ups-20251028

Exhibit 99.1

UPS RELEASES 3Q 2025 EARNINGS

•Consolidated Revenues of $21.4B

•Consolidated Operating Margin of 8.4%; Non-GAAP Adjusted* Consolidated Operating Margin of 10.0%

•Diluted EPS of $1.55; Non-GAAP Adj. Diluted EPS of $1.74

•Provides Fourth-Quarter 2025 Financial Guidance and Full-Year Capital Allocation Expectations

ATLANTA – October 28, 2025 – UPS (NYSE:UPS) today announced third-quarter 2025 consolidated revenues of $21.4 billion. Consolidated operating profit was $1.8 billion; $2.1 billion on a non-GAAP adjusted basis. Diluted earnings per share were $1.55 for the quarter; non-GAAP adjusted diluted earnings per share were $1.74.

For the third quarter of 2025, GAAP results include a net charge of $164 million, or $0.19 per diluted share, comprised of after-tax transformation strategy costs of $250 million, partially offset by an $86 million benefit from the reversal of an income tax valuation allowance.

Additionally in the third quarter, UPS entered into a sale-leaseback transaction related to five properties, which resulted in a $330 million pre-tax gain on sale within Supply Chain Solutions, and which contributed $0.30 to diluted earnings per share. This transaction was part of the company’s broader capital strategy to monetize certain real estate assets to reinvest for growth with the leases structured to maintain operational continuity.

“I want to extend my gratitude to all UPSers for their dedication and steadfast commitment to serving our customers,” said Carol Tomé, UPS chief executive officer. “We are executing the most significant strategic shift in our company’s history, and the changes we are implementing are designed to deliver long-term value for all stakeholders. With the holiday shipping season nearly upon us, we are positioned to run the most efficient peak in our history while providing industry-leading service to our customers for the eighth consecutive year."

U.S. Domestic Segment†

3Q 2025

Non-GAAP

Adjusted

3Q 2025

3Q 2024

Non-GAAP

Adjusted

3Q 2024

Revenue

$14,220 M

$14,597 M

Operating profit

$603 M

$905 M

$843 M

$919 M

•Revenue declined 2.6%, primarily driven by an expected decline in volume, partially offset by higher revenue per piece and air cargo revenue.

•Operating margin was 4.2%; non-GAAP adjusted operating margin was 6.4%.

International Segment

3Q 2025

Non-GAAP

Adjusted

3Q 2025

3Q 2024

Non-GAAP

Adjusted

3Q 2024

Revenue

$4,673 M

$4,411 M

Operating profit

$676 M

$691 M

$798 M

$792 M

•Revenue increased 5.9%, driven by a 4.8% increase in average daily volume.

•Operating margin was 14.5%; non-GAAP adjusted operating margin was 14.8%.

Supply Chain Solutions1 †

3Q 2025

Non-GAAP

Adjusted

3Q 2025

3Q 2024

Non-GAAP

Adjusted

3Q 2024

Revenue

$2,522 M

$3,237 M

Operating profit

$525 M

$536 M

$344 M

$272 M

1 Consists of operating segments that do not meet the criteria of a reportable segment under ASC Topic 280 – Segment Reporting.

•Revenue declined 22.1%, primarily due to the impact from the third quarter 2024 divestiture of Coyote.

•Operating margin was 20.8%; non-GAAP adjusted operating margin was 21.3%.

2025 Outlook

The company provides certain guidance on a non-GAAP adjusted basis because it is not possible to predict or provide a reconciliation reflecting the impact of various potential future events, including the impact of pension adjustments, certain strategic initiatives or other unanticipated events, which would be included in reported (GAAP) results and could be material.

For the fourth-quarter of 2025, on a consolidated basis, UPS expects revenue to be approximately $24.0 billion and non-GAAP adjusted operating margin of approximately 11.0% - 11.5%.

The company confirms the following for the full year 2025:

•Capital expenditures of approximately $3.5 billion

•Dividend payments expected to be around $5.5 billion, subject to Board approval

•Effective tax rate of approximately 23.75%

•$1.4 billion in pension contributions (of which $1.3 billion have been made)

•Share repurchases of around $1.0 billion, which have been completed

* “Non-GAAP Adjusted” or “Non-GAAP Adj.” amounts are non-GAAP adjusted financial measures. See the appendix to this release for a discussion of non-GAAP adjusted financial measures, including a reconciliation to the most closely correlated GAAP measure.

† Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.

Contacts:

UPS Media Relations: 404-828-7123 or pr@ups.com

UPS Investor Relations: 404-828-6059 (option 4) or investor@ups.com

# # #

Conference Call Information

UPS CEO Carol Tomé and CFO Brian Dykes will discuss third-quarter results with investors and analysts during a conference call at 8:30 a.m. ET, October 28, 2025. That call will be open to others through a live Webcast. To access the call, go to the UPS Investor Relations page and click on “Earnings Conference Call.” Additional financial information is included in the detailed financial schedules being posted on www.investors.ups.com under “Quarterly Earnings and Financials” and as furnished to the SEC as an exhibit to our Current Report on Form 8-K.

About UPS

UPS (NYSE: UPS) is one of the world’s largest companies, with 2024 revenue of $91.1 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s approximately 490,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. More information can be found at www.ups.com, about.ups.com and www.investors.ups.com.

Forward-Looking Statements

This release, our Annual Report on Form 10-K for the year ended December 31, 2024 and our other filings with the Securities and Exchange Commission contain and in the future may contain “forward-looking statements”. Statements other than those of current or historical fact, and all statements accompanied by terms such as “will,” “believe,” “project,” “expect,” “estimate,” “assume,” “intend,” “anticipate,” “target,” “plan,” and similar terms, are intended to be forward-looking statements.

From time to time, we also include written or oral forward-looking statements in other publicly disclosed materials. Forward-looking statements may relate to our intent, belief, forecasts of, or current expectations about our strategic direction, prospects, future results, or future events; they do not relate strictly to historical or current facts. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any forward-looking statements because such statements speak only as of the date when made and the future, by its very nature, cannot be predicted with certainty.

Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or anticipated results. These risks and uncertainties include, but are not limited to: changes in general economic conditions in the U.S. or internationally, including as a result of changes in the global trade policy, new or increased tariffs or government shutdowns; significant competition on a local, regional, national and international basis; changes in our relationships with our significant customers; our ability to attract and retain qualified employees; strikes, work stoppages or slowdowns by our employees; increased or more complex physical or operational security requirements; a significant cybersecurity incident, or increased data protection regulations; our ability to maintain our brand image and corporate reputation; impacts from global climate change; interruptions in or impacts on our business from natural or man-made events or disasters including terrorist attacks, epidemics or pandemics; exposure to changing economic, political, regulatory and social developments in international and emerging markets; our ability to realize the anticipated benefits from acquisitions, dispositions, joint ventures or strategic alliances; the effects of changing prices of energy, including gasoline, diesel, jet fuel, other fuels and interruptions in supplies of these commodities; changes in exchange rates or interest rates; our ability to accurately forecast our future capital investment needs; increases in our expenses or funding obligations relating to employee health, retiree health and/or pension benefits; our ability to manage insurance and claims expenses; changes in business strategy, government regulations or economic or market conditions that may result in impairments of our assets; potential additional U.S. or international tax liabilities; increasingly stringent regulations related to climate change; potential claims or litigation

related to labor and employment, personal injury, property damage, business practices, environmental liability and other matters; and other risks discussed in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K for the year ended December 31, 2024, and subsequently filed reports. You should consider the limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of predictions contained in such forward-looking statements. We do not undertake any obligation to update forward-looking statements to reflect events, circumstances, changes in expectations, or the occurrence of unanticipated events after the date of those statements, except as required by law.

