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1 2Q26 Earnings Call July 28, 2026
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2 CAROL B. TOMÉ Chief Executive Officer UPS Speakers BRIAN DYKES Chief Financial Officer PJ GUIDO Investor Relations Officer © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 2
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3 Forward-Looking Statements and Non-GAAP Reconciliations Forward-Looking Statements This presentation and our filings with the Securities and Exchange Commission contain and in the future may contain “forward-looking statements”. Statements other than those of current or historical fact, and all statements accompanied by terms such as “will,” “believe,” “project,” “expect,” “estimate,” “assume,” “intend,” “anticipate,” “target,” “plan,” and similar terms, are intended to be forward-looking statements. From time to time, we also include written or oral forward-looking statements in other publicly disclosed materials. Such statements may relate to our intent, belief, forecasts of, or current expectations about our strategic direction, prospects, future results, or future events; they do not relate strictly to historical or current facts. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any forward-looking statements because such statements speak only as of the date when made and the future, by its very nature, cannot be predicted with certainty. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or anticipated results. These risks and uncertainties include, but are not limited to: changes in general economic conditions in the U.S. or internationally, including as a result of changes in the global trade policy, new or increased tariffs, government shutdowns, or geopolitical uncertainty, tensions and/or conflicts in or arising from various countries and regions, including the European Union, Ukraine, the Russian Federation, the Middle East and the Trans- Pacific region; significant competition on a local, regional, national and international basis; changes in our relationships with our significant customers; our ability to attract and retain qualified employees; strikes, work stoppages or slowdowns by our employees; increased or more complex physical or operational security requirements; a significant cybersecurity incident, or increased data protection regulations; our ability to maintain our brand image and corporate reputation; impacts from global climate change; interruptions in or impacts on our business from natural or man-made events or disasters including terrorist attacks, epidemics or pandemics; exposure to changing economic, political, regulatory and social developments in international and emerging markets; our ability to realize the anticipated benefits from acquisitions, dispositions, joint ventures or strategic alliances; the effects of changing prices of energy, including gasoline, diesel, jet fuel, other fuels and interruptions in supplies of these commodities; changes in exchange rates or interest rates; our ability to accurately forecast our future capital investment needs; increases in our expenses or funding obligations relating to employee health, retiree health and/or pension benefits; our ability to manage insurance and claims expenses; changes in business strategy, government regulations or economic or market conditions that may result in impairments of our assets; potential additional U.S. or international tax liabilities; increasingly stringent regulations related to climate change; potential claims or litigation related to labor and employment, personal injury, property damage, business practices, environmental liability and other matters; and other risks discussed in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequently filed reports. You should consider the limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of predictions contained in such forward-looking statements. We do not undertake any obligation to update forward-looking statements to reflect events, circumstances, changes in expectations or the occurrence of unanticipated events after the date of those statements, except as required by law. See the appendix for reconciliations of adjusted results and other non-GAAP adjusted financial measures. The Company routinely posts important information, including news releases, announcements, materials provided or displayed at analyst or investor conferences, and other statements about its business and results of operations, that may be deemed material to investors on the Company’s Investors Relations website at www.investors.ups.com. The Company uses its website as a means of disclosing material, nonpublic information and for complying with the Company’s disclosure obligations under Regulation FD. Investors should monitor the Company’s Investor Relations website in addition to following the Company’s press releases, filings with the SEC, public conference calls and webcasts. We do not incorporate the contents of any website into this or any other report we file with the SEC. © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
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4 *Non-GAAP adjusted financial measure. See Appendix for reconciliation to GAAP financial measure. ** For additional information on our Transformation initiatives, see the Appendix to this presentation. $0.71 $1.05 $1.76 2Q26 EPS Transformation Strategy Costs** 2Q26 Non-GAAP Adj. EPS* $1.51 -$0.02 $0.08 -$0.02 $1.55 2Q25 EPS Loss on Divestiture Transformation Strategy Costs** Reversal of Income Tax Allowance 2Q25 Non-GAAP Adj. EPS* Diluted EPS 2Q26 2Q25 © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
