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How Does UPS Make its Money?
United Parcel Service (UPS) is the world’s largest package delivery company, delivering approximately 22 million packages per day across more than 200 countries and territories. The company operates an enormous logistics network including over 5,600 operating facilities, more than 500 aircraft, and approximately 125,000 delivery vehicles. UPS is a bellwether for the global economy — when businesses ship more, it often signals economic health. The company is a major player in healthcare logistics and supply chain solutions.
UPS (UPS) Business Model
UPS operates in the logistics sector. Below is a summary of UPS’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from UPS’s 2024 fiscal year filings with the SEC.
UPS Competitors
UPS’s key competitors and comparable public companies in the logistics sector include FedEx, Amazon, and Walmart. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how UPS stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
UPS’s total revenue in 2024 grew 0.1% year-over-year. Here is how their revenue breaks down by segment:
| Revenue Stream | 2024 | 2023 |
|---|---|---|
| U.S. Domestic Package | $57,800 | $56,100 |
| International Package | $17,300 | $16,800 |
| Supply Chain Solutions | $16,000 | $15,400 |
| Total | $91,100 | $91,000 |
All values in millions USD unless otherwise stated.
Income Statement Breakdown
Here is a summary of UPS’s income statement comparing 2024 to 2023:
| Item | 2024 | 2023 |
|---|---|---|
| Total Revenue | $91,100 | $91,000 |
| Cost of Revenue | $73,800 | $75,100 |
| Gross Profit | $17,300 | $15,900 |
| Operating Expenses | $6,800 | $7,200 |
| Operating Income | $10,500 | $8,700 |
| Net Income | $6,700 | $5,200 |
All values in millions USD.
Key Financial Metrics
Gross Margin: 19.0% — This tells us how much profit UPS keeps after direct costs of delivering their product or service.
Operating Margin: 11.5% — After accounting for all operating expenses like R&D, sales, and administration, this is the profit margin from core operations.
Revenue Growth: 0.1% — Year-over-year revenue growth from 2023 to 2024.
Is UPS Profitable?
Yes, UPS is profitable. The company reported net income of $6,700 on total revenue of $91,100.
UPS (UPS) Financial Summary
UPS (UPS) is a logistics company that generated $91,100 in total revenue in fiscal year 2024. The company earned $6,700 in net income, making it profitable. For a deeper look at UPS’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.