Exhibit 99.2
United Parcel Service, Inc.
Selected Financial Data - Fourth Quarter
(unaudited)
Three Months Ended
December 31,
20252024Change% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
  U.S. Domestic Package$16,756 $17,312 $(556)(3.2)%
  International Package5,045 4,923 122 2.5 %
  Supply Chain Solutions2,678 3,066 (388)(12.7)%
  Total revenue24,479 25,301 (822)(3.2)%
Operating expenses:
  U.S. Domestic Package15,328 15,631 (303)(1.9)%
  International Package4,161 3,904 257 6.6 %
  Supply Chain Solutions2,415 2,840 (425)(15.0)%
  Total operating expenses21,904 22,375 (471)(2.1)%
Operating profit:
  U.S. Domestic Package1,428 1,681 (253)(15.1)%
  International Package884 1,019 (135)(13.2)%
  Supply Chain Solutions263 226 37 16.4 %
  Total operating profit2,575 2,926 (351)(12.0)%
Other income (expense):
 Other pension income (expense)47 (598)645 N/A
  Investment income (expense) and other16 28 (12)(42.9)%
  Interest expense(266)(229)(37)16.2 %
  Total other income (expense)(203)(799)596 (74.6)%
Income before income taxes2,372 2,127 245 11.5 %
Income tax expense581 406 175 43.1 %
Net income$1,791 $1,721 $70 4.1 %
Net income as a percentage of revenue7.3 %6.8 %
Per share amounts:
  Basic earnings per share$2.11 $2.02 $0.09 4.5 %
  Diluted earnings per share$2.10 $2.01 $0.09 4.5 %
Weighted-average shares outstanding:
  Basic849 854 (5)(0.6)%
  Diluted853 858 (5)(0.6)%
Non-GAAP Adjusted Income Data (1):
Operating profit:
  U.S. Domestic Package $1,706 $1,754 $(48)(2.7)%
  International Package 908 1,062 (154)(14.5)%
  Supply Chain Solutions276 284 (8)(2.8)%
  Total operating profit 2,890 3,100 (210)(6.8)%
Total other income (expense)$(203)$(134)$(69)51.5 %
Income before income taxes $2,687 $2,966 $(279)(9.4)%
Net income $2,029 $2,360 $(331)(14.0)%
Basic earnings per share $2.39 $2.76 $(0.37)(13.4)%
Diluted earnings per share$2.38 $2.75 $(0.37)(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 - Fourth Quarter
(unaudited)
Three Months Ended
December 31,
20252024Change% Change
Revenue (in millions):
U.S. Domestic Package:
   Next Day Air$2,617 $2,682 $(65)(2.4)%
   Deferred1,353 1,385 (32)(2.3)%
   Ground12,465 12,937 (472)(3.6)%
Cargo and Other321 308 13 4.2 %
      Total U.S. Domestic Package16,756 17,312 (556)(3.2)%
International Package:
   Domestic953 887 66 7.4 %
   Export3,905 3,873 32 0.8 %
   Cargo and Other187 163 24 14.7 %
      Total International Package5,045 4,923 122 2.5 %
Supply Chain Solutions:
   Forwarding728 826 (98)(11.9)%
Logistics1,444 1,799 (355)(19.7)%
   Other506 441 65 14.7 %
      Total Supply Chain Solutions2,678 3,066 (388)(12.7)%
Consolidated$24,479 $25,301 $(822)(3.2)%
Consolidated volume (in millions)1,458 1,619 (161)(9.9)%
Operating weekdays62 62 — 0.0 %
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
   Next Day Air1,630 1,863 (233)(12.5)%
   Deferred1,077 1,209 (132)(10.9)%
   Ground17,263 19,310 (2,047)(10.6)%
      Total U.S. Domestic Package19,970 22,382 (2,412)(10.8)%
International Package:
   Domestic1,688 1,749 (61)(3.5)%
   Export1,864 1,978 (114)(5.8)%
      Total International Package3,552 3,727 (175)(4.7)%
Consolidated23,522 26,109 (2,587)(9.9)%
Average Revenue Per Piece:
U.S. Domestic Package:
   Next Day Air$25.90 $23.22 $2.68 11.5 %
   Deferred20.26 18.48 1.78 9.6 %
   Ground11.65 10.81 0.84 7.8 %
      Total U.S. Domestic Package13.27 12.25 1.02 8.3 %
International Package:
   Domestic9.11 8.18 0.93 11.4 %
   Export33.79 31.58 2.21 7.0 %
      Total International Package22.06 20.60 1.46 7.1 %
Consolidated$14.60 $13.44 $1.16 8.6 %
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Detail of Operating Expenses - Fourth Quarter
(unaudited)
Three Months Ended
December 31,
20252024Change% Change
(in millions)
Compensation and benefits$13,034 $12,996 $38 0.3 %
Repairs and maintenance817 775 42 5.4 %
Depreciation and amortization972 919 53 5.8 %
Purchased transportation2,873 3,695 (822)(22.2)%
Fuel1,129 1,112 17 1.5 %
Other occupancy570 544 26 4.8 %
Other expenses2,509 2,334 175 7.5 %
Total operating expenses$21,904 $22,375 $(471)(2.1)%
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Selected Financial Data - Year to Date
(unaudited)
Twelve Months Ended
December 31,
20252024Change% Change
(amounts in millions, except per share data)
Statement of Income Data:
Revenue:
  U.S. Domestic Package$59,519 $60,376 $(857)(1.4)%
  International Package18,576 17,960 616 3.4 %
  Supply Chain Solutions10,566 12,734 (2,168)(17.0)%
  Total revenue88,661 91,070 (2,409)(2.6)%
Operating expenses:
  U.S. Domestic Package55,593 56,031 (438)(0.8)%
  International Package15,703 14,769 934 6.3 %
  Supply Chain Solutions9,498 11,802 (2,304)(19.5)%
  Total operating expenses80,794 82,602 (1,808)(2.2)%
Operating profit:
  U.S. Domestic Package3,926 4,345 (419)(9.6)%
  International Package2,873 3,191 (318)(10.0)%
  Supply Chain Solutions1,068 932 136 14.6 %
  Total operating profit7,867 8,468 (601)(7.1)%
Other income (expense):
 Other pension income (expense)169 (396)565 N/A
  Investment income (expense) and other145 236 (91)(38.6)%
  Interest expense(1,017)(866)(151)17.4 %
  Total other income (expense)(703)(1,026)323 (31.5)%
Income before income taxes7,164 7,442 (278)(3.7)%
Income tax expense1,592 1,660 (68)(4.1)%
Net income$5,572 $5,782 $(210)(3.6)%
Net income as a percentage of revenue6.3 %6.3 %
Per share amounts:
  Basic earnings per share$6.56 $6.76 $(0.20)(3.0)%
  Diluted earnings per share$6.56 $6.75 $(0.19)(2.8)%
Weighted-average shares outstanding:
  Basic849 855 (6)(0.7)%
  Diluted850 856 (6)(0.7)%
Non-GAAP Adjusted Income Data (1):
Operating profit:
  U.S. Domestic Package $4,604 $4,516 $88 1.9 %
  International Package 2,935 3,360 (425)(12.6)%
  Supply Chain Solutions1,122 1,018 104 10.2 %
  Total operating profit 8,661 8,894 (233)(2.6)%
Total other income (expense)$(684)$(355)$(329)92.7 %
Income before income taxes $7,977 $8,539 $(562)(6.6)%
Net income $6,086 $6,615 $(529)(8.0)%
Basic earnings per share $7.17 $7.73 $(0.56)(7.2)%
Diluted earnings per share$7.16 $7.72 $(0.56)(7.3)%

