MAAT INDEX

CLAIM #60408 · United Parcel Service Inc (UPS) · 2025Q1 earnings call · Apr 29, 2025 · due Dec 31, 2025

Correct. As we laid out, it's about 16% in the first half and 30% in the second half.

Brian Dykes · CFO

PENDING
graded after results covering Dec 31, 2025 are reported

In context

n the $3.5 billion, if you think about it in the buckets that we laid out, right? The variable cost is going to come out in line with the Amazon volume, right, as we kind of laid it out. The semi-variable cost is generally going to follow the same pattern. So, the fixed cost, what we described is we will be closing 73 buildings in the second quarter. So the majority -- there's more fixed cost, about 60% of it is weighted towards the back half. Efficiency Reimagined is also in that, and is also about 60% in the back half. So, you think across those three buckets, generally the first two will follow Amazon volume, and the other -- the others will be back-half weighted. Carol Tome: And the Amazon volume decline is higher in the back half of the year than it is in the first half. Brian Dykes: Correct. As we laid out, it's about 16% in the first half and 30% in the second half. Carol Tome: And looking to 2026? Brian Dykes: In 2026, look, we will rack because remember, in the Amazon glide-out, it's over the course of 18 months. So in the first half of 2026, there will be incremental, both variable, semi-variable, and fixed cost reductions that we'll lay out as we get into the back half of the year, so those will be incremental to the $3.5 billion that's in 2025. Tom Wadewitz: So, do we think of it as kind of an exact match, or do you take out more cost than the revenue you loose? Brian Dykes: Well, I think if you look at what we talk about with the revenue and the costs that we're taking out, we are making structural changes to the business to improve the margin. Tom, I think we talked about the revenue that we're losing was not nutritive to the business. And so,

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SEC filings for UPS · Claim quote is verbatim from the 2025Q1 earnings call.