UPS Q4 Profit Beats View, Revenues Miss; Sees FY25 Revenues Below Market; Plans Buyback; Stock Down

(RTTNews) - United Parcel Service, Inc. (UPS) reported Thursday higher profit in its fourth quarter with growth in revenues. Adjusted earnings beat market estimates, while topline missed the Street view. Further, the company issued fiscal 2025 revenue forecast below market.

The company also said it is planning capital expenditures of about $3.5 billion, dividend payments of around $5.5 billion, subject to board approval, and share repurchases of around $1.0 billion.

On the NYSE, UPS shares were losing around 11 percent to trade at $119.01.

Further, UPS announced a set of strategic actions.

The company has reached an agreement in principle with its largest customer to lower its volume by more than 50 percent by the second half of 2026.

Effective January 1, the company has insourced 100 percent of its UPS SurePost product; and in connection with these efforts, the company is reconfiguring its U.S. network, and launching multi-year "efficiency reimagined" initiatives to drive approximately $1.0 billion in savings through an end-to-end process redesign.

Carol Tomé, UPS chief executive officer, said, "We are making business and operational changes that, along with the foundational changes we've already made, will put us further down the path to becoming a more profitable, agile and differentiated UPS that is growing in the best parts of the market."

For the fourth quarter, net income was $1.72 billion or $2.01 per share, compared to $1.87 per share last year.

Adjusted net income was $2.36 billion or $2.75 per share, compared to $2.47 per share a year ago.

The Wall Street analysts on average expected the company to report earnings of $2.53 per share. Analysts' estimates typically exclude special items.

Consolidated revenues of $25.3 billion increased 1.5 percent from last year's $24.9 billion. The Street was looking for revenues of $25.42 billion for the quarter.

Looking ahead, for fiscal 2025, UPS expects revenue to be approximately $89.0 billion and operating margin to be approximately 10.8 percent.

In 2024, revenue was $91.1 billion, and operating margin was 9.3 percent.

Analysts project revenues of $95.01 billion for the year.

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