Document

Exhibit 99.2

United Parcel Service, Inc.

Selected Financial Data - Second Quarter

(unaudited)


	Three Months Ended
	June 30,
	2025			2024			Change		% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package	$	14,083		$	14,201		$	(118)	(0.8)	%
International Package	4,485			4,370			115		2.6	%
Supply Chain Solutions	2,653			3,247			(594)		(18.3)	%
Total revenue	21,221			21,818			(597)		(2.7)	%

Operating expenses:
U.S. Domestic Package	13,167			13,213			(46)		(0.3)	%
International Package	3,813			3,652			161		4.4	%
Supply Chain Solutions	2,419			3,009			(590)		(19.6)	%
Total operating expenses	19,399			19,874			(475)		(2.4)	%

Operating profit:
U.S. Domestic Package	916			988			(72)		(7.3)	%
International Package	672			718			(46)		(6.4)	%
Supply Chain Solutions	234			238			(4)		(1.7)	%
Total operating profit	1,822			1,944			(122)		(6.3)	%

Other income (expense):
Other pension income (expense)	38			67			(29)		(43.3)	%
Investment income (expense) and other	40			70			(30)		(42.9)	%
Interest expense	(238)			(212)			(26)		12.3	%
Total other income (expense)	(160)			(75)			(85)		113.3	%

Income before income taxes	1,662			1,869			(207)		(11.1)	%

Income tax expense	379			460			(81)		(17.6)	%

Net income	$	1,283		$	1,409		$	(126)	(8.9)	%

Net income as a percentage of revenue	6.0		%	6.5		%

Per share amounts:
Basic earnings per share	$	1.51		$	1.65		$	(0.14)	(8.5)	%
Diluted earnings per share	$	1.51		$	1.65		$	(0.14)	(8.5)	%

Weighted-average shares outstanding:
Basic	847			856			(9)		(1.1)	%
Diluted	847			857			(10)		(1.2)	%

Non-GAAP Adjusted Income Data (1):
Operating profit:
U.S. Domestic Package	$	982		$	996		$	(14)	(1.4)	%
International Package	682			824			(142)		(17.2)	%
Supply Chain Solutions	212			244			(32)		(13.1)	%
Total operating profit	1,876			2,064			(188)		(9.1)	%

Total other income (expense)	$	(160)		$	(69)		$	(91)	131.9	%
Income before income taxes	$	1,716		$	1,995		$	(279)	(14.0)	%
Net income	$	1,312		$	1,529		$	(217)	(14.2)	%

Basic earnings per share	$	1.55		$	1.79		$	(0.24)	(13.4)	%
Diluted earnings per share	$	1.55		$	1.79		$	(0.24)	(13.4)	%

(1) See Non-GAAP schedules for reconciliation of adjustments.

Certain prior year amounts have been reclassified to conform to the current year presentation, including the recast of air cargo results to U.S. Domestic, with no change to consolidated results. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Selected Operating Data - Second Quarter

(unaudited)


	Three Months Ended
	June 30,
	2025		2024		Change		% Change

Revenue (in millions):
U.S. Domestic Package:
Next Day Air	$	2,293	$	2,309	$	(16)	(0.7)	%
Deferred	1,024		1,107		(83)		(7.5)	%
Ground	10,484		10,703		(219)		(2.0)	%
Cargo and Other	282		82		200		243.9	%
Total U.S. Domestic Package	14,083		14,201		(118)		(0.8)	%
International Package:
Domestic	830		770		60		7.8	%
Export	3,484		3,437		47		1.4	%
Cargo and Other	171		163		8		4.9	%
Total International Package	4,485		4,370		115		2.6	%
Supply Chain Solutions:
Forwarding	732		1,315		(583)		(44.3)	%
Logistics	1,476		1,546		(70)		(4.5)	%
Other	445		386		59		15.3	%
Total Supply Chain Solutions	2,653		3,247		(594)		(18.3)	%
Consolidated	$	21,221	$	21,818	$	(597)	(2.7)	%

