United Parcel Service, Inc. (UPS) reported total revenue of $91.1 billion for the fiscal year ending December 31, 2024, a slight increase of 0.1% from $90.96 billion in 2023. However, the company's net income decreased by 13.8% to $5.78 billion, down from $6.71 billion in the previous year. This decline in profitability was reflected in the diluted earnings per share, which fell to $6.75 from $7.80, marking a decrease of 13.5%. The operating profit also saw a decline of 7.4%, dropping to $8.47 billion from $9.14 billion, resulting in an operating margin of 9.3%, down from 10.0% in 2023.
In terms of operational metrics, UPS delivered an average of 22.4 million packages per day in 2024, a 0.6% increase from the previous year. The company served approximately 1.6 million shipping customers and over 10.1 million delivery recipients daily. Despite this growth in package volume, UPS faced challenges, particularly with its largest customer, Amazon, which accounted for 11.8% of consolidated revenues. An agreement reached in early 2025 is expected to reduce the volume delivered for Amazon by more than 50% by mid-2026, prompting UPS to shift its focus towards higher-yielding volume.
Strategically, UPS has been active in expanding its capabilities and optimizing its operations. The company completed the divestiture of its truckload brokerage business, Coyote, in September 2024, which contributed to a pre-tax gain of $156 million. Additionally, UPS announced the acquisition of Frigo-Trans and Biotech & Pharma Logistics in January 2025, aimed at enhancing its healthcare logistics capabilities. The company is also implementing a network reconfiguration expected to lead to the closure of up to 10% of its buildings and a reduction in workforce, as part of its Efficiency Reimagined initiatives, which are projected to yield approximately $1 billion in annualized savings starting in 2025.
Looking ahead, UPS anticipates a challenging year in 2025, with expected revenue declines in its U.S. Domestic Package segment due to the planned volume reductions from Amazon. The company is also preparing for a network reconfiguration that may lead to further operational changes. Despite these challenges, UPS remains focused on its strategic initiatives, including investments in technology and logistics capabilities, to drive future growth and efficiency. The company plans to maintain a disciplined approach to capital allocation, with capital expenditures projected at approximately $3.5 billion for 2025, primarily directed towards network enhancements and technology initiatives.
About UNITED PARCEL SERVICE INC
United Parcel Service (UPS) is a global logistics provider specializing in package delivery, supply chain management, and freight forwarding. Its core services include domestic and international express shipping, logistics, customs brokerage, and specialized healthcare logistics. Serving over 200 countries, UPS leverages an extensive, technology-enabled network to deliver speed, reliability, and integrated solutions to diverse business and consumer customers worldwide.
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