Q3 2025 United Parcel Service Inc Earnings Call Transcript
Key Points
- United Parcel Service Inc (UPS) reported consolidated revenue of $21.4 billion and an operating profit of $2.1 billion for the third quarter of 2025.
- The company achieved a 9.8% increase in US revenue per piece, marking the strongest growth rate in three years.
- International business saw a 4.8% growth in total average daily volume, with export average daily volume increasing by 5.9%.
- UPS's healthcare logistics solutions showed strong revenue growth, contributing positively to the company's performance.
- The company is making significant progress in its acquisition of Andlauer Healthcare Group, expected to strengthen its global healthcare logistics capabilities.
- US average daily volume declined by 12.3%, primarily due to the planned reduction in Amazon volume and lower-yielding e-commerce volume.
- International operating margin was pressured by changes in trade policy, leading to a decline in higher-margin lanes.
- Supply Chain Solutions revenue decreased by $715 million year-over-year, partly due to the divestiture of Coyote.
- The elimination of the de minimis exemption for US imports led to a ten-fold surge in daily customs entries, increasing operational complexity.
- The company faced a $60 million impact in the third quarter due to changes in trade policy, with an expected $75 million to $100 million impact in the fourth quarter.
Good morning. My name is Matthew, and I will be your facilitator today. I'd like to welcome everyone to the UPS third quarter 2025 earnings conference call. (Operator Instructions) It is now my pleasure to turn the floor over to your host, Mr. PJ Guido, Investor Relations Officer. Sir, the floor is yours.
Good morning, and welcome to the UPS third quarter 2025 earnings call. Joining me today are Carol Tomé, our CEO; Brian Dykes, our CFO; and a few additional members of our executive leadership team. Before we begin, I want to remind you that some of the comments we'll make today are forward-looking statements and address our expectations for the future performance or operating results of our company.
These statements are subject to risks and uncertainties, which are described in our 2024 Form 10-K and other reports we file with or furnish to the Securities and Exchange Commission. These reports, when filed, are available on the UPS
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