Shares of United Parcel Service ( UPS ) sank 15% Thursday morning to lead S&P 500 decliners after the shipping giant reported worse-than-expected fourth-quarter results.

The company reported net income of $1.72 billion, or $2.01 per share, on $25.3 billion in revenue. Analysts had expected profit of $2.14 billion, or $2.51 per share, on revenue of $25.35 billion, per Visible Alpha.

After stripping out $639 million in charges that were mostly related to pensions, UPS reported adjusted earnings per share (EPS) of $2.75, above the $2.51 per share analysts had expected.

UPS Cuts Business With 'Largest Customer'

UPS said it has "reached an agreement in principle with its largest customer to lower its volume by more than 50% by the second half of 2026." Based on its previous annual reports, that customer likely is Amazon ( AMZN ), which UPS said represented nearly 12% of its consolidated 2023 revenue.

UPS expects 2025 revenue to be roughly $89 billion, below the more than $95 billion analysts had projected. The firm also said it is starting "multi-year 'efficiency reimagined' initiatives" that are expected to generate about $1 billion in savings.

The results marked a second straight quarter of year-over-year revenue and profit growth for UPS, which—like shipping rival FedEx ( FDX )—saw several quarters of declines following record demand during the pandemic.

UPS shares, which entered Thursday down about 15% over the last 12 months, sank more than 15% to $113.45, their lowest level since 2020.

UPDATE—This article has been updated with the latest share price and other information.

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