United Parcel Service Inc (NYSE:UPS) stock rose 0.39% (As on October 29, 11:26:25 AM UTC-4, Source: Google Finance) after the company announced better-than-expected third-quarter results for 2025 as the company implements its plans to reshape the delivery network. In the third quarter, operating profit was $2.1 billion and consolidated operating margin was 10%. For the quarter, total U.S. average daily volume was down 12.3%, primarily due to the glide down of Amazon volume and the focus on improving revenue quality. Total air average daily volume was down 13.9%, mainly due to Amazon. Health care and high-tech customers both showed growth in air average daily volume in the third quarter, which was the third consecutive quarter of positive momentum from these key industries. Ground average daily volume was down 12% year-over-year. Within Ground, Ground Saver ADV declined 32.7%.  In the third quarter, B2B average daily volume finished down 4.8% compared to last year due to softness in retail and in manufacturing activity. B2B represented 45.2% of the U.S. volume, which was a 350 basis point improvement versus last year. B2C average daily volume was down 17.6% year-over-year. For the third quarter, U.S. domestic generated revenue of $14.2 billion, which was down just 2.6% year-over-year against an ADV decline of 12.3%. In the third quarter, revenue per piece increased 9.8% year-over-year. International domestic average daily volume increased 3.6% compared to last year, led by Canada. On the export side, average daily volume increased 5.9% year-over-year. Year-to-date, UPS generated $5.1 billion in cash from operations and free cash flow of $2.7 billion.

UPS in the third quarter of FY25 has reported the adjusted earnings per share of $1.74, beating the analysts’ estimates for the adjusted earnings per share of $1.32. $0.30 of EPS came from a sale-leaseback transaction involving 5 properties completed in the third quarter, which resulted in a $330 million pretax gain on sale. The company had reported the adjusted revenue declines of 3.8 percent to $21.40 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $20.84 billion. Consolidated operating profit was $2.1 billion and consolidated operating margin was 10%. For Supply Chain Solutions segment, in the third quarter, revenue was $2.5 billion, lower than last year by $715 million, of which $465 million was due to the divestiture of Coyote in the third quarter of 2024.

The company expects next quarter’s revenue to be around $24 billion, close to analysts’ estimates. Its non-GAAP profit of $1.74 per share was 33% above analysts’ consensus estimates.