Consolidated volume (in millions)	1,263		1,339		(76)		(5.7)	%

Operating weekdays	64		64		—		0.0	%

Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air	1,429		1,559		(130)		(8.3)	%
Deferred	825		991		(166)		(16.8)	%
Ground	14,299		15,314		(1,015)		(6.6)	%
Total U.S. Domestic Package	16,553		17,864		(1,311)		(7.3)	%
International Package:
Domestic	1,507		1,485		22		1.5	%
Export	1,681		1,584		97		6.1	%
Total International Package	3,188		3,069		119		3.9	%
Consolidated	19,741		20,933		(1,192)		(5.7)	%

Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air	$	25.07	$	23.14	$	1.93	8.3	%
Deferred	19.39		17.45		1.94		11.1	%
Ground	11.46		10.92		0.54		4.9	%
Total U.S. Domestic Package	13.03		12.35		0.68		5.5	%
International Package:
Domestic	8.61		8.10		0.51		6.3	%
Export	32.38		33.90		(1.52)		(4.5)	%
Total International Package	21.14		21.42		(0.28)		(1.3)	%
Consolidated	$	14.34	$	13.68	$	0.66	4.8	%

United Parcel Service, Inc.

Detail of Operating Expenses - Second Quarter

(unaudited)


	Three Months Ended
	June 30,
	2025		2024		Change		% Change
(in millions)
Compensation and benefits	$	11,626	$	11,503	$	123	1.1	%
Repairs and maintenance	755		734		21		2.9	%
Depreciation and amortization	936		887		49		5.5	%
Purchased transportation	2,522		3,273		(751)		(22.9)	%
Fuel	1,058		1,126		(68)		(6.0)	%
Other occupancy	544		492		52		10.6	%
Other expenses	1,958		1,859		99		5.3	%
Total operating expenses	$	19,399	$	19,874	$	(475)	(2.4)	%

United Parcel Service, Inc.

Selected Financial Data - Year to Date

(unaudited)


	Six Months Ended
	June 30
	2025			2024			Change		% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
U.S. Domestic Package	$	28,543		$	28,467		$	76	0.3	%
International Package	8,858			8,626			232		2.7	%
Supply Chain Solutions	5,366			6,431			(1,065)		(16.6)	%
Total revenue	42,767			43,524			(757)		(1.7)	%

Operating expenses:
U.S. Domestic Package	26,648			26,646			2		0.0	%
International Package	7,545			7,252			293		4.0	%
Supply Chain Solutions	5,086			6,069			(983)		(16.2)	%
Total operating expenses	39,279			39,967			(688)		(1.7)	%

Operating profit:
U.S. Domestic Package	1,895			1,821			74		4.1	%
International Package	1,313			1,374			(61)		(4.4)	%
Supply Chain Solutions	280			362			(82)		(22.7)	%
Total operating profit	3,488			3,557			(69)		(1.9)	%

Other income (expense):
Other pension income (expense)	75			134			(59)		(44.0)	%
Investment income (expense) and other	82			121			(39)		(32.2)	%
Interest expense	(460)			(407)			(53)		13.0	%
Total other income (expense)	(303)			(152)			(151)		99.3	%

Income before income taxes	3,185			3,405			(220)		(6.5)	%

Income tax expense	715			883			(168)		(19.0)	%

Net income	$	2,470		$	2,522		$	(52)	(2.1)	%

Net income as a percentage of revenue	5.8		%	5.8		%

Per share amounts:
Basic earnings per share	$	2.91		$	2.95		$	(0.04)	(1.4)	%
Diluted earnings per share	$	2.91		$	2.94		$	(0.03)	(1.0)	%

Weighted-average shares outstanding:
Basic	849			856			(7)		(0.8)	%
Diluted	849			857			(8)		(0.9)	%

Non-GAAP Adjusted Income Data (1):
Operating profit:
U.S. Domestic Package	$	1,993		$	1,843		$	150	8.1	%
International Package	1,336			1,506			(170)		(11.3)	%
Supply Chain Solutions	310			462			(152)		(32.9)	%
Total operating profit	3,639			3,811			(172)		(4.5)	%

Total other income (expense)	$	(284)		$	(146)		$	(138)	94.5	%
Income before income taxes	$	3,355		$	3,665		$	(310)	(8.5)	%
Net income	$	2,582		$	2,752		$	(170)	(6.2)	%

Basic earnings per share	$	3.04		$	3.21		$	(0.17)	(5.3)	%
Diluted earnings per share	$	3.04		$	3.21		$	(0.17)	(5.3)	%

(1) See Non-GAAP schedules for reconciliation of adjustments.