The Company routinely posts important information, including news releases, announcements, materials provided or displayed at analyst or investor conferences, and other statements about its business and results of operations, that may be deemed material to investors on the Company’s Investors Relations website at www.investors.ups.com. The Company uses its website as a means of disclosing material, nonpublic information and for complying with the Company’s disclosure obligations under Regulation FD. Investors should monitor the Company’s Investor Relations website in addition to following the Company’s press releases, filings with the SEC, public conference calls and webcasts. We do not incorporate the contents of any website into this or any other report we file with the SEC.

Reconciliation of GAAP and Non-GAAP Adjusted Financial Measures

We supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP adjusted financial measures. Management views and evaluates business performance on both a GAAP basis and by excluding costs and benefits associated with these non-GAAP adjusted financial measures. As a result, we believe the presentation of these non-GAAP adjusted financial measures better enables users of our financial information to view and evaluate underlying business performance from the same perspective as management.

Non-GAAP adjusted financial measures should be considered in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. Our non-GAAP adjusted financial measures do not represent a comprehensive basis of accounting and therefore may not be comparable to similarly titled measures reported by other companies.

Forward-Looking Non-GAAP Adjusted Financial Measures

From time to time when presenting forward-looking non-GAAP adjusted financial measures, we are unable to provide quantitative reconciliations to the most closely correlated GAAP measure due to the uncertainty in the timing, amount or nature of any adjustments, which could be material in any period.

Expense for Regulatory Matter

We have excluded the impact of an expense to settle a previously disclosed regulatory matter. We do not believe this is a component of our ongoing operations and we do not expect this or similar expenses to recur.

One-Time Payment for International Regulatory Matter

We have excluded the impact of a payment to settle a previously-disclosed international tax regulatory matter. We do not believe this payment was a component of our ongoing operations and we do not expect this or similar payments to recur.

Transformation Strategy Costs

We exclude the impact of charges related to activities within our transformation strategy. Our transformation strategy activities have spanned several years and are designed to fundamentally change the spans and layers of our organization structure, processes, technologies and the composition of our business portfolio. Our transformation strategy includes initiatives within our Transformation 2.0, Fit to Serve, and Network Reconfiguration and Efficiency Reimagined programs.

Various circumstances precipitated these initiatives, including identification and prioritization of certain investments, developments and changes in competitive landscapes, inflationary pressures, consumer behaviors, and other factors including post-COVID normalization and volume diversions attributed to our 2023 labor negotiations.

Our transformation strategy includes the following programs and initiatives:

Transformation 2.0: We identified opportunities to reduce spans and layers of management, began a review of our business portfolio and identified opportunities to invest in certain technologies, including financial reporting and certain schedule, time and pay systems, to reduce global indirect operating costs, provide better visibility, and reduce reliance on legacy systems and coding languages. Costs associated with Transformation 2.0 have primarily consisted of compensation and benefit costs related to reductions in our workforce and fees paid to third-party consultants. We expect any remaining costs to be incurred during the remainder of 2025.

Fit to Serve: We undertook our Fit to Serve initiative with the intent to right-size our business to create a more efficient operating model that was more responsive to market dynamics through a workforce reduction of approximately 14,000 positions, primarily within management. We expect any remaining costs to be incurred during the remainder of 2025.

Network Reconfiguration and Efficiency Reimagined: Our Network of the Future initiative is intended to enhance the efficiency of our network through automation and operational sort consolidation in our U.S. Domestic network. In connection with our strategic execution of planned volume declines from our largest customer, we began our Network Reconfiguration initiative, which is an expansion of Network of the Future and has led and will continue to lead to consolidations of our facilities and workforce as well as an end-to-end process redesign. We launched our Efficiency Reimagined  initiatives to undertake the end-to-end process redesign effort which will align our organizational processes to the network reconfiguration. We have reduced our operational workforce by approximately 34,000 positions and closed daily operations at 93 leased and owned buildings during the first nine months of 2025 as a component of this initiative. We continue to review expected changes in volume in our integrated air and ground network to identify additional buildings for closure. As of September 30, 2025, we have realized cost savings of approximately $2.2 billion, and expect to achieve $3.5 billion total year over year cost savings in 2025, from this initiative. These amounts are calculated on the year over year change in volume from our largest customer, taking into account the impact of certain additional volume we have elected to serve.

In connection with the Network Reconfiguration and Efficiency Reimagined programs described above, we expect to exclude between $400 and $650 million in non-GAAP adjusted expense during 2025, related primarily to third-party consulting fees, employee separation benefits, and certain programmatic expenses. As of September 30, 2025, we have incurred program costs to date of $422 million, including $387 million year to date. We expect the costs associated with these actions may increase should we determine to close additional buildings. These initiatives are expected to conclude in 2027.

We do not consider the related costs to be ordinary because each program involves separate and distinct activities that may span multiple periods and are not expected to drive incremental revenue, and because the scope of the programs exceeds that of routine, ongoing efforts to enhance profitability. These initiatives are in addition to ordinary, ongoing efforts to enhance business performance.

Goodwill and Asset Impairments

We exclude the impact of goodwill and certain asset impairment charges, including impairments of long-lived assets and equity method investments. We do not consider these charges when evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards.

Gains and Losses Related to Divestitures

We exclude the impact of gains (or losses) related to the divestiture of businesses. We do not consider these transactions to be a component of our ongoing operations, nor do we consider the impact of these transactions when evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards.

Reversal of Income Tax Valuation Allowance

We previously recorded non-GAAP adjustments for transactions that resulted in capital loss deferred tax assets not expected to be realized. As a result of property sales during 2025, we now expect all of these capital losses to be realized. We supplement our presentation with non-GAAP adjusted financial measures that exclude the impact of the reversals of the valuation allowances against these deferred tax assets as we believe such treatment is consistent with how the valuation allowance was initially established.

Non-GAAP Adjusted Cost per Piece

We evaluate the efficiency of our operations using various metrics, including non-GAAP adjusted cost per piece. Non-GAAP adjusted cost per piece is calculated as non-GAAP adjusted operating expenses in a period divided by total volume for that period. Because non-GAAP adjusted operating expenses exclude costs or charges that we do not consider a part of underlying business performance when monitoring and evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards, we believe this is the appropriate metric on which to base reviews and evaluations of the efficiency of our operational performance.

