chief Executive Officer

And one reason for a glide down over 18 months rather than six months because we wanted to make sure that we didn't strand the cost. Now clearly, our labor costs will flex with volume. As volume goes up, we have more hours. As volume comes down, we have less hours.

So that's just part of the DNA of how we operate our business. But we have, I think, proven in 2024 that we can close buildings because with Network of the Future, we did just that. We closed down 11 buildings with improved service. Nando, would you like to comment on that?

Nando Cesarone -- Executive Vice President and President, U.S.

Sure. Thanks. And this question, Tom, just to give you comfort here, you'll know that five facilities already in January have been partially or completely closed. And this year, we'll have 140 active Network of the Future projects, 61 of them will go live this year, of course, just driving up the number of shipments that run through our automated facility.

So that gives me a lot of confidence, give our people a lot of confidence. So we feel good about these moves, and we're ahead of schedule.

Thomas Wadewitz -- Analyst

Great. Thank you.

Operator

Your next question comes from the line of Jordan Alliger from Goldman Sachs. Please go ahead.

Jordan Alliger -- Analyst

Yeah. Hi. Just to follow up on the SurePost side of things. Maybe give some sense for how much volume sort of is going to be pulled into the network? Can the network assets currently constitute today ready from day 1 to move all the volume that the post office had done so? And then maybe along with that, can you touch a little bit, is this -- some of this bringing SurePost in-house designed in part at least to replace or infill some of the Amazon business going out in terms of network density? Thanks.

Carol Tom -- Chief Executive Officer

Well, Jordan, thanks for the question. Let's talk for a moment on SurePost. All SurePost products are sorted through our building. We had used the USPS for last-mile delivery, portion of that.

And through our engineering and IT matching algorithms, we've been able to redirect a lot of the SurePost volumes back into the network, in fact, for delivery by our people. In fact, in the fourth quarter, 50% of the SurePost volume was delivered in the ground network. So as we came to the decision to in-source all of it and have it all delivered by our network, it was simply a matter of well service. Up until this year, we had been injecting into the last mile network of the USPS and the service there was good.

But as I think you know, the USPS is changing their operating model. And as a result of those changes, we were going to have to insert upstream into their sorting facility. And we were very concerned about service deterioration. At the same time, they were going to increase their cost to us.

And the value proposition of an increased cost as well as deteriorating service, well, that didn't work for us. So in the middle of December, we determined that we would insource 100% of the SurePost volume, which we have done. And I'm pleased to say that's gone very well for us. Yes, we have a few more delivery stops per car.

Interestingly, we aren't driving more miles. So when we look at the financial impact to insourcing SurePost, we feel very good that it's actually not going to have a material impact to our business at all. Now we did make a GRI increase, I will admit. But from an operating perspective, it's going swimmingly well.

Nando, would you like to add?

Nando Cesarone -- Executive Vice President and President, U.S.

Yeah, sure. So Jordan, there's multiple opportunities for us to match shipments now as we control that volume over multiple days. We've also adjusted our algorithm to really target stops or stop matching to 100 feet of a regular stop. And certainly, this helps us smooth the daily dispatch for our employees.

So resources in terms of spiking one day versus another, we're able to flatten that and keep the staffing picture very linear for the company. In addition to that, of course, we're exploring different ways on how we can move the line through slower networks because it is an economy service, as we look at rail and how we leverage rail across the country as well as ground movements to make sure that we're hitting our service portfolio. Early days, so as Carol had said, mileage index looks good. Packages per car of goods.

Just overall performance right now, just really proud of the team, and they continue to try to optimize the services forward.

Brian Dykes -- Executive Vice President, Chief Financial Officer

And Nando, if I could just add one thing because I think it relates to the prior question as well because I think the investments that we have made in the network and the technology allowed us to insource almost 1.5 million stops within a matter of weeks. I think it's a testament to the operators, but also a testament to the agility that we've created into the network. And that will help us as we move forward with the reconfiguration that we're undertaking. The other thing I do think is important that you should know is that we have included some expectations.

There could be some churn, right, with the GRI and the change in service. There are some customers that this might not work for and we've taken that into account in our forecast.

Operator

Your next question comes from the line of David Vernon from Bernstein. Please go ahead.

David Vernon -- Analyst

Hey, good morning. So a couple of questions for you here on this, on sort of the guidance and the growth outlook. When we think about the 10.8% margin that we're going to have for full year '25, Brian, is there any way to think about that number would look like if you had sort of adjusted the network at the start of the year? I'm just trying to get a sense for what the run rate level of margin would be if you didn't have the deleveraging that would ultimately come with lower volume. And then, Carol, can you maybe talk about what the growth picture looks like ex the glide down.

