Core Viewpoint - FedEx is experiencing a mixed performance in the stock market, with a recent increase in stock price but a decline over the past month, while upcoming earnings are anticipated to show modest growth in both EPS and revenue [1][2][3]. Company Performance - FedEx closed at $228.05, up by 1.51% from the previous trading session, outperforming the S&P 500's gain of 0.78% [1]. - Over the past month, FedEx's stock has decreased by 5.89%, underperforming the Transportation sector's loss of 2.05% and the S&P 500's gain of 1.86% [1]. Earnings Estimates - The upcoming earnings release is expected to show an EPS of $3.71, reflecting a growth of 3.06% year-over-year, with revenue projected at $21.76 billion, a 0.84% increase from the same quarter last year [2]. - For the full year, earnings are estimated at $18.49 per share and revenue at $89.4 billion, indicating increases of 1.65% and 1.68% respectively from the previous year [3]. Analyst Sentiment - Recent changes in analyst estimates for FedEx are seen as positive indicators of the company's business operations and profit generation capabilities [3]. - The Zacks Consensus EPS estimate has increased by 0.3% over the past month, and FedEx currently holds a Zacks Rank of 3 (Hold) [5]. Valuation Metrics - FedEx is trading at a Forward P/E ratio of 12.15, which is below the industry average of 13.15, indicating a valuation discount [6]. - The company has a PEG ratio of 1.17, compared to the industry average of 1.57, suggesting a favorable growth outlook relative to its valuation [7]. Industry Context - The Transportation - Air Freight and Cargo industry, which includes FedEx, ranks 201 out of over 250 industries, placing it in the bottom 19% [8]. - The Zacks Industry Rank indicates that top-rated industries tend to outperform lower-rated ones by a factor of 2 to 1 [8].

Core Viewpoint - FedEx Canada is attempting to deny union rights to immigrant workers, particularly temporary foreign workers and international students, in response to a union organizing effort by Teamsters Local Union 362 [1][2] Group 1: Union Rights and Representation - The Teamsters are challenging FedEx's position, arguing that denying union representation to immigrant workers is both racist and morally indefensible [2] - Temporary workers often face vulnerabilities such as language barriers and limited awareness of their labor rights, increasing their need for union representation [3] - Labour boards across Canada typically recognize foreign students and temporary residents as eligible for union membership [4] Group 2: Working Conditions and Compensation - FedEx workers earn approximately $3 less per hour than their counterparts at UPS and Purolator, and they are required to contribute 3% of their wages to pensions, unlike their competitors whose pensions are fully employer-funded [5] - Working conditions at FedEx can be harsher, with expectations for workers to lift packages over 100 pounds alone, and the absence of a living out allowance that is commonly provided by other companies in the area [6] - Full-time unionized Purolator employees in Fort McMurray can receive up to $1,500 per month as a living out allowance, which is not available to FedEx workers [6] Group 3: Teamsters' Advocacy - The Teamsters Canada represents approximately 135,000 workers across various industries in Canada and is mobilizing to support FedEx workers in their fight for fair wages and protections [7]

Market Valuation - UPS's market valuation lead over FedEx has shrunk to the smallest ever [1] - UPS shares experienced a 29% plunge this year [1]

Core Insights - FedEx Corporation has experienced a significant decline in stock value, with a nearly 20% drop over the past 52 weeks, contrasting with the broader market reaching record highs [1] Company Performance - The stock's performance has been poor, rebounding from early April lows but still reflecting a substantial decline [1] Market Context - The broader market has been performing well, setting record highs, which highlights the underperformance of FedEx in comparison [1]

