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United Parcel Service, Inc. (UPS) first-quarter 2025 earnings (excluding 9 cents per share) of $1.49 per share beat the Zacks Consensus Estimate of $1.44 and improved 4.2% year over year. Revenues of $21.5 billion surpassed the Zacks Consensus Estimate of $21.1 billion but decreased 0.7% year over year.
Carol Tomé, UPS chief executive officer, stated, "I want to thank all UPSers for their hard work and efforts in this very dynamic environment. As a trusted leader in global logistics, we will leverage our integrated network and trade expertise to assist our customers as they adapt to a changing trade environment. Further, the actions we are taking to reconfigure our network and reduce cost across our business could not be timelier. The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS."
United Parcel Service, Inc. Price, Consensus and EPS Surprise
United Parcel Service, Inc. price-consensus-eps-surprise-chart | United Parcel Service, Inc. Quote
Other Aspects of Q1 Earnings Report
U.S. Domestic Package revenues of $14.46 billion grew 1.4% year over year, driven by increases in air cargo and a 4.5% improvement in revenue per piece, which partially offset a decline in volume. The actual segmental sales figure was higher than our estimation of $14.37 billion. Segmental operating profit (adjusted) grew 19.3% year over year to $1.01 billion. The adjusted operating margin for the segment was 7%.
Revenues in the International Package division totaled $4.37 billion, which increased 2.7% year over year, owing to a 7.1% increase in average daily volume. The actual segmental sales figure was higher than our estimation of $4.25 billion. Segmental operating profit (adjusted) totaled $654 million, down 4.1% year over year. The adjusted operating margin for the segment was 15%.
Supply Chain Solutions’ revenues of $2.71 billion decreased 14.8% year over year due to the divestiture of Coyote. The actual segmental sales figure was almost in line with our estimation of $2.71 billion. Operating profit (on an adjusted basis) fell 55% year over year to $98 million. The segment's adjusted operating margin was 3.6%.
The overall adjusted operating margin was 8.2%.
UPS’ 2025 Outlook
Considering the current macroeconomic uncertainty, UPS is not providing any updates to its previously issued consolidated full-year outlook.
We note that another player from the Zacks Transportation - Air Freight and Cargo industry, GXO Logistics GXO, will report its first-quarter earnings numbers early next month. (See the Zacks Earnings Calendar to stay ahead of market-making news.)