Let's go ahead and get started with the next presentation. This is my caboose. Not really, not trains. I'm very excited to have UPS with us. For those that don't know me, I'm Tyler Brown, Senior Analyst here at Raymond James. I do quite a few things, Brian. I do transportation. We've had some waste companies. We've had some heavy construction materials companies. Like I said, this morning I am very excited to have UPS with us. I think most of you know what UPS does, and you might even be having UPS pay you a visit today, whether you like that or not. Obviously, you know, UPS is the largest parcel company in the U.S. for sure. Globally, obviously, a huge player. I think you move about 6% of the United States GDP to put that in perspective.
UPS plays a very critical role, obviously, in e-commerce, and there's a lot of things going on. This morning, , we're gonna do a couple of slides.
Yep.
Then we're gonna kinda jump into a Q&A. If anybody has any questions, please just raise your hand, let us know. Brian, I'm gonna go ahead and turn it over to you, and then I will be back up here for a lively fireside chat.
Perfect. Thank you, Tyler. Thank you all for taking the time. I know it's been a good couple of days. Hope you guys have enjoyed it. Just real quick, I've got some forward-looking statements in the presentation that obviously results may differ. I thought real quick, let me start. You can see the stats on UPS. Everybody's very familiar with UPS as a U.S. last mile provider. I'm sure all of our families see the UPS man frequently coming to their house or their place of work.
I do think it's also important that besides just the U.S. small package business, which is our leader, we also run a global small package business backed by one of the largest airlines in the world with an integrated ground network, not only in the U.S., but in Europe, Latin America, Asia, and Middle East and Africa. We also have a global freight forwarding business. We're the leader in customs brokerage. We're the largest healthcare logistics provider in the world, really focusing on complex healthcare supply chains. We have a portfolio of digital solutions that power things like returns and insurance and fraud detection and things like that for our customers.
This portfolio of assets allows us not just to deliver final mile in the U.S., but really solve complex logistics problems for our customers. Just real quick to hit on where we are in 2025, we'll talk more about where that takes us in 2026. We went through on our Q4 call that we're building off the progress that we saw in 2025 going into 2026. There's really 3 big things that we're doing, right? Last year, we reduced about 1 million pieces a day of a portion of our relationship with Amazon. In the H1 of 2026, we'll reduce another 1 million pieces a day. That's really meant to drive better network efficiency, improve profitability over the long run.
At the same time, we're undergoing the largest network reconfiguration in our company's history, 118 years, right? That involves not just right-sizing the capacity in our U.S. network, but we're also investing heavily in automation to ultimately get to a smaller, more productive network that we can grow off of into the future. The 3rd pillar I would say is around the outsourcing of a portion of our Ground Saver, our economy product back to the USPS. In 2024, we had a negotiation with the USPS where we decided to insource it. That was driven by service, right? That was really driven by a change in their operating model that was gonna reduce the ability for us to provide the service to our customers that we want.
In 2025, with a new management team at the USPS, they decided to change course on how they were treating service. We're now going through the process of outsourcing a portion of those stops back to them. Look, with that being said, leading into 2026, all of that is gonna translate into slightly up revenue and EPS about flat, right? We're just reiterating our guidance here that we put out in the Q4. It's very much a H1, H2 story, right? Those 3 items on the left really drive some incremental costs that we're gonna face in the H1 as we bring this volume down, we right-size the network. There's tariff and de minimis wrap that we've got to do in our international business.
Leading into the H2, we're gonna see revenue up, right, in the low single digits. We'll see our operating margin recover, and we'll be back to the business that we've been transforming into, which is focused on top-line growth and margin expansion, right? That does build into what does the H1 look like, right? Why is the H1 behaving so differently than what we've seen in the past, right? Again, we're not changing our guidance, but I think it's important to illustrate why is it different than what's happened before? We are behaving different than our normal seasonality. What you see on the left in the U.S. business, we've got several headwinds that are hitting us in the Q1, right?
The timing of the cost coming out with the Amazon draw down, which I'm sure we'll hit on more, but we're taking out variable, semi-variable, and fixed costs associated with that capacity right-sizing. We've got headwinds from replacing the MD-11 capacity in the H1 of this year from the write-off of the MD-11 fleet that we did in the Q4. We also have some transitional costs with moving that USPS volume or stops back to the postal service out of our network. Those start to abate as we go into the Q2, and you can see on the domestic business, we start to see revenue growth and margin recovery as we go into the Q2.
