United Parcel Service, Inc.

Company Overview

Business Model: United Parcel Service, Inc., founded in 1907, is a global package delivery and logistics provider. The company offers a broad range of industry-leading products and services, including transportation and delivery through its integrated air and ground network, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance. In 2024, United Parcel Service, Inc. delivered an average of 22.4 million packages per day, totaling 5.7 billion packages, and generated total revenue of $91.1 billion. The business operates through two reporting segments, U.S. Domestic Package and International Package (collectively, global small package operations), and a Supply Chain Solutions segment.

Market Position: United Parcel Service, Inc. maintains a leading position in the global package delivery and logistics industry, serving over 200 countries and territories with a significant presence in all major world economies. Its competitive strengths include an integrated global air and ground network, considered the most extensive in the industry, and cutting-edge technologies such as RFID-enabled Smart Package Smart Facility technology for network optimization and enhanced visibility. The company offers a broad portfolio of services, including specialized cold chain and thermal monitoring for healthcare customers, and focuses on building long-term customer relationships through value-added services. United Parcel Service, Inc. leverages a leading and trusted brand known for service quality, reliability, and innovation, supported by its financial strength to invest in strategic opportunities.

Recent Strategic Developments:

• Strategic Focus: United Parcel Service, Inc. is executing a "Customer First, People Led, Innovation Driven" strategy, prioritizing growth in healthcare, business to business ("B2B"), small- and medium-sized businesses ("SMBs"), and international markets.
• Largest Customer Agreement: In the first quarter of 2025, United Parcel Service, Inc. entered into an agreement in principle with its largest customer, Amazon.com, Inc. and its affiliates, to significantly reduce the volume delivered for them by more than 50% by June 2026. This is part of a deliberate shift to increase focus on higher yielding volume.
• Network Reconfiguration & Efficiency Initiatives: In January 2025, the company announced a U.S. network reconfiguration, an expansion of its "Network of the Future" program, expected to lead to facility and workforce consolidations and an end-to-end process redesign through 2027. This may result in the closure of up to 10% of buildings in 2025 and reductions in vehicle and aircraft fleets and workforce size. Concurrently, "Efficiency Reimagined" initiatives are expected to yield approximately $1.0 billion in annualized savings starting in 2025, with related costs of $35 million incurred in Q4 2024 and an estimated $300-$400 million in 2025.
• SurePost Insourcing: Effective January 1, 2025, United Parcel Service, Inc. insourced the delivery of all SurePost volume to gain greater operational control and maintain service quality, implementing a 9.9% average rate increase on this product.
• Acquisitions & Divestitures: The company completed the divestiture of its truckload brokerage business ("Coyote") in September 2024. Strategic acquisitions include MNX Global Logistics and Happy Returns in Q4 2023, and Frigo-Trans and Biotech & Pharma Logistics in January 2025 to expand cold-chain logistics capabilities internationally. The acquisition of Estafeta is expected to close in the first half of 2025.
• USPS Air Cargo: United Parcel Service, Inc. completed the onboarding of air cargo volumes from the United States Postal Service ("USPS"), becoming the primary air cargo provider for USPS within the United States.
• Transformation Programs: Ongoing "Transformation 2.0" initiatives are expected to conclude in 2025 with approximately $90 million in remaining costs. The "Fit to Serve" initiative, which reduced the workforce by approximately 14,000 positions in 2024, primarily within management, achieved $1.0 billion in savings.

Geographic Footprint: United Parcel Service, Inc. operates globally, serving over 200 countries and territories. Its primary operational regions include the U.S., Europe, the Indian sub-continent, Middle East and Africa ("EMEA"), Canada, Latin America, and Asia. The company's global air operations hub is located in Louisville, Kentucky, supported by international air hubs in Germany, China, Hong Kong, Canada, and Florida (for Latin America and the Caribbean). United Parcel Service, Inc. owns or leases approximately 1,000 package facilities in the U.S. (90 million sq ft) and 800 facilities internationally (22 million sq ft). Its Supply Chain Solutions segment utilizes over 600 facilities (47 million sq ft), including 16 million sq ft of healthcare-compliant warehousing.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Operating Margin: 9.3%
• Net Margin: 6.35%

Investment in Growth:

• Capital Expenditures: $3.909 billion
• Strategic Investments:
  • Acquisitions (net of cash acquired): $71 million in 2024, primarily for The UPS Store franchise development areas.
  • Acquisitions (net of cash acquired): $1.3 billion in 2023, for MNX Global Logistics, Happy Returns, and The UPS Store development areas.
  • $1.3 billion spent on projects supporting environmental sustainability goals in 2024.
  • Expected 2025 capital expenditures of approximately $3.5 billion, with 80% allocated to network enhancement and technology initiatives, including $0.5 billion for environmental sustainability goals.

