UPS RELEASES 3Q 2026 EARNINGS
• Consolidated Operating Margin of 7.6%; Non-GAAP Adj. Consolidated Operating Margin *
Raises Full-year 2026 Outlook for Consolidated Revenue to ~$92.6B, Non-GAAP Adj.
ATLANTA – October 27, 2026 – UPS (NYSE:UPS) today announced third-quarter 2026 consolidated revenue of $22.9 billion. Consolidated operating profit was $1.7 billion; non-GAAP adjusted consolidated operating profit was $2.1 billion. Diluted earnings per share were $1.37; non-GAAP adjusted diluted earnings per share were $1.69 † .
For the third quarter of 2026, GAAP results include a net charge of $279 million, or $0.32 per diluted share, comprised of after-tax transformation strategy costs of $130 million, as well as a $182 million charge associated with a goodwill impairment in Supply Chain Solutions, partially offset by a gain on sale of MD-11 assets of $33 million.
“I want to thank all UPSers for their unwavering commitment to our customers and for delivering another quarter of strong performance,” said Carol Tomé, UPS chief executive officer. “Our third-quarter results demonstrate the continued strengthening of our business fundamentals, driven by premium growth and greater network efficiency. As momentum builds, we are entering the holiday shipping season from a position of strength, with the most automated and efficient network in our history. Given the strength we see in the business, we are raising our full-year financial guidance.”
1 Consists of operating segments that do not meet the criteria of a reportable segment under ASC Topic 280 – Segment Reporting.
• Revenue increased 18.2%, primarily due to growth in forwarding and logistics, including healthcare.
The company provides certain guidance on a non-GAAP adjusted basis because it is not possible to predict or provide a reconciliation reflecting the impact of various potential future events, including the impact of pension adjustments, certain strategic initiatives or other unanticipated events, which would be included in reported (GAAP) results and could be material.
UPS is raising its fourth-quarter and full-year 2026 financial guidance. For the fourth quarter of 2026, on a consolidated basis, UPS expects revenue to be approximately $25.7 billion and non-GAAP adjusted operating profit of approximately $3.3 billion. For the full year 2026, the company now expects consolidated revenue of approximately $92.6 billion, non-GAAP adjusted operating profit of approximately $8.75 billion, non-GAAP adjusted diluted EPS of approximately $7.28, and non-GAAP adjusted free cash flow of approximately $6.1B.
* “Non-GAAP Adjusted” or “Non-GAAP Adj.” amounts are non-GAAP adjusted financial measures. See the appendix to this release for a discussion of non-GAAP adjusted financial measures, including a reconciliation to the most closely correlated GAAP measure.
† 3Q25 results included a $330M pre-tax gain within Supply Chain Solutions, or $0.30 of EPS, from a sale-leaseback transaction.
UPS CEO Carol Tomé and CFO Brian Dykes will discuss third-quarter results with investors and analysts during a conference call at 8:30 a.m. ET, October 27, 2026. That call will be open to others through a live Webcast. To access the Webcast, go to the UPS Investor Relations page and click on “Earnings Conference Call.” Additional financial information is included in the detailed financial schedules being posted on www.investors.ups.com under “Quarterly Earnings and Financials” and as furnished to the SEC as an exhibit to our Current Report on Form 8-K.
UPS (NYSE: UPS) is one of the world’s largest companies, with 2025 revenue of $88.7 billion , and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s approximately 460,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. More information can be found at www.ups.com, about.ups.com and www.investors.ups.com.
This release, our Annual Report on Form 10-K for the year ended December 31, 2025 and our other filings with the Securities and Exchange Commission contain and in the future may contain “forward-looking statements”. Statements other than those of current or historical fact, and all statements accompanied by terms such as “will,” “believe,” “project,” “expect,” “estimate,” “assume,” “intend,” “anticipate,” “target,” “plan,” and similar terms, are intended to be forward-looking statements.
From time to time, we also include written or oral forward-looking statements in other publicly disclosed materials. Forward-looking statements may relate to our intent, belief, forecasts of, or current expectations about our strategic direction, prospects, future results, or future events; they do not relate strictly to historical or current facts. Management believes that these forward- looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any forward-looking statements because such statements speak only as of the date when made and the future, by its very nature, cannot be predicted with certainty.
Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or anticipated results. These risks and uncertainties include, but are not limited to: changes in general economic conditions in the U.S. or internationally, including as a result of changes in the global trade policy, new or increased tariffs, government shutdowns, or geopolitical uncertainty, tensions and/or conflicts in or arising from various countries and regions, including the European Union, Ukraine, the Russian Federation, the Middle East and the Trans-Pacific region; significant competition on a local, regional, national and international basis; changes in our relationships with our significant customers; our ability to attract and retain qualified employees; strikes, work stoppages or slowdowns by our employees; increased or more complex physical or operational security requirements; a significant cybersecurity incident, or increased data protection regulations; our ability to maintain our brand image and corporate reputation; impacts from global climate change; interruptions in or impacts on our business from natural or man-made events or disasters including terrorist attacks, epidemics or pandemics; exposure to changing economic, political, regulatory and social developments in international and emerging markets; our ability to realize the anticipated benefits from acquisitions, dispositions, joint ventures or strategic alliances; the effects of changing prices of energy, including gasoline, diesel, jet fuel, other fuels and interruptions in supplies of these commodities; changes in exchange rates or interest rates; our ability to accurately forecast our future capital investment needs; increases in our expenses or funding obligations relating to employee health, retiree health and/or pension benefits; our ability to manage insurance and claims expenses; changes in business strategy, government regulations or economic or
market conditions that may result in impairments of our assets; potential additional U.S. or international tax liabilities; increasingly stringent regulations related to climate change ; potential claims or litigation related to labor and employment, personal injury, property damage, business practices, environmental liability and other matters; and other risks discussed in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K for the year ended December 31, 2025, and subsequently filed reports. You should consider the limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of predictions contained in such forward-looking statements. We do not undertake any obligation to update forward-looking statements to reflect events, circumstances, changes in expectations, or the occurrence of unanticipated events after the date of those statements, except as required by law.
