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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 28, 2026

g795027a09.jpg
United Parcel Service, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware 001-15451 58-2480149
(State or other jurisdiction
of incorporation)		 (Commission File Number) (IRS Employer
Identification No.)

      55 Glenlake Parkway, N.E., Atlanta, Georgia                30328
(Address of principal executive offices)                 (Zip Code)
Registrant’s telephone number, including area code (404) 828-6000
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Trading Symbol Name of Each Exchange on Which Registered
Class B common stock, par value $0.01 per share UPS New York Stock Exchange
1% Senior Notes due 2028 UPS28 New York Stock Exchange
1.500% Senior Notes due 2032 UPS32 New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company. ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐










Item 2.02 — Results of Operations and Financial Condition.
     
On July 28, 2026, United Parcel Service, Inc. (the “Company”) issued a press release containing information about the Company’s results of operations and financial condition for the quarter ended June 30, 2026. The Company also posted on its website at www.investors.ups.com financial statement schedules containing additional detail about the Company's results of operations and financial condition for the same period.

A copy of the press release is attached hereto as Exhibit 99.1. A copy of the financial statement schedules is attached hereto as Exhibit 99.2.

Item 9.01 — Financial Statements and Exhibits.

(d) Exhibits

99.1       Press release dated July 28, 2026
99.2       Financial statement schedules
104       The cover page from this Current Report on Form 8-K, formatted in Inline XBRL

The information contained in Items 2.02 and 9.01 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filings under the Securities Act of 1933 or the Exchange Act, except as may be expressly set forth by reference in any such filing.



Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
UNITED PARCEL SERVICE, INC.
Date:
July 28, 2026
 By: /s/ BRIAN DYKES
Brian Dykes
Executive Vice President and Chief Financial Officer


EX-99.1 2 exhibit991-earningspressre.htm EX-99.1 PRESS RELEASE SECOND QUARTER EARNINGS Document

Exhibit 99.1

UPS RELEASES 2Q 2026 EARNINGS
Delivered Year-over-year Consolidated Revenue and Non-GAAP Adjusted* Operating Profit Growth; Expanded Non-GAAP Adjusted Operating Margin
•Consolidated Revenues of $22.8B
•Consolidated Operating Margin of 4.1%; Non-GAAP Adj. Consolidated Operating Margin of 9.2%
•Diluted EPS of $0.71; Non-GAAP Adj. Diluted EPS of $1.76
•Raises Full-year 2026 Consolidated Revenue Outlook to Approximately $91.2B and Non-GAAP Adj. Operating Profit Target to Approximately $8.65B
•Raises Full-year Non-GAAP Adj. Diluted EPS Guidance to Approximately $7.22

ATLANTA – July 28, 2026 – UPS (NYSE:UPS) today announced second-quarter 2026 consolidated revenues of $22.8 billion. Consolidated operating profit was $930 million; and non-GAAP adjusted consolidated operating profit was $2.1 billion. Diluted earnings per share were $0.71; and non-GAAP adjusted diluted earnings per share were $1.76.

For the second quarter of 2026, GAAP results included after-tax transformation charges of $891 million, or $1.05 per diluted share, consisting primarily of employee separation costs associated with workforce reduction initiatives from our recently completed Driver Choice Program.

“I want to thank all UPSers for their extraordinary work over the past 18 months as we successfully completed our Amazon glide down and related network reconfiguration initiatives as designed,” said Carol Tomé, UPS chief executive officer. “Our second-quarter results marked an expected and significant shift in our performance and we delivered both consolidated revenue and non-GAAP adjusted operating profit growth. We entered the second half of the year with strong momentum and are raising our full-year consolidated revenue, non-GAAP adjusted operating profit and non-GAAP adjusted diluted EPS guidance.”

U.S. Domestic Segment

2Q 2026
Non-GAAP
Adjusted
2Q 2026

2Q 2025
Non-GAAP
Adjusted
2Q 2025
Revenue
 $14,930 M $14,083 M
Operating profit
 $16 M $1,188 M $916 M $982 M

•Revenue increased 6.0%, driven by a 9.3% increase in revenue per piece.
•Operating margin was 0.1%; non-GAAP adjusted operating margin was 8.0%.


International Segment

2Q 2026
Non-GAAP
Adjusted
2Q 2026

2Q 2025
Non-GAAP
Adjusted
2Q 2025
Revenue
 $5,044 M $4,485 M
Operating profit
 $623 M $623 M $672 M $682 M

•Revenue increased 12.5%, driven by an 18.9% increase in revenue per piece.
•Operating margin on both a GAAP and non-GAAP adjusted basis was 12.4%.




Supply Chain Solutions1

2Q 2026
Non-GAAP
Adjusted
2Q 2026

2Q 2025
Non-GAAP
Adjusted
2Q 2025
Revenue
 $2,860 M $2,653 M
Operating profit
 $291 M $291 M $234 M $212 M
1 Consists of operating segments that do not meet the criteria of a reportable segment under ASC Topic 280 – Segment Reporting.

•Revenue increased 7.8%, primarily due to growth in forwarding and logistics, including healthcare.
•Operating margin on both a GAAP and non-GAAP adjusted basis was 10.2%.

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.

For the full year 2026, the company is raising its guidance for consolidated revenue to approximately $91.2 billion, consolidated non-GAAP adjusted operating profit to approximately $8.65 billion, and non-GAAP adjusted diluted EPS to approximately $7.22.

The company also confirms expected capital expenditures of about $3.0 billion and dividend payments of around $5.4 billion, subject to board approval. The effective tax rate is still expected to be approximately 23.0%.

* “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.