Business Segment Analysis

U.S. Domestic Package

Financial Performance:

• Revenue: $60.376 billion (+0.3% YoY)
• Operating Margin: 7.2%
• Key Growth Drivers: Average daily volume increased by 0.7%, driven primarily by growth in the SurePost product and the addition of e-commerce customers and SMBs leveraging the Digital Access Program. Air cargo volume also grew due to onboarding more air cargo under contract with the United States Postal Service. Product Portfolio: Offers time-definite, guaranteed small package delivery services, including same-day, next-day, two-day, and three-day air delivery, as well as day-definite ground service. The SurePost product, a residential ground service for non-urgent, lightweight shipments, was insourced for final delivery starting January 1, 2025. Market Dynamics: Business-to-consumer volume increased 3.0%, while business-to-business volume decreased 2.6%. Air product volume decreased 9.1% due to planned reductions from the largest customer and customer shifts to the ground network. Ground residential volume increased 6.1%, primarily from SurePost. Revenue per piece declined 0.5%, mainly due to decreased fuel surcharges and product mix shifts, partially offset by pricing actions.

International Package

Financial Performance:

• Revenue: $17.960 billion (+0.7% YoY)
• Operating Margin: 17.8%
• Key Growth Drivers: Export volume increased, driven by growth on Americas to U.S. and Asia to U.S. trade lanes, particularly from SMBs in retail, high tech, and manufacturing sectors. Base rate increases and demand-related surcharges also contributed. Product Portfolio: Provides a wide selection of guaranteed day- and time-definite international shipping services, including UPS Worldwide Expedited, UPS Standard for cross-border ground delivery, Worldwide Economy for e-commerce, and UPS Worldwide Express Freight for urgent palletized shipments. Market Dynamics: Total average daily package volume was relatively flat (-0.1%). Domestic volume declined in Europe due to challenging economic conditions, offset by growth in the Americas. Export volume increased, with non-premium products growing 3.2% and premium offerings declining 1.3% as customers shifted to economy options. Currency translation had a negative impact of $115 million on revenue.

Supply Chain Solutions

Financial Performance:

• Revenue: $12.734 billion (-1.5% YoY)
• Operating Margin: 7.3%
• Key Growth Drivers: Revenue growth in Logistics ($510 million, including $303 million from the MNX Global Logistics acquisition) and digital businesses ($163 million from Roadie volume growth and Happy Returns acquisition). International airfreight and ocean freight forwarding also saw revenue increases due to market rates and improved market dynamics. Product Portfolio: Comprises forwarding (international air and ocean freight, customs brokerage), logistics (value-added fulfillment, transportation management, healthcare logistics, cold-chain capabilities), and digital businesses (Roadie crowdsourced delivery, Happy Returns services, UPS Capital insurance solutions). Market Dynamics: Total revenue decreased primarily due to the September 2024 divestiture of Coyote, which saw a $976 million revenue decline. The segment incurred $101 million in asset impairment charges related to trade names, IT systems, and fixed assets, and a $45 million expense for a regulatory matter.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: $500 million, repurchasing 3.9 million shares of class B common stock in 2024.
• Dividend Payments: $5.399 billion, representing $6.52 per share in 2024.
• Future Capital Return Commitments: As of December 31, 2024, $2.3 billion remained under the $5.0 billion share repurchase authorization approved in January 2023. An accelerated share repurchase agreement for $1.0 billion was entered into on February 3, 2025, expected to settle in Q1 2025, with no further share repurchases anticipated in 2025. The Board declared a quarterly dividend of $1.64 per share payable March 6, 2025.

