United Parcel Service Inc (NYSE:UPS) plans to share details of its strategic growth and productivity initiatives and discuss its three-year financial targets at its investor and analyst conference today at its Worldport air hub in Louisville.
“After coming off a difficult market in 2023, the small package industry is poised to return to growth in 2024 and beyond. Over the next three years, we plan to make bold moves to create a growth flywheel in premium markets, while at the same time drive higher productivity and efficiency,” said Carol Tomé, UPS chief executive officer.
UPS expects FY26 consolidated revenue of $108 billion – $114 billion. The logistics giant sees FY26 adjusted operating margin above 13%. It expects a free cash flow of $17 billion – $18 billion.
The company sees U.S. Domestic Package segment adjusted operating margin of at least 12% and International Package segment adjusted operating margin between 18% and 19%.
United Parcel Service sees FY26 Supply Chain Solutions adjusted operating margin of around 12%. The company expects capital spending from 2024–2026 of approximately 5.5% of total revenue.
During the conference, UPS plans to share details about how it will lower its cost to serve through its Network of the Future initiative, a plan that will optimize and further automate its core integrated network.
In January, UPS reported a fourth-quarter fiscal 2023 revenue decline of 7.8% year-over-year to $24.92 billion, missing the consensus of $25.43 billion. Adjusted EPS was $2.47, in line with the consensus.
Price Action: UPS shares are trading higher by 3.41% at $161.92 in premarket on the last check Tuesday.
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