Core Viewpoint - FedEx reported strong earnings in Q4, beating estimates and showing year-over-year growth, but there are concerns about future revenue growth and downward revisions in estimates leading up to the next earnings report [2][12][15]. Financial Performance - Quarterly earnings per share (EPS) were $6.07, exceeding the Zacks Consensus Estimate of $5.93 and improving by 12.2% year-over-year [2]. - Revenues reached $22.2 billion, surpassing the Zacks Consensus Estimate of $21.7 billion and showing a 0.5% increase from the previous year [2]. - Operating income increased by 15% to $1.79 billion, with operating margin rising to 8.1% from 7% in the prior year [3]. Cost Management - Operating expenses decreased by 1% to $20.4 billion, benefiting from the DRIVE program and higher volumes [4][3]. - The company achieved structural cost reduction targets, contributing to improved operating income and margin [3]. Segment Performance - FedEx Express segment revenues grew by 1% year-over-year to $18.9 billion, supported by cost reductions and increased export volumes [6]. - FedEx Freight revenues fell by 4% to $2.29 billion, impacted by lower fuel surcharges and increased costs [7]. Liquidity and Shareholder Returns - Cash and cash equivalents at the end of Q4 were $5.50 billion, up from $5.13 billion in the previous quarter, while long-term debt decreased to $19.1 billion [9]. - The company returned nearly $4.3 billion to shareholders in fiscal 2025, including $3 billion in share repurchases and $1.3 billion in dividends [10]. Future Outlook - For Q1 of fiscal 2026, FedEx expects revenue growth to be flat to 2% year-over-year, with diluted EPS anticipated between $2.90 and $3.50 [12]. - The company aims for permanent cost reductions of $1 billion from ongoing transformation programs and plans to prioritize capital spending of $4.5 billion [13]. - FedEx is committed to rewarding shareholders with a 5% dividend increase and a robust share repurchase program [14]. Estimate Revisions - Consensus estimates have trended downward, with a shift of -7.06% noted in the past month [15]. - FedEx currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [17].

Part I [Business Overview](index=5&type=section&id=Item%201.%20Business) FedEx offers global transportation, e-commerce, and business services, focusing on strategic consolidation, efficiency programs, and a planned FedEx Freight spin-off - On June 1, 2024, FedEx Ground and Corporate Services merged into Federal Express, forming a single integrated air-ground network[24](index=24&type=chunk) - In December 2024, the Board decided to pursue a full spin-off of FedEx Freight into a new publicly traded company, expected by June 2026[26](index=26&type=chunk)[79](index=79&type=chunk) - The company is implementing strategic initiatives like DRIVE, Network 2.0, and Tricolor to enhance efficiency and profitability[29](index=29&type=chunk)[30](index=30&type=chunk) - FedEx is changing its fiscal year-end from May 31 to December 31, effective June 1, 2026[27](index=27&type=chunk) [Federal Express Segment](index=6&type=section&id=Item%201.%20Business-Federal%20Express%20Segment) Federal Express provides time-definite delivery globally, operating a vast network with 440,000 employees, facing competition and ongoing pilot union negotiations Federal Express Segment Key Metrics (as of May 31, 2025) | Metric | Value | | :--- | :--- | | Employees | ~440,000 | | Drop-off Locations | ~63,000 | | Aircraft | ~700 | | Motorized Vehicles | >175,000 | | Independent Contractors | ~5,700 | - A **5.9%** average list price increase for U.S. domestic and international services was implemented on January 6, 2025[49](index=49&type=chunk) Jet Fuel Costs (Last 5 Fiscal Years) | Fiscal Year | Total Jet Fuel Costs (in millions) | Percentage of Consolidated Revenue | | :--- | :--- | :--- | | 2025 | $2,832 | 3.2% | | 2024 | $3,598 | 4.1% | | 2023 | $4,515 | 5.0% | | 2022 | $3,867 | 4.1% | | 2021 | $2,065 | 2.5% | - Negotiations for a successor collective bargaining agreement with the pilots' union (ALPA), amendable in November 2021, are ongoing with NMB mediation[57](index=57&type=chunk)[58](index=58&type=chunk) [FedEx Freight Segment](index=15&type=section&id=Item%201.