M
ME NEWS
25 Jun 2025, 08:54
FedEx Delivers Strong Q4, Achieves Cost-Cutting Goals, and Honors Founder Frederick W. Smith
MEMPHIS, Tenn. – June 24, 2025 – FedEx Corp. (NYSE: FDX) closed out its fiscal year with a robust fourth-quarter performance, reporting GAAP diluted EPS of $6.88 and adjusted EPS of $6.07, buoyed by the successful completion of its $2.2 billion DRIVE structural cost reduction target. Revenue for the quarter came in at $22.2 billion, while full-year revenue reached $87.9 billion.
Key Financial Highlights – Q4 FY2025 vs. Q4 FY2024 (GAAP)
Revenue: $22.2B (+1%)
Operating Income: $1.79B (+15%)
Net Income: $1.65B (+12%)
Diluted EPS: $6.88 (+16%)
Adjusted figures strip out pension MTM adjustments, legal charges, and restructuring costs related to the planned FedEx Freight spin-off and other optimization initiatives.
Transformation Milestones and FY2025 Overview
DRIVE Program: FedEx hit its full $2.2B structural cost savings goal for FY2025 and has achieved $4.0B in savings since FY2023.
Adjusted FY2025 EPS: $18.19 vs. $17.80 (FY2024)
Capital Expenditures: $4.1B (down 22% YoY, lowest capex-to-revenue ratio in company history at 4.6%)
Stockholder Returns: $4.3B returned via $3.0B in repurchases and $1.3B in dividends
Aircraft Retirements: 12 aircraft permanently retired in line with fleet modernization strategy
Outlook for FY2026
FedEx projects:
Q1 FY2026 EPS (GAAP): $2.90–$3.50
Q1 EPS (Adjusted): $3.40–$4.00
$1B in permanent cost reductions through DRIVE and Network 2.0
Capex: $4.5B targeted for further fleet, facility, and automation investments
Dividend Increase: 5% raise to $5.80/share annually
Segment Performance
FedEx Express: Operating income up 22% YoY (Q4), driven by volume recovery and higher yield
FedEx Freight: Operating margin contracted to 20.8%, weighed by fuel surcharge reductions and wage inflation
Freight Spin-Off: Planning continues for a tax-free spin-off of FedEx Freight, targeting more focused operational execution
MEMPHIS, Tenn. – June 24, 2025 – FedEx Corp. (NYSE: FDX) closed out its fiscal year with a robust fourth-quarter performance, reporting GAAP diluted EPS of $6.88 and adjusted EPS of $6.07, buoyed by the successful completion of its $2.2 billion DRIVE structural cost reduction target. Revenue for the quarter came in at $22.2 billion, while full-year revenue reached $87.9 billion.
Key Financial Highlights – Q4 FY2025 vs. Q4 FY2024 (GAAP)
Revenue: $22.2B (+1%)
Operating Income: $1.79B (+15%)
Net Income: $1.65B (+12%)
Diluted EPS: $6.88 (+16%)
Adjusted figures strip out pension MTM adjustments, legal charges, and restructuring costs related to the planned FedEx Freight spin-off and other optimization initiatives.
Transformation Milestones and FY2025 Overview
DRIVE Program: FedEx hit its full $2.2B structural cost savings goal for FY2025 and has achieved $4.0B in savings since FY2023.
Adjusted FY2025 EPS: $18.19 vs. $17.80 (FY2024)
Capital Expenditures: $4.1B (down 22% YoY, lowest capex-to-revenue ratio in company history at 4.6%)
Stockholder Returns: $4.3B returned via $3.0B in repurchases and $1.3B in dividends
Aircraft Retirements: 12 aircraft permanently retired in line with fleet modernization strategy
Outlook for FY2026
FedEx projects:
Q1 FY2026 EPS (GAAP): $2.90–$3.50
Q1 EPS (Adjusted): $3.40–$4.00
$1B in permanent cost reductions through DRIVE and Network 2.0
Capex: $4.5B targeted for further fleet, facility, and automation investments
Dividend Increase: 5% raise to $5.80/share annually
Segment Performance
FedEx Express: Operating income up 22% YoY (Q4), driven by volume recovery and higher yield
FedEx Freight: Operating margin contracted to 20.8%, weighed by fuel surcharge reductions and wage inflation
Freight Spin-Off: Planning continues for a tax-free spin-off of FedEx Freight, targeting more focused operational execution