Balance Sheet Position (as of December 31, 2024):

• Cash and Equivalents: $6.112 billion
• Total Debt: $21.284 billion
• Net Cash Position: -$14.966 billion
• Debt Maturity Profile: $1.7 billion of USD and EUR fixed-rate senior notes mature in 2025, which the company intends to repay or refinance. The debt portfolio includes various fixed-rate senior notes maturing between 2025 and 2064, floating-rate senior notes maturing between 2049 and 2074, debentures, Pound Sterling notes, Euro Senior Notes, finance lease obligations, and facility notes and bonds.

Cash Flow Generation (2024):

• Operating Cash Flow: $10.122 billion
• Free Cash Flow: $6.213 billion (Operating Cash Flow less Capital Expenditures of $3.909 billion).

Operational Excellence

Production & Service Model: United Parcel Service, Inc. operates a global integrated air and ground network providing time-definite delivery services for letters, documents, packages, and palletized freight. This network is designed for operational and capital efficiencies with a smaller environmental impact. The company offers same-day pickup seven days a week through various access points and directly from drivers. A portfolio of returns services is available in approximately 150 countries. The global air operations hub is in Louisville, Kentucky, supported by international hubs. The Logistics and distribution business provides value-added fulfillment and transportation management services through multi-client and dedicated facilities, with ongoing investment in facility automation. Specialized cold chain and thermal monitoring technologies are utilized for healthcare customers.

Supply Chain Architecture: Key Suppliers & Partners:

• Third-party carriers: Utilized for air, ocean, and ground transportation services.
• United States Postal Service: Primary air cargo provider for USPS within the United States.
• Financial institutions: Offer a Supply Chain Finance program to certain suppliers.
• Third-party service providers: Engaged for corporate support functions, strategic reviews, and technology initiatives. Facility Network: The company owns its corporate headquarters in Atlanta, Georgia, and its information technology headquarters in Parsippany, New Jersey. It operates approximately 1,000 package facilities in the U.S. (90 million sq ft) and 800 internationally (22 million sq ft). Air hubs include Worldport in Louisville, Kentucky, and major international hubs in Germany, China, Hong Kong, Canada, and Florida. Over 600 facilities (47 million sq ft) support freight forwarding and logistics, including 16 million sq ft of healthcare-compliant warehousing. Operational Metrics: United Parcel Service, Inc. achieved industry-leading on-time performance in 2024. The Digital Access Program contributed to consolidated volume growth and SMB market expansion. The Smart Package Smart Facility RFID initiative is enhancing network efficiency and package visibility. The "Fit to Serve" initiative reduced the workforce by approximately 14,000 positions in 2024. The company's fleet includes 291 owned/operated aircraft (with 25 Boeing 767-300s on order) and approximately 128,000 ground vehicles, including 19,000 alternative fuel and advanced technology vehicles.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Channel Partners: Leverages The UPS Store network for package drop-off and returns services. The Digital Access Program embeds shipping solutions directly into leading e-commerce platforms to reach SMBs and e-commerce markets.
• Digital Platforms: Utilizes digital platforms like Roadie for crowdsourced same-day delivery and Happy Returns for end-to-end return services. Customer Portfolio: In 2024, United Parcel Service, Inc. served 1.6 million shipping customers and over 10.1 million daily delivery recipients. Amazon.com, Inc. and its affiliates represented 11.8% of consolidated revenues in 2024, primarily within the U.S. Domestic Package segment, and 12.8% of Accounts receivable, net, as of December 31, 2024. The company focuses on building long-term customer relationships through superior service and value-added offerings. Geographic Revenue Distribution (2024):
• United States: 77.3% of total revenue ($70.389 billion)
• International: 22.7% of total revenue ($20.681 billion)