There's a lot of concern in the market right now from investors around the organic or lack of organic growth in the small package business. And I'm just trying to get a sense for what -- how you guys are thinking about the growth outside of the glide down in the next two years. Thank you.

Carol Tom -- Chief Executive Officer

Happy to do that.

Brian Dykes -- Executive Vice President, Chief Financial Officer

Sure. So why don't I take the margin question first. And Dave, I think what we've built into our forecast is we are going to be taking the fixed cost out commensurate with the volume drawdown as we go through the course of the year. Now that will also accelerate as we go into 2026 and you'll see an improvement in margin.

And as we said, we expect to get to the 12% as we go through 2026. I think what's really important is you take a step back and you look at what's going on, even though volume is going to decline relatively, significantly in the U.S., rev per piece is going to go up 6%, right? And that will be a combination of customer mix, product mix, but also the continuation of the good base pricing discipline that we've shown in the first quarter. And by taking the, I would say, relatively non-nutritive volume, we're unlocking the ability for us to control our margin profile as we move forward and really push it not just to the 12%, but beyond as we move forward and we grow in the areas where it's most important for us.

Carol Tom -- Chief Executive Officer

And David, on the growth algorithm, the small package market, excluding Amazon, is projected to grow in the low single digits in 2025 and we project to take share. One area share will be on SMBs. We're really proud of the performance we've seen with our SMB growth, nearly 29% of total business in the U.S. in 2024.

We're going to take that up to 32% in 2025 on our way to 35% in 2026 and beyond. That's just one aspect of growth. We can look at it through a customer segment or we could also look at it through capabilities. And this is what we're really focused in right now is focusing on complex logistics that differentiate us away from the rest of the competition.

How did we grow SMBs? Because we've invested in our digital access platform. We've invested in pricing architecture of tomorrow, which is moving us from the art of pricing to the science of pricing, allow us to put more potential bids through deal manager, winning more with less discounting, providing better service for that customer. We're also growing into the healthcare space. We're growing into B2B space through store replenishment.

We created a store replenishment system in 2004 with 15 retailers and almost 3,000 stores across the nation, helping them with time-definite delivery into their stores, which helps drive their productivity. So we're going to take share in the slower growth market. But we're not going to cap our margin because had we not accelerated the Amazon volume down would be capping our margin in a slow growth market. So now we have an opportunity to grow and grow margin, too.

Now you might put the map together for David.

Brian Dykes -- Executive Vice President, Chief Financial Officer

Yeah. And David, I think it's important because you're absolutely right. There's a lot of moving parts in how we go from '24 to '25. But if you look at the change in the revenue, the 91 to the 89, take SCS out of it because that's really related to Coyote and you've got about $1.5 billion of revenue decline associated with Coyote.

And you just look at the domestic business. Look, the actions that we're taking with our largest customer are going to draw down revenue about $2.5 billion. And then we've got growth, right, it's going to plug that gap of over $1 billion, which, as Carol said, is really focused in SMB, enterprise and these differentiated capabilities that are going to allow us to grow in the market and share.

David Vernon -- Analyst

All right. Thanks. And if I could just squeeze one more in here, Carol, I think on your point about share, the post office is raising rates to you and lowering service levels. Is it fair to think that they're doing that to the broader market as well, which kind of increases some of the share take opportunity? Or is that not the right way to think about it?

Carol Tom -- Chief Executive Officer

I think that's absolutely the way to think about it.

David Vernon -- Analyst

Thank you.

Carol Tom -- Chief Executive Officer

Thank you.

Operator

Your next question comes from the line of Stephanie Moore from Jefferies. Please go ahead.

Joe Hafling -- Jefferies -- Analyst

Hi, Good morning. This is Joe Hafling on for Stephanie Moore. I maybe wanted to stick on that point on the SurePost and USPS. In the past, you had talked about handing off that final mile being really high ROIC for you guys.

I guess what's changed and maybe how you guys are operating the network now and bringing those volumes in-house that you feel comfortable kind of bringing in all those volumes and could still see good returns?

Carol Tom -- Chief Executive Officer

Well, it first starts with service. We pride ourselves on service. We have the leading on-time service of any competitor. And if you don't deliver on that value proposition, you can lose the business.

So we wanted to first deliver service. But then we want to make sure that we can make a buck on this business, too. So Nando, you might just reemphasize how we're operationalizing the insourcing.

Nando Cesarone -- Executive Vice President and President, U.S.

Yes, sure. So in the past, we'd really have only one shot to match a shipment to a UPS shipment, and that was the morning of arrival. Now we've got multiple days and our technology is able to see through those days to match as many as we can. In fact, I think last year, around 30% plus match.

