United Parcel Service (UPS) has reported consolidated revenues of $21.4 billion (£17.7bn) for the third quarter of 2025, as the logistics giant continues to implement what it calls the most significant strategic transformation in its history.
The company posted a consolidated operating profit of $1.8 billion, or $2.1 billion on a non-GAAP adjusted basis. Diluted earnings per share stood at $1.55 for the quarter, rising to $1.74 on an adjusted basis.
UPS’s results included a net charge of $164 million – equivalent to $0.19 per diluted share – driven by after-tax transformation costs of $250 million, partially offset by an $86 million benefit from the reversal of an income tax valuation allowance.
During the quarter, the company completed a sale-leaseback deal for five properties, generating a pre-tax gain of $330 million within its Supply Chain Solutions business.
The transaction contributed $0.30 to diluted earnings per share and forms part of UPS’s broader capital strategy to monetise real estate assets while maintaining operational continuity through long-term leases.
Carol Tomé, the company’s chief executive officer said: “I want to extend my gratitude to all UPSers for their dedication and steadfast commitment to serving our customers.
“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.”
Revenue fell by 2.6% compared with the same period last year, primarily due to lower package volumes, though this was partially offset by higher revenue per piece and increased air cargo income.
The company reported an operating margin of 4.2%, or 6.4% on an adjusted basis. UPS’s Supply Chain Solutions business saw revenue growth of 5.9% and an operating margin of 14.5% (14.8% adjusted), while its Freight segment experienced a 22.1% revenue decline following the 2024 divestiture of its Coyote business.
Outlook
Looking ahead, UPS expects fourth-quarter 2025 revenue to reach approximately $24 billion, with an adjusted operating margin between 11.0% and 11.5%.
For the full year, the company reaffirmed its guidance, including:
- Capital expenditures of around $3.5 billion
- Dividend payments of approximately $5.5 billion (subject to board approval)
- An effective tax rate of 23.75%
- Pension contributions totalling $1.4 billion (of which $1.3 billion have been made)
- Share repurchases worth $1.0 billion, now completed
UPS said its transformation and investment strategy remains focused on long-term growth, operational efficiency and delivering value to shareholders.