| Delivered Revenue, Operating Income, and EPS Growth
Completed $500 Million Share Repurchases During Quarter
Revises Full-Year Fiscal 2025 Earnings Outlook
Progresses FedEx Freight Spin-off Preparation |
| FedEx Corp. (NYSE: FDX) today reported the following consolidated results for the third quarter ended February 28 (adjusted measures exclude the items listed below): |
| “The FedEx team delivered improved profitability while navigating a very challenging operating environment, including a compressed Peak season and severe weather events,” said Raj Subramaniam, FedEx Corp. president and chief executive officer. “I am proud of the team for executing our transformation efforts while strengthening our value proposition and improving the customer experience. Looking ahead, we remain focused on supporting our customers amid the shifting macroeconomic environment.” |
| Consolidated operating results improved due to cost reduction benefits from DRIVE program initiatives, higher base yield at each transportation segment, and higher volume at Federal Express. |
| Federal Express segment operating results improved during the quarter, driven by cost reduction benefits from DRIVE, higher base yield, and increased U.S. and international export volume. These factors were partially offset by higher wage and purchased transportation rates, as well as the expiration of the U.S. Postal Service contract. |
| FedEx Freight segment operating results decreased during the quarter due to lower fuel surcharges, reduced weight per shipment, and fewer shipments, partially offset by higher base yield. |
| The quarter’s results include a net tax benefit of $46 million ($0.19 per diluted share), primarily from corporate entity structure changes and revisions of prior year estimates for actual tax return results. |
| Share Repurchase Program |
| FedEx completed its $2.5 billion fiscal 2025 share repurchase plan with $0.5 billion in share repurchases via open market transactions during the quarter. Approximately 1.8 million shares were repurchased, with the decrease in outstanding shares benefiting third-quarter results by $0.12 per diluted share. |
| As of February 28, 2025, $2.6 billion remained available for repurchases under the company’s 2024 stock repurchase authorization. |
| Cash on hand as of February 28, 2025, was $5.1 billion. |
| Outlook |
| FedEx is unable to forecast the fiscal 2025 mark-to-market (“MTM”) retirement plan accounting adjustments. As a result, FedEx is unable to provide a fiscal 2025 earnings per share (“EPS”) or effective tax rate (“ETR”) outlook on a GAAP basis and is relying on the exemption provided by the Securities and Exchange Commission (“SEC”). It is reasonably possible that the fiscal 2025 MTM retirement plan accounting adjustments could have a material effect on fiscal 2025 consolidated financial results and ETR. |
| FedEx is revising its fiscal 2025 revenue, earnings and capital spending forecasts, and now expects: |
| Revenue is flat to slightly down year over year, compared to the prior forecast of approximately flat; |
- Diluted EPS of $15.15 to $15.75 before the MTM retirement plans accounting adjustments compared to the prior forecast of $16.45 to $17.45 per share; and $18.00 to $18.60 per share after excluding costs related to business optimization initiatives, international regulatory and legacy FedEx Ground legal matters, and the planned spin-off of FedEx Freight, compared to the prior forecast of $19.00 to $20.00 per share; and
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- Capital spending of $4.9 billion, compared to the prior forecast of $5.2 billion, with a priority on investments in network optimization and efficiency improvement, including fleet and facility modernization and automation.
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- FedEx is reaffirming its forecast of:
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- Permanent cost reductions from the DRIVE transformation program of $2.2 billion; and
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- ETR of approximately 24.0% before the MTM retirement plans accounting adjustments.
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| These forecasts assume the company’s current economic forecast and fuel price expectations, and no additional adverse economic, geopolitical, or international trade-related developments. FedEx’s ETR and EPS forecasts are based on current law and related regulations and guidance. |
| “Our team continues to make strong progress on reducing our cost to serve and improving our operational performance–specifically at Federal Express–supporting operating income and earnings growth,” said John Dietrich, FedEx Corp. executive vice president and chief financial officer. “Our revised earnings outlook reflects continued weakness and uncertainty in the U.S. industrial economy, which is constraining demand for our business-to-business services. Despite this uncertainty, I’m confident we are well positioned to execute on our transformation initiatives and create stockholder value.” |
| Corporate Overview |
| FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With an annual revenue of $88 billion, the company offers integrated business solutions utilizing its flexible, efficient, and intelligent global network. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires more than 500,000 employees to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about. |
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| FedEx Corp |
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