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 second-quarter results with investors and analysts during a conference call at 8:30 a.m. ET, July 28, 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. We 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 intended to enhance the efficiency of our network through automation and operational sort consolidation in our U.S. Domestic Package network. In connection with our strategic execution of planned volume declines from our largest customer, we began our Network Reconfiguration initiative, which is an expansion of Network of the Future, and has led, and will continue to lead, to further reductions in our facilities, vehicles, aircraft and workforce, as well as an end-to-end process redesign. We launched our Efficiency Reimagined  initiatives to undertake the end-to-end process redesign effort which will align our organizational processes to the network


reconfiguration and enhance our business performance and profitability beyond ordinary ongoing efforts.

Through these initiatives we have reduced our operational workforce and closed certain daily operations at leased and owned buildings. In the first six months of 2026, we achieved approximately $1.2 billion of program benefits from these initiatives. We expect to achieve approximately $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 $1.3 and $1.5 billion in cost during the full year 2026, primarily related to employee separation costs and third-party consulting fees, of which $1.1 billion is related to the Driver Choice Program. As of June 30, 2026 we had incurred costs to date of $1.8 billion, including $1.2 billion in 2026, as a part of these initiatives. These initiatives are expected to conclude by 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.

Goodwill and Asset Impairments

We exclude the impact of goodwill and certain asset impairment charges. We do not consider these charges when evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards.

Net Gains and Losses Related to Divestitures

We exclude the impact of gains or losses related to the business divestitures. We do not consider these gains or losses to be a component of our ongoing operations, nor do we consider their impact when evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards.

Reversal of Income Tax Valuation Allowance

We previously recorded non-GAAP adjustments for transactions that resulted in capital loss deferred tax assets not expected to be realized. As a result of property sales during 2025, these capital losses were fully realized within that year. 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 the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards, 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
June 30,
(amounts in millions) 2026 2025 2026 2025
Operating Profit (GAAP) $ 930  $ 1,822  Operating Margin (GAAP) 4.1  % 8.6  %
Transformation Strategy Costs: Transformation Strategy Costs:
Transformation 2.0 —  (3) Transformation 2.0 —  % —  %
Fit to Serve —  9  Fit to Serve —  % —  %
Network Reconfiguration and Efficiency Reimagined 1,172  68  Network Reconfiguration and Efficiency Reimagined 5.1  % 0.3  %
Total Transformation Strategy Costs 1,172  74  Total Transformation Strategy Costs 5.1  % 0.3  %
Loss (Gain) on Divestiture (1)
—  (20)
Loss (Gain) on Divestiture (1)
—  % (0.1) %
Non-GAAP Adjusted Operating Profit $ 2,102  $ 1,876  Non-GAAP Adjusted Operating Margin 9.2  % 8.8  %
(1) Reflects pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions in 2025.


United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
June 30,
(amounts in millions) 2026 2025 2026 2025
Income Before Income Taxes (GAAP) $ 761  $ 1,662  Income Tax Expense (GAAP) $ 157  $ 379 
Transformation Strategy Costs: Transformation Strategy Costs:
Transformation 2.0 —  (3) Transformation 2.0 —  (1)
Fit to Serve —  9  Fit to Serve —  2 
Network Reconfiguration and Efficiency Reimagined 1,172  68  Network Reconfiguration and Efficiency Reimagined 281  16 
Total Transformation Strategy Costs 1,172  74  Total Transformation Strategy Costs 281  17 
Loss (Gain) on Divestiture (1)
—  (20)
Loss (Gain) on Divestiture (1)
—  (5)
Reversal of Income Tax Valuation Allowance (2)
13
Non-GAAP Adjusted Income Before Income Taxes $ 1,933  $ 1,716  Non-GAAP Adjusted Income Tax Expense $ 438  $ 404 
(1) Reflects pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions in 2025.
(2) Reflects the partial reversal of an income tax valuation allowance in 2025.


United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
June 30,
(amounts in millions) 2026 2025 2026 2025
Net Income (GAAP) $ 604  $ 1,283  Diluted Earnings Per Share (GAAP) $ 0.71  $ 1.51 
Transformation Strategy Costs: Transformation Strategy Costs:
Transformation 2.0 —  (2) Transformation 2.0 —  — 
Fit to Serve —  7  Fit to Serve —  0.01 
Network Reconfiguration and Efficiency Reimagined 891  52  Network Reconfiguration and Efficiency Reimagined 1.05 0.07
Total Transformation Strategy Costs 891  57  Total Transformation Strategy Costs 1.05  0.08 
Loss (Gain) on Divestiture (1)
—  (15)
Loss (Gain) on Divestiture (1)
—  (0.02)
Reversal of Income Tax Valuation Allowance (2)
—  (13)
Reversal of Income Tax Valuation Allowance (2)
—  (0.02)
Non-GAAP Adjusted Net Income $ 1,495  $ 1,312  Non-GAAP Adjusted Diluted Earnings Per Share $ 1.76  $ 1.55 
(1) Reflects pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions in 2025.
(2) Reflects the partial reversal of an income tax valuation allowance in 2025.



United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment
(unaudited)

Three Months Ended
June 30,
2026 2025 2026 2025 2026 2025
U.S. Domestic Package Operating Expenses % Change Operating Profit % Change Operating Margin
GAAP $ 14,914  $ 13,167  13.3  % $ 16  $ 916  (98.3) % 0.1  % 6.5  %
Adjusted for:
Transformation Strategy Costs (1,172) (66) 1,172  66  7.9  % 0.5  %
Non-GAAP Adjusted Measure $ 13,742  $ 13,101  4.9  % $ 1,188  $ 982  21.0  % 8.0  % 7.0  %
2026 2025 2026 2025 2026 2025
International Package Operating Expenses % Change Operating Profit % Change Operating Margin
GAAP $ 4,421  $ 3,813  15.9  % $ 623  $ 672  (7.3) % 12.4  % 15.0  %
Adjusted for:
Transformation Strategy Costs —  (10) —  10  —  % 0.2  %
Non-GAAP Adjusted Measure $ 4,421  $ 3,803  16.3  % $ 623  $ 682  (8.7) % 12.4  % 15.2  %
2026 2025 2026 2025 2026 2025
Supply Chain Solutions Operating Expenses % Change Operating Profit % Change Operating Margin
GAAP $ 2,569  $ 2,419  6.2  % $ 291  $ 234  24.4  % 10.2  % 8.8  %
Adjusted for:
Transformation Strategy Costs —  2  —  (2) —  % (0.1) %
Loss (Gain) on Divestiture —  20  —  (20) —  % (0.7) %
Non-GAAP Adjusted Measure $ 2,569  $ 2,441  5.2  % $ 291  $ 212  37.3  % 10.2  % 8.0  %