On our international business, we have a tough comp from the pull forward of the China tariffs in the Q1 of last year, as well as some network costs that are carrying over from the Q4, the de minimis change that we saw. Those start to wrap as we get into the Q2. You can see our margin starts to step up in the international business. In SCS, we continue to see progress. We saw the margin improve as we went through 2025, and we'll continue to progress that as we go through 2026. You can see there's a number of really unique factors going from Q1 to Q2 that then carry us into that H2 margin trajectory that we've been looking for. We talked about the Amazon drawdown.
I think it's important to just reiterate as well, 'cause this is one of the big levers. This is where UPS is behaving very differently than what we've done in the past. When I say in the past, I mean for like 118 years, right? Never before have we really reduced the fixed cost infrastructure, as we've drawn down volume, like we've done with this Amazon volume. Last year in 2025, we set out targets to reduce 25 million hours, operational hours, reduce 73 buildings and cut 30,000 positions. We actually overachieved all of those metrics in 2025, and we set similar metrics for 2026. We'll be pulling down another million pieces a day of Amazon volume.
We expect to remove another 25 million hours, operational hours from our U.S. network, another 30,000 positions, including what we're doing with the Driver Choice Program that I know we'll hit on shortly. We've announced the closure of another 24 buildings in the H1 of this year. We're evaluating more so we can right-size capacity. As we come out of the Q2, as I talked about before, we'll have a more agile, more profitable network that we can grow off of with the right type of volume, right? Less e-commerce, more SMB, more B2B, more healthcare. That really sets us up for the growth trajectory as we go forward into the back half of 2026 and into 2027.
The last thing I'll end with, look, through this, we've been very focused on maintaining cash flow, a strong balance sheet, right? Making sure that we're protecting our return to shareholders. Just to start to the left, we've given guidance of six and a half billion dollars of free cash flow. That's about a billion-dollar increase from 2025. That's before the Driver Choice Program. We've got plenty of cash flow to fund what we need to there. You can see we've got great liquidity and a strong balance sheet, right?
Even with what we do with leases, with incremental debt, we maintain this 2.5 times debt-to-EBITDA target right around there, which gives us a lot of strength, plenty of firepower, in order to do what we want. Dividend, we're holding flat. Look, our dividend payout ratio is 50% of prior year net income. We're way above that right now as we've gone through this transition of our U.S. network. We don't expect the dividend to increase, and we're not gonna increase it in 2026, but we are gonna work ourselves back towards that target. Our 10-year average payout's about 60%. We're running in the 80%-90% range right now, so we'll grow back into that. Overall, we feel great about where the balance sheet is.
It gives us plenty of strategic flexibility. We're very focused on cash flow generation and making sure that we maintain the payouts to our shareholders. Great.
Excellent. Thank you so much for the shaping. That is extremely helpful. Clearly there's a lot changing.
Yeah.
I mean, we've got tariffs, we've got Driver Choice Program, Amazon glide down, SurePost, outsource, resource. One thing that hasn't really changed is service. I want to kind of actually take a step back and talk about peak season.
Yeah.
Because despite everything that's been going on, I know that this is really important to you, to Carol, to really the whole team. Can you just talk about service?
Sure.
perform through peak?
Sure. We had our 8th straight year of being industry leader in service at, during peak. This is really meaningful, right? 'Cause remember, we closed 93 buildings, so a little less than 10% of the buildings in our network were closed last year, and we had no issues with service, right? That's Let me tell you why that's important. That's important because when you wanna go have a conversation with a customer about a 5.9% General Rate Increase, you better have hit your service metrics. You better be better than your competition. Good service translates into good revenue per piece the next year. It's something that we know we're the premium provider. We wanna be the premium provider, so we expect to deliver premium service, and we've done it now 8 years in a row.
We're super proud of that.
Okay, perfect. Let's talk Amazon glide down real quick. What exactly does that mean for the good people out in the audience? I mean, you know, you guys, I think prior to what the changes, it was as much as 10% of your revenue.
Mm-hmm.
Talk about what exactly the Amazon glide down, and again, if you can, just kind of give us some size of how much Amazon is kind of coming out of?
Sure.
-UPS.