The Company routinely posts important information, including news releases, announcements, materials provided or displayed at analyst or investor conferences, and other statements about its business and results of operations, that may be deemed material to investors on the Company’s Investors Relations website at www.investors.ups.com . The Company uses its website as a means of disclosing material, nonpublic information and for complying with the Company’s disclosure obligations under Regulation FD. Investors should monitor the Company’s Investor Relations website in addition to following the Company’s press releases, filings with the SEC, public conference calls and webcasts. W e do not incorporate the contents of any website into this or any other report we file with the SEC.
We supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP adjusted financial measures. Management views and evaluates business performance on both a GAAP basis and by excluding costs and benefits associated with these non-GAAP adjusted financial measures. As a result, we believe the presentation of these non-GAAP adjusted financial measures better enables users of our financial information to view and evaluate underlying business performance from the same perspective as management.
Non-GAAP adjusted financial measures should be considered in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. Our non-GAAP adjusted financial measures do not represent a comprehensive basis of accounting and therefore may not be comparable to similarly titled measures reported by other companies.
From time to time when presenting forward-looking non-GAAP adjusted financial measures, we are unable to provide quantitative reconciliations to the most closely correlated GAAP measure due to the uncertainty in the timing, amount or nature of any adjustments, which could be material in any period.
We exclude the impact of charges related to initiatives within our transformation strategy. Our transformation strategy initiatives have spanned several years and are designed to fundamentally change the spans and layers of our organization structure, processes, technologies and the composition of our business portfolio.
Various circumstances precipitated these initiatives, including identification and prioritization of certain investments, developments and changes in competitive landscapes, inflationary pressures, consumer behaviors, and other factors including post-COVID normalization and volume diversions attributed to our 2023 labor negotiations.
Transformation 2.0: We reduced spans and layers of management, reviewed and refined our business portfolio and invested in certain technologies to reduce costs, increase visibility and reduce reliance on legacy systems. Costs associated with Transformation 2.0 consisted primarily of compensation and benefit costs related to reductions in our workforce and fees paid to third- party consultants. This initiative was completed in 2025.
Fit to Serve: We undertook our Fit to Serve initiative to right-size our business to create a more efficient operating model that was more responsive to market dynamics through a workforce reduction, primarily within management. This initiative was completed in 2025.
Network Reconfiguration and Efficiency Reimagined : Our Network of the Future initiative is enhancing the efficiency of our U.S. Domestic Package network through automation and operational sort consolidation. In connection with our strategic execution of planned volume declines from our largest customer, we began our Network Reconfiguration initiative in the fourth quarter of 2024, which was an expansion of Network of the Future and under which we are further consolidating facilities, vehicles, aircraft and our workforce, as well as, executing an end-to-end process redesign through our Efficiency Reimagined initiative.
Through these initiatives, in the first nine months of 2026, we reduced our operational workforce, closed certain daily operations at leased and owned buildings and achieved approximately $1.8 billion of program benefits. We expect to achieve nearly $3 billion in full year 2026 benefits from these initiatives.
As a part of these initiatives, we expect non-GAAP adjusted operating expense to exclude between $1.4 and $1.6 billion in cost for the full year 2026, primarily related to employee separation costs and third-party consulting fees, of which $1.2 billion is related to the Driver Choice Program. As of September 30, 2026 we had incurred $1.4 billion in costs during 2026, and $1.9 billion in total costs, as a part of these initiatives. While the planned volume reductions from our largest customer were completed in the second quarter of 2026, our Efficiency Reimagined initiative is not expected to conclude until the fourth quarter of 2027.
We do not consider the related costs to be ordinary because each program involves separate and distinct activities that span multiple periods, and such costs are not expected to drive incremental revenue. These initiatives exceed ordinary, ongoing efforts to enhance our business performance and profitability.
We previously recorded non-GAAP adjustments for the impairment of our MD-11 aircraft recognized in the fourth quarter of 2025. As a result of subsequent sales of related previously impaired parts associated with these aircraft, we recognized gains on sales during 2026. We supplement our presentation with non- GAAP adjusted financial measures that exclude the impact of these gains, as we believe such treatment is consistent with how the related impairment was initially presented.
We exclude the impact of gains and losses related to business divestitures. We do not consider these transactions to be a component of our ongoing operations, nor do we consider their impact when evaluating business unit operating performance, resource allocation decisions or incentive compensation award determinations.
We exclude the impact of goodwill and certain asset impairment charges. We do not consider these charges when evaluating business unit operating performance, resource allocation decisions or incentive compensation award determinations.
We previously recorded non-GAAP adjustments for transactions that resulted in capital loss deferred tax assets that were not expected to be realized. As a result of property sales during 2025, we realized these capital losses. We supplement our presentation with non-GAAP adjusted financial measures that exclude the impact of the reversals of the valuation allowances against these deferred tax assets as we believe such treatment is consistent with how the valuation allowance was initially established.
We evaluate the efficiency of our operations using various metrics, including non-GAAP adjusted cost per piece. Non-GAAP adjusted cost per piece in any period is calculated as non-GAAP adjusted operating expenses divided by total volume. Because non-GAAP adjusted operating expenses exclude costs or charges that we do not consider a part of underlying business performance when monitoring and evaluating business unit operating performance, making resource allocation decisions or incentive compensation award determinations, we believe this is the appropriate metric on which to base reviews and evaluations of the efficiency of our operational performance.
We calculate free cash flow as cash flows from operating activities less capital expenditures, proceeds from disposals of property, plant and equipment, and plus or minus the net changes in other investing activities. We believe free cash flow is an important indicator of how much cash is generated by our ongoing business operations and we use this as a measure of incremental cash available to invest in our business, meet our debt obligations and return cash to shareowners.