United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Six Months Ended
June 30,
(amounts in millions) 2026 2025 2026 2025
Operating Profit (GAAP) $ 2,197  $ 3,488  Operating Margin (GAAP) 5.0  % 8.2  %
Transformation Strategy Costs: Transformation Strategy Costs:
Transformation 2.0 —  13  Transformation 2.0 —  % —  %
Fit to Serve —  28  Fit to Serve —  % 0.1  %
Network Reconfiguration and Efficiency Reimagined 1,227  91  Network Reconfiguration and Efficiency Reimagined 2.8  % 0.2  %
Total Transformation Strategy Costs 1,227  132  Total Transformation Strategy Costs 2.8  % 0.3  %
Loss (Gain) on Divestiture (1)
—  19 
Loss (Gain) on Divestiture (1)
—  % —  %
Non-GAAP Adjusted Operating Profit $ 3,424  $ 3,639  Non-GAAP Adjusted Operating Margin 7.8  % 8.5  %
(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.


United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Six Months Ended
June 30,
(amounts in millions) 2026 2025 2026 2025
Other Income (Expense) (GAAP) $ (312) $ (303) Income Before Income Taxes (GAAP) $ 1,885  $ 3,185 
Goodwill and Asset Impairment Charges (2)
—  19  Transformation Strategy Costs:
Transformation 2.0 —  13 
Non-GAAP Adjusted Other Income (Expense) $ (312) $ (284)
Fit to Serve —  28 
Network Reconfiguration and Efficiency Reimagined 1,227  91 
Total Transformation Strategy Costs 1,227  132 
Loss (Gain) on Divestiture (1)
—  19 
Goodwill and Asset Impairment Charges (2)
—  19 
Non-GAAP Adjusted Income Before Income Taxes $ 3,112  $ 3,355 
(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.
(2) Reflects the write-down of an equity investment in 2025.


















United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Six Months Ended
June 30,
(amounts in millions) 2026 2025
Income Tax Expense (GAAP) $ 417  $ 715 
Transformation Strategy Costs:
Transformation 2.0 —  3 
Fit to Serve —  6 
Network Reconfiguration and Efficiency Reimagined 294  22 
Total Transformation Strategy Costs 294  31 
Loss (Gain) on Divestiture (1)
—  4 
Reversal of Income Tax Valuation Allowance (3)
—  23 
Non-GAAP Adjusted Income Tax Expense $ 711  $ 773 
(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.
(3) Reflects the partial reversal of an income tax valuation allowance in 2025.


United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Six Months Ended
June 30,
(amounts in millions) 2026 2025 2026 2025
Net Income (GAAP) $ 1,468  $ 2,470  Diluted Earnings Per Share (GAAP) $ 1.73  $ 2.91 
Transformation Strategy Costs: Transformation Strategy Costs:
Transformation 2.0 —  10  Transformation 2.0 —  0.01 
Fit to Serve —  22  Fit to Serve —  0.03 
Network Reconfiguration and Efficiency Reimagined 933  69  Network Reconfiguration and Efficiency Reimagined 1.09  0.08 
Total Transformation Strategy Costs 933  101  Total Transformation Strategy Costs 1.09  0.12 
Loss (Gain) on Divestiture (1)
—  15 
Loss (Gain) on Divestiture (1)
—  0.02 
Goodwill and Asset Impairment Charges (2)
—  19 
Goodwill and Asset Impairment Charges (2)
—  0.02 
Reversal of Income Tax Valuation Allowance (3)
—  (23)
Reversal of Income Tax Valuation Allowance (3)
—  (0.03)
Non-GAAP Adjusted Net Income $ 2,401  $ 2,582  Non-GAAP Adjusted Diluted Earnings Per Share $ 2.82  $ 3.04 
(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.
(2) Reflects the write-down of an equity investment in 2025.
(3) Reflects the partial reversal of an income tax valuation allowance in 2025.



United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment
(unaudited)
Six Months Ended
June 30,
2026 2025 2026 2025 2026 2025
U.S. Domestic Package Operating Expenses % Change Operating Profit % Change Operating Margin
GAAP $ 28,524  $ 26,648  7.0  % $ 531  $ 1,895  (72.0) % 1.8  % 6.6  %
Adjusted for:
Transformation Strategy Costs (1,222) (98) 1,222  98  4.2  % 0.4  %
Non-GAAP Adjusted Measure $ 27,302  $ 26,550  2.8  % $ 1,753  $ 1,993  (12.0) % 6.0  % 7.0  %
2026 2025 2026 2025 2026 2025
International Package Operating Expenses % Change Operating Profit % Change Operating Margin
GAAP $ 8,414  $ 7,545  11.5  % $ 1,170  $ 1,313  (10.9) % 12.2  % 14.8  %
Adjusted for:
Transformation Strategy Costs (4) (23) 4  23  —  % 0.3  %
Non-GAAP Adjusted Measure $ 8,410  $ 7,522  11.8  % $ 1,174  $ 1,336  (12.1) % 12.2  % 15.1  %
2026 2025 2026 2025 2026 2025
Supply Chain Solutions Operating Expenses % Change Operating Profit % Change Operating Margin
GAAP $ 4,901  $ 5,086  (3.6) % $ 496  $ 280  77.1  % 9.2  % 5.2  %
Adjusted for:
Transformation Strategy Costs (1) (11) 1  11  —  % 0.2  %
Loss (Gain) on Divestiture —  (19) —  19  0.4  %
Non-GAAP Adjusted Measure $ 4,900  $ 5,056  (3.1) % $ 497  $ 310  60.3  % 9.2  % 5.8  %