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The global package delivery and logistics industry is rapidly evolving, characterized by increasing demands for faster deliveries, enhanced shipment visibility, and the development of new services. The industry is sensitive to national and international economic factors, including industrial production, inflation, unemployment, consumer spending, and retail activity. Geopolitical uncertainties and conflicts can also significantly impact operations. New and emerging technologies, such as crowdsourcing and artificial intelligence, are creating additional competitive pressures. Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: United Parcel Service, Inc. competes with a diverse range of local, regional, national, and international logistics providers, including the United States Postal Service and other national postal services, various motor carriers, express companies, freight forwarders, air couriers, large transportation companies, and e-commerce companies that are developing their own logistics capabilities. Emerging Competitive Threats: New entrants, disruptive technologies, and alternative solutions, including start-ups that combine technologies with flexible labor solutions such as crowdsourcing. Competitive Response Strategy: The company's strategy involves focusing on higher-yielding volume segments (healthcare, B2B, SMBs, international), investing in specialized capabilities, and leveraging technology to enhance customer experience. Strategic initiatives like network reconfiguration and "Efficiency Reimagined" aim to improve operational efficiency and cost structure. Acquisitions and divestitures are used to align the business portfolio with strategic targets.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics: Operations are subject to national and international economic factors, including industrial production, inflation, unemployment, consumer spending, and retail activity levels. Geopolitical uncertainty and conflicts in regions such as the European Union, Ukraine, the Russian Federation, the Middle East, and the Trans-Pacific region may adversely affect the company. The industry's rapid evolution, including demands for faster deliveries and new services, poses competitive challenges. Technology Disruption: The company faces significant competition from new and emerging technologies, including those from e-commerce companies and start-ups utilizing flexible labor solutions like crowdsourcing. Customer Concentration: Amazon.com, Inc. and its affiliates accounted for 11.8% of consolidated revenues in 2024. An agreement in Q1 2025 to reduce volume from this customer by over 50% by June 2026 introduces a risk of not successfully reducing associated costs, which could materially impact profitability. Other significant customers may divert business or demand pricing concessions.

Operational & Execution Risks

Supply Chain Vulnerabilities: The business requires significant capital investments in aircraft, vehicles, technology, and facilities. Inaccurate forecasting of these needs could lead to under- or over-investment or capacity imbalances. The planned U.S. network reconfiguration is expected to result in an excess of aircraft, vehicles, and buildings. Cybersecurity Incidents: Reliance on IT networks and systems, including those of third-party vendors and franchisees, exposes the company to risks from programming errors, power outages, cyber-attacks, ransomware, data exfiltration, and state-sponsored threats. The frequency and sophistication of these attacks are increasing, potentially leading to material disruptions, customer loss, brand damage, regulatory scrutiny, and litigation. Physical Security: Heightened security requirements due to global terrorism concerns impose substantial operating costs. The company's significant physical operations are potential targets for attacks or security breaches. Brand Image and Reputation: Service quality issues, adverse publicity related to labor relations, safety, environmental, social, and governance concerns, or physical/cyber security matters could damage the brand and reduce customer demand. Climate Change: The effects of climate change present financial and operational risks. Achieving carbon neutrality goals by 2050 depends on significant technological advancements, which may not occur as expected or could incur higher costs. Changes in climate-related regulations and reporting methodologies could also increase operating costs. Severe Weather/Disasters: Increased severity or frequency of weather conditions or other natural or man-made disasters can disrupt business, reduce shipments, damage property, injure employees, or increase operating costs.

Financial & Regulatory Risks

Market & Financial Risks: The company is exposed to changes in fuel and energy prices, foreign currency exchange rates (Euro, British Pound Sterling, Canadian Dollar, Chinese Renminbi, Hong Kong Dollar), and interest rates, which impact debt costs and pension obligations. Employee health and retiree benefit costs are significant and subject to increases from healthcare costs, investment volatility, and regulatory changes. Self-insurance accruals are based on actuarial estimates, and actual claims experience could differ materially. Changes in markets and business plans may result in substantial impairments of asset carrying values. Regulatory & Compliance Risks: United Parcel Service, Inc. is subject to complex and stringent aviation, transportation, environmental, security, labor, employment, safety, privacy, disclosure, and data protection laws and regulations globally. Non-compliance could result in substantial fines or revocation of operating authority. Increasingly stringent regulations related to climate change, including reporting obligations, could materially increase operating costs. The company is involved in various legal proceedings, including class actions and regulatory investigations, which could result in significant expenditures.

Geopolitical & External Risks

Geopolitical Exposure: Significant international operations expose the company to changing economic, political, and social developments in various countries. Trade relations, including tariffs, export requirements, embargoes, and sanctions, can impact global trade and operations. The company completed the liquidation of Small Package subsidiaries in Russia and Belarus in 2024, and operations in Ukraine remain indefinitely suspended.