Three Months Ended (amounts Septem… in 30, millions) 2026 2025 2026 2025 ────────────────────────────────────────────────────────────────────────────── Operat… Operati… Profit $ 1,744 $ 1,804 Margin 7.6 % 8.4 % (GAAP) (GAAP) Transf… Transfo… Strate… Strategy Costs: Costs: Transf… — 13 Transfo… — % 0.1 % 2.0 2.0 Fit to — 19 Fit to — % 0.1 % Serve Serve Network Network Reconf… Reconfi… and 171 296 and 0.8 % 1.4 % Effici… Efficie… Reimag… Reimagi… Total Total Transf… 171 328 Transfo… 0.8 % 1.6 % Strate… Strategy Costs Costs Goodwi… Goodwill and and Asset 182 — Asset 0.8 % — % Impair… Impairm… Charge… Charges… Gains on Gains on Sales -43 — Sales of -0.2 % — % of Assets(… Assets… Non-GA… Non-GAAP Adjust… $ 2,054 $ 2,132 Adjusted 9.0 % 10.0 % Operat… Operati… Profit Margin (1) Reflec… Goodwi… and Asset Impair… Charges for a report… unit within SCS in 2026. (2) Reflec… a gain on the sale of previo… impair… aircra… parts in 2026.
Nine Months Ended (amounts Septem… in 30, millions) 2026 2025 2026 2025 ────────────────────────────────────────────────────────────────────────────── Operat… Operati… Profit $ 3,941 $ 5,292 Margin 5.9 % 8.2 % (GAAP) (GAAP) Transf… Transfo… Strate… Strategy Costs: Costs: Transf… — 26 Transfo… — % 0.1 % 2.0 2.0 Fit to — 47 Fit to — % 0.1 % Serve Serve Network Network Reconf… Reconfi… and 1,398 387 and 2.1 % 0.6 % Effici… Efficie… Reimag… Reimagi… Total Total Transf… 1,398 460 Transfo… 2.1 % 0.8 % Strate… Strategy Costs Costs Goodwi… Goodwill and and Asset 182 — Asset 0.3 % — % Impair… Impairm… Charge… Charges… Gains on Gains on Sales -43 — Sales of -0.1 % — % of Assets(… Assets… Net Net Loss Loss on — 19 on — % — % Divest… Divesti… Non-GA… Non-GAAP Adjust… $ 5,478 $ 5,771 Adjusted 8.2 % 9.0 % Operat… Operati… Profit Margin (1) Reflec… Goodwi… and Asset Impair… Charges for a report… unit within SCS in 2026. (2) Reflec… a gain on the sale of previo… impair… aircra… parts in 2026. (3) Reflec… a loss on the divest… of a busine… within Supply Chain Soluti… in 2025.
Nine Months Ended (amoun… (amou… Septe… in in 30, millio… 2026 2025 milli… 2026 2025 ────────────────────────────────────────────────────────────────────────────── Other Income Income Before (Expe… $ -485 $ -500 Income $ 3,456 $ 4,792 (GAAP) Taxes (GAAP) Goodw… and Transf… Asset — 19 Strate… Impai… Costs: Charg… Transf… — 26 2.0 Non-G… Adjus… Other $ -485 $ -481 Income (Expe… Fit to — 47 Serve Network Reconf… and 1,398 387 Effici… Reimag… Total Transf… 1,398 460 Strate… Costs Goodwi… and Asset 182 19 Impair… Charge… (4) Gains on Sales -43 — of Assets… Net Loss on — 19 Divest… Non-GA… Adjust… Income $ 4,993 $ 5,290 Before Income Taxes (1) Refle… Goodw… and Asset Impai… Charg… for a repor… unit within SCS in 2026. (2) Refle… a gain on the sale of previ… impai… aircr… parts in 2026. (3) Refle… a loss on the dives… of a busin… within Supply Chain Solut… in 2025. (4) Refle… the write… of an equity inves… in 2025.
Nine Months Ended (amounts in September 30, millions) 2026 2025 ─────────────────────────────────────────────────────────────────────────── Income Tax Expense (GAAP) $ 825 $ 1,011 Transformation Strategy Costs: Transformation 2.0 — 6 Fit to Serve — 10 Network Reconfiguration and Efficiency 335 93 Reimagined Total Transformation Strategy Costs 335 109 Gains on Sales of Assets(2) -10 — Net Loss on Divestiture(3) — 4 Reversal of Income Tax Valuation — 109 Allowance(5) Non-GAAP Adjusted Income Tax Expense $ 1,150 $ 1,233 (2) Reflects a gain on the sale of previously impaired aircraft parts in 2026. (3) Reflects a loss on the divestiture of a business within Supply Chain Solutions in 2025. (5) Reflects the reversal of an income tax valuation allowance in 2025.
Nine Months Ended (amounts Septem… in 30, millions) 2026 2025 2026 2025 ────────────────────────────────────────────────────────────────────────────── Diluted Net Earnings Income $ 2,631 $ 3,781 Per $ 3.09 $ 4.46 (GAAP) Share (GAAP) Transf… Transfo… Strate… Strategy Costs: Costs: Transf… — 20 Transfo… — 0.02 2.0 2.0 Fit to — 37 Fit to — 0.04 Serve Serve Network Network Reconf… Reconfi… and 1,063 294 and 1.26 0.35 Effici… Efficie… Reimag… Reimagi… Total Total Transf… 1,063 351 Transfo… 1.26 0.41 Strate… Strategy Costs Costs Goodwi… Goodwill and and Asset 182 19 Asset 0.21 0.02 Impair… Impairm… Charge… Charges… (4) (4) Gains on Gains on Sales -33 — Sales of -0.04 — of Assets(… Assets… Net Net Loss Loss on — 15 on — 0.02 Divest… Divesti… Revers… Reversal of of Income — -109 Income — -0.13 Tax Tax Valuat… Valuati… Allowa… Allowan… Non-GAAP Non-GA… Adjusted Adjust… $ 3,843 $ 4,057 Diluted $ 4.52 $ 4.78 Net Earnings Income Per Share (1) Reflec… Goodwi… and Asset Impair… Charges for a report… unit within SCS in 2026. (2) Reflec… a gain on the sale of previo… impair… aircra… parts in 2026. (3) Reflec… a loss on the divest… of a busine… within Supply Chain Soluti… in 2025. (4) Reflec… the write-… of an equity invest… in 2025. (5) Reflec… the revers… of an income tax valuat… allowa… in 2025.