(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)
Twelve Months Ended
December 31,
20252024Change% Change
Revenue (in millions):
U.S. Domestic Package:
   Next Day Air$9,652 $9,703 $(51)(0.5)%
   Deferred4,446 4,757 (311)(6.5)%
   Ground44,183 45,347 (1,164)(2.6)%
Cargo and Other1,238 569 669 117.6 %
      Total U.S. Domestic Package59,519 60,376 (857)(1.4)%
International Package:
   Domestic3,401 3,186 215 6.7 %
   Export14,479 14,142 337 2.4 %
   Cargo and Other696 632 64 10.1 %
      Total International Package18,576 17,960 616 3.4 %
Supply Chain Solutions:
   Forwarding2,916 4,728 (1,812)(38.3)%
Logistics5,855 6,437 (582)(9.0)%
   Other1,795 1,569 226 14.4 %
      Total Supply Chain Solutions10,566 12,734 (2,168)(17.0)%
Consolidated$88,661 $91,070 $(2,409)(2.6)%
Consolidated volume (in millions)5,253 5,672 (419)(7.4)%
Operating weekdays252 253 (1)(0.4)%
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
   Next Day Air1,499 1,651 (152)(9.2)%
   Deferred892 1,058 (166)(15.7)%
   Ground15,119 16,452 (1,333)(8.1)%
      Total U.S. Domestic Package17,510 19,161 (1,651)(8.6)%
International Package:
   Domestic1,575 1,554 21 1.4 %
   Export1,762 1,703 59 3.5 %
      Total International Package3,337 3,257 80 2.5 %
Consolidated20,847 22,418 (1,571)(7.0)%
Average Revenue Per Piece:
U.S. Domestic Package:
   Next Day Air$25.55 $23.23 $2.32 10.0 %
   Deferred19.78 17.77 2.01 11.3 %
   Ground11.60 10.89 0.71 6.5 %
      Total U.S. Domestic Package13.21 12.34 0.87 7.1 %
International Package:
   Domestic8.57 8.10 0.47 5.8 %
   Export32.61 32.82 (0.21)(0.6)%
      Total International Package21.26 21.03 0.23 1.1 %
Consolidated$14.50 $13.60 $0.90 6.6 %
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Detail of Operating Expenses - Year to Date
(unaudited)
Twelve Months Ended
December 31,
20252024Change% Change
(in millions)
Compensation and benefits$48,605 $48,093 $512 1.1 %
Repairs and maintenance3,107 2,940 167 5.7 %
Depreciation and amortization3,746 3,609 137 3.8 %
Purchased transportation10,588 13,589 (3,001)(22.1)%
Fuel4,316 4,366 (50)(1.1)%
Other occupancy2,269 2,117 152 7.2 %
Other expenses8,163 7,888 275 3.5 %
Total operating expenses$80,794 $82,602 $(1,808)(2.2)%
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Consolidated Balance Sheets
December 31, 2025 (unaudited) and December 31, 2024 (amounts in millions)

