UNITED PARCEL SERVICE INC

Our primary (uses) sources of cash from investing activities were as follows (in millions):

For the six months ended June 30, 2025, total capital expenditures slightly increased compared to the 2024 period, primarily driven by increased spending on buildings, facilities and plant equipment and information technology, as we execute our Network of the Future initiative.

These increases were partially offset by:

•Reduced spending on vehicles due to a focus on replacements at the end of their useful lives.

•Decreased aircraft expenditures as a result of leveraging finance lease alternatives.

Proceeds from the disposal of businesses, property, plant and equipment were higher primarily due to the impact of a real estate sale-lease back transaction and increased sale of facilities and aircraft during the six months ended June 30, 2025.

Changes in marketable securities were largely driven by the liquidation of our portfolio of $2.7 billion during the six months ended June 30, 2024 to provide additional resources for short-term and strategic operating needs.

Cash paid for acquisitions in the six months ended June 30, 2025 was primarily attributable to the acquisition of Frigo-Trans, and reacquired development area rights for The UPS Store. In the six months ended June 30, 2024, cash paid for acquisitions related to the purchase of development areas for The UPS Store.

Non-cash investing activities for the six months ended June 30, 2025 include:

•Equity securities valued at $23 million received in connection with a divestiture of a business within UPS Digital.

•The sale of an equity method investment with a carrying value of $31 million in exchange for a promissory note.

•Construction-in-progress of $29 million related to the capitalization of construction costs in connection with our build-to-suit financing obligation.

We have commitments for pending acquisitions and for the purchase of aircraft, vehicles, equipment and real estate to provide for the replacement and enhancement of existing capacity and targeted growth. Our 2025 investment program anticipates investments in technology initiatives and enhanced network capabilities, including approximately $500 million of projects to support our environmental sustainability goals. It also provides for maintenance of buildings, facilities and equipment and replacement of certain aircraft within our fleet. We currently expect our capital expenditures will be approximately $3.5 billion for all of 2025, of which approximately 80 percent will be allocated to network enhancement projects and other technology initiatives. We regularly evaluate opportunities for cost effective financing of assets in order to reduce our capital spending. Future capital spending will depend on a variety of factors, including economic and industry conditions, and financing alternatives.