United Parcel Service, Inc.

Selected Operating Data - Year to Date

(unaudited)


	Six Months Ended
	June 30
	2025		2024		Change		% Change

Revenue (in millions):
U.S. Domestic Package:
Next Day Air	$	4,654	$	4,625	$	29	0.6	%
Deferred	2,073		2,263		(190)		(8.4)	%
Ground	21,193		21,465		(272)		(1.3)	%
Cargo and Other	623		114		509		446.5	%
Total U.S. Domestic Package	28,543		28,467		76		0.3	%
International Package:
Domestic	1,601		1,528		73		4.8	%
Export	6,928		6,787		141		2.1	%
Cargo and Other	329		311		18		5.8	%
Total International Package	8,858		8,626		232		2.7	%
Supply Chain Solutions:
Forwarding	1,458		2,595		(1,137)		(43.8)	%
Logistics	3,048		3,088		(40)		(1.3)	%
Other	860		748		112		15.0	%
Total Supply Chain Solutions	5,366		6,431		(1,065)		(16.6)	%
Consolidated	$	42,767	$	43,524	$	(757)	(1.7)	%

Consolidated volume (in millions)	2,552		2,675		(123)		(4.6)	%

Operating weekdays	126		127		(1)		(0.8)	%

Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air	1,474		1,574		(100)		(6.4)	%
Deferred	845		1,019		(174)		(17.1)	%
Ground	14,672		15,376		(704)		(4.6)	%
Total U.S. Domestic Package	16,991		17,969		(978)		(5.4)	%
International Package:
Domestic	1,541		1,494		47		3.1	%
Export	1,725		1,602		123		7.7	%
Total International Package	3,266		3,096		170		5.5	%
Consolidated	20,257		21,065		(808)		(3.8)	%

Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air	$	25.06	$	23.14	$	1.92	8.3	%
Deferred	19.47		17.49		1.98		11.3	%
Ground	11.46		10.99		0.47		4.3	%
Total U.S. Domestic Package	13.04		12.42		0.62		5.0	%
International Package:
Domestic	8.25		8.05		0.20		2.5	%
Export	31.87		33.36		(1.49)		(4.5)	%
Total International Package	20.73		21.15		(0.42)		(2.0)	%
Consolidated	$	14.28	$	13.71	$	0.57	4.2	%

United Parcel Service, Inc.

Detail of Operating Expenses - Year to Date

(unaudited)


	Six Months Ended
	June 30
	2025		2024		Change		% Change
(in millions)
Compensation and benefits	$	23,453	$	23,142	$	311	1.3	%
Repairs and maintenance	1,487		1,452		35		2.4	%
Depreciation and amortization	1,848		1,785		63		3.5	%
Purchased transportation	5,252		6,519		(1,267)		(19.4)	%
Fuel	2,116		2,186		(70)		(3.2)	%
Other occupancy	1,151		1,056		95		9.0	%
Other expenses	3,972		3,827		145		3.8	%
Total operating expenses	$	39,279	$	39,967	$	(688)	(1.7)	%

United Parcel Service, Inc.

Consolidated Balance Sheets

June 30, 2025 (unaudited) and December 31, 2024


	June 30, 2025		December 31, 2024
(amounts in millions)

ASSETS
Current Assets:
Cash and cash equivalents	$	6,194	$	6,112
Marketable securities	92		206


Accounts receivable, net	10,430		10,871

Other current assets	2,134		2,121
Total Current Assets	18,850		19,310
Property, Plant and Equipment, Net	37,711		37,179
Operating Lease Right-Of-Use Assets	3,979		4,149
Goodwill	4,806		4,300
Intangible Assets, Net	3,356		3,064
Deferred Income Tax Assets	142		112
Other Non-Current Assets	2,079		1,956
Total Assets	$	70,923	$	70,070

LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities:
Current maturities of long-term debt, commercial paper and finance leases	$	920	$	1,838
Current maturities of operating leases	724		733
Accounts payable	6,040		6,302
Accrued wages and withholdings	3,223		3,655
Self-insurance reserves	1,087		1,086
Accrued group welfare and retirement plan contributions	1,079		1,390

Other current liabilities	1,167		1,437
Total Current Liabilities	14,240		16,441
Long-Term Debt and Finance Leases	23,820		19,446
Non-Current Operating Leases	3,445		3,635
Pension and Postretirement Benefit Obligations	6,398		6,859
Deferred Income Tax Liabilities	3,489		3,595
Other Non-Current Liabilities	3,754		3,351

Shareowners' Equity:
Class A common stock	2		2
Class B common stock	7		7
Additional paid-in capital	84		136
Retained earnings	19,832		20,882
Accumulated other comprehensive loss	(4,175)		(4,309)
Deferred compensation obligations	4		7
Less: Treasury stock	(4)		(7)
Total Equity for Controlling Interests	15,750		16,718
Noncontrolling interests	27		25
Total Shareowners' Equity	15,777		16,743
Total Liabilities and Shareowners' Equity	$	70,923	$	70,070

Certain prior year amounts have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Statements of Consolidated Cash Flows

(unaudited)


(amounts in millions)		Six Months Ended
		June 30,
		2025		2024
Cash Flows From Operating Activities:
	Net income	$	2,470	$	2,522
	Adjustments to reconcile net income to net cash from operating activities:
	Depreciation and amortization	1,848		1,785
	Pension and postretirement benefit expense	514		518
	Pension and postretirement benefit contributions	(921)		(150)
	Self-insurance reserves	169		(39)
	Deferred tax (benefit) expense	(84)		72
	Stock compensation expense (benefit)	16		3
	Other (gains) losses	64		166
	Changes in assets and liabilities, net of effects of business acquisitions:
	Accounts receivable	540		1,526
	Other assets	(140)		73
	Accounts payable	(442)		(685)
	Accrued wages and withholdings	(447)		137
	Other liabilities	(909)		(619)
	Other operating activities	(12)		—
	Net cash from operating activities	2,666		5,309

Cash Flows From Investing Activities:
	Capital expenditures	(1,999)		(1,968)
	Proceeds from disposal of businesses, property, plant and equipment	91		28
	Purchases of marketable securities	(90)		(52)
	Sales and maturities of marketable securities	205		2,715
	Acquisitions, net of cash acquired	(479)		(66)
	Other investing activities	(6)		(4)
	Net cash (used in) from investing activities	(2,278)		653

Cash Flows From Financing Activities:
	Net change in short-term debt	—		(1,272)
	Proceeds from long-term borrowings	4,153		2,785
	Repayments of long-term borrowings	(1,062)		(1,508)
	Purchases of common stock	(1,000)		—
	Issuances of common stock	102		131
	Dividends	(2,697)		(2,701)
	Other financing activities	(15)		(202)
	Net cash used in financing activities	(519)		(2,767)

Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash		213		(72)

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash, including cash classified within current assets held for sale		82		3,123
Less: net (increase) decrease in cash classified within current assets held for sale		—		10
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash		82		3,113
Cash, Cash Equivalents and Restricted Cash:
	Beginning of period	6,112		3,206
	End of period	$	6,194	$	6,319

Certain prior year amounts have been reclassified to conform to the current year presentation. Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.

Reconciliation of Free Cash Flow (Non-GAAP measure)

(unaudited)





(amounts in millions)	Six Months Ended
	June 30,
	2025		2024
Cash flows from operating activities	$	2,666	$	5,309
Capital expenditures	(1,999)		(1,968)
Proceeds from disposals of property, plant and equipment	91		28
Other investing activities	(16)		(4)
Free Cash Flow (Non-GAAP measure)	$	742	$	3,365

Certain prior year amounts have been reclassified to conform to the current year presentation. 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)	2025		2024			2025		2024
Operating Profit (GAAP)	$	1,822	$	1,944	Operating Margin (GAAP)	8.6	%	8.9	%