We're in the 50s now. And we continue to refine that number as we start looking at the proximity deliveries to UPS already scheduled ground packages. And again, I think one of the bigger wins is just smoothing or the ability to smooth dispatch across the week, which avoids any spikes and therefore, we don't need to staff up to one day of the week. In reality, we staff for the entire week, which brings its own inefficiencies.

And look, we've got the best dispatch technology that any company would want to have. And we are utilizing it to the fullest extent. And we don't mind what we see in terms of results right now. I think they've done a great job being efficient and putting that volume into our network.

Carol Tom -- Chief Executive Officer

And Matt, you might talk about how we are priced relative to the market.

Matt Guffey -- Executive Vice President, Chief Commercial and Strategy Officer

Yes. So as Carol mentioned, look, we came out with the 9.9% GRI, and we made sure that we align value to service. Number one, it was most important is to protect the service of our customers that we just highlighted. But I'd ask you just to remember a couple of things.

SurePost is a product in our full portfolio. So when our customers buy, they don't just buy the SurePost product. They also buy our ground residential, which is our premium offering. So both of these -- the products were designed and the way we priced it to be, it's an economy product that is less time sensitive.

But both ground residential and ground SurePost will provide service and reliability to our customers, and we price accordingly to the value.

Brian Dykes -- Executive Vice President, Chief Financial Officer

And Joe, on the ROIC point, I just want to point out, one of the things we take a lot of pride in is getting the most out of our assets that UPS.

Carol Tom -- Chief Executive Officer

We do.

Brian Dykes -- Executive Vice President, Chief Financial Officer

And you can see from our capex forecast, we are not going to be adding assets for this volume. It fits into the network. And as Nando said, we are able to work it into the dispatch. And we are focused on managing the capital base and driving ROIC higher, which you see in our 2025 guidance.

Carol Tom -- Chief Executive Officer

We anticipate, based on the numbers we've just laid out for you today, that our return on invested capital will grow about 300 basis points year on year.

Joe Hafling -- Jefferies -- Analyst

Great, thanks so much for the thoughtful answers guys.

Carol Tom -- Chief Executive Officer

Thank you.

Operator

Your next question comes from the line of Ken Hoexter from Bank of America. Please go ahead.

Ken Hoexter -- Analyst

Hey, great. Good morning. Can you qualify what Amazon revenues were for the full year? I know this was the first time you gave a midyear at 11.5%. I don't know if you gave a final year.

But as Amazon takes back those volumes, can you maybe talk about competition now in different segments? I guess you've always said the reason why they stick with you is you do different things for them such as returns pickups, things that they rely on you. Does this mean we should expect an increasing amount of competition in areas that you kind of had kind of moat around as your specialty versus the market? And how should we think about that from a competitive standpoint? Thanks.

Carol Tom -- Chief Executive Officer

Yes. So for the full year, Amazon made up 11.8% of our total company revenue. From a competitive perspective, I think it's important to note that Amazon will remain a customer of UPS when we finish our accelerated glide down on those areas that are a win for us and a win for them. They have a one-way network, as you know, and we can handle things today that they can't handle.

Amazon, when you think of them as delivering packages, you could think of them as a vertically integrated retailer because that's what they are, ignoring their AWS business, but that's what they are, as a vertically integrated retailer who needs some help with some things, and we're going to provide that help for them any more nutritive fashion when we reach the accelerated glide down. I will tell you, Ken, this was not their ask. This was us. This was UPS taking control of our destiny.

We'll be working with them, of course, on the accelerated glide down because they've got to figure out how to catch some of this volume. But we are not anticipating changes in the competitive environment as a result.

Ken Hoexter -- Analyst

Great. I guess if I could throw a follow-in. The pace of the consolidated -- the facility shutdowns, Nando, you were talking about how you've already started that. Is there kind of numbers you can throw out? Maybe update us on how quick you can get some of those out.

Nando Cesarone -- Executive Vice President and President, U.S.

Yes. Ken, as I mentioned before, we've got a lot of stakeholders that we need to talk to related to the network reconfiguration. We're going to lay that out for you on the first quarter call. It's fair to say it will accelerate as we go through the year, especially in the second half and then into the first half of '26.

But give us until April, and we'll lay that plan out for you.

Ken Hoexter -- Analyst

Great, thanks. Appreciate the time.

Carol Tom -- Chief Executive Officer

Thank you.

Operator

Your next question comes from the line of Ari Rosa from Citigroup. Please go ahead.