United Parcel Service, Inc.
Reconciliation of Free Cash Flow (Non-GAAP measure)
(unaudited)
Six Months Ended
June 30,
(amounts in millions) 2026 2025
Cash flows from operating activities $ 3,083  $ 2,666 
Capital expenditures (1,724) (1,999)
Proceeds from disposals of property, plant and equipment 198  91 
Other investing activities 16  (16)
Free Cash Flow (Non-GAAP measure) $ 1,573  $ 742 
















United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece
(unaudited)

Three Months Ended
June 30,
2026 2025 % Change
Operating Days 64  64 
Average Daily U.S. Domestic Package Volume (in thousands) 16,002  16,553 
U.S. Domestic Package Cost Per Piece (GAAP) $ 14.23  $ 12.18  16.8  %
Transformation Strategy Costs (1.14) (0.06)
U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece $ 13.09  $ 12.12  8.0  %

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)

Six Months Ended
June 30,
2026 2025 % Change
Operating Days 126  126 
Average Daily U.S. Domestic Package Volume (in thousands) 16,020  16,991 
U.S. Domestic Package Cost Per Piece (GAAP) $ 13.82  $ 12.20  13.3  %
Transformation Strategy Costs (0.61) (0.05)
U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece $ 13.21  $ 12.15  8.7  %

Note: Cost per piece excludes expense associated with cargo and other activity.
EX-99.2 3 exhibit992-financialstatem.htm EX-99.2 Q2 2022 FINANCIAL STATEMENT SCHEDULES Document

Exhibit 99.2
United Parcel Service, Inc.
Selected Financial Data - Second Quarter
(unaudited)
Three Months Ended
June 30,
2026 2025 Change % Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
  U.S. Domestic Package $ 14,930  $ 14,083  $ 847  6.0  %
  International Package 5,044  4,485  559  12.5  %
  Supply Chain Solutions 2,860  2,653  207  7.8  %
  Total revenue 22,834  21,221  1,613  7.6  %
Operating expenses:
  U.S. Domestic Package 14,914  13,167  1,747  13.3  %
  International Package 4,421  3,813  608  15.9  %
  Supply Chain Solutions 2,569  2,419  150  6.2  %
  Total operating expenses 21,904  19,399  2,505  12.9  %
Operating profit:
  U.S. Domestic Package 16  916  (900) (98.3) %
  International Package 623  672  (49) (7.3) %
  Supply Chain Solutions 291  234  57  24.4  %
  Total operating profit 930  1,822  (892) (49.0) %
Other income (expense):
 Other pension income (expense) 66  38  28  73.7  %
  Investment income (expense) and other 37  40  (3) (7.5) %
  Interest expense (272) (238) (34) 14.3  %
  Total other income (expense) (169) (160) (9) 5.6  %
Income before income taxes 761  1,662  (901) (54.2) %
Income tax expense 157  379  (222) (58.6) %
Net income $ 604  $ 1,283  $ (679) (52.9) %
Net income as a percentage of revenue 2.6  % 6.0  %
Per share amounts:
  Basic earnings per share $ 0.71  $ 1.51  $ (0.80) (53.0) %
  Diluted earnings per share $ 0.71  $ 1.51  $ (0.80) (53.0) %
Weighted-average shares outstanding:
  Basic 851  847  4  0.5  %
  Diluted 851  847  4  0.5  %
Non-GAAP Adjusted Income Data (1):
Operating profit:
  U.S. Domestic Package $ 1,188  $ 982  $ 206  21.0  %
  International Package 623  682  (59) (8.7) %
  Supply Chain Solutions 291  212  79  37.3  %
  Total operating profit 2,102  1,876  226  12.0  %
Total other income (expense) $ (169) $ (160) $ (9) 5.6  %
Income before income taxes $ 1,933  $ 1,716  $ 217  12.6  %
Net income $ 1,495  $ 1,312  $ 183  13.9  %
Basic earnings per share $ 1.76  $ 1.55  $ 0.21  13.5  %
Diluted earnings per share $ 1.76  $ 1.55  $ 0.21  13.5  %