Transformation Strategy Costs:					Transformation Strategy Costs:
Transformation 2.0					Transformation 2.0
Business portfolio review	(18)		(10)		Business portfolio review	(0.1)	%	—	%
Financial systems	15		13		Financial systems	0.1	%	0.1	%
Transformation 2.0 total	(3)		3		Transformation 2.0 total	—	%	0.1	%

Fit to Serve	9		24		Fit to Serve	—	%	0.1	%

Network Reconfiguration and Efficiency Reimagined	68		—		Network Reconfiguration and Efficiency Reimagined	0.3	%	—	%

Total Transformation Strategy Costs	74		27		Total Transformation Strategy Costs	0.3	%	0.2	%
Gain on Divestiture (1)	(20)		—		Gain on Divestiture (1)	(0.1)	%	—	%
Expense for Regulatory Matter (2)	—		5		Expense for Regulatory Matter (2)	—	%	—	%
One-Time Payment for Int'l Regulatory Matter (3)	—		88		One-Time Payment for Int'l Regulatory Matter (3)	—	%	0.4	%

Non-GAAP Adjusted Operating Profit	$	1,876	$	2,064	Non-GAAP Adjusted Operating Margin	8.8	%	9.5	%

(amounts in millions)	2025		2024
Other Income (Expense) (GAAP)	$	(160)	$	(75)


One-Time Payment for Int'l Regulatory Matter (3)	—		6

Non-GAAP Adjusted Other Income (Expense)	$	(160)	$	(69)

(1) Reflects pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions.
(2) Reflects expense related to the settlement of a regulatory matter.
(3) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)


Three Months Ended
June 30,
(amounts in millions)	2025		2024		(amounts in millions)	2025		2024
Income Before Income Taxes (GAAP)	$	1,662	$	1,869	Income Tax Expense (GAAP)	$	379	$	460

Transformation Strategy Costs:					Transformation Strategy Costs:
Transformation 2.0					Transformation 2.0
Business portfolio review	(18)		(10)		Business portfolio review	(5)		(2)
Financial systems	15		13		Financial systems	4		3
Transformation 2.0 total	(3)		3		Transformation 2.0 total	(1)		1

Fit to Serve	9		24		Fit to Serve	2		5

Network Reconfiguration and Efficiency Reimagined	68		—		Network Reconfiguration and Efficiency Reimagined	16		—

Total Transformation Strategy Costs	74		27		Total Transformation Strategy Costs	17		6
					Gain on Divestiture (1)	(5)		—
Gain on Divestiture (1)	(20)		—		Reversal of Income Tax Valuation Allowance (4)	13		—
Expense for Regulatory Matter (2)	—		5
One-Time Payment for Int'l Regulatory Matter (3)	—		94		Non-GAAP Adjusted Income Tax Expense	$	404	$	466

Non-GAAP Adjusted Income Before Income Taxes	$	1,716	$	1,995

(1) Reflects pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions.
(2) Reflects expense related to the settlement of a regulatory matter.
(3) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.
(4) Reflects the partial reversal of an income tax valuation allowance.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)


Three Months Ended
June 30,
(amounts in millions)	2025		2024			2025		2024
Net Income (GAAP)	$	1,283	$	1,409	Diluted Earnings Per Share (GAAP)	$	1.51	$	1.65

Transformation Strategy Costs:					Transformation Strategy Costs:
Transformation 2.0					Transformation 2.0
Business portfolio review	(13)		(8)		Business portfolio review	(0.01)		(0.01)
Financial systems	11		10		Financial systems	0.01		0.01
Transformation 2.0 total	(2)		2		Transformation 2.0 total	—		—

Fit to Serve	7		19		Fit to Serve	0.01		0.02

Network Reconfiguration and Efficiency Reimagined	52		—		Network Reconfiguration and Efficiency Reimagined	0.07		—

Total Transformation Strategy Costs	57		21		Total Transformation Strategy Costs	0.08		0.02
Gain on Divestiture (1)	(15)		—		Gain on Divestiture (1)	(0.02)		—
Expense for Regulatory Matter (2)	—		5		Expense for Regulatory Matter (2)	—		0.01
One-Time Payment for Int'l Regulatory Matter (3)	—		94		One-Time Payment for Int'l Regulatory Matter (3)	—		0.11
Reversal of Income Tax Valuation Allowance (4)	(13)		—		Reversal of Income Tax Valuation Allowance (4)	(0.02)		—