Free Cash Flow

We calculate free cash flow as cash flows from operating activities less capital expenditures, proceeds from disposals of property, plant and equipment, and plus or minus the net changes in other investing activities. We believe free cash flow is an important indicator of how much cash is generated by our ongoing business operations and we use this as a measure of incremental cash available to invest in our business, meet our debt obligations and return cash to shareowners.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)


Three Months Ended
September 30,
(amounts in millions)	2025			2025
Operating Profit (GAAP)	$	1,804	Operating Margin (GAAP)	8.4	%

Transformation Strategy Costs:			Transformation Strategy Costs:

Transformation 2.0			Transformation 2.0
Financial systems	13		Financial systems	0.1	%
Transformation 2.0 total	13		Transformation 2.0 total	0.1	%

Fit to Serve	19		Fit to Serve	0.1	%

Network Reconfiguration and Efficiency Reimagined	296		Network Reconfiguration and Efficiency Reimagined	1.4	%

Total Transformation Strategy Costs	328		Total Transformation Strategy Costs	1.6	%

Non-GAAP Adjusted Operating Profit	$	2,132	Non-GAAP Adjusted Operating Margin	10.0	%

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)


Three Months Ended
September 30,
(amounts in millions)	2025
Income Tax Expense (GAAP)	$	296

Transformation Strategy Costs:

Transformation 2.0
Financial systems	3
Transformation 2.0 total	3

Fit to Serve	4

Network Reconfiguration and Efficiency Reimagined	71

Total Transformation Strategy Costs	78

Reversal of Income Tax Valuation Allowance (3)	86

Non-GAAP Adjusted Income Tax Expense	$	460


(3) Reflects the reversal of an income tax valuation allowance.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)


Three Months Ended
September 30,
(amounts in millions)	2025			2025
Net Income (GAAP)	$	1,311	Diluted Earnings Per Share (GAAP)	$	1.55

Transformation Strategy Costs:			Transformation Strategy Costs:
Transformation 2.0			Transformation 2.0
Financial systems	10		Financial systems	0.01
Transformation 2.0 total	10		Transformation 2.0 total	0.01

Fit to Serve	15		Fit to Serve	0.02

Network Reconfiguration and Efficiency Reimagined	225		Network Reconfiguration and Efficiency Reimagined	0.26

Total Transformation Strategy Costs	250		Total Transformation Strategy Costs	0.29

Reversal of Income Tax Valuation Allowance (3)	(86)		Reversal of Income Tax Valuation Allowance (3)	(0.10)

Non-GAAP Adjusted Net Income	$	1,475	Non-GAAP Adjusted Diluted Earnings Per Share	$	1.74


(3) Reflects the reversal of an income tax valuation allowance.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)


Three Months Ended
September 30,
(amounts in millions)	2024			2024
Operating Profit (GAAP)	$	1,985	Diluted Earnings Per Share (GAAP)	$	1.80

Transformation Strategy Costs:			Transformation Strategy Costs:

Transformation 2.0			Transformation 2.0
Business portfolio review	34		Business portfolio review	0.03
Financial systems	12		Financial systems	0.01
Transformation 2.0 total	46		Transformation 2.0 total	0.04

Fit to Serve	108		Fit to Serve	0.10

Total Transformation Strategy Costs	154		Total Transformation Strategy Costs	0.14

Gain on Divestiture (1)	(156)		Gain on Divestiture (1)	(0.18)

Non-GAAP Adjusted Operating Profit	$	1,983	Non-GAAP Adjusted Diluted Earnings Per Share	$	1.76

(1) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment

(unaudited)


	Three Months Ended
	September 30,
	2025		2024				2025		2024				2025		2024
U.S. Domestic Package	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	13,617	$	13,754	(1.0)	%	$	603	$	843	(28.5)	%	4.2	%	5.8	%

Adjusted for:
Transformation Strategy Costs	(302)		(76)				302		76				2.2	%	0.5	%


Non-GAAP Adjusted Measure	$	13,315	$	13,678	(2.7)	%	$	905	$	919	(1.5)	%	6.4	%	6.3	%

	2025		2024				2025		2024				2025		2024
International Package	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	3,997	$	3,613	10.6	%	$	676	$	798	(15.3)	%	14.5	%	18.1	%

Adjusted for:
Transformation Strategy Costs	(15)		6				15		(6)				0.3	%	(0.1)	%


Non-GAAP Adjusted Measure	$	3,982	$	3,619	10.0	%	$	691	$	792	(12.8)	%	14.8	%	18.0	%

	2025		2024				2025		2024				2025		2024
Supply Chain Solutions	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	1,997	$	2,893	(31.0)	%	$	525	$	344	52.6	%	20.8	%	10.6	%

Adjusted for:
Transformation Strategy Costs	(11)		(84)				11		84				0.5	%	2.6	%
Gain on Divestiture	—		156				—		(156)				—	%	(4.8)	%

Non-GAAP Adjusted Measure	$	1,986	$	2,965	(33.0)	%	$	536	$	272	97.1	%	21.3	%	8.4	%

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)


Nine Months Ended
September 30,
(amounts in millions)	2025			2025
Operating Profit (GAAP)	$	5,292	Operating Margin (GAAP)	8.2	%

Transformation Strategy Costs:			Transformation Strategy Costs:
Transformation 2.0			Transformation 2.0
Business portfolio review	(18)		Business portfolio review	—	%
Financial systems	44		Financial systems	0.1	%
Transformation 2.0 total	26		Transformation 2.0 total	0.1	%

Fit to Serve	47		Fit to Serve	0.1	%

Network Redesign and Efficiency Reimagined	387		Network Redesign and Efficiency Reimagined	0.6	%

Total Transformation Strategy Costs	460		Total Transformation Strategy Costs	0.8	%

Gain on Divestiture (1)	(20)		Gain on Divestiture (1)	(0.1)	%
Goodwill and Asset Impairment Charges (2)	39		Goodwill and Asset Impairment Charges (2)	0.1	%

Non-GAAP Adjusted Operating Profit	$	5,771	Non-GAAP Adjusted Operating Margin	9.0	%

(amounts in millions)	2025
Other Income (Expense) (GAAP)	$	(500)

Goodwill and Asset Impairment Charges (2)	19

Non-GAAP Adjusted Other Income (Expense)	$	(481)

(1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions.
(2) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and the write-down of an equity investment in 2025.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)


Nine Months Ended
September 30,
(amounts in millions)	2025
Income Tax Expense (GAAP)	$	1,011

Transformation Strategy Costs:
Transformation 2.0
Business portfolio review	(5)
Financial systems	11
Transformation 2.0 total	6

Fit to Serve	10

Network Redesign and Efficiency Reimagined	93

Total Transformation Strategy Costs	109

Gain on Divestiture (1)	(5)
Goodwill and Asset Impairment Charges (2)	9
Reversal of Income Tax Valuation Allowance (3)	109

Non-GAAP Adjusted Income Tax Expense	$	1,233


(1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions.
(2) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and the write-down of an equity investment in 2025.
(3) Reflects the reversal of an income tax valuation allowance.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)


Nine Months Ended
September 30,
(amounts in millions)	2025			2025
Net Income (GAAP)	$	3,781	Diluted Earnings Per Share (GAAP)	$	4.46