Nine Months Ended (amounts in September 30, millions) 2026 2025 ─────────────────────────────────────────────────────────────────────────── Cash flows from operating activities $ 5,986 $ 5,148 Capital expenditures -2,221 -2,969 Proceeds from disposals of property, 473 585 plant and equipment Other investing activities -18 -20 Free Cash Flow (Non-GAAP measure) $ 4,220 $ 2,744
Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece
Three Months Ended September 30, 2026 2025 % Change Operating 65 64 Days Average Daily U.S. Domestic Package 15,621 16,150 Volume (in thousands) U.S. Domestic Package Cost $ 13.45 $ 12.92 4.1 % Per Piece (GAAP) Transformati… Strategy -0.17 -0.29 Costs Gains on Sales of 0.04 — Assets U.S. Domestic Package Non-GAAP $ 13.32 $ 12.63 5.5 % Adjusted Cost Per Piece
Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece
Nine Months Ended September 30, 2026 2025 % Change Operating 191 190 Days Average Daily U.S. Domestic Package 15,884 16,707 Volume (in thousands) U.S. Domestic Package Cost $ 13.70 $ 12.43 10.2 % Per Piece (GAAP) Transformati… Strategy -0.46 -0.13 Costs Gains on Sales of 0.01 — Assets U.S. Domestic Package Non-GAAP $ 13.25 $ 12.30 7.7 % Adjusted Cost Per Piece
Full text with the tables
Exhibit 99.1
UPS RELEASES 3Q 2026 EARNINGS
Consolidated Revenue Increased 6.7% to $22.9B,
with Growth Across All Segments
• Consolidated Operating Margin of 7.6%; Non-GAAP Adj. Consolidated Operating
Margin *
of 9.0%
• Diluted EPS of $1.37; Non-GAAP Adj. Diluted EPS of $1.69
•
Raises Fourth-Quarter 2026 Financial Guidance
•
Raises Full-year 2026 Outlook for Consolidated Revenue to ~$92.6B, Non-GAAP Adj.
Operating Profit to ~$8.75B and Non-GAAP Adj. Diluted EPS to ~$7.28
•
Raises Non-GAAP Adj. Free Cash Flow Target to ~$6.1B
ATLANTA – October 27, 2026 – UPS (NYSE:UPS) today announced third-quarter 2026
consolidated revenue of $22.9 billion. Consolidated operating profit was $1.7
billion; non-GAAP adjusted consolidated operating profit was $2.1 billion.
Diluted earnings per share were $1.37; non-GAAP adjusted diluted earnings per
share were $1.69 † .
For the third quarter of 2026, GAAP results include a net charge of $279
million, or $0.32 per diluted share, comprised of after-tax transformation
strategy costs of $130 million, as well as a $182 million charge associated with
a goodwill impairment in Supply Chain Solutions, partially offset by a gain on
sale of MD-11 assets of $33 million.
“I want to thank all UPSers for their unwavering commitment to our customers and
for delivering another quarter of strong performance,” said Carol Tomé, UPS
chief executive officer. “Our third-quarter results demonstrate the continued
strengthening of our business fundamentals, driven by premium growth and greater
network efficiency. As momentum builds, we are entering the holiday shipping
season from a position of strength, with the most automated and efficient
network in our history. Given the strength we see in the business, we are
raising our full-year financial guidance.”
U.S. Domestic Segment
Non-G… Non-G…
3Q Adjus… 3Q Adjus…
2026 3Q 2025 3Q
2026 2025
Reve… $14,8… $14,…
M M
Oper… $906 M $1,0… $603 $905
prof… M M M
• Revenue increased 4.5%, driven by a 6.1% increase in revenue per piece.
• Operating margin was 6.1%; non-GAAP adjusted operating margin was 7.0%.
International Segment
Non-G… Non-G…
3Q Adjus… 3Q Adjus…
2026 3Q 2025 3Q
2026 2025
Reve… $5,007 $4,6…
M M
Oper… $746 M $746 $676 $691
prof… M M M
• Revenue increased 7.1%, driven by a 15.0% increase in revenue per piece.
• Operating margin on both a GAAP and non-GAAP adjusted basis was 14.9%.
Supply Chain Solutions
1
Non-G… Non-G…
3Q Adjus… 3Q Adjus…
2026 3Q 2025 3Q
2026 2025
Reve… $2,981 $2,5…
M M
Oper… $92 M $274 $525 $536
prof… M M M
1 Consists of operating segments that do not meet the criteria of a reportable
segment under ASC Topic 280 – Segment Reporting.
• Revenue increased 18.2%, primarily due to growth in forwarding and logistics,
including healthcare.
• Operating margin was 3.1%; non-GAAP adjusted operating margin was 9.2%.
2026 Outlook
The company provides certain guidance on a non-GAAP adjusted basis because it is
not possible to predict or provide a reconciliation reflecting the impact of
various potential future events, including the impact of pension adjustments,
certain strategic initiatives or other unanticipated events, which would be
included in reported (GAAP) results and could be material.
UPS is raising its fourth-quarter and full-year 2026 financial guidance. For the
fourth quarter of 2026, on a consolidated basis, UPS expects revenue to be
approximately $25.7 billion and non-GAAP adjusted operating profit of
approximately $3.3 billion. For the full year 2026, the company now expects
consolidated revenue of approximately $92.6 billion, non-GAAP adjusted operating
profit of approximately $8.75 billion, non-GAAP adjusted diluted EPS of
approximately $7.28, and non-GAAP adjusted free cash flow of approximately
$6.1B.
The company confirms the following for the full year 2026:
• Capital expenditures of approximately $3.0 billion
• Dividend payments of around $5.4 billion, subject to board approval
• Effective tax rate of approximately 23%
• $1.3 billion in pension contributions
* “Non-GAAP Adjusted” or “Non-GAAP Adj.” amounts are non-GAAP adjusted financial
measures. See the appendix to this release for a discussion of non-GAAP adjusted
financial measures, including a reconciliation to the most closely correlated
GAAP measure.