Ariel Rosa -- Analyst

Hey, good morning. So a lot of changes underway. Carol, I was hoping maybe you could paint a picture for us of how you envision the future of UPS, say, five or 10 years from now? And then specifically, you talked about some of these growth areas. Maybe you could give us some color on how you see kind of the TAM of those growth areas, whether it's healthcare or SMB and what role UPS plays within that market such that the top line revenue growth doesn't experience the material decline that I think a lot of people are perhaps concerned about this morning? Thanks.

Carol Tom -- Chief Executive Officer

Yeah. Thank you for the question. I'd love to talk about our future because I think our future is very bright. We are leaning into the segments of the market that value our end-to-end network but we're doing it through differentiated capabilities.

And so when you think about the future of UPS, think about complex logistics where we are providing solutions for the segments of the market that no one else has. Think about RFID tagging, which started as a productivity initiative for us has turned into an inventory management opportunity and benefit for our upstream customers. Think about healthcare. Healthcare is such an opportunity for us.

The healthcare market growth slowed down a bit in 2024. The market grew 2.5%. We grew 5%. So our healthcare revenue for the year, about $10.5 billion.

We've got plans to take that to $20 billion by 2026. And the TAM, the addressable market, just in complex is over $80 billion. To break down that $10.5 billion for you, we've got $5 billion in complex, we've got $1.5 billion in clinical and we've got about $4 billion in noncomplex. So we are going to over-index on the complex and clinical over the next several years.

As we think back now on these differentiated opportunities, international diversification is also an opportunity for us. A couple of years ago, we realized that manufacturers in China were moving to a China plus 1 strategy where they weren't exiting China, but they were moving manufacturing to other locations like Vietnam. So we got ahead of it. We expanded our operations, and we see in these trade lanes where we expanded operations 20% growth, 30% growth.

So international diversification is another opportunity us. So this is not a company that's shrinking. This is a company that's gliding down its largest customer, but it's not a company that's shrinking. It's a company that's growing.

Now we laid out some revenue targets and operating margin targets a year ago in March. We're going to hit the operating margin targets. We are absolutely confident on that. We will reset the revenue targets once we get through all this because we need to give you color and clarity as to where we're taking the top line.

But there's plenty of growth ahead for us, a differentiated UPS, complex logistics, which is the premium part of the market.

Operator

Your next question comes from the line of Chris Wetherbee from Wells Fargo. Please go ahead.

Christian Wetherbee -- Analyst

Hey, thanks. Good morning, guys. Carol, maybe I can pick up on that last point. I think the 2026 question is an important one.

And I get the margin mix up as a result of some of the glide down here. But I guess, as we think about this process, I mean, is there any way you can give us comfort that we won't be sort of in a flattish or maybe down earnings scenario for a multiyear period of time. So I guess, in other words, maybe more directly, can you grow earnings in 2026? And I guess if you can, can you walk us through maybe some of the parameters? I know you want to lay them out in more detail in April. But I think just given sort of the magnitude of what we're talking about here, some help around kind of guide points for 2026, I think are important.

Carol Tom -- Chief Executive Officer

And I think that's absolutely a fair question. And as I talked about this last night, I'm like they're going to ask this question, we need to come out and do that for you. I'm not going to do it on today's call. We need to come out and do that for you in a thoughtful way so we can give you the TAMs, we can show you how we're growing.

We can do that in a thoughtful way. Brian, I don't know -- we'll figure out of time to do that this year, maybe at the end of the first quarter, we'll figure out of time to do that. But is there any color that you want to share right now?

Brian Dykes -- Executive Vice President, Chief Financial Officer

Yes. Yes. And Chris, and while we will absolutely lay out 2026, I just want to make sure that we're also clear on what 2025 is going to look like because we have both plans as we draw down the volume, we'll be taking take costs out. We also have Efficiency Reimagined that we talked about that's going to drive $1 billion in cost savings through process improvement.

That's also underway. We're starting to see results from it. And it's an exciting program because it makes us a much more agile organization. So as we progress through the quarter, we will expand domestic operating margin in every quarter of this year, right? We will expand it every quarter of this year, and we will finish with almost 130 basis points better than we finished last year.

That's going to accelerate as we go into 2026, and we'll lay that out for you on the coming call.

Carol Tom -- Chief Executive Officer

We're growing profit dollars, not just margin. We're growing profit dollars. And I think that's -- we're not shrinking the profit dollars. We're growing the profit dollars.

Christian Wetherbee -- Analyst

And that's something we can think about in 2026 as well?

Carol Tom -- Chief Executive Officer

Yeah, absolutely because we will accelerate the cost out related to the fixed cost.

Christian Wetherbee -- Analyst

OK, that's helpful. Thank you.

Operator

Your next question comes from the line of Scott Group from Wolfe Research. Please go ahead.

