{"id":183607,"date":"2026-01-27T14:30:56","date_gmt":"2026-01-27T14:30:56","guid":{"rendered":"https:\/\/aviacionaldia.com\/?p=183607"},"modified":"2026-01-28T12:34:36","modified_gmt":"2026-01-28T12:34:36","slug":"ups-retires-md-11-fleet-and-reports-revenue-of-88-7-billion-in-2025","status":"publish","type":"post","link":"https:\/\/aviacionaldia.com\/en\/2026\/01\/ups-retires-md-11-fleet-and-reports-revenue-of-88-7-billion-in-2025.html","title":{"rendered":"UPS Retires MD-11 Fleet and Reports Revenue of $88.7 Billion in 2025"},"content":{"rendered":"\n<p><strong>United Parcel Service (UPS)<\/strong> presented its fourth-quarter and full-year 2025 results, confirming an unusual combination in the current air and logistics transport environment: financial resilience, operational discipline, and structural fleet decisions with a direct long-term impact. The announcement not only provides significant figures but also delivers clear strategic messages for the air cargo business and the group&#8217;s global network.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Consolidated Fourth Quarter 2025 Results: Solid Profit Despite Extraordinary Charges<\/h2>\n\n\n\n<p>During the fourth quarter of 2025, UPS reported consolidated revenue of USD 24.5 billion, with a GAAP operating profit of USD 2.6 billion and an adjusted (non-GAAP) operating profit of USD 2.9 billion. Diluted earnings per share reached USD 2.10, rising to USD 2.38 on an adjusted basis.<\/p>\n\n\n\n<p>These results include total charges of USD 238 million (USD 0.28 per share), consisting of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>USD 137 million associated with the accounting write-down of the MD-11 fleet, and<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>USD 101 million in transformation costs, both after taxes.<\/li>\n<\/ul>\n\n\n\n<p>Far from weakening the financial message, these charges reinforce the strategic reading: UPS decided to accelerate its fleet modernization, completing the full retirement of the MD-11s during the fourth quarter of 2025.<\/p>\n\n\n\n<p><strong><em>\u2192 <a href=\"https:\/\/aviacionaldia.com\/en\/2026\/01\/cracked-component-in-fatal-ups-md-11-accident-was-flagged-by-boeing-in-2011.html\">Cracked Component in Fatal UPS MD-11 Accident Was Flagged by Boeing in 2011<\/a><\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">MD-11 Exits the UPS Network for Good<\/h2>\n\n\n\n<p>The retirement of the McDonnell Douglas MD-11, one of the historical pillars of long-haul air cargo, marks an operational and symbolic milestone. UPS chose to bring forward the end of this tri-jet model, absorbing the accounting impact in 2025 to clean up the balance sheet and move towards a more efficient and homogeneous fleet.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">U.S. Domestic Segment: Lower Volume, Higher Revenue per Piece<\/h2>\n\n\n\n<p>In the U.S. market, UPS recorded revenue of USD 16.756 billion, a year-over-year decrease of 3.2%, primarily attributed to an expected reduction in volumes. However, the key figure is another: revenue per piece grew by 8.3%, reflecting a clear improvement in revenue quality.<\/p>\n\n\n\n<p>Operating profit was USD 1.428 billion, with:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An operating margin of 8.5%, and<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An adjusted margin of 10.2%.<\/li>\n<\/ul>\n\n\n\n<p>This performance confirms a deliberate strategy to prioritize profitability over volume, especially relevant in a highly competitive domestic market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">International Business: High Margins and Solid Pricing<\/h2>\n\n\n\n<p>The international segment was one of the strongest points of the quarter. UPS reported revenue of USD 5.045 billion, a 2.5% increase, driven by a 7.1% rise in revenue per piece.<\/p>\n\n\n\n<p>Operating profit reached USD 884 million, with:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An operating margin of 17.5%, and<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An adjusted margin of 18.0%.<\/li>\n<\/ul>\n\n\n\n<p>These levels position the international business as one of the group&#8217;s most profitable, key to sustaining global profitability in an still uneven international trade environment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Supply Chain Solutions: Volume Pressure in Mail Innovations<\/h2>\n\n\n\n<p>The Supply Chain Solutions segment generated USD 2.678 billion in revenue, representing a 12.7% decline, mainly attributed to reduced volumes in the Mail Innovations business.<\/p>\n\n\n\n<p>Nevertheless, the area maintained:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An operating profit of USD 263 million,<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An operating margin of 9.8%, and<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An adjusted margin of 10.3%.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Full Year 2025: Financial Discipline and Shareholder Returns<\/h2>\n\n\n\n<p>For the full year, UPS closed 2025 with:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Revenue of USD 88.7 billion,<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>GAAP operating profit of USD 7.9 billion and adjusted profit of USD 8.7 billion,<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An operating margin of 8.9% (9.8% adjusted),<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Diluted EPS of USD 6.56 (USD 7.16 adjusted).