† 3Q25 results included a $330M pre-tax gain within Supply Chain Solutions, or
$0.30 of EPS, from a sale-leaseback transaction.
Contacts:
UPS Media Relations: 404-828-7123 or pr@ups.com
UPS Investor Relations: 404-828-6059 (option 4) or investor@ups.com
# # #
Conference Call Information
UPS CEO Carol Tomé and CFO Brian Dykes will discuss third-quarter results with
investors and analysts during a conference call at 8:30 a.m. ET, October 27,
2026. That call will be open to others through a live Webcast. To access the
Webcast, go to the UPS Investor Relations page and click on “Earnings Conference
Call.” Additional financial information is included in the detailed financial
schedules being posted on www.investors.ups.com under “Quarterly Earnings and
Financials” and as furnished to the SEC as an exhibit to our Current Report on
Form 8-K.
About UPS
UPS (NYSE: UPS) is one of the world’s largest companies, with 2025 revenue of
$88.7 billion , and provides a broad range of integrated logistics solutions for
customers in more than 200 countries and territories. Focused on its purpose
statement, “Moving our world forward by delivering what matters,” the company’s
approximately 460,000 employees embrace a strategy that is simply stated and
powerfully executed: Customer First. People Led. Innovation Driven. UPS is
committed to reducing its impact on the environment and supporting the
communities we serve around the world. More information can be found at
www.ups.com, about.ups.com and www.investors.ups.com.
Forward-Looking Statements
This release, our Annual Report on Form 10-K for the year ended December 31,
2025 and our other filings with the Securities and Exchange Commission contain
and in the future may contain “forward-looking statements”. Statements other
than those of current or historical fact, and all statements accompanied by
terms such as “will,” “believe,” “project,” “expect,” “estimate,” “assume,”
“intend,” “anticipate,” “target,” “plan,” and similar terms, are intended to be
forward-looking statements.
From time to time, we also include written or oral forward-looking statements in
other publicly disclosed materials. Forward-looking statements may relate to our
intent, belief, forecasts of, or current expectations about our strategic
direction, prospects, future results, or future events; they do not relate
strictly to historical or current facts. Management believes that these forward-
looking statements are reasonable as and when made. However, caution should be
taken not to place undue reliance on any forward-looking statements because such
statements speak only as of the date when made and the future, by its very
nature, cannot be predicted with certainty.
Forward-looking statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from our historical experience
and our present expectations or anticipated results. These risks and
uncertainties include, but are not limited to: changes in general economic
conditions in the U.S. or internationally, including as a result of changes in
the global trade policy, new or increased tariffs, government shutdowns, or
geopolitical uncertainty, tensions and/or conflicts in or arising from various
countries and regions, including the European Union, Ukraine, the Russian
Federation, the Middle East and the Trans-Pacific region; significant
competition on a local, regional, national and international basis; changes in
our relationships with our significant customers; our ability to attract and
retain qualified employees; strikes, work stoppages or slowdowns by our
employees; increased or more complex physical or operational security
requirements; a significant cybersecurity incident, or increased data protection
regulations; our ability to maintain our brand image and corporate reputation;
impacts from global climate change; interruptions in or impacts on our business
from natural or man-made events or disasters including terrorist attacks,
epidemics or pandemics; exposure to changing economic, political, regulatory and
social developments in international and emerging markets; our ability to
realize the anticipated benefits from acquisitions, dispositions, joint ventures
or strategic alliances; the effects of changing prices of energy, including
gasoline, diesel, jet fuel, other fuels and interruptions in supplies of these
commodities; changes in exchange rates or interest rates; our ability to
accurately forecast our future capital investment needs; increases in our
expenses or funding obligations relating to employee health, retiree health
and/or pension benefits; our ability to manage insurance and claims expenses;
changes in business strategy, government regulations or economic or
market conditions that may result in impairments of our assets; potential
additional U.S. or international tax liabilities; increasingly stringent
regulations related to climate change ; potential claims or litigation related
to labor and employment, personal injury, property damage, business practices,
environmental liability and other matters; and other risks discussed in our
filings with the Securities and Exchange Commission from time to time, including
our Annual Report on Form 10-K for the year ended December 31, 2025, and
subsequently filed reports. You should consider the limitations on, and risks
associated with, forward-looking statements and not unduly rely on the accuracy
of predictions contained in such forward-looking statements. We do not undertake
any obligation to update forward-looking statements to reflect events,
circumstances, changes in expectations, or the occurrence of unanticipated
events after the date of those statements, except as required by law.
The Company routinely posts important information, including news releases,
announcements, materials provided or displayed at analyst or investor
conferences, and other statements about its business and results of operations,
that may be deemed material to investors on the Company’s Investors Relations
website at www.investors.ups.com . The Company uses its website as a means of
disclosing material, nonpublic information and for complying with the Company’s
disclosure obligations under Regulation FD. Investors should monitor the
Company’s Investor Relations website in addition to following the Company’s
press releases, filings with the SEC, public conference calls and webcasts. W e
do not incorporate the contents of any website into this or any other report we
file with the SEC.
Reconciliation of GAAP and Non-GAAP Adjusted Financial Measures
We supplement the reporting of our financial information determined under
generally accepted accounting principles ("GAAP") with certain non-GAAP adjusted
financial measures. Management views and evaluates business performance on both
a GAAP basis and by excluding costs and benefits associated with these non-GAAP
adjusted financial measures. As a result, we believe the presentation of these
non-GAAP adjusted financial measures better enables users of our financial
information to view and evaluate underlying business performance from the same
perspective as management.
Non-GAAP adjusted financial measures should be considered in addition to, and
not as an alternative for, our reported results prepared in accordance with
GAAP. Our non-GAAP adjusted financial measures do not represent a comprehensive
basis of accounting and therefore may not be comparable to similarly titled
measures reported by other companies.
