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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.
UPS
UPS
UPS Revenue by Segment
Revenue by Segment
U.S. Domestic Revenue
CapyFin.comInternational Revenue
CapyFin.comSupply Chain Solutions Revenue
CapyFin.com 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%.
- Not able 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income