December 31,
2025		December 31,
2024
ASSETS
Current Assets:
Cash and cash equivalents$5,887 $6,112 
Accounts receivable, net
11,209 10,871 
Other current assets1,949 2,327 
 Total Current Assets19,045 19,310 
Property, Plant and Equipment, Net37,731 37,179 
Operating Lease Right-Of-Use Assets4,263 4,149 
Goodwill5,837 4,300 
Intangible Assets, Net4,021 3,064 
Deferred Income Tax Assets140 112 
Other Non-Current Assets2,053 1,956 
Total Assets $73,090 $70,070 
LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities:
Current maturities of long-term debt, commercial paper and finance leases$608 $1,838 
Current maturities of operating leases763 733 
Accounts payable6,633 6,302 
Accrued wages and withholdings3,715 3,655 
Self-insurance reserves1,137 1,086 
Accrued group welfare and retirement plan contributions1,389 1,390 
Other current liabilities 1,375 1,437 
Total Current Liabilities15,620 16,441 
Long-Term Debt and Finance Leases23,519 19,446 
Non-Current Operating Leases3,700 3,635 
Pension and Postretirement Benefit Obligations6,567 6,859 
Deferred Income Tax Liabilities3,690 3,595 
Other Non-Current Liabilities3,739 3,351 
Shareowners' Equity:
Class A common stock1 2 
Class B common stock8 7 
Additional paid-in capital275 136 
Retained earnings20,151 20,882 
Accumulated other comprehensive loss(4,208)(4,309)
Deferred compensation obligations5 7 
Less: Treasury stock(5)(7)
Total Equity for Controlling Interests16,227 16,718 
Noncontrolling interests28 25 
Total Shareowners' Equity16,255 16,743 
Total Liabilities and Shareowners' Equity$73,090 $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
(In millions, unaudited)