Transformation Strategy Costs:			Transformation Strategy Costs:

Transformation 2.0			Transformation 2.0
Business portfolio review	(13)		Business portfolio review	(0.02)
Financial systems	33		Financial systems	0.04
Transformation 2.0 total	20		Transformation 2.0 total	0.02

Fit to Serve	37		Fit to Serve	0.04

Network Redesign and Efficiency Reimagined	294		Network Redesign and Efficiency Reimagined	0.35

Total Transformation Strategy Costs	351		Total Transformation Strategy Costs	0.41

Gain on Divestiture (1)	(15)		Gain on Divestiture (1)	(0.02)
Goodwill and Asset Impairment Charges (2)	49		Goodwill and Asset Impairment Charges (2)	0.06
Reversal of Income Tax Valuation Allowance (3)	(109)		Reversal of Income Tax Valuation Allowance (3)	(0.13)

Non-GAAP Adjusted Net Income	$	4,057	Non-GAAP Adjusted Diluted Earnings Per Share	$	4.78


(1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions.
(2) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and the write-down of an equity investment in 2025.
(3) Reflects the partial reversal of an income tax valuation allowance.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment

(unaudited)


	Nine Months Ended
	September 30,
	2025		2024				2025		2024				2025		2024
U.S. Domestic Package	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	40,265	$	40,400	(0.3)	%	$	2,498	$	2,664	(6.2)	%	5.8	%	6.2	%

Adjusted for:
Transformation Strategy Costs	(400)		(93)				400		93				1.0	%	0.2	%
Goodwill and Asset Impairment Charges	—		(5)				—		5				—	%	—	%

Non-GAAP Adjusted Measure	$	39,865	$	40,302	(1.1)	%	$	2,898	$	2,762	4.9	%	6.8	%	6.4	%

	2025		2024				2025		2024				2025		2024
International Package	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	11,542	$	10,865	6.2	%	$	1,989	$	2,172	(8.4)	%	14.7	%	16.7	%

Adjusted for:
Transformation Strategy Costs	(38)		(36)				38		36				0.3	%	0.2	%
Goodwill and Asset Impairment Charges	—		(2)				—		2				—	%	—	%
One-Time Int'l Regulatory Matter	—		(88)				—		88				—	%	0.7	%

Non-GAAP Adjusted Measure	$	11,504	$	10,739	7.1	%	$	2,027	$	2,298	(11.8)	%	15.0	%	17.6	%

	2025		2024				2025		2024				2025		2024
Supply Chain Solutions	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	7,083	$	8,962	(21.0)	%	$	805	$	706	14.0	%	10.2	%	7.3	%

Adjusted for:
Transformation Strategy Costs	(22)		(98)				22		98				0.3	%	1.0	%
Gain on Divestiture	20		156				(20)		(156)				(0.3)	%	(1.6)	%
Goodwill and Asset Impairment Charges	(39)		(41)				39		41				0.5	%	0.4	%
Expense for Regulatory Matter	—		(45)				—		45				—	%	0.5	%

Non-GAAP Adjusted Measure	$	7,042	$	8,934	(21.2)	%	$	846	$	734	15.3	%	10.7	%	7.6	%

United Parcel Service, Inc.

Reconciliation of Free Cash Flow (Non-GAAP measure)

(unaudited):



Nine Months Ended
September 30,
(amounts in millions)	2025
Cash flows from operating activities	$	5,148
Capital expenditures	(2,969)
Proceeds from disposals of property, plant and equipment	585
Other investing activities	(20)
Free Cash Flow (Non-GAAP measure)	$	2,744

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece

(unaudited)


	Three Months Ended
	September 30,
	2025		2024		% Change
Operating Days	64		64
Average Daily U.S. Domestic Package Volume (in thousands)	16,150		18,407
U.S. Domestic Package Cost Per Piece (GAAP)	$	12.92	$	11.50	12.3	%

Transformation Strategy Costs	(0.29)		(0.06)

U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece	$	12.63	$	11.44	10.4	%

Note: Cost per piece excludes expense associated with cargo and other activity.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece

(unaudited)


	Nine Months Ended
	September 30,
	2025		2024		% Change
Operating Days	190		191
Average Daily U.S. Domestic Package Volume (in thousands)	16,707		18,116
U.S. Domestic Package Cost Per Piece (GAAP)	$	12.43	$	11.59	7.2	%

Transformation Strategy Costs	(0.13)		(0.03)



U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece	$	12.30	$	11.56	6.4	%

Note: Cost per piece excludes expense associated with cargo and other activity.

Exhibit 99.2

United Parcel Service, Inc.

Selected Financial Data - Third Quarter

(unaudited)


	Three Months Ended
	September 30,
	2025			2024			Change		% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package	$	14,220		$	14,597		$	(377)	(2.6)	%
International Package	4,673			4,411			262		5.9	%
Supply Chain Solutions	2,522			3,237			(715)		(22.1)	%
Total revenue	21,415			22,245			(830)		(3.7)	%
Operating expenses:
U.S. Domestic Package	13,617			13,754			(137)		(1.0)	%
International Package	3,997			3,613			384		10.6	%
Supply Chain Solutions	1,997			2,893			(896)		(31.0)	%
Total operating expenses	19,611			20,260			(649)		(3.2)	%
Operating profit:
U.S. Domestic Package	603			843			(240)		(28.5)	%
International Package	676			798			(122)		(15.3)	%
Supply Chain Solutions	525			344			181		52.6	%
Total operating profit	1,804			1,985			(181)		(9.1)	%
Other income (expense):
Other pension income (expense)	47			68			(21)		(30.9)	%
Investment income (expense) and other	47			87			(40)		(46.0)	%
Interest expense	(291)			(230)			(61)		26.5	%
Total other income (expense)	(197)			(75)			(122)		162.7	%
Income before income taxes	1,607			1,910			(303)		(15.9)	%
Income tax expense	296			371			(75)		(20.2)	%
Net income	$	1,311		$	1,539		$	(228)	(14.8)	%

Net income as a percentage of revenue	6.1		%	6.9		%
Per share amounts:
Basic earnings per share	$	1.55		$	1.80		$	(0.25)	(13.9)	%
Diluted earnings per share	$	1.55		$	1.80		$	(0.25)	(13.9)	%
Weighted-average shares outstanding:
Basic	848			855			(7)		(0.8)	%
Diluted	848			855			(7)		(0.8)	%
Non-GAAP Adjusted Income Data (1):
Operating profit:
U.S. Domestic Package	$	905		$	919		$	(14)	(1.5)	%
International Package	691			792			(101)		(12.8)	%
Supply Chain Solutions	536			272			264		97.1	%
Total operating profit	2,132			1,983			149		7.5	%
Total other income (expense)	$	(197)		$	(75)		$	(122)	162.7	%
Income before income taxes	$	1,935		$	1,908		$	27	1.4	%
Net income	$	1,475		$	1,503		$	(28)	(1.9)	%

Basic earnings per share	$	1.74		$	1.76		$	(0.02)	(1.1)	%
Diluted earnings per share	$	1.74		$	1.76		$	(0.02)	(1.1)	%

(1) See Non-GAAP schedules for reconciliation of adjustments.

Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Selected Operating Data - Third Quarter

(unaudited)


	Three Months Ended
	September 30,
	2025		2024		Change		% Change
Revenue (in millions):
U.S. Domestic Package:
Next Day Air	$	2,381	$	2,396	$	(15)	(0.6)	%
Deferred	1,020		1,109		(89)		(8.0)	%
Ground	10,525		10,945		(420)		(3.8)	%
Cargo and Other	294		147		147		100.0	%
Total U.S. Domestic Package	14,220		14,597		(377)		(2.6)	%
International Package:
Domestic	847		771		76		9.9	%
Export	3,646		3,482		164		4.7	%
Cargo and Other	180		158		22		13.9	%
Total International Package	4,673		4,411		262		5.9	%
Supply Chain Solutions:
Forwarding	730		1,307		(577)		(44.1)	%
Logistics	1,363		1,550		(187)		(12.1)	%
Other	429		380		49		12.9	%
Total Supply Chain Solutions	2,522		3,237		(715)		(22.1)	%
Consolidated	$	21,415	$	22,245	$	(830)	(3.7)	%

Consolidated volume (in millions)	1,243		1,378		(135)		(9.8)	%

Operating weekdays	64		64		—		0.0	%
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air	1,422		1,596		(174)		(10.9)	%
Deferred	804		988		(184)		(18.6)	%
Ground	13,924		15,823		(1,899)		(12.0)	%
Total U.S. Domestic Package	16,150		18,407		(2,257)		(12.3)	%
International Package:
Domestic	1,536		1,483		53		3.6	%
Export	1,733		1,637		96		5.9	%
Total International Package	3,269		3,120		149		4.8	%
Consolidated	19,419		21,527		(2,108)		(9.8)	%
Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air	$	26.16	$	23.46	$	2.70	11.5	%
Deferred	19.82		17.54		2.28		13.0	%
Ground	11.81		10.81		1.00		9.3	%
Total U.S. Domestic Package	13.47		12.27		1.20		9.8	%
International Package:
Domestic	8.62		8.12		0.50		6.2	%
Export	32.87		33.24		(0.37)		(1.1)	%
Total International Package	21.48		21.30		0.18		0.8	%
Consolidated	$	14.82	$	13.58	$	1.24	9.1	%

United Parcel Service, Inc.

Detail of Operating Expenses - Third Quarter

(unaudited)


	Three Months Ended
	September 30,
	2025		2024		Change		% Change
(in millions)
Compensation and benefits	$	12,118	$	11,955	$	163	1.4	%
Repairs and maintenance	803		713		90		12.6	%
Depreciation and amortization	926		905		21		2.3	%
Purchased transportation	2,463		3,375		(912)		(27.0)	%
Fuel	1,071		1,068		3		0.3	%
Other occupancy	548		517		31		6.0	%
Other expenses	1,682		1,727		(45)		(2.6)	%
Total operating expenses	$	19,611	$	20,260	$	(649)	(3.2)	%

United Parcel Service, Inc.

Selected Financial Data - Year to Date

(unaudited)


	Nine Months Ended
	September 30,
	2025			2024			Change		% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package	$	42,763		$	43,064		$	(301)	(0.7)	%
International Package	13,531			13,037			494		3.8	%
Supply Chain Solutions	7,888			9,668			(1,780)		(18.4)	%
Total revenue	64,182			65,769			(1,587)		(2.4)	%
Operating expenses:
U.S. Domestic Package	40,265			40,400			(135)		(0.3)	%
International Package	11,542			10,865			677		6.2	%
Supply Chain Solutions	7,083			8,962			(1,879)		(21.0)	%
Total operating expenses	58,890			60,227			(1,337)		(2.2)	%
Operating profit:
U.S. Domestic Package	2,498			2,664			(166)		(6.2)	%
International Package	1,989			2,172			(183)		(8.4)	%
Supply Chain Solutions	805			706			99		14.0	%
Total operating profit	5,292			5,542			(250)		(4.5)	%
Other income (expense):
Other pension income (expense)	122			202			(80)		(39.6)	%
Investment income (expense) and other	129			208			(79)		(38.0)	%
Interest expense	(751)			(637)			(114)		17.9	%
Total other income (expense)	(500)			(227)			(273)		120.3	%
Income before income taxes	4,792			5,315			(523)		(9.8)	%
Income tax expense	1,011			1,254			(243)		(19.4)	%
Net income	$	3,781		$	4,061		$	(280)	(6.9)	%

Net income as a percentage of revenue	5.9		%	6.2		%
Per share amounts:
Basic earnings per share	$	4.46		$	4.74		$	(0.28)	(5.9)	%
Diluted earnings per share	$	4.46		$	4.74		$	(0.28)	(5.9)	%
Weighted-average shares outstanding:
Basic	849			856			(7)		(0.8)	%
Diluted	849			856			(7)		(0.8)	%
Non-GAAP Adjusted Income Data (1):
Operating profit:
U.S. Domestic Package	$	2,898		$	2,762		$	136	4.9	%
International Package	2,027			2,298			(271)		(11.8)	%
Supply Chain Solutions	846			734			112		15.3	%
Total operating profit	5,771			5,794			(23)		(0.4)	%
Total other income (expense)	$	(481)		$	(221)		$	(260)	117.6	%
Income before income taxes	$	5,290		$	5,573		$	(283)	(5.1)	%
Net income	$	4,057		$	4,255		$	(198)	(4.7)	%

Basic earnings per share	$	4.78		$	4.97		$	(0.19)	(3.8)	%
Diluted earnings per share	$	4.78		$	4.97		$	(0.19)	(3.8)	%

(1) See Non-GAAP schedules for reconciliation of adjustments.

United Parcel Service, Inc.

Selected Operating Data - Year to Date

(unaudited)


	Nine Months Ended
	September 30,
	2025		2024		Change		% Change
Revenue (in millions):
U.S. Domestic Package:
Next Day Air	$	7,035	$	7,021	$	14	0.2	%
Deferred	3,093		3,372		(279)		(8.3)	%
Ground	31,718		32,410		(692)		(2.1)	%
Cargo and Other	917		261		656		251.3	%
Total U.S. Domestic Package	42,763		43,064		(301)		(0.7)	%
International Package:
Domestic	2,448		2,299		149		6.5	%
Export	10,574		10,269		305		3.0	%
Cargo and Other	509		469		40		8.5	%
Total International Package	13,531		13,037		494		3.8	%
Supply Chain Solutions:
Forwarding	2,188		3,902		(1,714)		(43.9)	%
Logistics	4,411		4,638		(227)		(4.9)	%
Other	1,289		1,128		161		14.3	%
Total Supply Chain Solutions	7,888		9,668		(1,780)		(18.4)	%
Consolidated	$	64,182	$	65,769	$	(1,587)	(2.4)	%