Forward-Looking Non-GAAP Adjusted Financial Measures
From time to time when presenting forward-looking non-GAAP adjusted financial
measures, we are unable to provide quantitative reconciliations to the most
closely correlated GAAP measure due to the uncertainty in the timing, amount or
nature of any adjustments, which could be material in any period.
Transformation Strategy Costs
We exclude the impact of charges related to initiatives within our
transformation strategy. Our transformation strategy initiatives have spanned
several years and are designed to fundamentally change the spans and layers of
our organization structure, processes, technologies and the composition of our
business portfolio.
Various circumstances precipitated these initiatives, including identification
and prioritization of certain investments, developments and changes in
competitive landscapes, inflationary pressures, consumer behaviors, and other
factors including post-COVID normalization and volume diversions attributed to
our 2023 labor negotiations.
Our transformation strategy has included the following initiatives:
Transformation 2.0: We reduced spans and layers of management, reviewed and
refined our business portfolio and invested in certain technologies to reduce
costs, increase visibility and reduce reliance on legacy systems. Costs
associated with Transformation 2.0 consisted primarily of compensation and
benefit costs related to reductions in our workforce and fees paid to third-
party consultants. This initiative was completed in 2025.
Fit to Serve: We undertook our Fit to Serve initiative to right-size our
business to create a more efficient operating model that was more responsive to
market dynamics through a workforce reduction, primarily within management. This
initiative was completed in 2025.
Network Reconfiguration and Efficiency Reimagined : Our Network of the Future
initiative is enhancing the efficiency of our U.S. Domestic Package network
through automation and operational sort consolidation. In connection with our
strategic execution of planned volume declines from our largest customer, we
began our Network Reconfiguration initiative in the fourth quarter of 2024,
which was an expansion of Network of the Future and under which we are further
consolidating facilities, vehicles, aircraft and our workforce, as well as,
executing an end-to-end process redesign through our Efficiency Reimagined
initiative.
Through these initiatives, in the first nine months of 2026, we reduced our
operational workforce, closed certain daily operations at leased and owned
buildings and achieved approximately $1.8 billion of program benefits. We expect
to achieve nearly $3 billion in full year 2026 benefits from these initiatives.
As a part of these initiatives, we expect non-GAAP adjusted operating expense to
exclude between $1.4 and $1.6 billion in cost for the full year 2026, primarily
related to employee separation costs and third-party consulting fees, of which
$1.2 billion is related to the Driver Choice Program. As of September 30, 2026
we had incurred $1.4 billion in costs during 2026, and $1.9 billion in total
costs, as a part of these initiatives. While the planned volume reductions from
our largest customer were completed in the second quarter of 2026, our
Efficiency Reimagined initiative is not expected to conclude until the fourth
quarter of 2027.
We do not consider the related costs to be ordinary because each program
involves separate and distinct activities that span multiple periods, and such
costs are not expected to drive incremental revenue. These initiatives exceed
ordinary, ongoing efforts to enhance our business performance and profitability.
Gains and Losses on Sales of Assets
We previously recorded non-GAAP adjustments for the impairment of our MD-11
aircraft recognized in the fourth quarter of 2025. As a result of subsequent
sales of related previously impaired parts associated with these aircraft, we
recognized gains on sales during 2026. We supplement our presentation with non-
GAAP adjusted financial measures that exclude the impact of these gains, as we
believe such treatment is consistent with how the related impairment was
initially presented.
Net Loss (Gain) on Divestitures
We exclude the impact of gains and losses related to business divestitures. We
do not consider these transactions to be a component of our ongoing operations,
nor do we consider their impact when evaluating business unit operating
performance, resource allocation decisions or incentive compensation award
determinations.
Goodwill and Asset Impairments
We exclude the impact of goodwill and certain asset impairment charges. We do
not consider these charges when evaluating business unit operating performance,
resource allocation decisions or incentive compensation award determinations.
Reversal of Income Tax Valuation Allowance
We previously recorded non-GAAP adjustments for transactions that resulted in
capital loss deferred tax assets that were not expected to be realized. As a
result of property sales during 2025, we realized these capital losses. We
supplement our presentation with non-GAAP adjusted financial measures that
exclude the impact of the reversals of the valuation allowances against these
deferred tax assets as we believe such treatment is consistent with how the
valuation allowance was initially established.
Non-GAAP Adjusted Cost per Piece
We evaluate the efficiency of our operations using various metrics, including
non-GAAP adjusted cost per piece. Non-GAAP adjusted cost per piece in any period
is calculated as non-GAAP adjusted operating expenses divided by total volume.
Because non-GAAP adjusted operating expenses exclude costs or charges that we do
not consider a part of underlying business performance when monitoring and
evaluating business unit operating performance, making resource allocation
decisions or incentive compensation award determinations, we believe this is the
appropriate metric on which to base reviews and evaluations of the efficiency of
our operational performance.
Free Cash Flow
We calculate free cash flow as cash flows from operating activities less capital
expenditures, proceeds from disposals of property, plant and equipment, and plus
or minus the net changes in other investing activities. We believe free cash
flow is an important indicator of how much cash is generated by our ongoing
business operations and we use this as a measure of incremental cash available
to invest in our business, meet our debt obligations and return cash to
shareowners.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three
Months
Ended (amounts
Septem… in
30, millions) 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Operat… Operati…
Profit $ 1,744 $ 1,804 Margin 7.6 % 8.4 %
(GAAP) (GAAP)
Transf… Transfo…
Strate… Strategy
Costs: Costs:
Transf… — 13 Transfo… — % 0.1 %
2.0 2.0
Fit to — 19 Fit to — % 0.1 %
Serve Serve
Network Network
Reconf… Reconfi…
and 171 296 and 0.8 % 1.4 %
Effici… Efficie…
Reimag… Reimagi…
Total Total
Transf… 171 328 Transfo… 0.8 % 1.6 %
Strate… Strategy
Costs Costs
Goodwi… Goodwill
and and
Asset 182 — Asset 0.8 % — %
Impair… Impairm…
Charge… Charges…
Gains
on Gains on
Sales -43 — Sales of -0.2 % — %
of Assets(…
Assets…
Non-GA… Non-GAAP
Adjust… $ 2,054 $ 2,132 Adjusted 9.0 % 10.0 %
Operat… Operati…
Profit Margin
(1)
Reflec…
Goodwi…
and
Asset
Impair…
Charges
for a
report…
unit
within
SCS in
2026.
