United Parcel Service, Inc. (UPS) reported its financial results for the first quarter of 2025, revealing a revenue of $21.5 billion, a slight decrease from $21.7 billion in the same period last year. The company's net income rose to $1.2 billion, or $1.40 per diluted share, compared to $1.1 billion, or $1.30 per diluted share, in the prior year, marking a 6.6% increase in profitability. Operating profit also increased by 3.3% to $1.7 billion, driven by improved operational efficiencies despite a decline in package volume.
The results reflect significant strategic shifts within the company, including a planned reduction in shipping volume from its largest customer, which is expected to decrease by over 50% by June 2026. In response, UPS has introduced new services such as Ground Saver, which replaces its former SurePost product, and has launched a Ground with Freight Pricing product for heavier shipments. Additionally, UPS completed the acquisition of Frigo-Trans, a healthcare logistics provider, for approximately $478 million, enhancing its cold-chain logistics capabilities.
Operationally, UPS reported an average daily package volume of 20.8 million, down 1.9% from the previous year, with declines primarily attributed to the aforementioned customer volume reduction. However, revenue per piece increased by 3.6% to $14.22, reflecting a favorable shift in customer mix and pricing strategies. The company also noted a decrease in operating expenses, which fell to $19.9 billion from $20.1 billion, largely due to reduced transportation costs following the divestiture of Coyote in 2024.
Looking ahead, UPS anticipates continued challenges from macroeconomic conditions and trade uncertainties, which may impact its operations. The company is focused on its Network Reconfiguration initiative, aiming to consolidate facilities and reduce workforce by approximately 20,000 positions in 2025, with expected cost savings of $3.5 billion. UPS plans to maintain its disciplined capital allocation strategy, including share repurchases and dividends, while investing in technology and network enhancements to drive future growth.
About UNITED PARCEL SERVICE INC
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