UPS Cuts Ties with Amazon, Sees Profits Stabilize

United Parcel Service (UPS) made a strategic decision to scale back its delivery work for Amazon, cutting volumes by more than half. The company felt that the revenue generated from this partnership was no longer profitable enough.

The plan appears to have worked as hoped. While sales are down slightly since then, gross profits and operating cash flow are stabilizing and even showing signs of recovering faster than revenue is expected to in 2027.

Notably, despite soaring fuel costs during this period, UPS's earnings before interest, taxes, depreciation, and amortization (EBITDA) margins and gross margins are both holding up at levels well above 2024's when the cost of continuing to do so much business with Amazon became untenable.

UPS's CEO Carol Tomé said that by 'taking control of our destiny,' the company's future now looks measurably brighter than it did just a couple of years ago.