Consolidated volume (in millions)	3,795		4,053		(258)		(6.4)	%

Operating weekdays	190		191		(1)		(0.5)	%

Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air	1,456		1,582		(126)		(8.0)	%
Deferred	831		1,008		(177)		(17.6)	%
Ground	14,420		15,526		(1,106)		(7.1)	%
Total U.S. Domestic Package	16,707		18,116		(1,409)		(7.8)	%
International Package:
Domestic	1,539		1,491		48		3.2	%
Export	1,728		1,613		115		7.1	%
Total International Package	3,267		3,104		163		5.3	%
Consolidated	19,974		21,220		(1,246)		(5.9)	%

Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air	$	25.43	$	23.24	$	2.19	9.4	%
Deferred	19.59		17.51		2.08		11.9	%
Ground	11.58		10.93		0.65		5.9	%
Total U.S. Domestic Package	13.18		12.37		0.81		6.5	%
International Package:
Domestic	8.37		8.07		0.30		3.7	%
Export	32.21		33.33		(1.12)		(3.4)	%
Total International Package	20.98		21.20		(0.22)		(1.0)	%
Consolidated	$	14.46	$	13.66	$	0.80	5.9	%

United Parcel Service, Inc.

Detail of Operating Expenses - Year to Date

(unaudited)


	Nine Months Ended
	September 30,
	2025		2024		Change		% Change
(in millions)
Compensation and benefits	$	35,571	$	35,097	$	474	1.4	%
Repairs and maintenance	2,290		2,165		125		5.8	%
Depreciation and amortization	2,774		2,690		84		3.1	%
Purchased transportation	7,715		9,894		(2,179)		(22.0)	%
Fuel	3,187		3,254		(67)		(2.1)	%
Other occupancy	1,699		1,573		126		8.0	%
Other expenses	5,654		5,554		100		1.8	%
Total operating expenses	$	58,890	$	60,227	$	(1,337)	(2.2)	%

United Parcel Service, Inc.

Consolidated Balance Sheets

September 30, 2025 (unaudited) and December 31, 2024 (amounts in millions)


	September 30, 2025		December 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents	$	6,764	$	6,112
Accounts receivable, net	9,967		10,871
Other current assets	2,254		2,327
Total Current Assets	18,985		19,310
Property, Plant and Equipment, Net	37,743		37,179
Operating Lease Right-Of-Use Assets	4,217		4,149
Goodwill	4,810		4,300
Intangible Assets, Net	3,455		3,064
Deferred Income Tax Assets	158		112
Other Non-Current Assets	2,024		1,956
Total Assets	$	71,392	$	70,070

LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities:
Current maturities of long-term debt, commercial paper and finance leases	$	932	$	1,838
Current maturities of operating leases	742		733
Accounts payable	5,784		6,302
Accrued wages and withholdings	3,476		3,655
Self-insurance reserves	1,024		1,086
Accrued group welfare and retirement plan contributions	1,221		1,390
Other current liabilities	1,373		1,437
Total Current Liabilities	14,552		16,441
Long-Term Debt and Finance Leases	23,850		19,446
Non-Current Operating Leases	3,687		3,635
Pension and Postretirement Benefit Obligations	6,187		6,859
Deferred Income Tax Liabilities	3,581		3,595
Other Non-Current Liabilities	3,687		3,351

Shareowners' Equity:
Class A common stock	2		2
Class B common stock	7		7
Additional paid-in capital	178		136
Retained earnings	19,753		20,882
Accumulated other comprehensive loss	(4,117)		(4,309)
Deferred compensation obligations	5		7
Less: Treasury stock	(5)		(7)
Total Equity for Controlling Interests	15,823		16,718
Noncontrolling interests	25		25
Total Shareowners' Equity	15,848		16,743
Total Liabilities and Shareowners' Equity	$	71,392	$	70,070

Certain prior year amounts have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Statements of Consolidated Cash Flows

(In millions, unaudited)


		Nine Months Ended
		September 30,
		2025		2024
Cash Flows From Operating Activities:
	Net income	$	3,781	$	4,061
	Adjustments to reconcile net income to net cash from operating activities:
	Depreciation and amortization	2,774		2,690
	Pension and postretirement benefit expense	763		774
	Pension and postretirement benefit contributions	(1,338)		(1,434)
	Self-insurance reserves	76		14
	Deferred tax (benefit) expense	(34)		24
	Stock compensation expense (benefit)	41		(21)
	Other (gains) losses	(155)		61
	Changes in assets and liabilities, net of effects of business acquisitions:
	Accounts receivable	854		1,395
	Other assets	(80)		116
	Accounts payable	(801)		(829)
	Accrued wages and withholdings	(202)		348
	Other liabilities	(528)		(335)
	Other operating activities	(3)		(57)
	Net cash from operating activities	5,148		6,807
Cash Flows From Investing Activities:
	Capital expenditures	(2,969)		(2,811)
	Proceeds from disposal of businesses, property, plant and equipment	585		1,070
	Purchases of marketable securities	(90)		(52)
	Sales and maturities of marketable securities	229		2,725
	Acquisitions, net of cash acquired	(479)		(66)
	Other investing activities	(10)		(26)
	Net cash (used in) from investing activities	(2,734)		840
Cash Flows From Financing Activities:
	Net change in short-term debt	—		(1,272)
	Proceeds from long-term borrowings	4,153		2,785
	Repayments of long-term borrowings	(1,145)		(1,944)
	Purchases of common stock	(1,000)		(500)
	Issuances of common stock	133		184
	Dividends	(4,045)		(4,049)
	Other financing activities	(43)		(207)
	Net cash used in financing activities	(1,947)		(5,003)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash		185		5
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash		652		2,649
Cash, Cash Equivalents and Restricted Cash:
	Beginning of period	6,112		3,206
	End of period	$	6,764	$	5,855

Certain prior year amounts have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of Free Cash Flow (Non-GAAP measure)

(In millions, unaudited)



	Nine Months Ended
	September 30,
	2025		2024
Cash flows from operating activities	$	5,148	$	6,807
Capital expenditures	(2,969)		(2,811)
Proceeds from disposals of property, plant and equipment	585		68
Other investing activities	(20)		(26)
Free Cash Flow (Non-GAAP measure)	$	2,744	$	4,038

Certain prior year amounts have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)


Three Months Ended
September 30,
(amounts in millions)	2025		2024			2025		2024
Operating Profit (GAAP)	$	1,804	$	1,985	Operating Margin (GAAP)	8.4	%	8.9	%

Transformation Strategy Costs:					Transformation Strategy Costs:
Transformation 2.0					Transformation 2.0
Business portfolio review	—		34		Business portfolio review	—	%	0.1	%
Financial systems	13		12		Financial systems	0.1	%	0.1	%
Transformation 2.0 total	13		46		Transformation 2.0 total	0.1	%	0.2	%

Fit to Serve	19		108		Fit to Serve	0.1	%	0.5	%

Network Reconfiguration and Efficiency Reimagined	296		—		Network Reconfiguration and Efficiency Reimagined	1.4	%	—	%

Total Transformation Strategy Costs	328		154		Total Transformation Strategy Costs	1.6	%	0.7	%