%20Business-FedEx%20Freight%20Segment) FedEx Freight, a leading North American LTL provider, plans a spin-off by June 2026 and implemented price increases in January 2025 - FedEx Freight is planned to be separated into a new publicly traded company via a spin-off, expected by June 2026[79](index=79&type=chunk) FedEx Freight Segment Key Metrics (as of May 31, 2025) | Metric | Value | | :--- | :--- | | Employees | ~40,000 | | Motorized Vehicles | ~30,000 | | Service Centers | ~355 | - On January 6, 2025, FedEx Freight implemented average list price increases of **5.9%** for PZONE/EZONE rates and **6.9%** for FXF 1000/501 rates[80](index=80&type=chunk) [Other Operating Segments](index=17&type=section&id=Item%201.%20Business-Other%20Operating%20Segments) Other segments include FedEx Dataworks for data insights, FedEx Office for retail services, and FedEx Logistics for integrated supply chain solutions - FedEx Dataworks focuses on leveraging vast company data to enhance operational efficiency and customer supply chains via a centralized platform[84](index=84&type=chunk)[85](index=85&type=chunk) - FedEx Office operates approximately **2,000** customer-facing stores, offering retail shipping, printing, and business solutions[87](index=87&type=chunk) - FedEx Logistics offers comprehensive services including customs brokerage, global freight forwarding, and integrated supply chain solutions[95](index=95&type=chunk) [Regulation](index=20&type=section&id=Item%201.%20Business-Regulation) FedEx operations are subject to extensive U.S. and international regulations, including aviation, ground transport, environmental, and unique labor laws under the RLA - Air operations are regulated by the U.S. DOT for economic aspects and the FAA for operational and safety aspects[103](index=103&type=chunk)[104](index=104&type=chunk) - Compliance with international emissions programs like CORSIA and EU ETS is expected to increase operating expenses[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - U.S. Federal Express employees are covered by the RLA, requiring nationwide unionization and mediation, minimizing local strike risks[128](index=128&type=chunk)[129](index=129&type=chunk) [Human Resource Management](index=27&type=section&id=Item%201.%20Business-Human%20Resource%20Management) FedEx's HR is guided by 'People-Service-Profit' and 'Safety Above All', focusing on diversity, benefits, and learning, with specific hiring and turnover metrics in FY2025 - The company's culture is founded on the People-Service-Profit philosophy: caring for people drives excellent service and profit[134](index=134&type=chunk) Fiscal 2025 Global Hiring and Turnover | Metric | Value | | :--- | :--- | | New Hires (Full- & Part-Time) | >406,000 | | Part-Time Turnover | 70% | | Full-Time Turnover | 24% | [The Environment](index=29&type=section&id=Item%201.%20Business-The%20Environment) FedEx aims for carbon-neutral operations by 2040, focusing on vehicle electrification, sustainable aviation fuels, fleet modernization, and providing emissions data to customers - FedEx aims for carbon neutrality in its global operations by calendar **2040**[150](index=150&type=chunk) - Key targets include **100%** electric new pickup-and-delivery vehicles by **2030** and **30%** alternative jet fuel sourcing by **2030**[157](index=157&type=chunk)[160](index=160&type=chunk) - In fiscal 2025, the company permanently retired **12** aircraft as part of its fleet modernization and network efficiency strategy[163](index=163&type=chunk) - The FedEx Sustainability Insights (FSI) tool, launched globally in 2024, provides customers with estimated CO2e emissions data for shipments[169](index=169&type=chunk) [Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) FedEx faces significant risks from macroeconomic factors, operational execution, cybersecurity, intense competition, human resource management, and environmental regulations [Macroeconomic and Market Risks](index=35&type=section&id=Item%201A.%20Risk%20Factors-Macroeconomic%20and%20Market%20Risks) FedEx is vulnerable to cyclical global economic conditions, including inflation, geopolitical conflicts, and volatile fuel prices, which impact volumes and costs - The transportation industry is highly cyclical and susceptible to economic trends, directly impacting FedEx's transported goods volumes[173](index=173&type=chunk) - Demand, especially for priority services, faces pressure from elevated inflation and interest rates impacting consumer and business spending[174](index=174&type=chunk) - Volatile fuel prices are beyond control; surcharges mitigate costs but may shift customers to lower-yielding services or reduce demand[180](index=180&type=chunk)[181](index=181&type=chunk) [Operating Risks](index=37&type=section&id=Item%201A.