Innovation & Technology Leadership

Research & Development Focus: United Parcel Service, Inc. focuses its research and development on leveraging technology to optimize volume flow through its network, moving from a scanning to a sensing network using RFID technology in its Smart Package Smart Facilities. The company develops cutting-edge technologies and digital tools to enhance customer shipping and logistics processes, aiming to lower costs, improve service, and increase efficiency. Strategic investments are also made in specialized capabilities such as cold chain and thermal monitoring for healthcare customers. Internally, Transformation 2.0 initiatives include investments in financial reporting and certain schedule, time, and pay systems to reduce global indirect operating costs and enhance data leverage.

Intellectual Property Portfolio: While specific details on patent strategy or licensing programs are not provided, the company's focus on innovation and technology development implies a strategy to protect its technological advancements.

Technology Partnerships: United Parcel Service, Inc. relies on information technology networks and systems, including those from third-party vendors, to operate its business. It also engages independent third-party service providers for cybersecurity assessments and support for modernization of corporate support functions and financial systems transition.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The Board, directly and through its Compensation and Human Capital Committee, oversees human capital matters, including succession planning and leadership development initiatives. Board Composition: The Board's Risk Committee, composed entirely of independent directors, oversees management’s identification and evaluation of strategic enterprise risks, including those related to privacy, technology, information security, cybersecurity, and business continuity.

Human Capital Strategy

Workforce Composition: United Parcel Service, Inc. has approximately 490,000 employees globally (excluding temporary seasonal employees), with 406,000 in the U.S. and 84,000 internationally. The workforce includes about 78,000 management employees (38% part-time) and 412,000 hourly employees (50% part-time). Over 75% of U.S. employees are union-represented, primarily by the International Brotherhood of Teamsters, with their national master agreement expiring on July 31, 2028. Other unions include the Independent Pilots Association (agreement amendable September 1, 2025), Teamsters Local 2727 (airline mechanics, agreement amendable November 1, 2026), and the International Association of Machinists and Aerospace Workers (auto and maintenance mechanics, agreement expires July 31, 2029).

Talent Management: Acquisition & Retention: The company continuously reviews its employee value proposition, including benefits, pay, training, talent development, and advancement opportunities, to attract and retain a diverse global workforce. The "Fit to Serve" initiative in 2024 reduced the workforce by approximately 14,000 positions, primarily within management, to create a more efficient operating model. Further workforce reductions are expected in 2025 due to network reconfiguration and "Efficiency Reimagined" initiatives. Diversity & Development: United Parcel Service, Inc. fosters a strong, purpose-driven culture that encourages trust, partnership, and empowerment, valuing employees' unique perspectives, backgrounds, talents, and skills. The Board's Compensation and Human Capital Committee oversees workforce representation, work culture, and employee development and retention.

Environmental & Social Impact

Environmental Commitments: Climate Strategy: United Parcel Service, Inc. has publicly committed to reducing its carbon emissions, with a goal to achieve carbon neutrality in its global operations by 2050, alongside other short- and mid-term environmental sustainability goals. The company spent $1.3 billion on projects supporting environmental sustainability goals in 2024, with an additional $0.5 billion planned for 2025. Its aircraft fleet complies with current noise standards.

Business Cyclicality & Seasonality

Demand Patterns: The company's demand patterns are influenced by seasonal trends, particularly those related to the holiday season and e-commerce activity. Its business is sensitive to broader economic conditions, including industrial production, inflation, unemployment, consumer spending, and retail activity levels. Planning & Forecasting: United Parcel Service, Inc. routinely monitors asset utilization and volume levels. In 2024, 12 aircraft were temporarily idled for approximately six months due to reduced air volumes, all of which re-entered operational service by year-end. The company anticipates temporary idling of certain aircraft in 2025 as part of normal operations. The U.S. network reconfiguration, initiated in Q1 2025, is in anticipation of volume decreases from its largest customer.

