Q1 2026 United Parcel Service Inc Earnings Call Transcript
Key Points
- United Parcel Service Inc (UPS) achieved consolidated revenue of $21.2 billion and an operating profit of $1.3 billion in the first quarter of 2026, exceeding financial plans and targets.
- The company is on track to achieve its $3 billion cost-out target for the year, driven by strategic actions such as reducing Amazon volume and closing buildings.
- UPS's international business showed solid top-line momentum, with revenue growing by $167 million or 3.8% year-over-year.
- The Supply Chain Solutions segment more than doubled its operating profit compared to the previous year.
- UPS's healthcare logistics network generated its first $3 billion healthcare revenue quarter, marking significant growth in this premium segment.
- Total US average daily volume was down 8% compared to the first quarter of last year, largely due to the Amazon glide down and removal of lower-yielding e-commerce volume.
- International average daily volume declined by 6%, with significant decreases in US import volumes from Europe and China.
- The company faced $350 million in additional expenses due to temporary third-party lease expenses, transition costs, and higher casualty expenses.
- Operating margin for the US Domestic segment was negatively impacted by 250 basis points due to short-term cost pressures.
- The conflict in the Middle East has led to increased fuel costs, adding uncertainty to future financial performance.
Good morning. My name is Matthew, and I will be your facilitator today. I'd like to welcome everyone to the UPS first-quarter 2026 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 First Quarter 2026 Earnings Call. Joining me today are Carol Tome, 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 2025 Form 10-K and other reports we file with or furnished to the Securities and Exchange Commission. These reports, when filed, are available on the UPS Investor Relations website and from the SEC.
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