UPS · 10-Q · 2026Q2 · Full report
Operating Cash Flow Trends
UNITED PARCEL SERVICE INC · 2026-08-05 · Importance 54 · Surprise 40 · From source text
Net cash from operating activities rose to $3.083 billion for the six months ended June 30, 2026, compared with $2.666 billion in the same period of 2025. Approximately $200 million of the increase resulted from the timing of pass-through IEEPA tariff refunds received from CBP in 2026 and payable to customers. Lower income tax payments and lower company-sponsored pension and postretirement medical contributions also increased operating cash flow. These benefits were partly offset by lower net income and a $2.0 billion increase in accounts receivable associated with the factoring program.
Key facts
- Net cash from operating activities was $3,083 million for the six months ended June 30, 2026 and $2,666 million for the six months ended June 30, 2025. source
- Non-cash operating activities were $2,791 million for the six months ended June 30, 2026 and $2,527 million for the six months ended June 30, 2025. source
- Net cash from operating activities increased $417 million during the six months ended June 30, 2026, primarily due to approximately $200 million related to the timing of pass-through IEEPA tariff refunds received from CBP in 2026 that are payable to customers. source
- Pension and postretirement medical benefit plan contributions (company-sponsored plans) were $(581) million for the six months ended June 30, 2026 and $(921) million for the six months ended June 30, 2025. source
- Changes in working capital and other non-current assets and liabilities were $(153) million for the six months ended June 30, 2026 and $(833) million for the six months ended June 30, 2025. source
- The increases in net cash from operating activities were partially offset by an increase in accounts receivable from changes in collection of aged receivables, including $2.0 billion from our accounts receivable factoring program. source
- Income tax receivables and payables were $(441) million for the six months ended June 30, 2026 and $(565) million for the six months ended June 30, 2025. source
- Net cash from operating activities increased $417 million during the six months ended June 30, 2026 primarily due to lower income tax payments, primarily due to a 2024 tax payment deferred into 2025 resulting from Hurricane Helene relief that did not recur in 2026. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -2.8% | The increases in net cash from operating activities were partially offset by an increase in accounts receivable from changes in collection… |
| cash | positive | realized | +0.9% | Changes in working capital and other non-current assets and liabilities were $(153) million for the six months ended June 30, 2026 and… |
| cash | positive | realized | +0.6% | Net cash from operating activities was $3,083 million for the six months ended June 30, 2026 and $2,666 million for the six months ended… |
| cash | positive | realized | +0.5% | Pension and postretirement medical benefit plan contributions (company-sponsored plans) were $(581) million for the six months ended June… |
| liability | negative | realized | -0.3% | Net cash from operating activities increased $417 million during the six months ended June 30, 2026, primarily due to approximately $200… |