CLAIM #60479 · United Parcel Service Inc (UPS) · 2025Q3 earnings call · Oct 28, 2025 · due Jun 30, 2026
“And then we'll continue to draw down as we go through the first half of next year and the cost takeout will continue as we go through that.”
Brian Dykes · CFO
In context
“hink you are in the glide down, can you give us a little sense of maybe what we can start to think about for 2026 from a domestic margin perspective? Brian Dykes: Thanks, Chris. I appreciate it. And look, I think we're very pleased with both the revenue quality we saw in the third quarter as well as the progress that we're making with the Amazon glide down, and we laid out the activity metrics around that. On 2026, look, we'll update 2026 on the January call when we report fourth quarter. But there are a few things that I think are worth kind of keeping in mind. Remember, we're 3 quarters into a 6-quarter drawdown. So as we lap the year, we kind of come through the first 3 quarters of this year, we will see a sequential increase in Amazon volume as we go into peak because everybody peaks. And then we'll continue to draw down as we go through the first half of next year and the cost takeout will continue as we go through that. The second is, as Carol mentioned, we're taking strategic actions around Ground Saver that will start to take hold next year, and we'll see economic benefit in the back half of next year for that as well. We do anticipate closing Andlauer in November of this year, and we'll update you on the financials as we wrap that into next year, but that's an exciting acquisition to accelerate our health care strategy. And look, we're continuing to focus on growing in the parts of the market that will help us continue to drive revenue per piece growth as well as higher margins as we go into the back half of '26 and complete the Amazon glide down. Operator: Our next question comes from the line of David Vernon from Bernstein. David Vernon: So Brian, can you talk a little bit about the exit rate on cos”
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SEC filings for UPS ↗ · Claim quote is verbatim from the 2025Q3 earnings call.