UPS Sets 2026 Revenue Target of $108 Billion to $114 Billion

By Dean Seal

United Parcel Service has set its financial targets for 2026 and said it is expecting about $108 billion to $114 billion in adjusted revenue that year.

The package-delivery company said Tuesday that it is also expecting to hit an adjusted operating margin of over 13%. Domestically, that figure is expected to hit at least 12%, while its international business is expected to post an adjusted operating margin of 18% to 19%.

Chief Executive Carol Tomé said the small packaging industry is poised to return to growth this year after a difficult 2023, and that over the next three years, UPS will make bold movies to drive growth in premium markets while improving productivity and efficiency.

UPS is eying cumulative free cash flow of $17 billion to $18 billion between 2024 and 2026. Capital spending between 2024 and 2026 is expected to come in at about 5.5% of total revenue.

Write to Dean Seal at dean.seal@wsj.com

Corrections & Amplifications

This was corrected at 3:27 p.m. ET because it incorrectly said United Parcel Service was targeting free cash flow of $17 billion to $18 billion in 2026. UPS set a cumulative free cash flow of $17 billion to $18 billion between 2024 and 2026.

(END) Dow Jones Newswires

March 26, 2024 06:52 ET (10:52 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.