“Our actions are moving us toward a more profitable U.S. small package business with the back half of 2026 expected to be the inflection point.”

In context

“% year-over-year and our Supply Chain Solutions businesses more than doubled operating profit versus last year. Our results were considerably better than our financial plan and targets. But it's worthwhile calling out that while we planned for it, our first quarter performance deviated from seasonal norms due to certain cost pressures that Brian will detail. These pressures are largely behind us. We expect to return to consolidated revenue and operating profit growth and expand operating margin in the second quarter of this year. Last year, we launched the most extensive U.S. network reconfiguration in our company history by targeting a 50% reduction in the volume we deliver for Amazon by June of 2026. With roughly 2 months to go, we are comfortably in the home stretch of this initiative. Our actions are moving us toward a more profitable U.S. small package business with the back half of 2026 expected to be the inflection point. With that as context, let me outline our priorities and how we intend to deliver revenue growth and margin improvement going forward. Our #1 priority is to move the right packages and the right mix of volume through our network. The market has changed, and we're adapting to it. We're overturning the old industry assumption that scale alone drives profitability. Instead, we're focused on premium segments like SMB, B2B and complex health care. Our strategy is working. We're seeing favorable mix improvements with SMB and B2B volume, representing a larger share of total U.S. volume and premium customer wins are driving meaningful revenue per piece growth. How are we winning? We're winning through innovative and differentiated capabilities like RFID labeling at customer locations, end-to-end c”