%20Risk%20Factors-Operating%20Risks) Operational risks include failed transformation execution, data breaches, high self-insurance costs, potential terrorism, and reliance on third-party providers - Failure to execute the DRIVE transformation, including network integration, could lead to higher costs, customer loss, and business disruption[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk) - Significant data breaches or tech disruptions could lead to sensitive information loss, reputational harm, and adverse business impact[186](index=186&type=chunk)[191](index=191&type=chunk) - FedEx is self-insured for various liabilities; significant claim increases or "nuclear" verdicts could exceed reserves and adversely affect results[197](index=197&type=chunk)[198](index=198&type=chunk) [Strategic Risks](index=43&type=section&id=Item%201A.%20Risk%20Factors-Strategic%20Risks) Strategic risks include the successful execution of the DRIVE transformation, the FedEx Freight spin-off, intense competition, and managing capital-intensive capacity - The planned FedEx Freight spin-off is complex, involving significant costs, potential dis-synergies, management distraction, and no guaranteed financial benefits[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk) - The highly competitive transportation market includes high-volume shippers like Amazon developing in-house delivery, acting as both customers and competitors[217](index=217&type=chunk)[218](index=218&type=chunk) - The capital-intensive business requires significant investments; misjudging volume projections could lead to costly over- or under-capacity[221](index=221&type=chunk) [Human Resource Management Risks](index=49&type=section&id=Item%201A.%20Risk%20Factors-Human%20Resource%20Management%20Risks) HR risks include potential labor disruptions, changes to RLA jurisdiction, challenges in talent attraction and retention, and legal challenges to independent contractor status - Legislative or administrative actions could remove Federal Express employees from RLA jurisdiction, risking local work stoppages and system disruption[225](index=225&type=chunk)[227](index=227&type=chunk) - Failure to attract and retain talent, especially in high-turnover roles, could increase costs and adversely affect service levels[229](index=229&type=chunk)[230](index=230&type=chunk) - Legal challenges to contracted service providers' independent employer status could increase operating costs and tax liabilities if adverse[233](index=233&type=chunk) [Environmental, Climate, and Weather Risks](index=53&type=section&id=Item%201A.%20Risk%20Factors-Environmental,%20Climate,%20and%20Weather%20Risks) Environmental risks include increased GHG regulations, challenges in achieving carbon neutrality by 2040, and operational disruptions from adverse weather and natural disasters - Increased GHG emissions regulation could impose substantial costs, including higher fuel prices and capital expenditures for fleet and infrastructure updates[237](index=237&type=chunk) - Achieving the **2040** carbon neutrality goal faces significant risks from the availability and cost of sustainable fuels and electric vehicle infrastructure[239](index=239&type=chunk)[240](index=240&type=chunk) - Operations are exposed to adverse weather and natural disasters; prolonged disruption at key hubs like Memphis could significantly affect business[242](index=242&type=chunk) [Cybersecurity](index=58&type=section&id=Item%201C.%20Cybersecurity) FedEx integrates cybersecurity into enterprise risk management, overseen by the Board's CyTOC and led by a CISO, with no material incidents reported in the last three fiscal years - The Board's Cyber and Technology Oversight Committee (CyTOC) oversees the company's cyber and technology-related risks[260](index=260&type=chunk) - The CISO, reporting to the CEO, leads an information security organization of over **400** professionals[262](index=262&type=chunk)[264](index=264&type=chunk) - FedEx has not identified any material cybersecurity threats or incidents affecting its business, operations, or financial condition in the last three fiscal years[258](index=258&type=chunk) [Properties](index=61&type=section&id=Item%202.