Twelve Months Ended
December 31,
20252024
Cash Flows From Operating Activities:
Net income$5,572 $5,782 
Adjustments to reconcile net income to net cash from operating activities:
 Depreciation and amortization 3,746 3,609 
 Pension and postretirement benefit expense 1,009 1,698 
 Pension and postretirement benefit contributions (1,361)(1,524)
 Self-insurance reserves 236 44 
 Deferred tax benefit
(8)(15)
 Stock compensation expense
73 24 
 Other losses
113 262 
Changes in assets and liabilities, net of effects of business acquisitions:
 Accounts receivable (382)(566)
 Other assets 65 70 
 Accounts payable (190)262 
 Accrued wages and withholdings 27 501 
 Other liabilities (517)(11)
Other operating activities67 (14)
 Net cash from operating activities 8,450 10,122 
Cash Flows From Investing Activities:
Capital expenditures(3,685)(3,909)
Proceeds from disposal of businesses, property, plant and equipment700 1,115 
Purchases of marketable securities(90)(76)
Sales and maturities of marketable securities293 2,748 
Acquisitions, net of cash acquired(1,968)(71)
Other investing activities15 (24)
Net cash used in investing activities
(4,735)(217)
Cash Flows From Financing Activities:
Net change in short-term debt— (1,272)
Proceeds from long-term borrowings4,153 2,785 
Repayments of long-term borrowings(2,069)(2,487)
Purchases of common stock(1,000)(500)
Issuances of common stock159 232 
Dividends(5,398)(5,399)
Other financing activities14 (209)
Net cash used in financing activities(4,141)(6,850)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash201 (149)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash(225)2,906 
Cash, Cash Equivalents and Restricted Cash:
Beginning of period6,112 3,206 
End of period$5,887 $6,112 
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)
(In millions, unaudited)