Scott Group -- Analyst

Hey, thanks, good morning. Carol, you said a few times that this business has been very dilutive to margin. I'm just wondering, like, would you characterize this as a mid-single-digit margin or low single digit or no margin business? That's the first thing. I totally get the mix impact here.

But when I just think about price, right, if we're losing 10%, 15% of the volume and we, to some extent, need to backfill that, does that in any way change your pricing discipline? And then last thing, I know I'm asking a lot, but last thing, do you think we should just assume that the other 50% of this business goes away in a few years when the contract comes up again?

Carol Tom -- Chief Executive Officer

So I'll answer the last part first. I don't think so. Think about returns. We have 5,200 UPS store locations that make it very convenient for customers of Amazon to return their Amazon packages.

We do that very, very well for Amazon. So there's a place where -- of a parity, if you will, between our two companies. So I don't think it will go all away. I think we're landing at the right spot with this accelerated glide down.

I think it would be inappropriate for me to talk about the profitability of any account. This is extraordinarily dilutive, and I'll leave it at that. And perhaps you could back into the number, if you look at the percentage of revenue and the volume that we described, and that might help you think about the dilution. Brian, anything you want to add to that?

Brian Dykes -- Executive Vice President, Chief Financial Officer

And Scott, I also want to be clear because you asked about pricing discipline, and I think this is a really important point because we're reconfiguring the network to the new volume level. So we're not chasing volume in order to fill empty capacity. The capacity will adjust to the new volume level. And that's really a key point because we have shown pricing discipline in the second half of 2024.

We saw great revenue per piece growth in the fourth quarter, and that's going to extend into 2025 and be a portion of the rev per piece improvement that we see. That pricing discipline is implemented, we've got processes in place, and we absolutely are going to continue to keep that going forward.

Scott Group -- Analyst

So do you think you can reduce capacity one for one with the volume drop here?

Brian Dykes -- Executive Vice President, Chief Financial Officer

Yes.

Carol Tom -- Chief Executive Officer

Yes.

Scott Group -- Analyst

OK, thank you, guys. Appreciate it.

Operator

Your next question comes from the line of Ravi Shanker from Morgan Stanley. Please go ahead.

Ravi Shanker -- Analyst

Thank you. Just a few things. You quantified the Amazon revenues a couple of times now. Can you quantify what percentage of the U.S.

domestic volumes are Amazon? Because I think that's a pretty important stat for doing the math here. And also, to your point on the returns, I think Amazon did start trialing an in-house return program last year. Do you see a risk to that scaling up over time as well?

Brian Dykes -- Executive Vice President, Chief Financial Officer

So Ravi, on the volume, if you think around 20% of the volume in the U.S. network, 2025, depending on the time and the price. Look, on the returns, and I'll let Matt talk a little bit about our returns portfolio in a second. But what I would say is there's a lot of return solutions in the market.

Here's what I know, our returns growth continues to grow with UPS store. We have a great footprint. We have a great customer experience. And Matt, maybe you want to talk a little bit about how we've been adding to that.

Matt Guffey -- Executive Vice President, Chief Commercial and Strategy Officer

Yes. I think Carol hit on it. When you think about the physical footprint that we have in the United States, 5,200 stores give us access in the proximity to very, very close to most consumers in the U.S. And just the overall experience, right, is the key component.

Returns in reverse logistics is hard to do. And this gives us a capability and we continue to build on that. Let me just give you one other example though. We've also added -- if you remember, we acquired Happy Returns.

This complements that return experience because now not only do you have the physical, but you can also do the digital, which is a no box, no label, which drives a much better experience for the consumer, for UPS and for our customers as well. So we continue to add to this and believe that we have the best-in-class returns portfolio.

Carol Tom -- Chief Executive Officer

And I might dimensionalize the glide down in a different way just to help you in the modeling. Between '21 and '24, on average, we -- the glide down was about 250,000 packages per day per year. Between '24 and '26, on average, and of course, it's not -- the average is just an average, but the average between '24 and '26 will be 1.25 million packages per day per year. So five times as fast as what we did before.

Operator

Your next question comes from the line of Brian Ossenbeck from J.P. Morgan. Please go ahead.

Brian Ossenbeck -- Analyst

Hey, good morning. Thanks for taking the question. Just a couple of follow-ups here. Given that big impact on volume, and I'm assuming Amazon was a pretty big peaker during peak season, can you talk about the broader implications for the network for peak season? I know you can give us more an update in April after, I'm assuming, you speak to the Teamsters about this big change.

But can you give us a sense in terms of what may be complications you can encounter with that? Can you still reach Sunday's delivery with SurePost? Thank you very much.

Carol Tom -- Chief Executive Officer

So from a peak perspective, we'll operate peak like we do every other year. We won't have as many leases, I suspect. But we'll operate just like we do any other year. Nando, what would you like to add?