Look, over a 2-year period, we'll shed about $5 billion of Amazon revenue, about 2 million pieces a day of Amazon volume. That's about half of what Amazon was for us, you know, in 2024. It's important to realize what we're doing, right? Amazon's a big animal. We talk about it like it's all one thing, but it's actually a very big thing. The portion of the volume that we're exiting is really their, what they call their FC outbound, but it's the vertically integrated retailer, the stuff that's really in a warehouse probably 50 miles from your house, that's delivered in gray vans to your, to your door. You don't need an integrated end-to-end network in order to move that kind of volume, right? That's where Amazon's invested tremendously in their own supply chain.
They can do that really, really well. We've decided that they're gonna insource that piece of the business, and we'll focus on other pieces of the business. They're still gonna be one of our largest customers. We do a lot of returns from them through our The UPS Store network. We do things for small businesses that sell on the Amazon platform. We work really well with them on the places where we can add value and the places where they can insource it and do it themselves, that's what they're gonna take. Look, I think this is still a very collaborative relationship.
Sure.
We've got multi-year contracts on the other pieces of the business, but this on the whole now will allow us to really focus our business on the places where we wanna invest and we wanna drive growth.
Perfect. If UPS is, you know, call it pre the $100 billion roughly of revenue is maybe a $10 billion-ish pool. We're talking about, you know, $5 billion. Clearly there's gonna be optics.
Yes.
There's optics, but there's more than just Amazon, right?
Mm-hmm.
We had also a development with the USPS.
Yep.
Let's talk about that first because exactly what happened with the UPS SurePost product, I think maybe helps give some people some perspective.
In 2024, our economy product was called SurePost, and it was a product where we delivered a portion of volume, and we injected a portion of volume into the USPS at what they call the Destination Delivery Unit or the DDU, effectively the post office close to your house, and then they would deliver it the final mile. And when you do that, it's a day longer time in transit than if you ship it through UPS. But the service levels were really good if you delivered it to the post office and then let them do it the rest of the way.
At the end of 2024, they decided to change their operating model, which was gonna change that service component, where we could no longer inject it at the DDU, but we were gonna have to move further upstream into their network. The service degrades considerably when you do that. We decided that we would insource that volume, right? As we insourced that volume, we obviously had to change rates. We also had to shed some unprofitable customers, which a large portion of that was some Chinese e-commerce customers that were injecting very low value goods into our network. That also created a headwind that we're wrapping as we went through the back half of 2025 and Q1 of 2026.
Right. when I see ADV down, call it circa 11%-
That's right.
There's a lot to that number.
There's a lot to it.
How would you just kind of talk about the current environment? Maybe we could even bridge that into some changes in tariffs and how that's been impacting the business and how we should think about it even in relation to the guide.
Yeah. When you think about our guide, look, we'll be wrapping this. Let me talk about the U.S. first and think about when we talk about core volume, that's our core enterprise and SMB volume, right? We'll wrap that Chinese e-commerce piece that was in our enterprise segment in the Q1, and then we're showing enterprise and SMB growth as we go through the course of the year. Not robust growth, mid-single-digit growth, but good solid growth with an increasing base rate, which drives good revenue growth. From the international side, look, international went through a lot of changes last year, a lot of, I would call it volatility, right? First, we had China tariffs, which caused a big pull forward in the Q1 of 2025.
We had a pullback in the Q2. We had the de minimis change, which was hugely impactful, not just to our international business, but also to our brokerage business, which I'm sure we'll hit on later on because the technology kind of saved us there. Our international business had considerable headwinds in the comps that they had to overcome in 2026. Look, overall, I think we see the U.S. environment as pretty good, right? Our core business is performing. Internationally, we've seen a lot of trade lane shifts, but what I would say is trade's not stopped, trade has just moved, right? While our China to U.S. volume may be down 30%, our China to rest of world volume is up.
The problem is we've got a margin, you know, issue on those lanes that we've got to address. Overall, look, I think we see okay growth going into 2026.
Pretty good. I'm gonna take pretty good in this environment.
I'll take pretty good after 2025.
Again, there's a lot of optics around ADV, and I just wanna reiterate, I mean, your goal is not to just retrench.
Yeah.
I mean, your goal is to grow, but your goal is to grow in the right place. Maybe talk just a little bit about that.
