2025 was a year of change for UPS, bringing major shifts in its relationships with Amazon and the U.S. Postal Service along with a slew of tariffs — and its earnings reflect that.
Last year, the Sandy Springs-based shipping giant brought in $88.7 billion in revenue, down 2.6% from $91.1 billion the year prior, according to figures released Tuesday morning.
The company’s full-year net income also declined to $5.57 billion in 2025, down 3.6% from $5.78 billion in 2024.
But UPS’ fourth quarter net income was up 4.1% to nearly $1.8 billion. Its international segment saw a 2.5% increase in revenue in the last three months of the year compared with the year prior, driven by higher revenue per package.
“2025 was a year of considerable progress for UPS as we took action to strengthen our revenue quality and build a more agile network,” UPS CEO Carol Tomé said in a written statement.
Last year, the company announced a major rollback in its relationship with its largest customer, Amazon. It also cut back part of its business with the U.S. Postal Service — both changes meaning lower shipping volumes and less revenue.
It amounted to the “largest network reconfiguration in UPS history,” the company declared.
Last year, UPS also cut approximately 48,000 jobs, including 15,000 fewer seasonal positions, and closed 93 leased and owned buildings. UPS has about 490,000 employees, including more than 12,000 in metro Atlanta.
In October, company officials said they intended to rely less on seasonal labor because of network changes and increases in automation.
Those changes saved the company approximately $3.5 billion, and it expects to save an additional $3 billion in 2026.
Company leaders said they are enacting a long-term strategy that sets the company up for future success.
Where the company sees opportunities are segments like complex health care logistics, e-commerce returns, international shipping lanes, offering fulfillment and distribution services to small- and medium-sized businesses and growing its global supply chain presence.
UPS has been acquiring companies like specialized health care logistics providers Andlauer Healthcare Group, Frigo-Trans and BPL to that end.
“Looking ahead, upon completion of the Amazon glide-down, 2026 will be an inflection point in the execution of our strategy to deliver growth and sustained margin expansion,” Tomé said in her statement.
In 2026, the company expects revenue to be approximately $89.7 billion.
— Staff writer Emma Hurt contributed to this report.
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