Twelve Months Ended
December 31,
20252024
Cash flows from operating activities$8,450 $10,122 
Capital expenditures(3,685)(3,909)
Proceeds from disposals of property, plant and equipment700 113 
Other investing activities5 (24)
   Free Cash Flow (Non-GAAP measure)$5,470 $6,302 
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
December 31,
(amounts in millions)2025202420252024
Operating Profit (GAAP)$2,575 $2,926 Operating Margin (GAAP)10.5 %11.6 %
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0Transformation 2.0
Financial systems11 13 Financial systems0.1 %0.1 %
Transformation 2.0 total11 13 Transformation 2.0 total0.1 %0.1 %
Fit to Serve— 47 Fit to Serve— 0.2 %
Network Reconfiguration and Efficiency Reimagined122 35 Network Reconfiguration and Efficiency Reimagined0.5 %0.1 %
Total Transformation Strategy Costs133 95 Total Transformation Strategy Costs0.6 %0.4 %
Goodwill and Asset Impairment Charges (1,2)
182 60 
Goodwill and Asset Impairment Charges (1,2)
0.7 %0.2 %
Multiemployer Pension Plan Withdrawal (3)
— 19 
Multiemployer Pension Plan Withdrawal (3)
— %0.1 %
Non-GAAP Adjusted Operating Profit$2,890 $3,100 Non-GAAP Adjusted Operating Margin11.8 %12.3 %
(amounts in millions)20252024
Other Income (Expense) (GAAP)$(203)$(799)
Pension Adjustment (4)
— 665 
Non-GAAP Adjusted Other Income (Expense)$(203)$(134)
(1) Reflects a pre-tax impairment charge of $182 million related to the retirement of the MD-11 aircraft fleet.
(2) Reflects pre-tax impairment charges of $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(3) Reflects a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(4) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Three Months Ended
December 31,
(amounts in millions)20252024(amounts in millions)20252024
Income Before Income Taxes (GAAP)$2,372 $2,127 Income Tax Expense (GAAP)$581 $406 
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0Transformation 2.0
Financial systems11 13 Financial systems3 3 
Transformation 2.0 total11 13 Transformation 2.0 total3 3 
Fit to Serve— 47 Fit to Serve— 11 
Network Reconfiguration and Efficiency Reimagined122 35 Network Reconfiguration and Efficiency Reimagined29 8 
Total Transformation Strategy Costs133 95 Total Transformation Strategy Costs32 22 
Goodwill and Asset Impairment Charges (1,2)
182 60 
Goodwill and Asset Impairment Charges (1,2)
45 14 
Multiemployer Pension Plan Withdrawal (3)
— 19 
Multiemployer Pension Plan Withdrawal (3)
— 5 
Pension Adjustment (4)
— 665 
Pension Adjustment (4)
— 159 
Non-GAAP Adjusted Income Before Income Taxes$2,687 $2,966 Non-GAAP Adjusted Income Tax Expense$658 $606 
(1) Reflects a pre-tax impairment charge of $182 million related to the retirement of the MD-11 aircraft fleet.
(2) Reflects pre-tax impairment charges of $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(3) Reflects a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(4) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
Certain amounts are calculated based on unrounded numbers.

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

Three Months Ended
December 31,
(amounts in millions)2025202420252024
Net Income (GAAP)$1,791 $1,721 Diluted Earnings Per Share (GAAP)$2.10 $2.01 
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0Transformation 2.0
Financial systems8 10 Financial systems0.01 0.01 
Transformation 2.0 total8 10 Transformation 2.0 total0.01 0.01 
Fit to Serve— 36 Fit to Serve— 0.04 
Network Reconfiguration and Efficiency Reimagined93 27 Network Reconfiguration and Efficiency Reimagined0.11 0.03 
Total Transformation Strategy Costs101 73 Total Transformation Strategy Costs0.12 0.08 
Goodwill and Asset Impairment Charges (1,2)
137 46 
Goodwill and Asset Impairment Charges (1,2)
0.16 0.05 
Multiemployer Pension Plan Withdrawal (3)
— 14 
Multiemployer Pension Plan Withdrawal (3)
— 0.02 
Pension Adjustment (4)
— 506 
Pension Adjustment (4)
— 0.59
Non-GAAP Adjusted Net Income$2,029 $2,360 Non-GAAP Adjusted Diluted Earnings Per Share$2.38 $2.75 
(1) Reflects a pre-tax impairment charge of $182 million related to the retirement of the MD-11 aircraft fleet.
(2) Reflects pre-tax impairment charges of $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(3) Reflects a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(4) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.