Sure. Look, absolutely, it's not a shrink to company strategy, right? It's a growth strategy, but it's a growth strategy in the places where we can drive accretive growth, right? Our focus is really on how do you know, growing our enterprise customers, particularly in B2B and healthcare, in industrial verticals where we can drive higher rev per piece and better characteristics for our network. SMB growth, which is huge for us. We started about 6 years ago, we started a program called Digital Access Program or DAP program, that is really about connecting to marketplaces that SMBs use to move online. This is not just, you know, Etsy stuff. This is also, you know, industrial retailers that are selling products online.
That program's grown from $150 million 6 years ago to over $4 billion last year. It's about being where SMB customers need us to be, integrating with their technology stack, and helping enable them to punch above their weight, right? On the international side, our international business is 55% SMB, right? It's a much more distributed, better mixed business that allows us to drive, you know, structurally better margins.
Okay, perfect. We're focused on the right parts of the market.
Absolutely.
We're gonna come back to RPP. You have some good info on slides. Obviously, there's a lot changing. Obviously, some volume is moving out, but you're not sitting still.
Mm-hmm.
Talk a little bit about, again, each one of those, call it variable, semi-variable, and fixed costs.
Sure.
Again, I think it's pretty profound what UPS has really done, something that's not really been historically in your DNA.
That's right. Yeah. I mentioned before, you know, this is not something that we've ever done, but when you pull this amount of volume down, look, in a relatively fixed cost network, you have to take the costs out. You have to rightsize the capacity. In 2025, and again in 2026, we laid out kinda how we were gonna reduce the cost. Again, remember, we're getting rid of roughly $2.5 billion of Amazon revenue. We said we're gonna save $3 billion in cost. The way that you do that is, first, on the variable side, as volume comes down, we have to plan less operational hours, right? That's just take out the variable pay. It means you need fewer drivers on road.
It means you need fewer people in the buildings to sort packages, you bring out the hours. The second piece is the semi-variable cost, which is really around those positions, right? If I need fewer drivers, I can pull the cost out, but ultimately, I have to eliminate the position, I can eliminate the benefits, right? The third is then the fixed portion, the buildings and the actual physical capacity. Last year, we closed 93 buildings. This year, we've announced 24 in the H1. We're evaluating additional capacity reductions.
All that enables us to now rightsize the capacity for the network, as we're growing back into it, Well, I'm sure we'll hit on automation soon, but as we're growing back into it, you're growing back into a smaller, leaner, more productive network than what we left.
What about the Driver Choice Program?
Yeah.
There's been obviously some court rulings on that side.
Mm-hmm.
Can you just talk about where we are and maybe the quantum, and how exactly is that gonna work? Will there be charges as that goes on? Then there'll be ultimately a cash payment, so we need to consider that.
Sure.
Maybe just work through some of the mechanics.
Let me just explain a little bit about, 'cause we ran a driver, so a similar program last year that we called the Driver Voluntary Separation Program. The Driver Choice program that we're running now is an opportunity for UPS drivers to take a lump sum payout in order to leave the company and move on. This is important because UPS, like all union employers, has a seniority-based system, right? Meaning if you've been there longer, you're basically guaranteed a job, and as you reduce positions, the less tenured people leave first, right?
Which means if I'm a long-tenured driver, even though I may not be able to drive, I can still take my wage rate and benefits and work on the inside, it's very hard to remove those positions. This gives us a way to accelerate it, right? Rather than wait for attrition, we can accelerate it. We did a similar program last year, and yeah, there'll be a charge once we know the numbers. This one's structured a little bit differently. We've offered it to a little over 100,000 drivers between tractor-trailer drivers and package car drivers and other full-timers. It's really early. We're seeing good take rates so far. We'll continue to update everybody on what the numbers look like as we go through the Q1.
Our expectation is that we'll close the program out, in the Q2, take the charge, and then this will start to drive benefits in the back end.
Okay. Excellent. That's really addresses a lot of that variable, semi-variable piece.
Totally.
The fixed cost piece.
Yeah.
This is where it gets really interesting because maybe UPS had an infamous slide one day at an analyst day once upon a time, but there felt like maybe there was a little bit of excess capacity in parcel U.S. domestic. It seems like there's been some culling of capacity. Maybe again, kind of talk about the fixed piece and some of the building closures, and even maybe talk a little about automation, but really talk about the closures. That'd be helpful.
