MAAT INDEX

CLAIM #60571 · United Parcel Service Inc (UPS) · 2025Q4 earnings call · Jan 27, 2026 · due Dec 31, 2026

we will have a less labor-intensive, more nimble, more profitable network that will minimize the impact of the increase.

Brian Dykes · CFO

PENDING
graded after results covering Dec 31, 2026 are reported

How to check this claim

Look at: Total labor/operating expense as a share of revenue (operating margin) and total headcount/positions eliminated, as reported

It came true if: Operating margin improves year-over-year for FY2026 versus FY2025, consistent with company-disclosed position elimination targets

Where: 10-K / Q4 2026 earnings release and management commentary on the Q4 2026 call

In context

ts, right? When we started out with the labor contract, we knew that we were going to be investing in order to create a lower labor-intensive network, right, with more flexibility that had the ability to scale, right, particularly for peak because we've seen peak being increasingly important. Without the need for so much labor. You're seeing that. Right? We saw it, with and without the Amazon drawdown in 2020 without in 2024, with and without in 2025. We've set up targets for incremental position eliminations that'll drive efficiency. In 2026. And so as we approach that point, we will be driving down total expense. At the same time, remember, we will have a different characteristic of revenue in the network so that the incremental cost will not turn customer ORs upside down. Right? And so we will have a less labor-intensive, more nimble, more profitable network that will minimize the impact of the increase. Matthew: And, Matthew, we have time for one more question. Matthew: Certainly. Our final question comes from Brandon Oglenski from Barclays. Your line is live. Brandon Oglenski: Carol, and thanks for taking the question here at the end. I guess, can we maybe summarize all this? Because it sounds like you guys are really protecting service even though the network's getting smaller here. Does that create any market share opportunities or challenges, especially with where pricing is going up for the industry as well? Appreciate it. Carol Tomé: Service is paramount to winning new business. It's almost table stakes. Without it, how do you win? It's not just service, though. It's capabilities. And the capabilities that we've been investing in and I talked a little bit about RFID, but a lot of o

Verify independently

SEC filings for UPS · Claim quote is verbatim from the 2025Q4 earnings call.