Nando Cesarone -- Executive Vice President and President, U.S.

So regarding peak, we stretch our network with variable costs. So we'll rent equipment. We'll set up temporary sort facilities. A lot of that is not going to be required.

We'll lease aircraft. We won't need to. We rent tractors and trailers and shippers and all that stuff from our vendors. And clearly, as the volume settles, that's an opportunity for us to not rent those pieces of equipment this peak season.

So I think we've built that little hedge for ourselves within the variable costs, so we're just going to pull all that back in.

Operator

Your next question comes from the line of Bascome Majors from Susquehanna. Please go ahead.

Bascome Majors -- Analyst

Carol and Nando, I think we've seen more change in the parcel space in the last two years than the prior 15.

Carol Tom -- Chief Executive Officer

Yes. Yes.

Bascome Majors -- Analyst

Can we talk -- another big picture question here. When we roll out to 2027, '28, number one, do you think that we've seen the last of the big shoes to drop on some of the changes to the competitive landscape, cost structures, that sort of thing with you and your competitors? Or could there be more seismic shifts? And you already talked a bit on a previous question about where you think UPS wins in that long-term landscape. Can you talk a little bit about your competitors? Like where do FedEx ground and ground economy win and have an advantage? Where does USPS ground advantage win? Where do the regional or dig economy players win just to think about the competitive landscape more holistically longer term? Thank you.

Carol Tom -- Chief Executive Officer

Well, there's a lot to that question, and we were focusing our comments today pretty much on '25, and cheating in a little bit to '26, but happy to think big picture on '27 and '28. I think the world is changing and the rate of change is accelerating. It's hard to imagine a big shoe to drop. I don't think we fully understand the impact of generative AI and what it can mean for productivity among industries broadly.

It certainly is an opportunity for us to drive productivity and better customer experience. Would it put us at a competitive disadvantage to anyone? I can see that. In fact, I think we're ahead of most companies in this space, but we need to be mindful that that's changing. We need to be mindful that trade follows policy and tariffs aren't necessarily good for trade.

So there may be changing trade lanes. I don't know if it's a big shoe to drop, but it could be changing trade lanes. So we do know of the largest trade lanes out in the world, they're in Asia. And we're expanding our air hub in Hong Kong in building new and Philippines.

So we're going to be ready to take advantage of these changing trade lanes, however they may come about. There's a lot of opportunity for UPS to grow in the differentiated logistics, complex logistics world. But the capabilities that we are enabling throughout our business, it creates stickiness with customers like we've never seen before. Perhaps that's a big shoe to drop because our churn improved more last year than it's been since I got here.

So from a competitive positioning perspective, I do believe stickiness puts us at a point of differentiation. Now perhaps when we come back, Brian, and do the addressable markets and where we're going to grow and the revenue, we can talk more about our competitive positioning. But trust me on this, we take every competitor, and we tear it apart to understand where we may have a gap and how we might need to fill that gap. I'll give you two examples.

In Europe last year, we didn't have an economy product and that was a problem for us. So our IT team, working with our pricing team and our operating team in Europe, they fast train -- track that, didn't they, Kate?

Kathleen M. Gutmann -- Executive Vice President and President, International, Healthcare, and Supply Chain Solutions

They're growing double digits.

Carol Tom -- Chief Executive Officer

Growing double digits. We needed to offer a weekend solution. What did we do on weekend, Kate?

Kathleen M. Gutmann -- Executive Vice President and President, International, Healthcare, and Supply Chain Solutions

Well, the first mover in Canada and now in Europe in major countries, especially in Western Europe and both of them exceeding the revenue targets and doing better on the cost side of it because we just built it into our regular efficiencies that we do around the world.

Carol Tom -- Chief Executive Officer

So when we see a gap that we need to fill, we do it.

Bascome Majors -- Analyst

Thank you.

Operator

Your next question comes from the line of Bruce Chan from Stifel. Please go ahead.

Bruce Chan -- Analyst

Yeah, thanks, operator, and good morning, everyone. I think it's very encouraging to see some of the proactive changes here, and maybe I'll just focus in on SPSF because it strikes me that the RFID initiative is very helpful in optimizing your assets with some of these fairly significant market developments. It looks like you're underway in phase 2. So maybe what's the target for rollout across the entire packaged car fleet? And any comments that you have around the time line, especially in the Phase 3 would be great?

Carol Tom -- Chief Executive Officer

So Nando, would you like to take that?

Nando Cesarone -- Executive Vice President and President, U.S.

