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FedEx
🇺🇸 NYSE:FDX
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Aug 31, 2024

FedEx Q1 2025 Earnings Report

FedEx transitioned to One FedEx and reported a decrease in operating income due to mix shift and higher expenses, partially offset by DRIVE program savings.

Key Takeaways

FedEx reported Q1 2025 revenue of $21.6 billion and diluted EPS of $3.21. Results were impacted by a mix shift and higher operating expenses, offset by cost reductions from the DRIVE program. The company completed a $1 billion share repurchase during the quarter and narrowed its full-year earnings outlook.

Successfully transitioned to One FedEx at the start of fiscal 2025.

Completed a $1 billion share repurchase during the quarter.

First quarter results were negatively affected by a mix shift and higher operating expenses.

Revised fiscal 2025 revenue and earnings forecasts.

Total Revenue
$21.6B
Previous year: $21.7B
-0.5%
EPS
$3.6
Previous year: $4.55
-20.9%
Gross Profit
$4.38B
Previous year: $4.71B
-7.2%
Cash and Equivalents
$5.9B
Previous year: $6.8B
-13.2%
Free Cash Flow
$420M
Total Assets
$86.7B
Previous year: $87.6B
-1.0%

FedEx

FedEx

Forward Guidance

FedEx is revising its fiscal 2025 revenue and earnings forecasts and now expects a low single-digit percentage revenue growth rate year over year and earnings per diluted share of $17.90 to $18.90 before MTM adjustments.

Positive Outlook

  • Permanent cost reductions from the DRIVE transformation program of $2.2 billion.
  • ETR of approximately 24.5% prior to the MTM retirement plans accounting adjustments.
  • Capital spending of $5.2 billion, with a priority on investments in network optimization and efficiency improvement, including fleet and facility modernization and automation.
  • Expects to help offset weaker-than-expected demand trends.
  • Remain committed to our plan to return $3.8 billion to stockholders this fiscal year.

Challenges Ahead

  • A low single-digit percentage revenue growth rate year over year, compared to the prior forecast of a low-to-mid single digit percentage increase.
  • Earnings per diluted share of $17.90 to $18.90 before the MTM retirement plans accounting adjustments compared to the prior forecast of $18.25
  • Unable to forecast the fiscal 2025 mark-to-market (MTM) retirement plans accounting adjustments.
  • Relying on the exemption provided by the Securities and Exchange Commission (SEC).
  • It is reasonably possible that the fiscal 2025 MTM retirement plans accounting adjustments could have a material effect on fiscal 2025 consolidated financial results and ETR.

Company Overview

Full financial data and analysis

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