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
December 31,
202520242025202420252024
U.S. Domestic PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$15,328 $15,631 (1.9)%$1,428 $1,681 (15.1)%8.5 %9.7 %
Adjusted for:
Transformation Strategy Costs(105)(54)105 54 0.7 %0.3 %
Goodwill and Asset Impairment Charges(173)— 173 — 1.0 %— %
Multiemployer Pension Plan Withdrawal— (19)— 19 — %0.1 %
Non-GAAP Adjusted Measure$15,050 $15,558 (3.3)%$1,706 $1,754 (2.7)%10.2 %10.1 %
202520242025202420252024
International PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$4,161 $3,904 6.6 %$884 $1,019 (13.2)%17.5 %20.7 %
Adjusted for:
Transformation Strategy Costs(15)(43)15 43 0.3 %0.9 %
Goodwill and Asset Impairment Charges(9)— 9 — 0.2 %— %
Non-GAAP Adjusted Measure$4,137 $3,861 7.1 %$908 $1,062 (14.5)%18.0 %21.6 %
202520242025202420252024
Supply Chain SolutionsOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$2,415 $2,840 (15.0)%$263 $226 16.4 %9.8 %7.4 %
Adjusted for:
Transformation Strategy Costs(13)2 13 (2)0.5 %(0.1)%
Goodwill and Asset Impairment Charges— (60)— 60 — %2.0 %
Non-GAAP Adjusted Measure$2,402 $2,782 (13.7)%$276 $284 (2.8)%10.3 %9.3 %

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
December 31,
20252024% Change
Operating Days62 62 
Average Daily U.S. Domestic Package Volume (in thousands)19,970 22,382 
U.S. Domestic Package Cost Per Piece (GAAP)$12.14 $11.00 10.4 %
Transformation Strategy Costs(0.08)(0.04)
Goodwill and Asset Impairment Charges(0.14)— 
Multiemployer Pension Plan Withdrawal— (0.01)
U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece$11.92 $10.95 8.9 %

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)
Year Ended
December 31,
(amounts in millions)2025202420252024
Operating Profit (GAAP)$7,867 $8,468 Operating Margin (GAAP)8.9 %9.3 %
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0Transformation 2.0
Business portfolio review(18)29 Business portfolio review— %— %
Financial systems55 54 Financial systems0.1 %0.1 %
Transformation 2.0 total37 83 Transformation 2.0 total0.1 %0.1 %
Fit to Serve47 204 Fit to Serve0.1 %0.3 %
Network Redesign and Efficiency Reimagined509 35 Network Redesign and Efficiency Reimagined0.6 %— %
Total Transformation Strategy Costs593 322 Total Transformation Strategy Costs0.8 %0.4 %
Goodwill and Asset Impairment Charges (1,2)
182 108 
Goodwill and Asset Impairment Charges (1,2)
0.1 %0.2 %
Net Loss (Gain) on Divestiture (7,3)
19 (156)
Net Loss (Gain) on Divestiture (7,3)
— %(0.2)%
One-Time Payment for Int'l Regulatory Matter (4)
— 88 
One-Time Payment for Int'l Regulatory Matter (4)
— %0.1 %
Expense for Regulatory Matter (5)
— 45 
Expense for Regulatory Matter (5)
— %— %
Multiemployer Pension Plan Withdrawal (6)
— 19 
Multiemployer Pension Plan Withdrawal (6)
— %— %
Non-GAAP Adjusted Operating Profit$8,661 $8,894 Non-GAAP Adjusted Operating Margin9.8 %9.8 %
(amounts in millions)20252024
Other Income (Expense) (GAAP)$(703)$(1,026)
Goodwill and Asset Impairment Charges (1)
19 — 
One-Time Payment for Int'l Regulatory Matter (4)
— 6 
Pension Adjustment (8)
— 665 
Non-GAAP Adjusted Other Income (Expense)$(684)$(355)
(1) Reflects pre-tax impairment charges of $182 million related to the retirement of the MD-11 aircraft fleet and $19 million for the write-down of an equity investment in 2025.
(2) Reflects pre-tax impairment charges of $41 million for acquired trade names, $7 million for software licenses and $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(3) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(4) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.
(5) Reflects expense related to the settlement of a regulatory matter.
(6) Reflects a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(7) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions.
(8) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures
(unaudited)
Year Ended
December 31,
(amounts in millions)20252024(amounts in millions)20252024
Income Before Income Taxes (GAAP)$7,164 $7,442 Income Tax Expense (GAAP)$1,592 $1,660 
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0Transformation 2.0
Business portfolio review(18)29 Business portfolio review(5)7 
Financial systems55 54 Financial systems14 13 
Transformation 2.0 total37 83 Transformation 2.0 total9 20 
Fit to Serve47 204 Fit to Serve10 49 
Network Redesign and Efficiency Reimagined509 35 Network Redesign and Efficiency Reimagined122 8 
Total Transformation Strategy Costs593 322 Total Transformation Strategy Costs141 77 
Goodwill and Asset Impairment Charges (1,2)
201 108 
Goodwill and Asset Impairment Charges (1,2)
45 27 
Net Loss (Gain) on Divestiture (7,3)
19 (156)
Net Loss (Gain) on Divestiture (7,3)
4 (4)
One-Time Payment for Int'l Regulatory Matter (4)
— 94 
Multiemployer Pension Plan Withdrawal (6)
— 5 
Expense for Regulatory Matter (5)
— 45 
Pension Adjustment (8)
— 159 
Multiemployer Pension Plan Withdrawal (6)
— 19 
Reversal of Income Tax Valuation Allowance (9)
109 — 
Pension Adjustment (8)
— 665 
Non-GAAP Adjusted Income Before Income Taxes$7,977 $8,539 Non-GAAP Adjusted Income Tax Expense$1,891 $1,924 
(1) Reflects pre-tax impairment charges of $182 million related to the retirement of the MD-11 aircraft fleet and $19 million for the write-down of an equity investment in 2025.
(2) Reflects pre-tax impairment charges of $41 million for acquired trade names, $7 million for software licenses and $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(3) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(4) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.
(5) Reflects expense related to the settlement of a regulatory matter.
(6) Reflects a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(7) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions.
(8) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
(9) Reflects the reversal of an income tax valuation allowance.
Certain amounts are calculated based on unrounded numbers.

