UPS · 10-Q · 2026Q2 · Full report
Capital Expenditure Program
UNITED PARCEL SERVICE INC · 2026-08-05 · Importance 30 · Surprise 40 · From source text
UPS reduced six-month 2026 capital expenditures by approximately 14% year over year, primarily because lower package volume reduced vehicle spending and aircraft deliveries under finance lease arrangements reduced aircraft expenditures. Vehicle investment was focused on routine replacement of vehicles at the end of their useful lives, while increased spending on buildings, facilities and plant equipment supported the Network of the Future and other operational-efficiency initiatives. UPS’s 2026 investment program emphasizes enhanced network capabilities and technology initiatives, with approximately 80% of planned full-year capital expenditures allocated to those areas.
Key facts
- We currently expect our capital expenditures will be approximately $3.0 billion for all of 2026, of which approximately 80% will be allocated to network enhancement projects and other technology initiatives. source
- Net cash used in investing activities was $(1,510) million for the six months ended June 30, 2026 and $(2,278) million for the six months ended June 30, 2025. source
- Total capital expenditures were $(1,724) million for the six months ended June 30, 2026 and $(1,999) million for the six months ended June 30, 2025. source
- Capital expenditures for aircraft and parts were $(37) million for the six months ended June 30, 2026 and $(120) million for the six months ended June 30, 2025. source
- Capital expenditures for vehicles were $(13) million for the six months ended June 30, 2026 and $(193) million for the six months ended June 30, 2025. source
- Capital expenditures for buildings, facilities and plant equipment were $(1,246) million for the six months ended June 30, 2026 and $(1,147) million for the six months ended June 30, 2025. source
- Capital expenditures as a % of revenue were 3.9% for the six months ended June 30, 2026 and 4.7% for the six months ended June 30, 2025. source
- Capital expenditures for information technology were $(428) million for the six months ended June 30, 2026 and $(539) million for the six months ended June 30, 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | probable | -2.1% | We currently expect our capital expenditures will be approximately $3.0 billion for all of 2026, of which approximately 80% will be… |
| assets | positive | probable | +2.1% | We currently expect our capital expenditures will be approximately $3.0 billion for all of 2026, of which approximately 80% will be… |
| cash | positive | realized | +1.1% | Net cash used in investing activities was $(1,510) million for the six months ended June 30, 2026 and $(2,278) million for the six months… |
| cash | positive | realized | +0.4% | Total capital expenditures were $(1,724) million for the six months ended June 30, 2026 and $(1,999) million for the six months ended June… |
| cash | positive | realized | +0.3% | Capital expenditures for vehicles were $(13) million for the six months ended June 30, 2026 and $(193) million for the six months ended… |
| cash | positive | realized | +0.1% | Capital expenditures for aircraft and parts were $(37) million for the six months ended June 30, 2026 and $(120) million for the six… |