Gain on Divestiture (6)	—		(156)		Gain on Divestiture (6)	—	%	(0.7)	%

Non-GAAP Adjusted Operating Profit	$	2,132	$	1,983	Non-GAAP Adjusted Operating Margin	10.0	%	8.9	%


(6) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)


Three Months Ended
September 30,
(amounts in millions)	2025		2024		(amounts in millions)	2025		2024
Income Before Income Taxes (GAAP)	$	1,607	$	1,910	Income Tax Expense (GAAP)	$	296	$	371

Transformation Strategy Costs:					Transformation Strategy Costs:
Transformation 2.0					Transformation 2.0
Business portfolio review	—		34		Business portfolio review	—		8
Financial systems	13		12		Financial systems	3		3
Transformation 2.0 total	13		46		Transformation 2.0 total	3		11

Fit to Serve	19		108		Fit to Serve	4		27

Network Reconfiguration and Efficiency Reimagined	296		—		Network Reconfiguration and Efficiency Reimagined	71		—

Total Transformation Strategy Costs	328		154		Total Transformation Strategy Costs	78		38

Gain on Divestiture (6)	—		(156)		Gain on Divestiture (6)	—		(4)
					Reversal of Income Tax Valuation Allowance (7)	86		—
Non-GAAP Adjusted Income Before Income Taxes	$	1,935	$	1,908	Non-GAAP Adjusted Income Tax Expense	$	460	$	405

(6) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(7) Reflects the reversal of an income tax valuation allowance.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)


Three Months Ended
September 30,
(amounts in millions)	2025		2024			2025		2024
Net Income (GAAP)	$	1,311	$	1,539	Diluted Earnings Per Share (GAAP)	$	1.55	$	1.80

Transformation Strategy Costs:					Transformation Strategy Costs:
Transformation 2.0					Transformation 2.0
Business portfolio review	—		26		Business portfolio review	—		0.03
Financial systems	10		9		Financial systems	0.01		0.01
Transformation 2.0 total	10		35		Transformation 2.0 total	0.01		0.04

Fit to Serve	15		81		Fit to Serve	0.02		0.10

Network Reconfiguration and Efficiency Reimagined	225		—		Network Reconfiguration and Efficiency Reimagined	0.26		—

Total Transformation Strategy Costs	250		116		Total Transformation Strategy Costs	0.29		0.14

Gain on Divestiture (6)	—		(152)		Gain on Divestiture (6)	—		(0.18)
Reversal of Income Tax Valuation Allowance (7)	(86)		—		Reversal of Income Tax Valuation Allowance (7)	(0.10)		—

Non-GAAP Adjusted Net Income	$	1,475	$	1,503	Non-GAAP Adjusted Diluted Earnings Per Share	$	1.74	$	1.76


(6) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(7) Reflects the reversal of an income tax valuation allowance.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment

(unaudited)


Three Months Ended
September 30,
	2025		2024				2025		2024				2025		2024
U.S. Domestic Package	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	13,617	$	13,754	(1.0)	%	$	603	$	843	(28.5)	%	4.2	%	5.8	%

Adjusted for:
Transformation Strategy Costs	(302)		(76)				302		76				2.2	%	0.5	%

Non-GAAP Adjusted Measure	$	13,315	$	13,678	(2.7)	%	$	905	$	919	(1.5)	%	6.4	%	6.3	%

	2025		2024				2025		2024				2025		2024
International Package	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	3,997	$	3,613	10.6	%	$	676	$	798	(15.3)	%	14.5	%	18.1	%

Adjusted for:
Transformation Strategy Costs	(15)		6				15		(6)				0.3	%	(0.1)	%

Non-GAAP Adjusted Measure	$	3,982	$	3,619	10.0	%	$	691	$	792	(12.8)	%	14.8	%	18.0	%

	2025		2024				2025		2024				2025		2024
Supply Chain Solutions	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	1,997	$	2,893	(31.0)	%	$	525	$	344	52.6	%	20.8	%	10.6	%

Adjusted for:
Transformation Strategy Costs	(11)		(84)				11		84				0.5	%	2.6	%
Gain on Divestiture	—		156				—		(156)				—	%	(4.8)	%

Non-GAAP Adjusted Measure	$	1,986	$	2,965	(33.0)	%	$	536	$	272	97.1	%	21.3	%	8.4	%

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece

(unaudited)


	Three Months Ended
	September 30,
	2025		2024		% Change
Operating Days	64		64
Average Daily U.S. Domestic Package Volume (in thousands)	16,150		18,407
U.S. Domestic Package Cost Per Piece (GAAP)	$	12.92	$	11.50	12.3	%

Transformation Strategy Costs	(0.29)		(0.06)

U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece	$	12.63	$	11.44	10.4	%

Note: Cost per piece excludes expense associated with cargo and other activity.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)


Nine Months Ended
September 30,
(amounts in millions)	2025		2024			2025		2024
Operating Profit (GAAP)	$	5,292	$	5,542	Operating Margin (GAAP)	8.2	%	8.4	%

Transformation Strategy Costs:					Transformation Strategy Costs:

Transformation 2.0					Transformation 2.0
Business portfolio review	(18)		29		Business portfolio review	—	%	—	%
Financial systems	44		41		Financial systems	0.1	%	0.1	%
Transformation 2.0 total	26		70		Transformation 2.0 total	0.1	%	0.1	%

Fit to Serve	47		157		Fit to Serve	0.1	%	0.2	%
Network Redesign and Efficiency Reimagined	387		—		Network Redesign and Efficiency Reimagined	0.6	%	—	%

Total Transformation Strategy Costs	460		227		Total Transformation Strategy Costs	0.8	%	0.3	%

Gain on Divestiture (1) (6)	(20)		(156)		Gain on Divestiture (1) (6)	(0.1)	%	(0.2)	%
Goodwill and Asset Impairment Charges (2) (3)	39		48		Goodwill and Asset Impairment Charges (2) (3)	0.1	%	0.1	%
Expense for Regulatory Matter (4)	—		45		Expense for Regulatory Matter (4)	—	%	0.1	%
One-Time Payment for Int'l Regulatory Matter (5)	—		88		One-Time Payment for Int'l Regulatory Matter (5)	—	%	0.1	%

Non-GAAP Adjusted Operating Profit	$	5,771	$	5,794	Non-GAAP Adjusted Operating Margin	9.0	%	8.8	%

(amounts in millions)	2025		2024
Other Income (Expense) (GAAP)	$	(500)	$	(227)

Goodwill and Asset Impairment Charges (2) (3)	19		—
One-Time Payment for Int'l Regulatory Matter (5)	—		6

Non-GAAP Adjusted Other Income (Expense)	$	(481)	$	(221)

(1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions.
(2) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and the write-down of an equity investment in 2025.
(3) Reflects pre-tax impairment charges of $41 million for acquired trade names within Supply Chain Solutions and $7 million for software licenses in 2024.
(4) Reflects expense related to the settlement of a regulatory matter.
(5) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.
(6) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)


