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Dec 31, 2024
UPS Q4 2024 Earnings Report
UPS reported Q4 2024 earnings with revenue increase and provided 2025 guidance.
Key Takeaways
UPS announced Q4 2024 consolidated revenues of $25.3 billion, a 1.5% increase from Q4 2023. Diluted earnings per share were $2.01, and non-GAAP adjusted diluted earnings per share were $2.75, 11.3% above the same period in 2023.
Consolidated revenues reached $25.3 billion, a 1.5% increase compared to the previous year.
Consolidated operating margin was 11.6%, with a non-GAAP adjusted margin of 12.3%.
Diluted EPS stood at $2.01, while non-GAAP adjusted diluted EPS was $2.75, surpassing the previous year by 11.3%.
The company is making strategic changes, including reducing volume with its largest customer and insourcing UPS SurePost product.
Revenue by Segment
Forward Guidance
For the full year 2025, on a consolidated basis, UPS expects revenue to be approximately $89.0 billion and operating margin to be approximately 10.8%.
Positive Outlook
- Revenue to be approximately $89.0 billion.
- Operating margin to be approximately 10.8%.
- Capital expenditures of about $3.5 billion.
- Dividend payments of around $5.5 billion, subject to board approval.
- Share repurchases of around $1.0 billion.
Challenges Ahead
- Agreement in principle with its largest customer to lower its volume by more than 50% by the second half of 2026.
- Reconfiguring its U.S. network.
- Launching multi-year “efficiency reimagined” initiatives to drive approximately $1.0 billion in savings through an end-to-end process redesign.
- The effective tax rate is expected to be around 23.5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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