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5 © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. CAROL B. TOMÉ Chief Executive Officer
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6 THANK YOU UPSERS FOR ALL YOU DO © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
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7 HEADLINE Revenue ($ Ms) Non-GAAP Adj. Operating Profit* ($ Ms) Non-GAAP Adj. Operating Margin* Non-GAAP Adj. Diluted EPS* 2Q26 2Q26 Consolidated Results 2Q25 Change Y/Y $22,834 $2,102 9.2% $1.76 $21,221 $1,876 8.8% $1.55 7.6% 12.0% 40 bps $0.21 © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. Our 2Q financial results demonstrate the successful execution of key initiatives and the strength of our underlying business “All three segments contributed to our strong second-quarter revenue performance. And underscoring the strength of the quarter, U.S. Domestic delivered meaningful operating profit growth of over 20% versus last year.” Carol B. Tomé, CEO *Non-GAAP adjusted financial measure. See Appendix for reconciliation to GAAP financial measure. 7
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8 RFID + AI is the intersection of the physical and digital worlds Driving greater efficiency, reliability, visibility and a premium customer experience • Moving from a scanning to a sensing network, eliminating hundreds of millions of manual scans every year • Expanding RFID internationally • Enabling customers with RFID label printers • Every package shipped at The UPS Store is RFID-enabled • AI is transforming RFID data from billions of package movements into decisions, predictions and actions
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9 HEADLINE © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. Next phase of our strategy is straightforward Focused on premium volume growth SMB and Digital Access Program (DAP) • SMB ADV +4.3% Y/Y • DAP revenue $1B+ for third consecutive quarter Healthcare • Generated $3B+ revenue for second consecutive quarter • Added 27 temperature-controlled cross-dock facilities to our network • Only carrier with end-to-end solutions for complex healthcare using our own assets, maintaining complete control, visibility and best-in-class service Industrial and Automotive • Expanding U.S.–Mexico North American Air Freight • Launched 300+ industrial supply chain specialists 10
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10 Entering the second half of the year with momentum Given our strong 1H performance, we are increasing our full-year 2026 outlook Full-year 2026 Consolidated Guidance *Non-GAAP adjusted financial measure. See Appendix for reconciliation to GAAP financial measure.© 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. ~$91.2BRevenue Non-GAAP adj. operating profit* ~$8.65B Non-GAAP adj. diluted EPS* ~$7.22
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11 © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. Chief Financial Officer BRIAN DYKES
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12 • Total Air ADV increased 1.2% Y/Y , excluding Amazon • Most of the decline in Ground was attributable to our planned Amazon glidedown 16,553 -18 -33 -500 16,002 2Q25 ADV NDA Deferred Ground 2Q26 ADV ADV in Thousands U.S. Domestic 31.2% 32.0% 32.8% 31.2% 34.5% 34.5% 1Q 2025 1Q 2026 2Q 2025 2Q 2026 3Q 2025 3Q 2026 4Q 2025 4Q 2026 43.8% 43.7% 45.2% 37.5% 45.2% 43.8% 1Q 2025 1Q 2026 2Q 2025 2Q 2026 3Q 2025 3Q 2026 4Q 2025 4Q 2026 Focused on revenue quality and premium parts of the market SMB ADV up 4.3% Y/Y , with growth from nearly all industries, led by high tech and healthcare U.S. Domestic ADV Change (-3.3% Y/Y) SMB % of Total Volume (Y/Y) B2B % of Total Volume (Y/Y) © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
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13 Revenue per piece (RPP) increased 9.3% Y/Y: • Over half of RPP growth driven by healthy base rates and customer mix improvements • Fuel contributed to the remainder of the increase $14.1B -$0.5B $1.2B $0.1B $14.9B 2Q25 Revenue Volume RPP Cargo & Other 2Q26 Revenue Generated $14.9B in revenue, an increase of 6.0% Y/Y Driven by strong RPP growth Revenue Change (+6.0% Y/Y) © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. U.S. Domestic
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14 HEADLINE Revenue ($ Ms) Non-GAAP Adj. Operating Profit* ($ Ms) Non-GAAP Adj. Operating Margin* 2Q26 2Q26 U.S. Domestic Results 2Q25 Change Y/Y $14,930 $1,188 8.0% $14,083 $982 7.0% 6.0% 21.0% 100 bps © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. Delivered $1.2B in non-GAAP adj. operating profit*, up 21.0% Y/Y More than double the non-GAAP adj. operating profit* delivered in 1Q26 • Total non-GAAP adj. operating expense* increased 4.9% Y/Y • More than half of the increase came from fuel and purchased transportation • Revenue per piece grew 130 basis points faster than growth rate in cost per piece • Non-GAAP adj. operating margin* of 8.0%, up 100 basis points Y/Y • 400 basis point increase from 1Q26 *Non-GAAP adjusted financial measure. See Appendix for reconciliation to GAAP financial measure. U.S. Domestic 14
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15 -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Asia* Monthly ADV (Y/Y) 2026 2025 -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Europe Monthly ADV (Y/Y) 2026 2025 -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Americas Monthly ADV (Y/Y) 2026 2025 -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total International Monthly ADV (Y/Y) 2026 2025 Returned to Y/Y volume growth on the China-to-US lane © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. International *Lunar New Year was in February 2026 and January 2025