(2)
Reflec…
a gain
on the
sale of
previo…
impair…
aircra…
parts
in
2026.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three
Mont…
Ended (amou… (amou…
Sept… in in
30, milli… 2026 2025 milli… 2026 2025
──────────────────────────────────────────────────────────────────────────────
Inco… Inco…
Befo… Tax
Inco… $ 1,571 $ 1,607 Expe… $ 408 $ 296
Taxes (GAA…
(GAA…
Tran… Tran…
Stra… Stra…
Cost… Cost…
Tran… — 13 Tran… — 3
2.0 2.0
Fit Fit
to — 19 to — 4
Serve Serve
Netw… Netw…
Reco… Reco…
and 171 296 and 41 71
Effi… Effi…
Reim… Reim…
Total Total
Tran… 171 328 Tran… 41 78
Stra… Stra…
Costs Costs
Good… Good…
and and
Asset 182 — Asset — —
Impa… Impa…
Char… Char…
Gains Gains
on on
Sales -43 — Sales -10 —
of of
Asse… Asse…
Reve…
of
Inco… — 86
Tax
Valu…
Allo…
Non-… Non-…
Adju… Adju…
Inco… $ 1,881 $ 1,935 Inco… $ 439 $ 460
Befo… Tax
Inco… Expe…
Taxes
(1)R…
Good…
and
Asset
Impa…
Char…
for a
repo…
unit
with…
SCS
in
2026.
(2)R…
a
gain
on
the
sale
of
prev…
impa…
airc…
parts
in
2026.
(3)R…
the
reve…
of an
inco…
tax
valu…
allo…
in
2025.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Thr…
Mon…
End… (amo…
Sep… in
30, mill… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Dilu…
Net Earn…
Inc… $ 1,163 $ 1,311 Per $ 1.37 $ 1.55
(GA… Share
(GAA…
Tra… Tran…
Str… Stra…
Cos… Cost…
Tra… — 10 Tran… — 0.01
2.0 2.0
Fit Fit
to — 15 to — 0.02
Ser… Serve
Net… Netw…
Rec… Reco…
and 130 225 and 0.15 0.26
Eff… Effi…
Rei… Reim…
Tot… Total
Tra… 130 250 Tran… 0.15 0.29
Str… Stra…
Cos… Costs
Goo… Good…
and and
Ass… 182 — Asset 0.21 —
Imp… Impa…
Cha… Char…
Gai… Gains
on on
Sal… -33 — Sales -0.04 —
of of
Ass… Asse…
Rev… Reve…
of of
Inc… — -86 Inco… — -0.10
Tax Tax
Val… Valu…
All… Allo…
Non-…
Non… Adju…
Adj… $ 1,442 $ 1,475 Dilu… $ 1.69 $ 1.74
Net Earn…
Inc… Per
Share
(1)
Ref…
Goo…
and
Ass…
Imp…
Cha…
for
a
rep…
unit
wit…
SCS
in
202…
(2)
Ref…
a
gain
on
the
sale
of
pre…
imp…
air…
par…
in
202…
(3)
Ref…
the
rev…
of
an
inc…
tax
val…
all…
in
202…
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment
(unaudited)
… % … % O…
… … … … … … … … M… … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … … % $ … $ … … % … % … %
… … … … … % … %
… — … — … % — %
$ … $ … … % $ … $ … … % … % … %
… … … … 2… 2…
… % … % O…
… … … … M…
$ … $ … … % $ … $ … … % … % … %
— … — … — % … %
$ … $ … … % $ … $ … … % … % … %
… … … … 2… 2…
… % … % O…
… … … … M…
$ … $ … … % $ … $ … … % … % … %
— … — … — % … %
… — … — … % — %
$ … $ … … % $ … $ … … % … % … %
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Nine
Months
Ended (amounts
Septem… in
30, millions) 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Operat… Operati…
Profit $ 3,941 $ 5,292 Margin 5.9 % 8.2 %
(GAAP) (GAAP)
Transf… Transfo…
Strate… Strategy
Costs: Costs:
Transf… — 26 Transfo… — % 0.1 %
2.0 2.0
Fit to — 47 Fit to — % 0.1 %
Serve Serve
Network Network
Reconf… Reconfi…
and 1,398 387 and 2.1 % 0.6 %
Effici… Efficie…
Reimag… Reimagi…
Total Total
Transf… 1,398 460 Transfo… 2.1 % 0.8 %
Strate… Strategy
Costs Costs
Goodwi… Goodwill
and and
Asset 182 — Asset 0.3 % — %
Impair… Impairm…
Charge… Charges…
Gains
on Gains on
Sales -43 — Sales of -0.1 % — %
of Assets(…
Assets…
Net Net Loss
Loss on — 19 on — % — %
Divest… Divesti…
Non-GA… Non-GAAP
Adjust… $ 5,478 $ 5,771 Adjusted 8.2 % 9.0 %
Operat… Operati…
Profit Margin
(1)
Reflec…
Goodwi…
and
Asset
Impair…
Charges
for a
report…
unit
within
SCS in
2026.
(2)
Reflec…
a gain
on the
sale of
previo…
impair…
aircra…
parts
in
2026.
(3)
Reflec…
a loss
on the
divest…
of a
busine…
within
Supply
Chain
Soluti…
in
2025.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Nine
Months
Ended (amoun… (amou…
Septe… in in
30, millio… 2026 2025 milli… 2026 2025
──────────────────────────────────────────────────────────────────────────────
Other Income
Income Before
(Expe… $ -485 $ -500 Income $ 3,456 $ 4,792
(GAAP) Taxes
(GAAP)
Goodw…
and Transf…
Asset — 19 Strate…
Impai… Costs:
Charg…
Transf… — 26
2.0
Non-G…
Adjus…
Other $ -485 $ -481
Income
(Expe…
Fit to — 47
Serve
Network
Reconf…
and 1,398 387
Effici…
Reimag…
Total
Transf… 1,398 460
Strate…
Costs
Goodwi…
and
Asset 182 19
Impair…
Charge…
(4)
Gains
on
Sales -43 —
of
Assets…
Net
Loss on — 19
Divest…
Non-GA…
Adjust…
Income $ 4,993 $ 5,290
Before
Income
Taxes
(1)
Refle…
Goodw…
and
Asset
Impai…
Charg…
for a
repor…
unit
within
SCS in
2026.
