according to the materials of the site - By Tokenist
The company United Parcel Service (UPS) exceeded expectations for the third quarter of 2025 and released a strong forecast for the fourth quarter
The company UPS reported its financial results for the third quarter of 2025, announcing revenue that surpassed expectations. The company also provided guidance for the next quarter, indicating a positive outlook.
United Parcel Service (NYSE: UPS) reported consolidated revenue of $21.4 billion for the third quarter of 2025, exceeding the projected $20.83 billion. The company’s diluted earnings per share (EPS) amounted to $1.55, while the adjusted earnings per share (non-GAAP) was $1.74, higher than the expected $1.31. These strong results were driven by strategic initiatives, including a sale-leaseback transaction that increased earnings per share by $0.30.
Revenue in the U.S. domestic package segment decreased by 2.6% due to lower volumes, although this decline was partially offset by an increase in revenue per package and air freight revenues. Operating profit in this segment significantly decreased compared to the previous year. In the international segment, on the contrary, revenue grew by 5.9%, driven by an increase in average daily volume. The supply chain solutions segment faced a revenue decline of 22.1%, mainly due to the sale of Coyote the previous year, but it managed to achieve significant operating profit growth.
Despite mixed results across various segments, UPS's overall performance in the third quarter reflects the successful execution of its strategic shift. The company's focus on efficiency and customer service has positioned it well for the upcoming holiday season, as noted by CEO Carol Tomé.
Looking ahead, UPS provided guidance for the fourth quarter of 2025, indicating that consolidated revenue will be around $24.0 billion. The company expects that the adjusted operating margin excluding GAAP will be between 11.0% and 11.5%. This forecast reflects UPS’s confidence in its strategic initiatives aimed at improving operational efficiency and customer service quality.
UPS outlined its capital distribution plans for the entire year of 2025, including capital expenditures of about $3.5 billion and dividend payments of approximately $5.5 billion, pending board approval. The company has already executed share repurchases totaling $1 billion and made significant pension contributions. UPS's effective tax rate is expected to be around 23.75%.
UPS's forward-looking statements reflect a commitment to maintaining a strong financial position while managing potential risks and uncertainties. The company continues to focus on creating long-term value for stakeholders through strategic investments and operational improvements. Overall, UPS’s outlook for the fourth quarter and the entire year of 2025 suggests positive momentum, supported by its current transformation strategy and capital distribution plans.
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