UPS Lands $2.7 Billion Government Contract Modification

United Parcel Service secured a modification to an existing transportation contract with the U.S. government valued at about $2.7 billion, with rival FedEx receiving a modification of similar size. The awards extend both carriers' long-running role moving freight and packages for federal agencies.

The contract news lands at a welcome moment for UPS, whose shares have been pressured this year amid soft package volumes and an ongoing network reconfiguration. The stock traded between $101.77 and $103.40 on Friday, roughly in line with the broader market's rebound.

Steady government revenue is prized by investors in the logistics sector, and the modification reinforces a dependable income stream as UPS works to cut costs and defend its dividend.