(2)
Refle…
a gain
on the
sale
of
previ…
impai…
aircr…
parts
in
2026.
(3)
Refle…
a loss
on the
dives…
of a
busin…
within
Supply
Chain
Solut…
in
2025.
(4)
Refle…
the
write…
of an
equity
inves…
in
2025.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Nine Months Ended (amounts in
September 30, millions) 2026 2025
───────────────────────────────────────────────────────────────────────────
Income Tax Expense (GAAP) $ 825 $ 1,011
Transformation Strategy Costs:
Transformation 2.0 — 6
Fit to Serve — 10
Network Reconfiguration and Efficiency 335 93
Reimagined
Total Transformation Strategy Costs 335 109
Gains on Sales of Assets(2) -10 —
Net Loss on Divestiture(3) — 4
Reversal of Income Tax Valuation — 109
Allowance(5)
Non-GAAP Adjusted Income Tax Expense $ 1,150 $ 1,233
(2) Reflects a gain on the sale of
previously impaired aircraft parts in
2026.
(3) Reflects a loss on the divestiture
of a business within Supply Chain
Solutions in 2025.
(5) Reflects the reversal of an income
tax valuation allowance in 2025.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Nine
Months
Ended (amounts
Septem… in
30, millions) 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Diluted
Net Earnings
Income $ 2,631 $ 3,781 Per $ 3.09 $ 4.46
(GAAP) Share
(GAAP)
Transf… Transfo…
Strate… Strategy
Costs: Costs:
Transf… — 20 Transfo… — 0.02
2.0 2.0
Fit to — 37 Fit to — 0.04
Serve Serve
Network Network
Reconf… Reconfi…
and 1,063 294 and 1.26 0.35
Effici… Efficie…
Reimag… Reimagi…
Total Total
Transf… 1,063 351 Transfo… 1.26 0.41
Strate… Strategy
Costs Costs
Goodwi… Goodwill
and and
Asset 182 19 Asset 0.21 0.02
Impair… Impairm…
Charge… Charges…
(4) (4)
Gains
on Gains on
Sales -33 — Sales of -0.04 —
of Assets(…
Assets…
Net Net Loss
Loss on — 15 on — 0.02
Divest… Divesti…
Revers… Reversal
of of
Income — -109 Income — -0.13
Tax Tax
Valuat… Valuati…
Allowa… Allowan…
Non-GAAP
Non-GA… Adjusted
Adjust… $ 3,843 $ 4,057 Diluted $ 4.52 $ 4.78
Net Earnings
Income Per
Share
(1)
Reflec…
Goodwi…
and
Asset
Impair…
Charges
for a
report…
unit
within
SCS in
2026.
(2)
Reflec…
a gain
on the
sale of
previo…
impair…
aircra…
parts
in
2026.
(3)
Reflec…
a loss
on the
divest…
of a
busine…
within
Supply
Chain
Soluti…
in
2025.
(4)
Reflec…
the
write-…
of an
equity
invest…
in
2025.
(5)
Reflec…
the
revers…
of an
income
tax
valuat…
allowa…
in
2025.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment
(unaudited)
… % … % O…
… … … … … … … … M… … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … … % $ … $ … … % … % … %
… … … … … % … %
… — … — … % — %
$ … $ … … % $ … $ … … % … % … %
… … … … 2… 2…
… % … % O…
… … … … M…
$ … $ … … % $ … $ … … % … % … %
… … 4 … … % … %
$ … $ … … % $ … $ … … % … % … %
… … … … 2… 2…
… % … % O…
… … … … M…
$ … $ … … % $ … $ … … % … % … %
… … 1 … — % … %
— … — … — % … %
… — … — … % — %
$ … $ … … % $ … $ … … % … % … %
United Parcel Service, Inc.
Reconciliation of Free Cash Flow (Non-GAAP measure)
(unaudited)
Nine Months Ended (amounts in
September 30, millions) 2026 2025
───────────────────────────────────────────────────────────────────────────
Cash flows from operating activities $ 5,986 $ 5,148
Capital expenditures -2,221 -2,969
Proceeds from disposals of property, 473 585
plant and equipment
Other investing activities -18 -20
Free Cash Flow (Non-GAAP measure) $ 4,220 $ 2,744
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per
Piece
(unaudited)
Three Months
Ended
September 30,
2026 2025 % Change
Operating 65 64
Days
Average Daily
U.S. Domestic
Package 15,621 16,150
Volume (in
thousands)
U.S. Domestic
Package Cost $ 13.45 $ 12.92 4.1 %
Per Piece
(GAAP)
Transformati…
Strategy -0.17 -0.29
Costs
Gains on
Sales of 0.04 —
Assets
U.S. Domestic
Package
Non-GAAP $ 13.32 $ 12.63 5.5 %
Adjusted
Cost Per
Piece
Note: Cost per piece excludes expense associated with cargo and other activity.
United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per
Piece
(unaudited)
Nine Months
Ended
September 30,
2026 2025 % Change
Operating 191 190
Days
Average Daily
U.S. Domestic
Package 15,884 16,707
Volume (in
thousands)
U.S. Domestic
Package Cost $ 13.70 $ 12.43 10.2 %
Per Piece
(GAAP)
Transformati…
Strategy -0.46 -0.13
Costs
Gains on
Sales of 0.01 —
Assets
U.S. Domestic
Package
Non-GAAP $ 13.25 $ 12.30 7.7 %
Adjusted
Cost Per
Piece
Note: Cost per piece excludes expense associated with cargo and other activity.