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16 HEADLINE Revenue ($ Ms) Non-GAAP Adj. Operating Profit ($ Ms)* Non-GAAP Adj. Operating Margin* 2Q26 2Q26 International Results 2Q25 Change Y/Y $5,044 $623 12.4% $4,485 $682 15.2% 12.5% (8.7%) (280 bps) © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. Increased revenue 12.5% Y/Y , driven by strong revenue-per-piece growth • Improvement in geographic mix as trade lanes began to rebalance, particularly in Asia • Revenue per piece increased 18.9% Y/Y , with a little more than half coming from fuel • Non-GAAP adj. operating margin* of 12.4%, includes 120 basis point negative Y/Y impact from fuel International *Non-GAAP adjusted financial measure. See Appendix for reconciliation to GAAP financial measure. 16
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17 HEADLINE Revenue ($ Ms) Non-GAAP Adj. Operating Profit ($ Ms)* Non-GAAP Adj. Operating Margin* 2Q26 2Q26 Supply Chain Solutions Results 2Q25 Change Y/Y $2,860 $291 10.2% $2,653 $212 8.0% 7.8% 37.3% 220 bps © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. Second quarter in a row of strong non-GAAP adj. operating profit growth Y/Y • Forwarding revenue up 8.1% Y/Y , driven by higher rates in International Air Freight • Logistics revenue up 4.3% Y/Y , driven by strong growth in Healthcare logistics, partially offset by our Mail Innovations business • UPS Digital, including Roadie and Happy Returns, delivered revenue growth of over 30.0% Y/Y • Non-GAAP adj. operating margin* of 10.2%, up 220 basis points Y/Y *Non-GAAP adjusted financial measure. See Appendix for reconciliation to GAAP financial measure. Supply Chain Solutions 17
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18 Strong YTD cash flow and liquidity • $3.1B in cash from operations • Free cash flow of $1.6B, including one-time payments made in 2Q26 for the Driver Choice Program • $4.7B in cash on the balance sheet and no outstanding commercial paper • Dividends paid of $2.7B
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19 Given our strong first-half results, we are increasing our full-year 2026 outlook Full Year 2026 Consolidated Guidance U.S. Domestic International Supply Chain Solutions • Revenue • Non-GAAP adj. operating profit* ~$91.2B ~$8.65B • Pension contribution $1.3B $88.7B Revenue Up MSD Y/Y Mid-teens% Revenue Revenue ~7.5% $88.7B Revenue Non-GAAP adj. operating margin* ~7.0% 3Q26 Guidance ~Flat Y/Y Revenue Non-GAAP adj. operating margin* ~13.0% - 14.0% Up MSD Y/Y Revenue Non-GAAP adj. operating margin* ~10.0% - 11.0% Up LDD Y/Y ~$60.0B Non-GAAP adj. operating margin* Non-GAAP adj. operating margin* Non-GAAP adj. operating margin* Up HSD Y/Y ~10.0% - 11.0% • Dividends, pending BOD approval ~$5.4B *Non-GAAP adjusted financial measure. See Appendix for reconciliation to GAAP financial measure.© 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. • Free cash flow* including DCP ~$5.5B • Capital expenditures ~$3.0B • Non-GAAP adj. diluted EPS* ~$7.22 2H26 ~8.8% 3Q26 Guidance 3Q26 Guidance Full Year 2026 Guidance Full Year 2026 Guidance Full Year 2026 Guidance
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20 Questions & Answers
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21 Appendix
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22 Reconciliation of GAAP and Non-GAAP Adjusted Financial Measures We supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP adjusted financial measures. Management views and evaluates business performance on both a GAAP basis and by excluding costs and benefits associated with these non -GAAP adjusted financial measures. As a result, we believe the presentation of these non-GAAP adjusted financial measures better enables users of our financial information to view and evaluate underlying business performance from the same perspective as management. Non-GAAP adjusted financial measures should be considered in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP. Our non-GAAP adjusted financial measures do not represent a comprehensive basis of accounting and therefore may not be comparable to similarly titled measures reported by other companies. Forward-Looking Non-GAAP Adjusted Financial Measures From time to time when presenting forward-looking non-GAAP adjusted financial measures, we are unable to provide quantitative reconciliations to the most closely correlated GAAP measure due to the uncertainty in the timing, amount or nature of any adjustments, which could be material in any period. Transformation Strategy Costs We exclude the impact of charges related to initiatives within our transformation strategy. Our transformation strategy initiatives have spanned several years and are designed to fundamentally change the spans and layers of our organization structure, processes, technologies and the composition of our business portfolio. Various circumstances precipitated these initiatives, including identification and prioritization of certain investments, developments and changes in competitive landscapes, inflationary pressures, consumer behaviors, and other factors including post-COVID normalization and volume diversions attributed to our 2023 labor negotiations. Our transformation strategy has included the following initiatives: Transformation 2.0: We reduced spans and layers of management, reviewed and refined our business