UPS beats Q4 revenue, profit estimates

Overview

• Logistics provider's Q4 revenue of $24.5 bln beat analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company completed retirement of MD-11 aircraft fleet, impacting GAAP results

Outlook

• UPS expects 2026 revenue to be approximately $89.7 bln

• Company anticipates non-GAAP adjusted operating margin of 9.6% for 2026

• UPS plans capital expenditures of about $3.0 bln in 2026

Result Drivers

• U.S. DOMESTIC REVENUE DECLINE - Revenue fell 3.2% due to expected volume decline, despite 8.3% growth in revenue per piece

• INTERNATIONAL REVENUE GROWTH - Revenue increased 2.5%, driven by a 7.1% increase in revenue per piece

• MD-11 FLEET RETIREMENT - Completion of MD-11 fleet retirement led to $137 mln after-tax charge

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 14 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the courier, postal, air freight & land-based logistics peer group is "buy"

• Wall Street's median 12-month price target for United Parcel Service Inc is $112.00, about 4.7% above its January 26 closing price of $106.97

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw2p1x2ya

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