Sure. We absolutely have been reducing capacity in line with what our expectation for the volume levels are coming out of the Q2 this year. That's really the baseline. We've done it through closing buildings. We've also been eliminating sorts, right? Which brings down your hub capacity, and then investing in ways that the automation will make us more efficient as we grow back into it. We're not the only ones. This is going on around the industry. You've seen networks consolidating with some of our competitors. You've seen the USPS doing the same thing. There has been a rationalization capacity, and I think it's good structurally for the industry.
Right. Most of us, I think, went to business school, and we kind of understand simple supply and demand. Maybe there's a change in capacity and maybe, just maybe it's a little bit better on the demand side.
Mm-hmm.
Can you talk about core RPP?
Sure.
When I say RPP, I mean revenue per piece. Maybe just like talk a little bit about the core pricing and then not only at the core level, but also what we talked about earlier is that mix should also help that number optically.
Yeah. Let me maybe use the Q4 to illustrate 'cause in the Q4, our revenue per piece or our, our unit, you know, per package revenue growth rate was 8.3%. About 340 basis points of that is what we call base rate. That's really how much of your pricing increase are you able to put through and get improved just base pricing on a unit cost basis, on a unit basis. There was another 320 basis points that was mix-driven, which means less low-yielding volume, more high-yielding volume, right? There's a component that was fuel, right? To tie back to the total.
What we see over time is that kind of 250 to 350 basis point base price increase, that's good, right? That's good over a very long period of time. We've been achieving that a couple ways. One is obviously we're leaning into the parts of the market where we can drive more value, which means you have better pricing power, right? Healthcare, high-value goods, complex supply chains, really sticky. When you're, you know, 99.99% on clinical trials drugs, they don't care if you put a 5% price increase through, right? It's a whole different ballgame than if you're talking about a T-shirt, right? Going to a residence.
SMBs where we can provide a lot of value by giving them distributed capabilities, B2B, where we can provide really good density characteristics and do some things in our network because we have employee drivers that some other providers can't do. Those allow us to get better base rate increase. The mix, right? The less low-yielding, more high-yielding, that'll abate over time. When we look at 2026, you know, we'll have about 6.5%, full year rev per piece growth. It'll be a little bit higher 'cause of the mix in the H1, and then that abates in the H2. Then we'll look for this, you know, 2.5%-3.5% base rate improvement over time.
RPP hopefully moving in the right direction. CPP maybe moving in the right direction. I think you guided to something like mid-single digit domestic margins in Q1.
Mm-hmm.
I don't think that's where you wanna be. When we kind of put it all together, I mean, how should we think about U.S. domestic margins, not only shape-wise this year, but as we think out into 2027, 2028, 2029 and beyond?
Yeah. Look, we'll continue. H1 is gonna be under pressure as you saw. You saw on the slide, particularly in the Q1. Full year, you know, we laid out our guide that would be about up 1% on revenue, about flat on EPS, pressure in the Q1, recovering in the Q2. H2, you're back to about a 100 basis point margin improvement. Overall, we'll start to see further improvement as we go into 2027. More importantly, we've got the unit cost fixed, right? 'Cause even though we'll see rev per piece normalize this 2.5%-3.5%, cost per piece does as well.
We're back to driving revenue growth and margin expansion as we go into 2027 and 2028, and we'll move back towards double-digit margin over time.
Okay. Perfect. U.S. domestic.
U.S. domestic.
Okay. On the international piece, it also, and you alluded to this earlier, it has been under a little bit of margin pressure.
Yeah.
Mix has certainly not helped.
Mm-mm.
I believe the China lane is.
Very profitable lane.
Profitable lane. Can we just talk a little bit about where international could maybe go or where you would like to see it go, I should say, maybe over the next couple of years?
Sure. Look, on international, if you go back 3 years ago during COVID, when there was high demand surcharges, our margins were as high as 20%. I think those were a unique situation because the air freight rates in the market shot up so much. Right now, we're gonna see a lot of pressure in the H1 of this year, particularly in the Q1 in international 'cause we're wrapping the China impact tariffs. As Tyler alluded to, we've seen a tremendous amount of lane shift, right? China to the U.S. was our most profitable lane. We see a tremendous amount of growth in China to the rest of the world. The problem is it's about half as profitable, right, as China to the U.S.
We've got this mix shift that's weighing on margin. We expect it to be in mid-teens. I think it can get a little bit higher than mid-teens back over time, 'cause as that trade starts to normalize, 2 things happen. One is it gives us time to what I call harden off the network, right? To reallocate capacity to the places where we can drive higher returns. One of the reasons China to the U.S. was our most profitable lane is our network was really built to consolidate volume in Shenzhen in order to get it back to the U.S., right?