Non-GAAP Adjusted Net Income	$	1,312	$	1,529	Non-GAAP Adjusted Diluted Earnings Per Share	$	1.55	$	1.79


(1) Reflects pre-tax gain of $20 million and related tax effect on the divestiture of a business within Supply Chain Solutions.
(2) Reflects expense related to the settlement of a regulatory matter.
(3) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.
(4) Reflects the partial reversal of an income tax valuation allowance.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment

(unaudited)


Three Months Ended
June 30,
	2025		2024				2025		2024				2025		2024
U.S. Domestic Package	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	13,167	$	13,213	(0.3)	%	$	916	$	988	(7.3)	%	6.5	%	7.0	%

Adjusted for:
Transformation Strategy Costs	(66)		(8)				66		8				0.5	%	—	%

Non-GAAP Adjusted Measure	$	13,101	$	13,205	(0.8)	%	$	982	$	996	(1.4)	%	7.0	%	7.0	%

	2025		2024				2025		2024				2025		2024
International Package	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	3,813	$	3,652	4.4	%	$	672	$	718	(6.4)	%	15.0	%	16.4	%

Adjusted for:
Transformation Strategy Costs	(10)		(18)				10		18				0.2	%	0.4	%
One-Time Payment for Int'l Regulatory Matter	—		(88)				—		88				—	%	2.1	%
Non-GAAP Adjusted Measure	$	3,803	$	3,546	7.2	%	$	682	$	824	(17.2)	%	15.2	%	18.9	%

	2025		2024				2025		2024				2025		2024
Supply Chain Solutions	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	2,419	$	3,009	(19.6)	%	$	234	$	238	(1.7)	%	8.8	%	7.3	%

Adjusted for:
Transformation Strategy Costs	2		(1)				(2)		1				(0.1)	%	—	%
Gain on Divestiture	20		—				(20)		—				(0.7)	%	—	%
Expense for Regulatory Matter	—		(5)				—		5				—	%	0.2	%

Non-GAAP Adjusted Measure	$	2,441	$	3,003	(18.7)	%	$	212	$	244	(13.1)	%	8.0	%	7.5	%

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece

(unaudited)


	Three Months Ended
	June 30,
	2025		2024		% Change
Operating Days	64		64
Average Daily U.S. Domestic Package Volume (in thousands)	16,553		17,864
U.S. Domestic Package Cost Per Piece (GAAP)	$	12.18	$	11.48	6.1	%

Transformation Strategy Costs	(0.06)		—

U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece	$	12.12	$	11.48	5.6	%

Note: Cost per piece excludes expense associated with cargo and other activity.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)


Six Months Ended
June 30
(amounts in millions)	2025		2024			2025		2024
Operating Profit (GAAP)	$	3,488	$	3,557	Operating Margin (GAAP)	8.2	%	8.2	%

Transformation Strategy Costs:					Transformation Strategy Costs:

Transformation 2.0					Transformation 2.0
Business portfolio review	(18)		(5)		Business portfolio review	(0.1)	%	—	%
Financial systems	31		29		Financial systems	0.1	%	0.1	%
Transformation 2.0 total	13		24		Transformation 2.0 total	—	%	0.1	%

Fit to Serve	28		49		Fit to Serve	0.1	%	0.1	%

Network Redesign and Efficiency Reimagined	91		—		Network Redesign and Efficiency Reimagined	0.2	%	—	%

Total Transformation Strategy Costs	132		73		Total Transformation Strategy Costs	0.3	%	0.2	%
Gain on Divestiture (1)	(20)		—		Gain on Divestiture (1)	(0.1)	%	—	%
Goodwill and Asset Impairment Charges (4), (5)	39		48		Goodwill and Asset Impairment Charges (4), (5)	0.1	%	0.1	%
Expense for Regulatory Matter (2)	—		45		Expense for Regulatory Matter (2)	—	%	0.1	%
One-Time Payment for Int'l Regulatory Matter (3)	—		88		One-Time Payment for Int'l Regulatory Matter (3)	—	%	0.2	%