<\/li>\n<\/ul>\n\n\n\n<p>Operating cash flow reached USD 8.5 billion, with adjusted free cash flow of USD 5.5 billion. UPS returned USD 6.4 billion to its shareholders through dividends and share repurchases, underscoring its priority on value generation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Dividend and 2026 Outlook: The &#8220;Inflection Point&#8221;<\/h2>\n\n\n\n<p>The board approved a quarterly dividend of USD 1.64 per share, payable on March 5, 2026.<\/p>\n\n\n\n<p>Looking ahead to 2026, UPS projects:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Revenue of approximately USD 89.7 billion,<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An adjusted operating margin near 9.6%,<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Capex of USD 3.0 billion,<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Estimated dividend payments of USD 5.4 billion, and<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An effective tax rate of 23%.<\/li>\n<\/ul>\n\n\n\n<p>CEO Carol Tom\u00e9 defined 2026 as an &#8220;inflection point,&#8221; especially following the completion of the Amazon glide-down, a key element whose materialization and concrete effects on the network remain to be observed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"related-topics\">Related Topics<\/h2>\n\n\n\n\t\t\t<div class=\"wp-block-uagb-post-grid uagb-post-grid  uagb-post__image-position-top uagb-post__image-enabled uagb-block-9e302684     uagb-post__items uagb-post__columns-2 is-grid uagb-post__columns-tablet-2 uagb-post__columns-mobile-1 uagb-post__equal-height\" data-total=\"206\" style=\"\">\n\n\t\t\t\t\t\t\t\t\t\t\t\t<article class=\"uagb-post__inner-wrap\">\t\t\t\t\t\t\t\t<div class='uagb-post__image'>\n\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/aviacionaldia.com\/en\/2026\/04\/ntsb-runway-safety-system-failure-preceded-fatal-collision-between-air-canada-express-aircraft-and-fire-truck.html\" target=\"_self\" rel=\"bookmark noopener noreferrer\" class='uagb-image-ratio-inherit'><img decoding=\"async\" width=\"800\" height=\"400\" 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current&hellip;\n","protected":false},"author":4312,"featured_media":181150,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","footnotes":""},"categories":[1],"tags":[222,230,844,221],"class_list":{"0":"post-183607","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-airlines","8":"tag-aircraft","9":"tag-airline","10":"tag-ups-2","11":"tag-usa"},"uagb_featured_image_src":{"full":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11.webp",800,400,false],"thumbnail":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11-150x150.webp",150,150,true],"medium":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11-300x150.webp",300,150,true],"medium_large":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11-768x384.webp",768,384,true],"large":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11.webp",800,400,false],"1536x1536":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11.webp",800,400,false],"2048x2048":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11.webp",800,400,false],"pk-small":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11-80x80.webp",80,80,true],"pk-thumbnail":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11-300x225.webp",300,225,true],"csco-small":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11-80x80.webp",80,80,true],"csco-intermediate":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11-200x140.webp",200,140,true],"csco-thumbnail":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11-380x220.webp",380,220,true],"csco-thumbnail-alternative":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11-300x180.webp",300,180,true],"csco-thumbnail-uncropped":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11-380x190.webp",380,190,true],"csco-medium":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11.webp",800,400,false],"csco-medium-alternative":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11-560x336.webp",560,336,true],"csco-medium-uncropped":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11.webp",800,400,false],"csco-large":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11.webp",800,400,false],"csco-large-uncropped":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11.webp",800,400,false],"csco-extra-large":["https:\/\/aviacionaldia.com\/wp-content\/uploads\/2025\/11\/UPS-MD11.webp",800,400,false]},"uagb_author_info":{"display_name":"Dergam Mousa","author_link":"https:\/\/aviacionaldia.com\/en\/author\/dmousa"},"uagb_comment_info":0,"uagb_excerpt":"United Parcel Service (UPS) presented its fourth-quarter and full-year 2025 results, confirming an unusual combination in the current&hellip;","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/aviacionaldia.com\/en\/wp-json\/wp\/v2\/posts\/183607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aviacionaldia.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aviacionaldia.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aviacionaldia.com\/en\/wp-json\/wp\/v2\/users\/4312"}],"replies":[{"embeddable":true,"href":"https:\/\/aviacionaldia.com\/en\/wp-json\/wp\/v2\/comments?post=183607"}],"version-history":[{"count":1,"href":"https:\/\/aviacionaldia.com\/en\/wp-json\/wp\/v2\/posts\/183607\/revisions"}],"predecessor-version":[{"id":183608,"href":"https:\/\/aviacionaldia.com\/en\/wp-json\/wp\/v2\/posts\/183607\/revisions\/183608"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aviacionaldia.com\/en\/wp-json\/wp\/v2\/media\/181150"}],"wp:attachment":[{"href":"https:\/\/aviacionaldia.com\/en\/wp-json\/wp\/v2\/media?parent=183607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aviacionaldia.com\/en\/wp-json\/wp\/v2\/categories?post=183607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aviacionaldia.com\/en\/wp-json\/wp\/v2\/tags?post=183607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}