(1) See Non-GAAP schedules for reconciliation of adjustments.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Selected Operating Data - Second Quarter
(unaudited)
Three Months Ended
June 30,
2026 2025 Change % Change
Revenue (in millions):
U.S. Domestic Package:
   Next Day Air $ 2,578  $ 2,293  $ 285  12.4  %
   Deferred 1,102  1,024  78  7.6  %
   Ground 10,908  10,484  424  4.0  %
Cargo and Other 342  282  60  21.3  %
      Total U.S. Domestic Package 14,930  14,083  847  6.0  %
International Package:
   Domestic 869  830  39  4.7  %
   Export 3,962  3,484  478  13.7  %
   Cargo and Other 213  171  42  24.6  %
      Total International Package 5,044  4,485  559  12.5  %
Supply Chain Solutions:
   Forwarding 791  732  59  8.1  %
Logistics 1,540  1,476  64  4.3  %
   Other 529  445  84  18.9  %
      Total Supply Chain Solutions 2,860  2,653  207  7.8  %
Consolidated $ 22,834  $ 21,221  $ 1,613  7.6  %
Consolidated volume (in millions) 1,217  1,263  (46) (3.6) %
Operating weekdays 64  64  —  0.0  %
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
   Next Day Air 1,411  1,429  (18) (1.3) %
   Deferred 792  825  (33) (4.0) %
   Ground 13,799  14,299  (500) (3.5) %
      Total U.S. Domestic Package 16,002  16,553  (551) (3.3) %
International Package:
   Domestic 1,394  1,507  (113) (7.5) %
   Export 1,610  1,681  (71) (4.2) %
      Total International Package 3,004  3,188  (184) (5.8) %
Consolidated 19,006  19,741  (735) (3.7) %
Average Revenue Per Piece:
U.S. Domestic Package:
   Next Day Air $ 28.55  $ 25.07  $ 3.48  13.9  %
   Deferred 21.74  19.39  2.35  12.1  %
   Ground 12.35  11.46  0.89  7.8  %
      Total U.S. Domestic Package 14.24  13.03  1.21  9.3  %
International Package:
   Domestic 9.74  8.61  1.13  13.1  %
   Export 38.45  32.38  6.07  18.7  %
      Total International Package 25.13  21.14  3.99  18.9  %
Consolidated $ 15.96  $ 14.34  $ 1.62  11.3  %
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Detail of Operating Expenses - Second Quarter
(unaudited)
Three Months Ended
June 30,
2026 2025 Change % Change
(in millions)
Compensation and benefits $ 12,654  $ 11,626  $ 1,028  8.8  %
Repairs and maintenance 789  755  34  4.5  %
Depreciation and amortization 980  936  44  4.7  %
Purchased transportation 3,187  2,522  665  26.4  %
Fuel 1,697  1,058  639  60.4  %
Other occupancy 557  544  13  2.4  %
Other expenses 2,040  1,958  82  4.2  %
Total operating expenses $ 21,904  $ 19,399  $ 2,505  12.9  %
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Selected Financial Data - Year to Date
(unaudited)
Six Months Ended
June 30,
2026 2025 Change % Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
  U.S. Domestic Package $ 29,055  $ 28,543  $ 512  1.8  %
  International Package 9,584  8,858  726  8.2  %
  Supply Chain Solutions 5,397  5,366  31  0.6  %
  Total revenue 44,036  42,767  1,269  3.0  %
Operating expenses:
  U.S. Domestic Package 28,524  26,648  1,876  7.0  %
  International Package 8,414  7,545  869  11.5  %
  Supply Chain Solutions 4,901  5,086  (185) (3.6) %
  Total operating expenses 41,839  39,279  2,560  6.5  %
Operating profit:
  U.S. Domestic Package 531  1,895  (1,364) (72.0) %
  International Package 1,170  1,313  (143) (10.9) %
  Supply Chain Solutions 496  280  216  77.1  %
  Total operating profit 2,197  3,488  (1,291) (37.0) %
Other income (expense):
 Other pension income (expense) 133  75  58  77.3  %
  Investment income (expense) and other 93  82  11  13.4  %
  Interest expense (538) (460) (78) 17.0  %
  Total other income (expense) (312) (303) (9) 3.0  %
Income before income taxes 1,885  3,185  (1,300) (40.8) %
Income tax expense 417  715  (298) (41.7) %
Net income $ 1,468  $ 2,470  $ (1,002) (40.6) %
Net income as a percentage of revenue 3.3  % 5.8  %
Per share amounts:
  Basic earnings per share $ 1.73  $ 2.91  $ (1.18) (40.5) %
  Diluted earnings per share $ 1.73  $ 2.91  $ (1.18) (40.5) %
Weighted-average shares outstanding:
  Basic 850  849  1  0.1  %
  Diluted 851  849  2  0.2  %
Non-GAAP Adjusted Income Data (1):
Operating profit:
  U.S. Domestic Package $ 1,753  $ 1,993  $ (240) (12.0) %
  International Package 1,174  1,336  (162) (12.1) %
  Supply Chain Solutions 497  310  187  60.3  %
  Total operating profit 3,424  3,639  (215) (5.9) %
Total other income (expense) $ (312) $ (284) $ (28) 9.9  %
Income before income taxes $ 3,112  $ 3,355  $ (243) (7.2) %
Net income $ 2,401  $ 2,582  $ (181) (7.0) %
Basic earnings per share $ 2.82  $ 3.04  $ (0.22) (7.2) %
Diluted earnings per share $ 2.82  $ 3.04  $ (0.22) (7.2) %

(1) See Non-GAAP schedules for reconciliation of adjustments.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Selected Operating Data - Year to Date
(unaudited)
Six Months Ended
June 30,
2026 2025 Change % Change
Revenue (in millions):
U.S. Domestic Package:
   Next Day Air $ 4,932  $ 4,654  $ 278  6.0  %
   Deferred 2,147  2,073  74  3.6  %
   Ground 21,346  21,193  153  0.7  %
Cargo and Other 630  623  7  1.1  %
      Total U.S. Domestic Package 29,055  28,543  512  1.8  %
International Package:
   Domestic 1,704  1,601  103  6.4  %
   Export 7,510  6,928  582  8.4  %
   Cargo and Other 370  329  41  12.5  %
      Total International Package 9,584  8,858  726  8.2  %
Supply Chain Solutions:
   Forwarding 1,447  1,458  (11) (0.8) %
Logistics 2,949  3,048  (99) (3.2) %
   Other 1,001  860  141  16.4  %
      Total Supply Chain Solutions 5,397  5,366  31  0.6  %
Consolidated $ 44,036  $ 42,767  $ 1,269  3.0  %
Consolidated volume (in millions) 2,406  2,552  (146) (5.7) %
Operating weekdays 126  126  —  0.0  %
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
   Next Day Air 1,389  1,474  (85) (5.8) %
   Deferred 798  845  (47) (5.6) %
   Ground 13,833  14,672  (839) (5.7) %
      Total U.S. Domestic Package 16,020  16,991  (971) (5.7) %
International Package:
   Domestic 1,432  1,541  (109) (7.1) %
   Export 1,641  1,725  (84) (4.9) %
      Total International Package 3,073  3,266  (193) (5.9) %
Consolidated 19,093  20,257  (1,164) (5.7) %
Average Revenue Per Piece:
U.S. Domestic Package:
   Next Day Air $ 28.18  $ 25.06  $ 3.12  12.5  %
   Deferred 21.35  19.47  1.88  9.7  %
   Ground 12.25  11.46  0.79  6.9  %
      Total U.S. Domestic Package 14.08  13.04  1.04  8.0  %
International Package:
   Domestic 9.44  8.25  1.19  14.4  %
   Export 36.32  31.87  4.45  14.0  %
      Total International Package 23.80  20.73  3.07  14.8  %
Consolidated $ 15.65  $ 14.28  $ 1.37  9.6  %
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Detail of Operating Expenses - Year to Date
(unaudited)
Six Months Ended
June 30,
2026 2025 Change % Change
(in millions)
Compensation and benefits $ 24,199  $ 23,453  $ 746  3.2  %
Repairs and maintenance 1,581  1,487  94  6.3  %
Depreciation and amortization 1,965  1,848  117  6.3  %
Purchased transportation 5,951  5,252  699  13.3  %
Fuel 2,780  2,116  664  31.4  %
Other occupancy 1,231  1,151  80  7.0  %
Other expenses 4,132  3,972  160  4.0  %
Total operating expenses $ 41,839  $ 39,279  $ 2,560  6.5  %
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Consolidated Balance Sheets
June 30, 2026 (unaudited) and December 31, 2025 (amounts in millions)