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

Year Ended
December 31,
(amounts in millions)2025202420252024
Net Income (GAAP)$5,572 $5,782 Diluted Earnings Per Share (GAAP)$6.56 $6.75 
Transformation Strategy Costs:Transformation Strategy Costs:
Transformation 2.0Transformation 2.0
Business portfolio review(13)22 Business portfolio review(0.02)0.03 
Financial systems41 41 Financial systems0.05 0.05 
Transformation 2.0 total28 63 Transformation 2.0 total0.03 0.08 
Fit to Serve37 155 Fit to Serve0.04 0.18 
Network Redesign and Efficiency Reimagined387 27 Network Redesign and Efficiency Reimagined0.46 0.03 
Total Transformation Strategy Costs452 245 Total Transformation Strategy Costs0.53 0.29 
Goodwill and Asset Impairment Charges (1,2)
156 81 
Goodwill and Asset Impairment Charges (1,2)
0.18 0.09 
Net Loss (Gain) on Divestiture (7,3)
15 (152)
Net Loss (Gain) on Divestiture (7,3)
0.02 (0.18)
One-Time Payment for Int'l Regulatory Matter (4)
— 94 
One-Time Payment for Int'l Regulatory Matter (4)
— 0.11 
Expense for Regulatory Matter (5)
— 45 
Expense for Regulatory Matter (5)
— 0.05 
Multiemployer Pension Plan Withdrawal (6)
— 14 
Multiemployer Pension Plan Withdrawal (6)
— 0.02 
Pension Adjustment (8)
— 506 
Pension Adjustment (8)
— 0.59 
Reversal of Income Tax Valuation Allowance (9)
(109)— 
Reversal of Income Tax Valuation Allowance (9)
(0.13)— 
Non-GAAP Adjusted Net Income$6,086 $6,615 Non-GAAP Adjusted Diluted Earnings Per Share$7.16 $7.72 
(1) Reflects pre-tax impairment charges of $182 million related to the retirement of the MD-11 aircraft fleet and $19 million for the write-down of an equity investment in 2025.
(2) Reflects pre-tax impairment charges of $41 million for acquired trade names, $7 million for software licenses and $60 million for IT systems and other fixed assets within Supply Chain Solutions in 2024.
(3) Represents a pre-tax gain of $156 million on the divestiture of our Coyote Logistics business within Supply Chain Solutions during 2024.
(4) Reflects a pre-tax one-time payment for an international regulatory matter of $88 million and related interest of $6 million.
(5) Reflects expense related to the settlement of a regulatory matter.
(6) Reflects a pre-tax one-time charge of $19 million to withdraw from a multiemployer pension plan within the United States.
(7) Reflects a pre-tax net loss of $19 million on the divestiture of a business within Supply Chain Solutions.
(8) Net mark-to-market loss recognized outside of a 10% corridor on company-sponsored defined benefit pension and postretirement plans.
(9) Reflects the reversal of an income tax valuation allowance.
Certain amounts are calculated based on unrounded numbers.

