What it does
UPS describes itself as a global package delivery and logistics provider serving over 200 countries and territories. Its services include transportation and delivery through an integrated air and ground network, distribution, contract logistics, ocean freight, airfreight, customs brokerage and insurance. The company states that its global small-package operations provide time-definite delivery for letters, documents, packages and palletized freight. Supply Chain Solutions includes forwarding, logistics, digital and other businesses. In 2025, UPS delivered an average of 20.8 million packages per day, totaling 5.2 billion packages, and reported total revenue of $88.7 billion.
Source: United Parcel Service, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
How it makes money
The filing lists two reporting segments: U.S. Domestic Package and International Package; together, these are UPS’s global small-package operations. U.S. Domestic Package provides air and ground transportation, including time-definite delivery and Ground Saver residential service. International Package covers small-package operations in EMEA, the Americas and Asia, supported by brokerage services for cross-border clearance. The company reports its remaining businesses in Supply Chain Solutions, which includes forwarding, logistics, digital and other businesses. UPS also describes its forwarding activities as including global airfreight, ocean freight, multimodal transportation and customs brokerage.
Source: United Parcel Service, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
Customers and geography
UPS states that it serves more than 200 countries and territories, with operations across major economies. In 2025, it served 1.6 million shipping customers and more than 10.7 million delivery recipients daily. Its international package business covers Europe, the Middle East and Africa; Canada and Latin America; and Asia. The filing identifies Amazon.com, Inc. and its affiliates as a customer that represented approximately 10.6% of consolidated revenue in 2025, substantially all within U.S. Domestic Package. UPS also offers returns services in approximately 150 countries.
Source: United Parcel Service, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
Competition
UPS states that it competes with local, regional, national and international logistics providers, as well as national postal services. The filing further lists U.S. and international postal services, motor carriers, express companies, freight forwarders, air couriers, large transportation companies, e-commerce companies, retailers, start-ups and smaller companies using crowdsourcing as sources of competition. It says competitors may have different cost, operational and organizational structures and may offer services or pricing terms UPS does not offer. The filing does not name any individual competitor companies.
Source: United Parcel Service, Inc. Form 10-K for fiscal 2025, Item 1 and Item 1A — sec.gov
Key risks
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Changes or continued uncertainty in general economic conditions, in the U.S. and internationally, may adversely affect UPS.
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The industry continues to rapidly evolve, and the company expects to continue to face significant competition.
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Changes in relationships with significant customers, including its strategy to reduce volume from its largest customer, could have a material adverse effect.
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Failure to attract or retain qualified employees could materially adversely affect UPS.
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Strikes, work stoppages or slowdowns by employees could materially adversely affect UPS.
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A significant cybersecurity incident, increased data protection regulations, or other information technology-related risks could materially adversely affect UPS.
Source: United Parcel Service, Inc. Form 10-K for fiscal 2025, Item 1A — sec.gov
People and operations
UPS had 460,000 employees, excluding temporary seasonal employees, according to the filing. The company states that nearly 80% of its U.S. employees are represented by unions, primarily employees handling or transporting packages. Its national master agreement with the Teamsters expires on July 31, 2028. Operationally, UPS uses an integrated air and ground network; its global air operations hub is in Louisville, Kentucky, supported by U.S. and international air hubs. The company states that it offers same-day pickup of air and ground packages seven days a week through network access points, stores and drop boxes. It also says its health-and-safety process covers physical safety and mental-health considerations worldwide.
Source: United Parcel Service, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov