Key Facts on UPS’s Turnaround
United Parcel Service (UPS), traded under NYSE: UPS, has faced significant challenges post-pandemic, with shares down over 53% from their 2022 high. In response, UPS is undergoing a corporate overhaul aimed at improving profitability, including reducing reliance on low-margin customers like Amazon and investing in technology. This shift comes after a surge in demand during the pandemic, followed by a notable drop as consumer behavior normalized.
In Q2 2025, UPS reported a 5.5% increase in revenue per package within the U.S., despite an overall revenue decline of 0.8%. This upward trend continued into Q3, showing a 9.8% rise in revenue per piece, though total U.S. revenue fell by 2.6%. The company’s adjusted operating margin improved by 110 basis points year-over-year, indicating early signs of a successful turnaround strategy.
Currently, UPS shares have rebounded 24% over the past three months, as investor sentiment appears to be shifting positively towards its turnaround efforts. However, potential investors should be cautious regarding the company’s dividend yield of 6%, which exceeds its payout ratio, suggesting a possible reset on dividends in the future.
