“Efficiency Reimagined should drive approximately $1 billion in savings.”

In context

“ith us by more than 50% by the second half of 2026. With this we will right size our network and retain the volume that is nutritive for us and for our customer. Second, effective this year on January 1st we no longer use the USPS for our SurePost product. Service is a fundamental part of our value proposition and by insourcing this product we can be certain we deliver great service with no material impact to our financial performance. In connection with these changes while I'm incredibly proud of the productivity actions taken by our leaders, we've realized we're not done. We are reconfiguring our U.S. network and have launched multi-year initiatives we're calling Efficiency Reimagined which tackle our processes from end to end, from peak hiring practices to processing payments and more. Efficiency Reimagined should drive approximately $1 billion in savings. These significant business and operational changes coupled with the foundational changes that we've already made will put us further down the path to becoming a more profitable, agile and differentiated UPS that is growing in the best parts of the market namely healthcare, B2B, SNB, and international. We've got some work to do to make this all happen, but there's no better team than the UPS team. We will deliver. As Brian will detail, in 2025 these actions are expected to result in expanded operating margins and an improvement in return on invested capital. And by taking these actions, we expect by the fourth quarter of 2026 to have a U.S. domestic operating margin of at least 12%. With that, thank you for listening, and I'll now turn the call over to Brian. Brian Dykes: Thank you, Carol”