From UPS Earnings Call October 29, 2025:
Carol Tomé, UPS CEO: Now let’s talk about the USPS. As you know, David, the Postal Service has a new Postmaster General. And when Mr. Steiner joined, immediately started having a conversation with him about how could we create a win-win-win relationship, a win for the postal system, a win for UPS and a win for our customers. And the way to do that is to leverage what they’re best at, which is final mile and what we’re best at is middle mile. And so I’m happy to tell you that we’ve reached preliminary agreement on what that looks like from a volume and rates perspective. We’re working through the details and look at those details all ironed out over the next weeks and months. And by the end of the fourth quarter, we’ll be able to give you more details. But I’m very, very pleased with where we are today and this new — renewed relationship with USPS … On the Ground Saver product, density is — continues to be a challenge. We just can’t seem to get more packages per stop on these residential deliveries. And this is one reason why we’re so very excited about our renewed relationship with USPS. We estimate that the cost drag in the third quarter was about $100 million.