United Parcel Service

UPS Q1 2025 Earnings

Reported Apr 29, 2025 at 6:09 AM ET · SEC Source

Q1 25 EPS

$1.49

BEAT +7.91%

Est. $1.38

Q1 25 Revenue

$21.55B

BEAT +2.51%

Est. $21.02B

vs S&P Since Q1 25

-10.8%

TRAILING MARKET

UPS +19.3% vs S&P +30.0%

Market Reaction

Did UPS Beat Earnings? Q1 2025 Results

United Parcel Service delivered a stronger-than-expected first quarter, posting adjusted diluted EPS of $1.49 against a consensus estimate of $1.38, a beat of 7.91%, while revenue of $21.55 billion cleared the $21.02 billion estimate by 2.51%, even a… Read more United Parcel Service delivered a stronger-than-expected first quarter, posting adjusted diluted EPS of $1.49 against a consensus estimate of $1.38, a beat of 7.91%, while revenue of $21.55 billion cleared the $21.02 billion estimate by 2.51%, even as sales slipped 0.6% from a year ago. The standout driver was a sharp recovery in U.S. Domestic Package margins, where non-GAAP adjusted operating margin expanded to 7.0% from 5.9%, powered by a 4.5% improvement in revenue per piece and aggressive cost discipline under the company's ongoing transformation strategy, which generated roughly $80 million in benefits during the quarter alone. UPS is targeting $3.50 billion in total cost savings for 2025 through network reconfiguration and workforce reductions of approximately 20,000 positions, with 73 facility closures slated by June. Against that constructive operational backdrop, however, macro headwinds loomed large; UPS declined to update its full-year 2025 outlook, citing tariff-driven uncertainty, with shares nonetheless rising on the earnings beat.

Key Takeaways

  • 4.5% improvement in U.S. Domestic revenue per piece
  • 7.1% increase in International average daily volume
  • Air cargo revenue growth in U.S. Domestic segment
  • Network Reconfiguration and Efficiency Reimagined delivered approximately $80 million in benefits in Q1
  • Total operating expenses declined 1.1% year-over-year
  • Purchased transportation costs declined 15.9% due to Coyote divestiture
24/7 Wall St

UPS YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

UPS Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“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.”

— Carol Tomé, Q1 2025 Earnings Press Release