UPS revenue dips 2.6% in 2025

UPS today reported $88.7 billion in consolidated revenues for 2025, a decrease of 2.6% from 2024. The $2.4 billion decline was partly attributed to UPS’ decision to remove its entire MD-11F fleet from service , downsizing of its Amazon operations and automating some operations, Chief Executive Carol Tome said on today’s earnings call. [caption id="attachment_57295160" align="aligncenter" width="1037"] UPS is scaling down its operations for Amazon. (Courtesy/UPS)[/caption] UPS incurred a $137 million after-tax charge for retiring the trijets, it announced today. UPS expects to decrease Amazon shipments by 1 million pieces per day this year, reducing the volume UPS processes from the e-commerce giant by 50% , Tome said. The decline in UPS volume contributed to the 3.2% YoY drop in fourth-quarter revenue to $24.5 billion, the company reported. Headwinds in 2026 As UPS reduces support to its largest customer, Amazon, and completes its network overhaul, Tome said she expects the express company to face challenges in the first half of the year: U.S. domestic revenue will remain low as it scales down Amazon volume and decreases its workforce ; Operational expenses will remain high during reconfiguration of the network and the implementation of the U.S. Postal Service (USPS) Groundsaver program; and The U.S. small package market will see low single-digit growth as export volume remains subdued by trade tariff uncertainty. Revenue and operating margins are projected to increase in the second half as these changes take effect, Tome said. The express company reached a deal with USPS in Q4 2025 to launch the Groundsaver program, which supports last-mile delivery using density-matching technology to determine which economy packages will be delivered by UPS or by USPS, she said. Full-year earnings As of Dec. 31, 2025, UPS had outstanding orders for eighteen 767-300Fs. It expects to take delivery of five in H1 and ten in H2 to replace capacity lost from the retirement of the twenty-six MD-11Fs, Chief Financial Officer Brian Dykes said on the earnings call. UPS also reported for full-year 2025: Adjusted operating profit of $8.7 billion, down 2.6% YoY; Adjusted diluted earnings per share of $7.16, down 7.3% YoY; U.S. domestic segment revenue of $59.5 billion, down 1.5% YoY; International segment revenue of $18.5 billion, up 3.4% YoY; and Revenue for Supply Chain Solutions, the company’s forwarding and logistics arm, of $10.5 billion, down 17% YoY. Q4 earnings UPS reported fourth-quarter consolidated revenue of $24.5 billion, a decrease of 3.2% YoY. The company’s Q3 consolidated revenue was $21.4 billion, down 3.6% YoY, and its Q2 consolidated revenue was $21.2 billion, down 2.8% YoY. The express company also reported for Q4: Adjusted operating profit of $2.9 billion, down 6.8% YoY; Adjusted diluted earnings per share of $2.38, down 13.5% YoY; U.S. domestic segment revenue of $16.8 billion, down 2.9% YoY; International segment revenue of $5.1 billion, up 4% YoY; and Supply Chain Solutions revenue of $2.7 billion, down 13% YoY. The company attributed the growth in the international segment to a 7.1% increase in revenue per piece. UPS, which expects to recover the 2025 revenue lost over time, is projecting that it will save $3.5 billion through its infrastructure overhaul and increase volumes processed through automated facilities to 68% by the end of 2026 compared with 66.5% at the end of 2025, Tome said. “June of 2026 will be the inflection point,” she said. “Our strategy is not a ‘shrink the company’ strategy, but rather one where we grow in the best parts of the market, including enterprise, [small and medium businesses], [business-to-business], health care and international.” Shares of UPS (NYSE: UPS) were up 0.22% from market open to $107.20 as of market close today. UPS has a market capitalization of $90.9 billion. Cargo Facts will present four invaluable events for airfreight professionals in the first half of 2026, starting with Cargo Facts LATAM, on Feb. 10-12. To see the agendas and register for the events, visit CargoFactsEvents.com .

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