Regulatory Environment & Compliance

Regulatory Framework: United Parcel Service, Inc. operates under a complex and stringent regulatory framework across its global operations. Industry-Specific Regulations:

• Air Operations: Regulated by the U.S. Department of Transportation (economic aspects, international routes), Federal Aviation Administration (operational, technical, safety), and Transportation Security Administration (air cargo security).
• Ground Operations: Subject to regulation by the U.S. Department of Transportation and its Federal Motor Carrier Safety Administration, as well as state jurisdictions for safety and operations. Hazardous materials transport is regulated by the DOT's Pipeline and Hazardous Materials Safety Administration.
• Postal Services: Governed by the Postal Reorganization Act of 1970 and the Postal Accountability and Enhancement Act of 2006, impacting interactions with the United States Postal Service and the Postal Regulatory Commission.
• Customs: Adheres to customs laws for import and export in operating countries, with U.S. activities regulated by the Bureau of Customs and Border Protection, U.S. Federal Maritime Commission, and DOT.
• Environmental: Complies with U.S. and international environmental laws covering waste, wastewater, emissions, and spills.
• Communications and Data Protection: Subject to the Federal Communications Act of 1934 and Federal Communications Commission for communication facilities, and evolving global laws on privacy, cybersecurity, and data protection (e.g., EU General Data Protection Regulation, California Privacy Rights Act, China's Personal Information Protection Law). Trade & Export Controls: The company is impacted by laws and policies affecting global trade, including tariffs, export requirements, embargoes, and sanctions. Legal Proceedings: United Parcel Service, Inc. is involved in various judicial proceedings, including wage-and-hour class actions and employment-related claims. In Q3 2024, a jury awarded $39.6 million in compensatory damages and $198 million in punitive damages in Gratton v. United Parcel Service, Inc., with punitive damages vacated in Q4 2024 and a new trial granted in Q1 2025. The company settled an SEC investigation in March 2024 regarding impairment analyses related to the UPS Freight divestiture, paying a civil penalty and agreeing to remedial actions, which did not materially affect its financial condition.

Tax Strategy & Considerations

Tax Profile: United Parcel Service, Inc.'s effective tax rate was 22.3% in 2024, up from 21.8% in 2023. The company is subject to income taxes in the U.S. and numerous foreign jurisdictions. Geographic Tax Planning: The company's international tax structure and transfer pricing are subject to scrutiny by tax authorities. Tax Reform Impact: The Tax Cuts and Jobs Act of 2017 imposed a one-time transition tax on unrepatriated foreign earnings, with a remaining liability of $62 million to be paid in 2025 and 2026. The Organization for Economic Co-operation and Development's ("OECD") Pillar Two global minimum corporate tax, effective in many aspects in 2024, is not currently expected to have a material impact on the effective tax rate, though analysis is ongoing as guidance and legislation evolve. A tax incentive for certain non-U.S. operations, which decreased non-U.S. tax expense by $24 million in 2024, is being exited effective January 1, 2025. Tax Loss Carryforwards: As of December 31, 2024, the company had a U.S. federal capital loss carryforward of $409 million (expiring 2026-2029), U.S. state and local operating loss carryforwards of $1.043 billion, and non-U.S. loss carryforwards of $475 million (majority indefinite). Undistributed Foreign Earnings: Undistributed earnings and profits of foreign subsidiaries amounted to $4.8 billion as of December 31, 2024, with $310 million considered indefinitely reinvested.

Insurance & Risk Transfer

Risk Management Framework: United Parcel Service, Inc. manages its business and operational risks through a combination of self-insurance and high-deductible insurance programs. These programs cover exposures such as cargo loss, cyber-attacks, personal injury, property damage, aircraft and related liabilities, business interruption, and workers' compensation. Self-insurance reserves, totaling $2.981 billion as of December 31, 2024, are based on actuarial estimates that consider historical loss experience, trends in claim frequency and severity, and changes in risk retention. Risk Transfer Mechanisms: The company utilizes various derivative financial instruments, including commodity, foreign currency exchange rate, and interest rate forward contracts, options, and swaps, to mitigate market risks. Counterparty credit risk for these instruments is managed by limiting counterparties to established financial institutions and through bilateral collateral provisions. In 2024, United Parcel Service, Inc. transferred a portion of its workers' compensation liability to a third-party insurer. No commodity contracts were outstanding as of December 31, 2024.