UPS expects twice the revenue of 2025 as it offers Amazon, arrows fall

(Reuters) -The unrestricted parcel service expects on Thursday 2025 revenue less expectations as the parcel delivery giant is to reduce exposure to its largest customers, Amazon, and while other customers choose cheaper and slower delivery.

UPS shares fell 5 % before the company says that it reached an agreement with Amazon – without naming the company but referring to it as its largest customer – to reduce the storage units that it transported by more than 50 % by the second half of next year.

This step comes as Amazon reduces its dependence on UPS as the e -commerce company continues to expand its delivery network.

UPS 2025 expects $ 89 billion in revenue, compared to an average estimate of analysts of $ 94.88 billion, according to the data collected by LSEG.

The revenues of the entire year also expected 89 billion dollars, compared to estimates of 94.88 billion dollars.

The competing UPS and FEDEX reduced costs because customers turned into a slower and cheapest delivery in the wake of e -commerce boom in the early epidemic.

Atlanta -based UPS also expected a 10.8 % uniform margin of operation, an increase of 9.8 % that I mentioned for 2024.

The company recorded the fourth -quarter revenues worth $ 25.3 billion, which are lost estimates of $ 25.42 billion.

UPS reported a rate of $ 2.75 per share for a quarter ending on December 31, overcoming estimates of $ 2.53 per share.

(Participated in the reports of Apineaf Parmar in Bengaluru and Lisa Perilin in Los Angeles; edited by Savio de Souza, Aaron Koeor and Shaunak Dasgobta)