June 30,
2026		 December 31,
2025
ASSETS
Current Assets:
Cash and cash equivalents $ 4,653  $ 5,887 
Accounts receivable, Net 10,710  11,209 
Other current assets 2,182  1,949 
 Total Current Assets 17,545  19,045 
Property, Plant and Equipment, Net 37,894  37,731 
Operating Lease Right-Of-Use Assets 4,016  4,263 
Goodwill 5,770  5,837 
Intangible Assets, Net 3,954  4,021 
Deferred Income Tax Assets 155  140 
Other Non-Current Assets 1,933  2,053 
Total Assets $ 71,267  $ 73,090 
LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities:
Current maturities of long-term debt and finance leases $ 634  $ 608 
Current maturities of operating leases 729  763 
Accounts payable 5,976  6,633 
Accrued wages and withholdings 3,383  3,715 
Self-insurance reserves 1,123  1,137 
Accrued group welfare and retirement plan contributions 1,073  1,389 
Other current liabilities 1,963  1,375 
Total Current Liabilities 14,881  15,620 
Long-Term Debt and Finance Leases 23,850  23,519 
Non-Current Operating Leases 3,460  3,700 
Pension and Postretirement Benefit Obligations 6,341  6,567 
Deferred Income Tax Liabilities 3,882  3,690 
Other Non-Current Liabilities 3,754  3,739 
Shareowners' Equity:
Class A common stock 1  1 
Class B common stock 8  8 
Additional paid-in capital 482  275 
Retained earnings 18,830  20,151 
Accumulated other comprehensive loss (4,254) (4,208)
Deferred compensation obligations 3  5 
Less: Treasury stock (3) (5)
Total Equity for Controlling Interests 15,067  16,227 
Noncontrolling interests 32  28 
Total Shareowners' Equity 15,099  16,255 
Total Liabilities and Shareowners' Equity $ 71,267  $ 73,090 
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Statements of Consolidated Cash Flows
(In millions, unaudited)

 Six Months Ended
June 30,
2026 2025
Cash Flows From Operating Activities:
Net income $ 1,468  $ 2,470 
Adjustments to reconcile net income to net cash from operating activities:
 Depreciation and amortization 1,965  1,848 
 Pension and postretirement benefit expense 429  514 
 Pension and postretirement benefit contributions (581) (921)
 Self-insurance reserves 105  169 
 Deferred tax (benefit) expense
144  (84)
 Stock compensation expense
 58  16 
 Other (gains) losses
90  64 
Changes in assets and liabilities, net of effects of business acquisitions:
 Accounts receivable 330  540 
 Other assets (272) (140)
 Accounts payable (302) (442)
 Accrued wages and withholdings (306) (447)
 Other liabilities (44) (909)
Other operating activities (1) (12)
 Net cash from operating activities 3,083  2,666 
Cash Flows From Investing Activities:
Capital expenditures (1,724) (1,999)
Proceeds from disposal of businesses, property, plant and equipment 198  91 
Purchases of marketable securities —  (90)
Sales and maturities of marketable securities —  205 
Acquisitions, net of cash acquired —  (479)
Other investing activities 16  (6)
Net cash used in investing activities
 (1,510) (2,278)
Cash Flows From Financing Activities:
Proceeds from long-term borrowings —  4,153 
Repayments of long-term borrowings (85) (1,062)
Purchases of common stock —  (1,000)
Issuances of common stock 60  102 
Dividends (2,708) (2,697)
Other financing activities (24) (15)
Net cash used in financing activities (2,757) (519)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash (50) 213 
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash (1,234) 82 
Cash, Cash Equivalents and Restricted Cash:
Beginning of period 5,887  6,112 
End of period $ 4,653  $ 6,194 
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of Free Cash Flow (Non-GAAP measure)
(In millions, unaudited)