Nine Months Ended
September 30,
(amounts in millions)	2025		2024		(amounts in millions)	2025		2024
Income Before Income Taxes (GAAP)	$	4,792	$	5,315	Income Tax Expense (GAAP)	$	1,011	$	1,254

Transformation Strategy Costs:					Transformation Strategy Costs:
Transformation 2.0					Transformation 2.0
Business portfolio review	(18)		29		Business portfolio review	(5)		7
Financial systems	44		41		Financial systems	11		10
Transformation 2.0 total	26		70		Transformation 2.0 total	6		17

Fit to Serve	47		157		Fit to Serve	10		38

Network Redesign and Efficiency Reimagined	387		—		Network Redesign and Efficiency Reimagined	93		—

Total Transformation Strategy Costs	460		227		Total Transformation Strategy Costs	109		55

Gain on Divestiture (1) (6)	(20)		(156)		Gain on Divestiture (1) (6)	(5)		(4)
Goodwill and Asset Impairment Charges (2) (3)	58		48		Goodwill and Asset Impairment Charges (2) (3)	9		13
Expense for Regulatory Matter (4)	—		45		Reversal of Income Tax Valuation Allowance (7)	109		—
One-Time Payment for Int'l Regulatory Matter (5)	—		94

Non-GAAP Adjusted Income Before Income Taxes	$	5,290	$	5,573	Non-GAAP Adjusted Income Tax Expense	$	1,233	$	1,318

(1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions.
(2) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and the write-down of an equity investment in 2025.
(3) Reflects pre-tax impairment charges of $41 million for acquired trade names within Supply Chain Solutions and $7 million for software licenses in 2024.
(4) Reflects expense related to the settlement of a regulatory matter.
(5) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.
(6) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(7) Reflects the reversal of an income tax valuation allowance.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)


Nine Months Ended
September 30,
(amounts in millions)	2025		2024			2025		2024
Net Income (GAAP)	$	3,781	$	4,061	Diluted Earnings Per Share (GAAP)	$	4.46	$	4.74

Transformation Strategy Costs:					Transformation Strategy Costs:
Transformation 2.0					Transformation 2.0
Business portfolio review	(13)		22		Business portfolio review	(0.02)		0.03
Financial systems	33		31		Financial systems	0.04		0.04
Transformation 2.0 total	20		53		Transformation 2.0 total	0.02		0.07

Fit to Serve	37		119		Fit to Serve	0.04		0.14

Network Redesign and Efficiency Reimagined	294		—		Network Redesign and Efficiency Reimagined	0.35		—

Total Transformation Strategy Costs	351		172		Total Transformation Strategy Costs	0.41		0.21

Gain on Divestiture (1) (6)	(15)		(152)		Gain on Divestiture (1) (6)	(0.02)		(0.18)
Goodwill and Asset Impairment Charges (2) (3)	49		35		Goodwill and Asset Impairment Charges (2) (3)	0.06		0.04
Expense for Regulatory Matter (4)	—		45		Expense for Regulatory Matter (4)	—		0.05
One-Time Payment for Int'l Regulatory Matter (5)	—		94		One-Time Payment for Int'l Regulatory Matter (5)	—		0.11
Reversal of Income Tax Valuation Allowance (7)	(109)		—		Reversal of Income Tax Valuation Allowance (7)	(0.13)		—

Non-GAAP Adjusted Net Income	$	4,057	$	4,255	Non-GAAP Adjusted Diluted Earnings Per Share	$	4.78	$	4.97

(1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions.
(2) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and the write-down of an equity investment in 2025.
(3) Reflects pre-tax impairment charges of $41 million for acquired trade names within Supply Chain Solutions and $7 million for software licenses in 2024.
(4) Reflects expense related to the settlement of a regulatory matter.
(5) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.
(6) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(7) Reflects the reversal of an income tax valuation allowance.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment

(unaudited)


Nine Months Ended
September 30,
	2025		2024				2025		2024				2025		2024
U.S. Domestic Package	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	40,265	$	40,400	(0.3)	%	$	2,498	$	2,664	(6.2)	%	5.8	%	6.2	%

Adjusted for:
Transformation Strategy Costs	(400)		(93)				400		93				1.0	%	0.2	%
Goodwill and Asset Impairment Charges	—		(5)				—		5				—	%	—	%

Non-GAAP Adjusted Measure	$	39,865	$	40,302	(1.1)	%	$	2,898	$	2,762	4.9	%	6.8	%	6.4	%

	2025		2024				2025		2024				2025		2024
International Package	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	11,542	$	10,865	6.2	%	$	1,989	$	2,172	(8.4)	%	14.7	%	16.7	%

Adjusted for:
Transformation Strategy Costs	(38)		(36)				38		36				0.3	%	0.2	%
Goodwill and Asset Impairment Charges	—		(2)				—		2				—	%	—	%
One-Time Int'l Regulatory Matter	—		(88)				—		88				—	%	0.7	%

Non-GAAP Adjusted Measure	$	11,504	$	10,739	7.1	%	$	2,027	$	2,298	(11.8)	%	15.0	%	17.6	%

	2025		2024				2025		2024				2025		2024
Supply Chain Solutions	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	7,083	$	8,962	(21.0)	%	$	805	$	706	14.0	%	10.2	%	7.3	%

Adjusted for:
Transformation Strategy Costs	(22)		(98)				22		98				0.3	%	1.0	%
Gain on Divestiture	20		156				(20)		(156)				(0.3)	%	(1.6)	%
Goodwill and Asset Impairment Charges	(39)		(41)				39		41				0.5	%	0.4	%
Expense for Regulatory Matter	—		(45)				—		45				—	%	0.5	%

Non-GAAP Adjusted Measure	$	7,042	$	8,934	(21.2)	%	$	846	$	734	15.3	%	10.7	%	7.6	%

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece

(unaudited)


	Nine Months Ended
	September 30,
	2025		2024		% Change
Operating Days	190		191
Average Daily U.S. Domestic Package Volume (in thousands)	16,707		18,116
U.S. Domestic Package Cost Per Piece (GAAP)	$	12.43	$	11.59	7.2	%

Transformation Strategy Costs	(0.13)		(0.03)

U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece	$	12.30	$	11.56	6.4	%

Note: Cost per piece excludes expense associated with cargo and other activity.

United Parcel Service, Inc.

Aircraft Fleet - As of September 30, 2025

(unaudited)


Description	UPS Owned and/or Operated	Charters & Leases Operated by Others	On Order	Under Option

Boeing 757-200	75	—	—	—
Boeing 767-300	87	—	20	—
Boeing 767-300BCF	6	—	—	—
Boeing 767-300BDSF	4	—	—	—
Airbus A300-600	52	—	—	—
Boeing MD-11(1)	27	—	—	—
Boeing 747-400F	11	—	—	—
Boeing 747-400BCF	2	—	—	—
Boeing 747-8F	30	—	—	—
Other	—	222	—	—
Total	294	222	20	—

(1) None of the MD-11 aircraft shown above have been retired from operational use as of September 30, 2025. We anticipate retiring one (1) of the MD-11 aircraft shown above during 2025.


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