portfolio and invested in certain technologies to reduce costs, increase visibility and reduce reliance on legacy systems. Costs associated with Transformation 2.0 consisted primarily of compensation and benefit costs related to reductions in our workforce and fees paid to third-party consultants. This initiative was completed in 2025. Fit to Serve: We undertook our Fit to Serve initiative to right-size our business to create a more efficient operating model that was more responsive to market dynamics through a workforce reduction, primarily within management. This initiative was completed in 2025. Network Reconfiguration and Efficiency Reimagined: Our Network of the Future initiative is intended to enhance the efficiency of our network through automation and operational sort consolidation in our U.S. Domestic Package network. In connection with our strategic execution of planned volume declines from our largest customer, we began our Network Reconfiguration initiative, which is an expansion of Network of the Future, and has led, and will continue to lead, to further reductions in our facilities, vehicles, aircraft and workforce, as well as an end-to-end process redesign. We launched our Efficiency Reimagined initiatives to undertake the end-to-end process redesign effort which will align our organizational processes to the network reconfiguration and enhance our business performance and profitability beyond ordinary ongoing efforts. Through these initiatives we have reduced our operational workforce and closed certain daily operations at leased and owned buildings. In the first six months of 2026, we achieved approximately $1.2 billion of program benefits from these initiatives. We expect to achieve approximately $3 billion in full year 2026 benefits from these initiatives. As a part of these initiatives, we expect non-GAAP adjusted operating expense to exclude between $1.3 and $1.5 billion in cost during the full year 2026, primarily related to employee separation costs and third -party consulting fees, of which $1.1 billion is related to the Driver Choice Program. As of June 30, 2026 we had incurred costs to date of $1.8 billion, including $1.2 billion in 2026, as a part of these initiatives. These initiatives are expected to conclude by 2027. We do not consider the related costs to be ordinary because each program involves separate and distinct activities that span multiple periods, and such costs are not expected to drive incremental revenue. These initiatives exceed ordinary, ongoing efforts to enhance our business performance and profitability. Goodwill and Asset Impairments We exclude the impact of goodwill and certain asset impairment charges. We do not consider these charges when evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards.. Net Gains and Losses Related to Divestitures We exclude the impact of gains or losses related to the business divestitures. We do not consider these gains or losses to be a component of our ongoing operations, nor do we consider their impact when evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards. Reversal of Income Tax Valuation Allowance We previously recorded non-GAAP adjustments for transactions that resulted in capital loss deferred tax assets not expected to be realized. As a result of property sales during 2025, these capital losses were fully realized within that year. We supplement our presentation with non-GAAP adjusted financial measures that exclude the impact of the reversals of the valuation allowances against these deferred tax assets as we believe such treatment is consistent with how the valuation allowance was initially established. Non-GAAP Adjusted Cost per Piece We evaluate the efficiency of our operations using various metrics, including non-GAAP adjusted cost per piece. Non- GAAP adjusted cost per piece in any period is calculated as non-GAAP adjusted operating expenses divided by total volume. Because non-GAAP adjusted operating expenses exclude costs or charges that we do not consider a part of underlying business performance when monitoring and evaluating the operating performance of our business units, making decisions to allocate resources or in determining incentive compensation awards, we believe this is the appropriate metric on which to base reviews and evaluations of the efficiency of our operational performance. Free Cash Flow We calculate free cash flow as cash flows from operating activities less capital expenditures, proceeds from disposals of property, plant and equipment, and plus or minus the net changes in other investing activities. We believe free cash flow is an important indicator of how much cash is generated by our ongoing business operations and we use this as a measure of incremental cash available to invest in our business, meet our debt obligations and return cash to shareowners. 22 Reconciliation of GAAP and Non-GAAP Financial Measures
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23 Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
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24 Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
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25 Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
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26 Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
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27 Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
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28 Reconciliations © 2026 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.