Non-GAAP Adjusted Operating Profit	$	3,639	$	3,811	Non-GAAP Adjusted Operating Margin	8.5	%	8.8	%

(amounts in millions)	2025		2024
Other Income (Expense) (GAAP)	$	(303)	$	(152)

Goodwill and Asset Impairment Charges (4), (5)	19		—
One-Time Payment for Int'l Regulatory Matter (3)	—		6

Non-GAAP Adjusted Other Income (Expense)	$	(284)	$	(146)

(1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions.
(2) Reflects expense related to the settlement of a regulatory matter.
(3) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.
(4) Reflects pre-tax impairment charges of $41 million for acquired trade names within Supply Chain Solutions and $7 million for software licenses in 2024.
(5) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and 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)	2025		2024		(amounts in millions)	2025		2024
Income Before Income Taxes (GAAP)	$	3,185	$	3,405	Income Tax Expense (GAAP)	$	715	$	883

Transformation Strategy Costs:					Transformation Strategy Costs:
Transformation 2.0					Transformation 2.0
Business portfolio review	(18)		(5)		Business portfolio review	(5)		(1)
Financial systems	31		29		Financial systems	8		7
Transformation 2.0 total	13		24		Transformation 2.0 total	3		6

Fit to Serve	28		49		Fit to Serve	6		11

Network Redesign and Efficiency Reimagined	91		—		Network Redesign and Efficiency Reimagined	22		—

Total Transformation Strategy Costs	132		73		Total Transformation Strategy Costs	31		17

Gain on Divestiture (1)	(20)		—		Gain on Divestiture (1)	(5)		—
Goodwill and Asset Impairment Charges (4), (5)	58		48		Goodwill and Asset Impairment Charges (4),(5)	9		13
Expense for Regulatory Matter (2)	—		45		Reversal of Income Tax Valuation Allowance (6)	23		—
One-Time Payment for Int'l Regulatory Matter (3)	—		94
					Non-GAAP Adjusted Income Tax Expense	$	773	$	913
Non-GAAP Adjusted Income Before Income Taxes	$	3,355	$	3,665

(1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions.
(2) Reflects expense related to the settlement of a regulatory matter.
(3) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.
(4) Reflects pre-tax impairment charges of $41 million for acquired trade names within Supply Chain Solutions and $7 million for software licenses in 2024.
(5) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and the write-down of an equity investment in 2025.
(6) Reflects the partial reversal of an income tax valuation allowance.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures

(unaudited)


Six Months Ended
June 30
(amounts in millions)	2025		2024			2025		2024
Net Income (GAAP)	$	2,470	$	2,522	Diluted Earnings Per Share (GAAP)	$	2.91	$	2.94

Transformation Strategy Costs:					Transformation Strategy Costs:
Transformation 2.0					Transformation 2.0
Business portfolio review	(13)		(4)		Business portfolio review	(0.02)		—
Financial systems	23		22		Financial systems	0.03		0.03
Transformation 2.0 total	10		18		Transformation 2.0 total	0.01		0.03

Fit to Serve	22		38		Fit to Serve	0.03		0.04

Network Redesign and Efficiency Reimagined	69		—		Network Redesign and Efficiency Reimagined	0.08		—

Total Transformation Strategy Costs	101		56		Total Transformation Strategy Costs	0.12		0.07

Gain on Divestiture (1)	(15)		—		Gain on Divestiture (1)	(0.02)		—
Goodwill and Asset Impairment Charges (4), (5)	49		35		Goodwill and Asset Impairment Charges (4), (5)	0.06		0.04
Expense for Regulatory Matter (2)	—		45		Expense for Regulatory Matter (2)	—		0.05
One-Time Payment for Int'l Regulatory Matter (3)	—		94		One-Time Payment for Int'l Regulatory Matter (3)	—		0.11
Reversal of Income Tax Valuation Allowance (6)	(23)		—		Reversal of Income Tax Valuation Allowance (6)	(0.03)		—

Non-GAAP Adjusted Net Income	$	2,582	$	2,752	Non-GAAP Adjusted Diluted Earnings Per Share	$	3.04	$	3.21


(1) Reflects a pre-tax gain of $20 million on the divestiture of a business within Supply Chain Solutions.
(2) Reflects expense related to the settlement of a regulatory matter.
(3) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.
(4) Reflects pre-tax impairment charges of $41 million for acquired trade names within Supply Chain Solutions and $7 million for software licenses in 2024.
(5) Reflects impairment charges for long-lived assets and related tax effect charges for a business within Supply Chain Solutions and the write-down of an equity investment in 2025.
(6) Reflects the partial reversal of an income tax valuation allowance.

