UPS has announced its strategic growth and productivity initiatives and financial targets for the next three years.
The company held an investor and analyst conference on March 26 at its Worldport air hub in Louisville, Kentucky, where it highlighted several strategic initiatives that will “enable market share capture and expand its addressable market to drive incremental growth”.
The company also shared details about how it will lower its cost to serve through its Network of the Future initiative, a plan that will optimize and further automate its core integrated network.
“We executed the strategy we set forth nearly three years ago by changing almost every aspect of our business,” said Carol Tomé, UPS chief executive officer. “After coming off a difficult market in 2023, the small package industry is poised to return to growth in 2024 and beyond.
“Over the next three years, we plan to make bold moves to create a growth flywheel in premium markets, while at the same time drive higher productivity and efficiency. The growth and productivity initiatives we are executing will result in higher revenue, expanded operating margins and increased free cash flow to deliver long-term value to our shareowners.”
During the conference, UPS outlined its 2026 financial targets, which included consolidated revenue ranging from US$108bn-US$114bn, with capital spending from 2024-2026 of approximately 5.5% of total revenue.
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