CLAIM #60453 · United Parcel Service Inc (UPS) · 2025Q2 earnings call · Jul 29, 2025 · due Sep 30, 2025
“Right now, we think it's kind of the same second quarter to third quarter. But as we get more certainty, that allows us to make adjustments that can drive the margin back to where we think international can be, mid to high teens over the long term.”
Brian Dykes · CFO
In context
“t China to the U.S. decline more than what we expected. We saw China to rest of the world increase more, particularly in specific lanes. Within the second quarter, we made over 100 ad hoc adjustments to our air network to flex to what our customers needed us to do, which I think is a tremendous accomplishment for the international team, and it shows up in the export growth numbers that were really, really strong. Now what that does mean is, look, there's some frictional costs, right, as you're adjusting that air network. And I think as we move through the third quarter and we get more certainty on tariffs, we get more certainty on orders for peak from our customers, we'll be able to harden off the capacity on those lanes, get the assets in the right place and continue to drive the margin. Right now, we think it's kind of the same second quarter to third quarter. But as we get more certainty, that allows us to make adjustments that can drive the margin back to where we think international can be, mid to high teens over the long term. Carol B. Tome: And part of the margin contraction was due to less demand related surcharges this year than last. And where do we lap that, Brian? Brian Dykes: Chief Financial Officer & Executive Vice President We'll lap that in the fourth quarter. Carol B. Tome: Yes. Operator: Our next question comes from Ravi Shanker from Morgan Stanley. Ravi Shanker: Carol, you said that the Amazon glide down is proceeding for the most part as planned. Can you share some light on what is not going as planned? Maybe kind of is it just the shifting rate of drawdown in 1Q and 2Q? Or is there something else different than expected? Carol B. Tome: It's simply the attrition rate. The attrition rate is not where we thought it would be. And as I mentioned, Ravi, the building closures were back-end weighted towa”
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SEC filings for UPS ↗ · Claim quote is verbatim from the 2025Q2 earnings call.