Yeah. So we've got a schedule, of course, prepared a dedicated team to execute the changes as we talk about the changes to the Amazon and other changes here with SurePost. That schedule is completely linked to our financial plan, and we have full confidence that we can execute those changes. In addition to what Carol mentioned earlier, especially with RFID tagging, we've got an opportunity to pull customers in where the stickiness just becomes a real big discussion and decision if they ever want to really disconnect from that technology because it's going to not just help delivery of packages, but also their back office environment, which we're really excited about.

Carol Tom -- Chief Executive Officer

We should be rolled out this year. And from a customer stickiness perspective, Matt, you can give a couple of examples.

Matt Guffey -- Executive Vice President, Chief Commercial and Strategy Officer

Yes. Yes. So what Nando just highlighted and Carol framed is it's really important because we do get from RFID, we get some productivity benefits and efficiency benefits. But from a customer value proposition, it's resonating very, very well.

When you think about how you connected to our value proposition in the B2B or commercial space, we typically think industrial and high-tech in some of these areas, but retail is a big driver through store replenishment. And this has really enabled us to win in this space. We brought over -- and if you heard Carol in her opening comments, she highlighted this, but 15 retailers that we've already onboarded and I would -- large enterprise retailers in the United States that really -- that love the RFID capability because they have inbound visibility to what's hitting their docks, and it allows them then to spread their workforce and how they inbound that volume. It also, again, it complements us from a commercial perspective because we can deliver many packages to those on location.

The last piece I would add on to that, which when you couple this together is we are able to get these retailers inbound delivery windows and it allows them that flexibility. So you have the physical capability but then you have the visibility through RFID. And we believe we're just on the edge of something great here to work with our retailers to continue to grow.

Carol Tom -- Chief Executive Officer

So it improves our stocking. It reduces their labor hours. It's a win-win. So we'll continue to lean into that in a big way.

And we're ahead of the game here when we look around the competitive landscape around the world.

Bruce Chan -- Analyst

Great. Thank you.

Carol Tom -- Chief Executive Officer

Thank you.

Operator

Your next question comes from the line of Brandon Oglenski from Barclays. Please go ahead.

Brandon Oglenski -- Analyst

Hi. Good morning and thank you for taking my question. Carol, maybe just a quick two-part one here on capital. Given that you're rightsizing the domestic network right now, what would be the right level of maintenance capex for the business? And this 3.5, the level you took it to the share, which is I think a pretty drastic cut from where you thought you'd be a year ago.

Is that sustainable? And then I guess in that same context, how prudent is $1 billion share repurchase this year with anticipated dividend payments of $5.5 billion, especially when your payout ratio looks like it's going to be approaching 80% of trailing earnings, when I think you're targeting something closer to $50 million. Thank you.

Carol Tom -- Chief Executive Officer

So on the capital side, Brian, I'll let you address that, and then I'll talk about the allocation shareowners.

Brian Dykes -- Executive Vice President, Chief Financial Officer

Sure. Yes, Brandon, and thanks for the question. Because capital management is very important to us, and you see we have brought down the capital. Now I will say within that capex plan, we are fully funding Network of the Future.

And I think as along with the -- in concert with the network reconfiguration, that's going to allow us to take that 63% of volume processed through automated facilities, up significantly as we rationalize less efficient conventional capacity. So we're fully funding that, and we're moving forward with it. Where we are able to tighten up is the volume drawdown will allow us to operate with quite frankly, fewer vehicles, fewer aircraft and fewer buildings. And that's what we're anticipating.

I think as you think about going forward, we will be managing the capital base. So thinking about capex in line with depreciation is where we think that we're going to need to manage it as we continue to automate, but also manage the capital base as we improve ROIC. That's realistic. And if you go back to kind of before we were allocating a lot of capital into a specific customer, that's kind of where we were.

Carol Tom -- Chief Executive Officer

And to your question about is it prudent to buy back shares and what about your payout and isn't it too high? I think it's important to note that we have a very strong liquidity position. We had a benefit from 2024 on a tax payment that we will pay in '25. But if you push that tax maybe back into 2024, we're actually generating more cash in '25 than we did in '24. Strong liquidity with access to capital.

From a dividend payout perspective, we're targeting 50% of earnings, and we're higher than that. It's important to note, however, that it's distorted because of the below-the-line noncash pension expense. And if you ignore the noncash pension expense, the payout ratio isn't as high as it appears at its pace. So plenty of liquidity to pay the dividend.

And on the share repurchases, the way we're thinking about it today is our compensation plans are dilutive from an EPS perspective. So $1 billion just basically protects the dilution. What Brian and I have talked about is, why don't we debt finance that? Because with the yield on the stock and the after-tax cost of the debt, it's a really good trade because the after tax cost of the debt is lower than the yield on the stock. So that's what we're thinking about in terms of how we would fund a share repurchase.

