FINWIRES · TerminalLIVE
FINWIRES

Research Alert: Ups Q1: Broad-based Volume Decline Pressures Margins Despite Pricing Gains

By

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

UPS delivered Q1 2026 results with revenue of $21.2B (-1.6% Y/Y, +1.1% vs. consensus) and adjusted EPS of $1.07 (-28.2%, +4.9%). Broad-based volume declines of 7.8% Y/Y extended beyond Amazon reductions, while adjusted operating margin compressed 200 bps to 6.2% despite transformation efforts. Domestic margins compressed 320 bps as cost per piece (+9.5% Y/Y) exceeded revenue per piece growth (+6.5% Y/Y). UPS achieved $600M in Q1 cost savings from Network Reconfiguration and Efficiency Reimagined programs, with $3B expected for the full year. Management maintained its 2026 guidance of $89.7B revenue and 9.6% adjusted operating margin, projecting operational inflection in Q2. We think revenue expectations are reasonable given successful pricing discipline, with revenue per piece up 7.7% Y/Y, but margin expectations may be overly optimistic. We expect fuel surcharges from the Iran conflict to help offset rising diesel/jet fuel costs but risk further volume deterioration as consumers prove elastic to higher costs.

Related Articles

Australia

Velo3D Closes $50 Million Registered Direct Offering

Velo3D (VELO) said Tuesday it closed an underwritten registered direct offering of nearly 3.6 million common shares for gross proceeds of about $50 million.Net proceeds will be used for working capital and general corporate purposes, the company added.Price: $13.76, Change: $-0.57, Percent Change: -3.98%

$VELO
Australia

First Financial Bankshares Ups Quarterly Dividend 15.8% to $0.22 a Share, Payable July 1 to Holders of Record June 12

Price: $32.61, Change: $+0.18, Percent Change: +0.56%

$FFIN
Mining & Metals

First Atlas Resources Sells MacKenzie East Claims in Quebec to LaFleur Minerals

First Atlas Resources (HHE.CN) on Tuesday said it agreed to sell a 100% interest in its MacKenzie East Claims located in the Val-d'Or gold camp, Quebec, to LaFleur Minerals (LFLR.CN) in a cash and stock deal.LaFleur will buy the property in exchange for $30,000 in cash, and 175,000 shares of LaFleur Minerals. The cash portion is payable within 48 hours of execution of the agreement, the company said.The share consideration will be issued upon receipt of exchange acceptance or, if not required, within five business days following closing of the deal. The property consists of 46 mineral claims covering about 1,781 hectares.The deal allows First Atlas to monetize a non-core asset while retaining exposure to the upside of the Val-d'Or region through its equity interest in LaFleur, it added.Shares of First Atlas were last seen down $0.005 to $0.10 on the Canadian Securities Exchange.

$HHE.CN$LFLR.CN