United Parcel Service (UPS) FY2025 10-K Annual Report
United Parcel Service (UPS) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 17, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
United Parcel Service FY2025 10-K Analysis
Business Overview
- • Core business model: Global package delivery and supply chain management services
- • No new products, services, or segments introduced or emphasized in current filing
- • No strategic shifts or changed competitive positioning detailed this year
- • Proxy Statement incorporation for insider trading, executive compensation, ownership, and governance policies emphasized
- • Filing mainly references related disclosures by incorporation; lacks direct operational or financial details this year
Management Discussion & Analysis
- • Revenue $88.7B, down 2.6% YoY ($91.1B in 2024) reflecting customer volume cuts and Coyote divestiture
- • Operating margin 8.9% vs 9.3% in 2024, operating profit $7.9B down 7.1%, net income $5.6B down 3.6%
- • Best segment: International Package with volume and revenue growth amid trade lane shifts; Worst: U.S. Domestic Package with 8.6% volume decline and 1.4% revenue drop to $59.5B
- • Returned $6.4B cash to shareholders: $1.0B share repurchases, $5.4B dividends; $3.5B cost savings in 2025 from network initiatives; ongoing capex not detailed
- • 2026 outlook expects $3B cost savings from network reconfiguration, continued volume declines from largest customer, and margin pressure from international trade policies
Risk Factors
- • Legal risk from contingent liabilities in employment and governmental claims, with no material losses recorded for 2025 but possible unpredictable judicial outcomes
- • Macroeconomic exposure in Global Freight Forwarding unit with goodwill $877M at risk; 100 bps higher discount rate or 10% cash flow reduction could trigger impairment
- • Operational supply chain vulnerability in Mail Innovations cost increases due to lost vendor contract; mitigated by new USPS final-mile delivery agreement starting 2026
- • Market disruption from volatile purchased transportation rates impacting small package delivery segment’s Mail Innovations unit
- • Financial risk from self-insurance reserves at $3.1B; 5% adverse change in claim frequency/severity could increase expenses by $300M annually
United Parcel Service FY2025 Key Financial MetricsXBRL
Revenue
$88.7B
▼ -2.6% YoY
Net Income
$5.6B
▼ -3.6% YoY
Operating Margin
8.9%
▼ -43bp YoY
Net Margin
6.3%
▼ -6bp YoY
ROE
34.3%
▼ -25bp YoY
Total Assets
$73.1B
▲ +4.3% YoY
EPS (Diluted)
$6.56
▼ -2.8% YoY
Operating Cash Flow
$8.4B
▼ -16.5% YoY
Source: XBRL data from United Parcel Service FY2025 10-K filing on SEC EDGAR. All figures in USD.
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