UNITED PARCEL SERVICE Business Summary

United Parcel Service Inc. (UPS) operates a transaction-based logistics model, generating revenue primarily through per-package shipping fees and value-added supply chain services. The company is organized into three core segments: U.S. Domestic Package, which provides time-definite delivery of letters and parcels; International Package, offering high-margin cross-border services across 220 countries; and Supply Chain Solutions, encompassing global air and ocean freight, customs brokerage, and a rapidly expanding $20 billion healthcare logistics vertical. As of early 2026, UPS is executing a "Better, Not Bigger" strategy, prioritizing high-yield Small and Medium Enterprises (SMEs) and complex medical shipments while intentionally reducing its exposure to low-margin volume from its largest customer, Amazon. In a competitive landscape dominated by FedEx, Amazon Logistics, and DHL, UPS distinguishes itself as a premium, technology-driven provider, leveraging its "Network of the Future" automation initiative to optimize revenue per piece and maintain industry-leading operating margins despite shifting global trade dynamics. Originally founded in 1907 by James E. Casey and Claude Ryan as the American Messenger Company, UPS is currently led by Chief Executive Officer Carol Tomé, the former CFO of Home Depot who is credited with the company’s strategic pivot toward profitability over sheer volume. The executive team includes Brian Dykes, a 27-year company veteran serving as EVP and Chief Financial Officer, and Bala Subramanian, the EVP and Chief Digital and Technology Officer, who previously held senior tech roles at Best Buy and AT&T. The company’s digital transformation is further supported by a board of directors chaired by William R. Johnson, former CEO of H.J. Heinz, and includes prominent figures such as Kevin Warsh, a former member of the Federal Reserve Board of Governors. UPS remains a favorite among institutional investors, with major holdings maintained by The Vanguard Group, State Street Corporation, and BlackRock, reflecting confidence in its disciplined capital allocation and robust dividend policy.