UPS Reports Q4 and Full-Year Results
United Parcel Service (UPS) reported its fourth-quarter revenue of $24.5 billion, surpassing analysts’ expectations of $24.4 billion. The company’s adjusted earnings per share were $2.38, exceeding the consensus estimate of $2.20. For the full year, UPS generated revenue of $88.7 billion, down from $100 billion in 2022, while adjusted earnings per share reached $7.16.
Despite ongoing challenges related to global trade and a strategic reduction of its volumes with Amazon, UPS forecasts sales to rise to $89.7 billion in 2023. The company plans to continue paying $5.4 billion in dividends and anticipates capital expenditures of about $3 billion. UPS has maintained or increased its dividend every year since going public in 1999, offering a current dividend yield of over 6% amidst industry averages below 2%.
CEO Carol Tomé expressed optimism for 2026, expecting it to be a turning point for margin growth through a transition to higher-margin revenues, as UPS aims to cut low-margin Amazon volumes by 50% this year.