United Parcel Service, Inc.
Reconciliation of GAAP and Non-GAAP Adjusted Measures by Segment
(unaudited)
Year Ended
December 31,
202520242025202420252024
U.S. Domestic PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$55,593 $56,031 (0.8)%$3,926 $4,345 (9.6)%6.6 %7.2 %
Adjusted for:
Transformation Strategy Costs(505)(147)505 147 0.8 %0.3 %
Goodwill and Asset Impairment Charges(173)(5)173 5 0.3 %— %
Multiemployer Pension Plan Withdrawal— (19)— 19 — %— %
Non-GAAP Adjusted Measure$54,915 $55,860 (1.7)%$4,604 $4,516 1.9 %7.7 %7.5 %
202520242025202420252024
International PackageOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$15,703 $14,769 6.3 %$2,873 $3,191 (10.0)%15.5 %17.8 %
Adjusted for:
Transformation Strategy Costs(53)(79)53 79 0.3 %0.4 %
Goodwill and Asset Impairment Charges(9)(2)9 2 — %— %
One-Time International Regulatory Matter— (88)— 88 — %0.5 %
Non-GAAP Adjusted Measure$15,641 $14,600 7.1 %$2,935 $3,360 (12.6)%15.8 %18.7 %
202520242025202420252024
Supply Chain SolutionsOperating Expenses% ChangeOperating Profit% ChangeOperating Margin
GAAP$9,498 $11,802 (19.5)%$1,068 $932 14.6 %10.1 %7.3 %
Adjusted for:
Transformation Strategy Costs(35)(96)35 96 0.3 %0.8 %
Net (Loss) Gain on Divestiture(19)156 19 (156)0.2 %(1.2)%
Goodwill and Asset Impairment Charges— (101)— 101 — %0.7 %
Expense for Regulatory Matter
— (45)— 45 — %0.4 %
Non-GAAP Adjusted Measure$9,444 $11,716 (19.4)%$1,122 $1,018 10.2 %10.6 %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)

Year Ended
December 31,
20252024% Change
Operating Days252 253 
Average Daily U.S. Domestic Package Volume (in thousands)17,510 19,161 
U.S. Domestic Package Cost Per Piece (GAAP)$12.35 $11.42 8.1 %
Transformation Strategy Costs(0.11)(0.04)
Goodwill and Asset Impairment Charges(0.04)— 
U.S. Domestic Package Non-GAAP Adjusted Cost Per Piece$12.20 $11.38 7.2 %

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 December 31, 2025
(unaudited)

DescriptionUPS Owned and/or OperatedCharters & Leases Operated by OthersOn OrderUnder Option
Boeing 757-20075 — — — 
Boeing 767-30089 — 18 — 
Boeing 767-300BCF6 — — — 
Boeing 767-300BDSF4 — — — 
Airbus A300-60052 — — — 
Boeing MD-11(1)
26 — — — 
Boeing 747-400F11 — — — 
Boeing 747-400BCF2 — — — 
Boeing 747-8F30 — — — 
Other— 221 — — 
          Total295 221 18 — 

(1) MD-11 aircraft fleet shown above has been retired as of December 31, 2025.































Certain amounts are calculated based on unrounded numbers.