Brandon Oglenski -- Analyst

Thank you.

PJ Guido -- Senior Vice President, Global Capital Markets, and Investor Relations Officer

And Greg, we have time for one more question.

Operator

OK. That question comes from the line of Jon Chappell from Evercore ISI. Please go ahead.

Jonathan Chappell -- Analyst

Thank you. Good morning. Just a quick market one. I understand that you implemented the GRI for SurePost.

Brian, you talked about strong RPP growth of 6% for U.S. domestic, which is obviously going to be a big mix impact as well. We're kind of hearing in the market, and Carol highlighted the -- some of the challenges on kind of core volume of some pricing pressure overall just on core organic business. Are you seeing any of that? Is there a little bit more additive spirit out there, I guess, to kind of maintain and/or grow share just given some of the challenges in the core markets?

Carol Tom -- Chief Executive Officer

I think our fourth quarter results are proved positive of the strength of our pricing approach. We had very strong keep rates on our base rates as well as our holiday demand surcharge. Our GRI on our core business is 5.9% for 2025. We're going to keep probably 50% of that.

So the 6% RPP growth, you can break it down a third, a third, a third, can't you, Brian? Why don't you go and do that.

Brian Dykes -- Executive Vice President, Chief Financial Officer

That's right. So if you think about where that comes from, Carol's exactly right. it's about a third from the strong base rates. And look, we also -- there's nothing sexy about it.

This is a grind, and Matt and I spend every Monday morning going through how we're seeing the market evolve, the pricing and looking at how customers are performing. And we've created a lot of discipline around that. It's a rational pricing environment, but we're getting really smart about how we do it, and that helps us get the key for that. I'll let you elaborate on it one second.

On the mix -- on the other pieces, though, you've got a third that base rates, you've got a third that's customer mix driven, right? So as Carol said, our focus on SMB is allowing us to win there. And when you look at it, we went through peak and SMBs, and we also won through peak on premium products, right, which is the other third of the rev per piece improvement. Matt, do you want to add anything?

Matt Guffey -- Executive Vice President, Chief Commercial and Strategy Officer

I think you hit on two points that are important. One is we just saw a lot of rigor and discipline behind the pricing, our practicing practices here, and we'll continue that. To Brian's point, it is an interesting step because in Q4, we really leaned in on the premium segment. 60% of our wins in Q4 were in the premium segment, and that's focused on the products that value our end-to-end network, what Carol highlighted as complex.

The last thing I would just highlight is look, we've talked to you about architecture of tomorrow, which is our pricing technology, and we've talked to you about deal manager, which allows us the ability to leverage pricing signs for SMB, is now with deal manager, it's in the fourth quarter, 96% of our deals, we've been able to price up to $10 million, all came through deal manager, which allows us speed, we can turn time and we can customize them unique for the customer. So it's given us a lot of flexibility to drive the right value for our customers, but also align our costs and our prices there.

Jonathan Chappell -- Analyst

Thanks.

Operator

I will now turn the floor back over to your host, Mr. PJ Guido.

PJ Guido -- Senior Vice President, Global Capital Markets, and Investor Relations Officer

Thank you, Greg. This concludes our call. Thank you for joining and have a great day.

Operator

[Operator signoff]

Duration: 0 minutes

Call participants:

PJ Guido -- Senior Vice President, Global Capital Markets, and Investor Relations Officer

Carol Tom -- Chief Executive Officer

Brian Dykes -- Executive Vice President, Chief Financial Officer

Thomas Wadewitz -- Analyst

Carol Tome -- Chief Executive Officer

Nando Cesarone -- Executive Vice President and President, U.S.

Tom Wadewitz -- Analyst

Jordan Alliger -- Analyst

David Vernon -- Analyst

Dave Vernon -- Analyst

Joe Hafling -- Jefferies -- Analyst

Matt Guffey -- Executive Vice President, Chief Commercial and Strategy Officer

Ken Hoexter -- Analyst

Ariel Rosa -- Analyst

Christian Wetherbee -- Analyst

Chris Wetherbee -- Analyst

Scott Group -- Analyst

Ravi Shanker -- Analyst

Brian Ossenbeck -- Analyst

Bascome Majors -- Analyst

Kathleen M. Gutmann -- Executive Vice President and President, International, Healthcare, and Supply Chain Solutions

Kate Gutmann -- Executive Vice President and President, International, Healthcare, and Supply Chain Solutions

Bruce Chan -- Analyst

Brandon Oglenski -- Analyst

Jonathan Chappell -- Analyst

Jon Chappell -- Analyst

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United Parcel Service (UPS) Q4 2024 Earnings Call Transcript was originally published by The Motley Fool