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United Parcel Service expects fatter holiday profits on slightly slimmer volume
Reuters • • business
Key Points:
- UPS CEO Carol Tome stated the company is focusing on more profitable deliveries, allowing it to earn more revenue despite a 1.3% expected decline in total package volume during the fourth quarter and beyond.
- The company forecasts a 3% increase in domestic revenue and a 7% rise in international revenue, emphasizing higher margins through selective delivery and reduced unprofitable shipments.
- UPS has cut facilities and jobs following a reduction in Amazon deliveries, completed in Q2, and highlights data center construction as a key growth opportunity across its logistics operations.
- For Q3, UPS reported adjusted earnings of $1.69 per share, slightly below last year but above analyst estimates, with improved operating margins in both domestic and international segments.
- UPS is on track to achieve $3 billion in cost savings for the year and raised its 2026 adjusted profit and revenue forecasts, signaling confidence in its streamlined, more profitable business model.
