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Nov 30, 2024
FedEx Q2 2025 Earnings Report
FedEx's Q2 2025 financial performance reflected efforts to transform operations amidst a challenging demand environment.
Key Takeaways
FedEx reported Q2 2025 revenue of $22.0 billion and diluted EPS of $3.03. The company completed $1 billion in share repurchases during the quarter and is pursuing a full separation of FedEx Freight to create a new publicly traded LTL company.
Second quarter diluted EPS was $3.03, and adjusted diluted EPS was $4.05.
The company completed $1 billion in share repurchases during the quarter.
FedEx is pursuing a full separation of FedEx Freight, creating a new publicly traded LTL company.
The full-year fiscal 2025 earnings outlook has been revised.
Forward Guidance
FedEx is revising its fiscal 2025 revenue and earnings forecasts, now expecting approximately flat revenue year over year and diluted EPS of $16.45 to $17.45 before MTM retirement plans accounting adjustments.
Positive Outlook
- Permanent cost reductions from the DRIVE transformation program of $2.2 billion.
- Capital spending of $5.2 billion, with a priority on investments in network optimization and efficiency improvement, including fleet and facility modernization and automation.
Challenges Ahead
- Approximately flat revenue year over year, compared to the prior forecast of a low single-digit percentage increase.
- Diluted EPS of $16.45 to $17.45 before the MTM retirement plans accounting adjustments compared to the prior forecast of $17.90 to $18.90 per share; and $19.00 to $20.00 per share after also excluding costs related to business optimization initiatives, compared to the prior forecast of $20.00 to $21.00 per share.
- ETR of approximately 24.0% prior to the MTM retirement plans accounting adjustments, compared to the prior forecast of approximately 24.5%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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