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment

(unaudited)


Six Months Ended
June 30
	2025		2024				2025		2024				2025		2024
U.S. Domestic Package	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	26,648	$	26,646	—	%	$	1,895	$	1,821	4.1	%	6.6	%	6.4	%

Adjusted for:
Transformation Strategy Costs	(98)		(17)				98		17				0.4	%	0.1	%
Goodwill and Asset Impairment Charges	—		(5)				—		5				—	%	—	%

Non-GAAP Adjusted Measure	$	26,550	$	26,624	(0.3)	%	$	1,993	$	1,843	8.1	%	7.0	%	6.5	%

	2025		2024				2025		2024				2025		2024
International Package	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	7,545	$	7,252	4.0	%	$	1,313	$	1,374	(4.4)	%	14.8	%	15.9	%

Adjusted for:
Transformation Strategy Costs	(23)		(42)				23		42				0.3	%	0.6	%
Goodwill and Asset Impairment Charges	—		(2)				—		2				—	%	—	%
One-Time Int'l Regulatory Matter	—		(88)				—		88				—	%	1.0	%

Non-GAAP Adjusted Measure	$	7,522	$	7,120	5.6	%	$	1,336	$	1,506	(11.3)	%	15.1	%	17.5	%

	2025		2024				2025		2024				2025		2024
Supply Chain Solutions	Operating Expenses				% Change		Operating Profit				% Change		Operating Margin
GAAP	$	5,086	$	6,069	(16.2)	%	$	280	$	362	(22.7)	%	5.2	%	5.6	%

Adjusted for:
Transformation Strategy Costs	(11)		(14)				11		14				0.2	%	0.2	%
Gain on Divestiture	20		—				(20)		—				(0.4)	%	—	%
Goodwill and Asset Impairment Charges	(39)		(41)				39		41				0.8	%	0.7	%
Expense for Regulatory Matter	—		(45)				—		45				—	%	0.7	%

Non-GAAP Adjusted Measure	$	5,056	$	5,969	(15.3)	%	$	310	$	462	(32.9)	%	5.8	%	7.2	%

United Parcel Service, Inc.

Reconciliation of GAAP and Non-GAAP Adjusted Measures - U.S. Domestic Cost Per Piece

(unaudited)


	Six Months Ended
	June 30
	2025		2024		% Change
Operating Days	126		127
Average Daily U.S. Domestic Package Volume (in thousands)	16,991		17,969
U.S. Domestic Package Cost Per Piece (GAAP)	$	12.20	$	11.63	4.9	%

Transformation Strategy Costs	(0.05)		(0.01)

U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece	$	12.15	$	11.62	4.6	%

Note: Cost per piece excludes expense associated with cargo and other activity.

United Parcel Service, Inc.

Aircraft Fleet - As of June 30, 2025

(unaudited)


Description	UPS Owned and/or Operated	Charters & Leases Operated by Others	On Order	Under Option

Boeing 757-200	75	—	—	—
Boeing 767-300	85	—	22	—
Boeing 767-300BCF	6	—	—	—
Boeing 767-300BDSF	4	—	—	—
Airbus A300-600	52	—	—	—
Boeing MD-11(1)	27	—	—	—
Boeing 747-400F	11	—	—	—
Boeing 747-400BCF	2	—	—	—
Boeing 747-8F	30	—	—	—
Other	—	233	—	—
Total	292	233	22	—

(1) None of the MD-11 aircraft shown above have been retired from operational use as of June 30, 2025. We anticipate retiring one (1) of the MD-11 aircraft shown above during 2025.