Once we figure out where those trade lanes are gonna be, whether it's India to Cologne or China to Cologne, we'll re-engineer the network, and we've got people that are really, really good at this, in order to drive better profitability on the lanes where we see the most growth. We, we need things to stabilize a little bit. Unfortunately, we thought we were almost there, and then maybe not this week.
Yeah. Well, not this week. working on it. Again, we've got a couple of minutes, but I wanna come back to your last slide.
Yeah.
I think the capital allocation and cash generation is a really important part of the story.
Sure.
Just again, kind of talk about the cash generative ability of the business today. Again, if margins do improve, there should be some upside to that. Then we're gonna talk about CapEx. Let's just talk about from a base operating cash flow perspective.
Sure. We were just under $9 billion in operating cash flow. The business is incredibly cash generative, and we've been focused on making sure that we maintain dividend coverage as we've gone through this transition. It has high leverage to the upside as we start to get the U.S. margin recovering to, you know, 8 and a half, 9%. We have really good cash flow through the bottom line, and we're focused on getting there. Yeah, I think from a capital allocation standpoint, we always invest in the business first and foremost. I know we'll talk about CapEx because our CapEx levels are down, but they're down for a reason. Then we wanna maintain a strong balance sheet.
You saw our metrics 2.5x debt to EBITDA. You know, we've got a really strong credit rating that gives us the financial flexibility to do any strategic actions that we wanna do, and we'll continue to improve cash flow and protect the dividend.
Okay, I had to check my notes. I think you guided to $3 billion in CapEx.
That's right.
that's a 10-year dollar low.
Yes
...if I'm not mistaken. There had been a moment in time, if we go back, I think UPS invested heavily in the airline in the 1980s.
Mm-hmm.
There was kind of this moment where you guys also really dipped down in CapEx.
Mm-hmm.
there was this whole CapEx, I don't wanna call it a bubble, but this resurgence.
Sure.
I do get questions time to time. Is that the right number at the current, you know, $100 billion, call it roughly, or I forget exactly on the revenues? Sorry if I got that wrong.
90.
90, on the revenue run rate.
Look, I think 3% to 3.5% of revenue is kinda the way we think about it. We have been pulling CapEx down, the volume's been coming down as well. We've been consolidating the network. When you're bringing down 2 million pieces a day, you don't need to buy vehicles. We closed 93 buildings. Those were, to be honest, some of our highest maintenance buildings, right? We're investing in automation that allows us to take out some of the older stuff, right, that that requires less upkeep. To your point, we've got our air network is stabilized. We're still funding investments, right, in automation. We'll have 24 new facilities this year that'll open up that'll be automated.
We're building new air hubs in Hong Kong and the Philippines that are gonna allow us to expand and enter Asia. We're still investing in the areas we need to invest. The reality is the total CapEx requirement for the company is coming down.
Perfect. Okay. just to kind of finish it up. Strong operating cash flow, CapEx stays relatively low.
Mm-hmm.
That leads to capital allocation opportunities.
Mm-hmm.
You have done some M&A.
Sure.
The dividend's a big deal.
Yeah.
Maybe you could talk to everybody about, you know, the commitment to the dividend and then maybe some on the additional, you know, should we think buyback? Should we think M&A?
Yeah.
Tell us what we should think.
Sure. First and foremost, the actions that we're taking are about getting the margin moving in the right way. That'll give us the cash flow flexibility that we wanna have. From a dividend perspective, we recognize, you know, we were an employee-owned company until 1999. We still have a huge A shareholder base. When we look across our shareholder base, we recognize that the dividend's important, right? We will protect the dividend, but we will grow back into the dividend to get back to our long-term payout ratio of 50% to 60%. From a capital allocation standpoint, we want to invest in the business. You saw us close our second-largest acquisition ever. Now, for UPS, it's a $1.1 billion acquisition. Those are tuck-ins, right, for most people.
For us, it's a meaningful expansion of our healthcare capabilities. We'll continue to look to do things like that where we think it makes sense, and we can leverage the network to drive value for the business. But yeah.
Okay. Perfect. We're on time. Thank you guys so much for joining us. Thank you, Brian. Thank you, UPS. Thank you.
Thanks.