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, 2026, total capital expenditures decreased, primarily driven by reduced spending on vehicles due to lower package volume and a focus on routine replacements for vehicles at the end of their useful lives, decreased aircraft expenditures due to aircraft deliveries under finance lease arrangements and lower technology infrastructure spending as a result of project completion and non-recurring prior year investments. These decreases were partially offset by increased spending on buildings, facilities and plant equipment associated with our Network of the Future and other operational efficiency initiatives.

In the six months ended June 30, 2026, we did not complete any acquisitions. In the six months ended June 30, 2025, cash paid for acquisitions was $479 million and was related to the acquisition of Frigo-Trans and Biotech & Pharma Logistics ("Frigo-Trans") and reacquired development area rights for The UPS Store.

We have commitments for the purchase of equipment, real estate and vehicles to provide for the replacement and enhancement of existing capacity and targeted growth. These investments also provide for maintenance of buildings, facilities and equipment. Our 2026 investment program anticipates investments in technology initiatives and enhanced network capabilities. 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. 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.