 Six Months Ended
June 30,
2026 2025
Cash flows from operating activities $ 3,083  $ 2,666 
Capital expenditures (1,724) (1,999)
Proceeds from disposals of property, plant and equipment 198  91 
Other investing activities 16  (16)
   Free Cash Flow (Non-GAAP measure) $ 1,573  $ 742 
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
June 30,
(amounts in millions) 2026 2025 2026 2025
Operating Profit (GAAP) $ 930  $ 1,822  Operating Margin (GAAP) 4.1  % 8.6  %
Transformation Strategy Costs: Transformation Strategy Costs:
Transformation 2.0 —  (3) Transformation 2.0 —  —  %
Fit to Serve —  9  Fit to Serve —  % —  %
Network Reconfiguration and Efficiency Reimagined 1,172  68  Network Reconfiguration and Efficiency Reimagined 5.1  % 0.3  %
Total Transformation Strategy Costs 1,172  74  Total Transformation Strategy Costs 5.1  % 0.3  %
Loss (Gain) on Divestiture (1)
—  (20)
Loss (Gain) on Divestiture (1)
—  % (0.1) %
Non-GAAP Adjusted Operating Profit $ 2,102  $ 1,876  Non-GAAP Adjusted Operating Margin 9.2  % 8.8  %
(1) Reflects pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions in 2025.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
June 30,
(amounts in millions) 2026 2025 2026 2025
Income Before Income Taxes (GAAP) $ 761  $ 1,662  Income Tax Expense (GAAP) $ 157  $ 379 
Transformation Strategy Costs: Transformation Strategy Costs:
Transformation 2.0 —  (3) Transformation 2.0 —  (1)
Fit to Serve —  9  Fit to Serve —  2 
Network Reconfiguration and Efficiency Reimagined 1,172  68  Network Reconfiguration and Efficiency Reimagined 281  16 
Total Transformation Strategy Costs 1,172  74  Total Transformation Strategy Costs 281  17 
Loss (Gain) on Divestiture (1)
—  (20)
Loss (Gain) on Divestiture (1)
—  (5)
Reversal of Income Tax Valuation Allowance (2)
—  13 
Non-GAAP Adjusted Income Before Income Taxes $ 1,933  $ 1,716  Non-GAAP Adjusted Income Tax Expense $ 438  $ 404 
(1) Reflects pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions in 2025.
(2) Reflects the partial reversal of an income tax valuation allowance in 2025.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
June 30,
(amounts in millions) 2026 2025 2026 2025
Net Income (GAAP) $ 604  $ 1,283  Diluted Earnings Per Share (GAAP) $ 0.71  $ 1.51 
Transformation Strategy Costs: Transformation Strategy Costs:
Transformation 2.0 —  (2) Transformation 2.0 —  — 
Fit to Serve —  7  Fit to Serve —  0.01
Network Reconfiguration and Efficiency Reimagined 891  52  Network Reconfiguration and Efficiency Reimagined 1.05 0.07
Total Transformation Strategy Costs 891  57  Total Transformation Strategy Costs 1.05 0.08
Loss (Gain) on Divestiture (1)
—  (15)
Loss (Gain) on Divestiture (1)
—  (0.02)
Reversal of Income Tax Valuation Allowance (2)
—  (13)
Reversal of Income Tax Valuation Allowance (2)
—  (0.02)
Non-GAAP Adjusted Net Income $ 1,495  $ 1,312  Non-GAAP Adjusted Diluted Earnings Per Share $ 1.76  $ 1.55 
(1) Reflects pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions in 2025.
(2) Reflects the partial reversal of an income tax valuation allowance in 2025.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment
(unaudited)

Three Months Ended
June 30,
2026 2025 2026 2025 2026 2025
U.S. Domestic Package Operating Expenses % Change Operating Profit % Change Operating Margin
GAAP $ 14,914  $ 13,167  13.3  % $ 16  $ 916  (98.3) % 0.1  % 6.5  %
Adjusted for:
Transformation Strategy Costs (1,172) (66) 1,172  66  7.9  % 0.5  %
Non-GAAP Adjusted Measure $ 13,742  $ 13,101  4.9  % $ 1,188  $ 982  21.0  % 8.0  % 7.0  %
2026 2025 2026 2025 2026 2025
International Package Operating Expenses % Change Operating Profit % Change Operating Margin
GAAP $ 4,421  $ 3,813  15.9  % $ 623  $ 672  (7.3) % 12.4  % 15.0  %
Adjusted for:
Transformation Strategy Costs —  (10) —  10  —  % 0.2  %
Non-GAAP Adjusted Measure $ 4,421  $ 3,803  16.3  % $ 623  $ 682  (8.7) % 12.4  % 15.2  %
2026 2025 2026 2025 2026 2025
Supply Chain Solutions Operating Expenses % Change Operating Profit % Change Operating Margin
GAAP $ 2,569  $ 2,419  6.2  % $ 291  $ 234  24.4  % 10.2  % 8.8  %
Adjusted for:
Transformation Strategy Costs —  2  —  (2) —  % (0.1) %
Loss (Gain) on Divestiture —  20  —  (20) —  % (0.7) %
Non-GAAP Adjusted Measure $ 2,569  $ 2,441  5.2  % $ 291  $ 212  37.3  % 10.2  % 8.0  %

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece
(unaudited)

Three Months Ended
June 30,
2026 2025 % Change
Operating Days 64  64 
Average Daily U.S. Domestic Package Volume (in thousands) 16,002  16,553 
U.S. Domestic Package Cost Per Piece (GAAP) $ 14.23  $ 12.18  16.8  %
Transformation Strategy Costs (1.14) (0.06)
U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece $ 13.09  $ 12.12  8.0  %

