UPS (UPS) Q4 2024 earnings summary

Executive summary

• Achieved industry-leading on-time service during peak season for the seventh consecutive year, despite a compressed holiday period.

• Q4 2024 consolidated revenue rose 1.5% year-over-year to $25.3B; operating profit up 11.2% to $3.1B; adjusted EPS up 11.3% to $2.75.

• Full-year 2024 revenue was $91.1B, with operating profit $8.9B; adjusted EPS $7.72.

• Strategic actions underway to address slow U.S. package market growth, customer concentration, and USPS model changes, including a significant reduction in volume from the largest customer and insourcing SurePost deliveries.

• Focused on growing in healthcare, SMB, B2B, and international segments, with operational and portfolio optimization initiatives.

Financial highlights

• Q4 2024 consolidated revenue rose 1.5% year-over-year to $25.3B; operating profit up 11.2% to $3.1B; operating margin at 12.3%.

• Full-year 2024 revenue was $91.1B, slightly above 2023; operating profit $8.9B; operating margin 9.8%.

• Diluted EPS for Q4 was $2.75, up 11.3% year-over-year; full-year adjusted EPS $7.72.

• Generated $10.1B in cash from operations and returned $5.9B to shareholders via dividends and buybacks in 2024.

• Free cash flow for 2024 was $6.3B; CapEx was $3.9B.

Outlook and guidance

• 2025 consolidated revenue expected at ~$89B, with operating margin of ~10.8%.

• U.S. domestic revenue to decline 2.3% year-over-year in 2025, with ADV down ~8.5% but revenue per piece up ~6%.

• International segment revenue to grow ~2.5% in 2025, with operating margin around 18.6%.

• Supply Chain Solutions revenue expected at ~$11B, margin at ~8.5% for 2025.

• Free cash flow forecasted at $5.7B; CapEx at $3.5B; $5.5B in dividends and $1B in share buybacks planned.