Note: Cost per piece excludes expense associated with cargo and other activity.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Six Months Ended
June 30,
(amounts in millions) 2026 2025 2026 2025
Operating Profit (GAAP) $ 2,197  $ 3,488  Operating Margin (GAAP) 5.0  % 8.2  %
Transformation Strategy Costs: Transformation Strategy Costs:
Transformation 2.0 —  13  Transformation 2.0 —  % —  %
Fit to Serve —  28  Fit to Serve —  % 0.1  %
Network Reconfiguration and Efficiency Reimagined 1,227  91  Network Reconfiguration and Efficiency Reimagined 2.8  % 0.2  %
Total Transformation Strategy Costs 1,227  132  Total Transformation Strategy Costs 2.8  % 0.3  %
Loss (Gain) on Divestiture (1)
—  19 
Loss (Gain) on Divestiture (1)
—  % —  %
Non-GAAP Adjusted Operating Profit $ 3,424  $ 3,639  Non-GAAP Adjusted Operating Margin 7.8  % 8.5  %
(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Six Months Ended
June 30,
(amounts in millions) 2026 2025 (amounts in millions) 2026 2025
Other Income (Expense) (GAAP) $ (312) $ (303) Income Before Income Taxes (GAAP) $ 1,885  $ 3,185 
Goodwill and Asset Impairment Charges (2)
—  19  Transformation Strategy Costs:
Transformation 2.0 —  13 
Non-GAAP Adjusted Other Income (Expense) $ (312) $ (284)
Fit to Serve —  28 
Network Reconfiguration and Efficiency Reimagined 1,227  91 
Total Transformation Strategy Costs 1,227  132 
Loss (Gain) on Divestiture (1)
—  19 
Goodwill and Asset Impairment Charges (2)
—  19 
Non-GAAP Adjusted Income Before Income Taxes $ 3,112  $ 3,355 
(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.
(2) Reflects the write-down of an equity investment in 2025.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)

Six Months Ended
June 30,
(amounts in millions) 2026 2025
Income Tax Expense (GAAP) $ 417  $ 715 
Transformation Strategy Costs:
Transformation 2.0 —  3 
Fit to Serve —  6 
Network Reconfiguration and Efficiency Reimagined 294  22 
Total Transformation Strategy Costs 294  31 
Loss (Gain) on Divestiture (1)
—  4 
Reversal of Income Tax Valuation Allowance (3)
—  23 
Non-GAAP Adjusted Income Tax Expense $ 711  $ 773 
(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.
(3) Reflects the partial reversal of an income tax valuation allowance in 2025.



Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)

Six Months Ended
June 30,
(amounts in millions) 2026 2025 2026 2025
Net Income (GAAP) $ 1,468  $ 2,470  Diluted Earnings Per Share (GAAP) $ 1.73  $ 2.91 
Transformation Strategy Costs: Transformation Strategy Costs:
Transformation 2.0 —  10  Transformation 2.0 —  0.01 
Fit to Serve —  22  Fit to Serve —  0.03 
Network Reconfiguration and Efficiency Reimagined 933  69  Network Reconfiguration and Efficiency Reimagined 1.09  0.08 
Total Transformation Strategy Costs 933  101  Total Transformation Strategy Costs 1.09  0.12 
Loss (Gain) on Divestiture (1)
—  15 
Loss (Gain) on Divestiture (1)
—  0.02 
Goodwill and Asset Impairment Charges (2)
—  19 
Goodwill and Asset Impairment Charges (2)
—  0.02 
Reversal of Income Tax Valuation Allowance (3)
—  (23)
Reversal of Income Tax Valuation Allowance (3)
—  (0.03)
Non-GAAP Adjusted Net Income $ 2,401  $ 2,582  Non-GAAP Adjusted Diluted Earnings Per Share $ 2.82  $ 3.04 
(1) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions in 2025.
(2) Reflects the write-down of an equity investment in 2025.
(3) Reflects the partial reversal of an income tax valuation allowance in 2025.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment
(unaudited)
Six Months Ended
June 30,
2026 2025 2026 2025 2026 2025
U.S. Domestic Package Operating Expenses % Change Operating Profit % Change Operating Margin
GAAP $ 28,524  $ 26,648  7.0  % $ 531  $ 1,895  (72.0) % 1.8  % 6.6  %
Adjusted for:
Transformation Strategy Costs (1,222) (98) 1,222  98  4.2  % 0.4  %
Non-GAAP Adjusted Measure $ 27,302  $ 26,550  2.8  % $ 1,753  $ 1,993  (12.0) % 6.0  % 7.0  %
2026 2025 2026 2025 2026 2025
International Package Operating Expenses % Change Operating Profit % Change Operating Margin
GAAP $ 8,414  $ 7,545  11.5  % $ 1,170  $ 1,313  (10.9) % 12.2  % 14.8  %
Adjusted for:
Transformation Strategy Costs (4) (23) 4  23  —  % 0.3  %
Non-GAAP Adjusted Measure $ 8,410  $ 7,522  11.8  % $ 1,174  $ 1,336  (12.1) % 12.2  % 15.1  %
2026 2025 2026 2025 2026 2025
Supply Chain Solutions Operating Expenses % Change Operating Profit % Change Operating Margin
GAAP $ 4,901  $ 5,086  (3.6) % $ 496  $ 280  77.1  % 9.2  % 5.2  %
Adjusted for:
Transformation Strategy Costs (1) (11) 1  11  —  % 0.2  %
Loss (Gain) on Divestiture —  (19) —  19  0.4  %
Non-GAAP Adjusted Measure $ 4,900  $ 5,056  (3.1) % $ 497  $ 310  60.3  % 9.2  % 5.8  %

Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece
(unaudited)

Six Months Ended
June 30,
2026 2025 % Change
Operating Days 126  126 
Average Daily U.S. Domestic Package Volume (in thousands) 16,020  16,991 
U.S. Domestic Package Cost Per Piece (GAAP) $ 13.82  $ 12.20  13.3  %
Transformation Strategy Costs (0.61) (0.05)
U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece $ 13.21  $ 12.15  8.7  %

Note: Cost per piece excludes expense associated with cargo and other activity.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Aircraft Fleet - As of June 30, 2026
(unaudited)

Description UPS Owned and/or Operated Charters & Leases Operated by Others On Order Under Option
Boeing 757-200 75  —  —  — 
Boeing 767-300 94  —  13  — 
Boeing 767-300BCF 6  —  —  — 
Boeing 767-300BDSF 4  —  —  — 
Airbus A300-600 52  —  —  — 
Boeing 747-400F 11  —  —  — 
Boeing 747-400BCF 2  —  —  — 
Boeing 747-8F 30  —  —  — 
Other —  213  —  — 
          Total 274  213  13  — 

































Certain amounts are calculated based on unrounded numbers.