%20Properties) FedEx's properties include a fleet of 698 aircraft, commitments for 56 more, and major sorting hubs globally, including Memphis Federal Express Aircraft Fleet (as of May 31, 2025) | Description | Owned (aircraft) | Leased (aircraft) | Total (aircraft) | | :--- | :--- | :--- | :--- | | Boeing B777F | 56 | 3 | 59 | | Boeing MD-11 | 34 | — | 34 | | Boeing 767F | 145 | — | 145 | | Airbus A300-600 | 58 | — | 58 | | Boeing 757-200 | 90 | — | 90 | | ATR-72 600F | 24 | — | 24 | | ATR-72 | 19 | — | 19 | | ATR-42 | 16 | — | 16 | | Cessna 408 | 27 | — | 27 | | Cessna 208B | 226 | — | 226 | | **Total** | **695** | **3** | **698** | Aircraft Purchase Commitments (as of May 31, 2025) | Year | Cessna SkyCourier 408 (aircraft) | ATR 72-600F (aircraft) | B767F (aircraft) | B777F (aircraft) | Total (aircraft) | | :--- | :--- | :--- | :--- | :--- | :--- | | 2026 | 19 | 3 | 7 | — | 29 | | 2027 | 4 | 3 | — | 5 | 12 | | 2028 | — | 4 | — | 5 | 9 | | 2029 | — | 4 | — | — | 4 | | 2030 | — | 2 | — | — | 2 | | **Total** | **23** | **16** | **7** | **10** | **56** | - The company's primary sorting facility and worldwide air network hub is located at Memphis International Airport, occupying **953 acres**[272](index=272&type=chunk)[273](index=273&type=chunk) [Legal Proceedings](index=65&type=section&id=Item%203.%20Legal%20Proceedings) FedEx is subject to various legal proceedings and claims arising in the ordinary course of business, with details referenced in Note 21 - The company is subject to legal proceedings and claims in the ordinary course of business; refer to Note 21 for details[286](index=286&type=chunk) [Information about our Executive Officers](index=65&type=section&id=Information%20about%20our%20Executive%20Officers) This section provides information on FedEx's executive officers as of July 21, 2025, including their roles and experience - Rajesh Subramaniam, **59**, serves as President and Chief Executive Officer of FedEx Corporation[288](index=288&type=chunk) - John W. Dietrich, **60**, serves as Executive Vice President and Chief Financial Officer[289](index=289&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=69&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters,%20And%20Issuer%20Purchases%20Of%20Equity%20Securities) FedEx common stock (FDX) is NYSE-listed, with ongoing dividends and a **$5.0 billion** stock repurchase program, of which **$1.6 billion** remained as of July 21, 2025 - In March 2024, the Board authorized a new stock repurchase program for up to **$5.0 billion** of common stock[296](index=296&type=chunk) Share Repurchases (Q4 FY2025) | Period | Total Shares Purchased (shares) | Average Price Paid per Share ($) | Approximate Dollar Value Remaining ($ in millions) | | :--- | :--- | :--- | :--- | | Mar. 1-31, 2025 | 1,775,000 | $242.43 | $2,134 | | Apr. 1-30, 2025 | 287,186 | $242.78 | $2,064 | | May 1-31, 2025 | — | $— | $2,064 | | **Total** | **2,062,186** | | **$2,064** | - As of July 21, 2025, approximately **$1.6 billion** remained available for repurchases under the current program[297](index=297&type=chunk) [Management's Discussion and Analysis of Results of Operations and Financial Condition (MD&A)](index=70&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Results%20of%20Operations%20and%20Financial%20Condition) FY2025 saw flat revenue at **$87.9 billion**, a **6%** operating income decline to **$5.2 billion**, and **2%** diluted EPS drop to **$16.81**, impacted by volume shifts and costs, with FY2026 projecting **$1 billion** in cost reductions and **$4.5 billion** in capital expenditures Consolidated Results Summary (FY2025 vs. FY2024) | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Consolidated Revenue | $87,926 M | $87,693 M | 0% | | Consolidated Operating Income | $5,217 M | $5,559 M | (6)% | | Consolidated Net Income | $4,092 M | $4,331 M | (6)% | | Diluted EPS | $16.81 | $17.21 | (2)% | - Operating income in 2025 was negatively affected by **$756 million** in business optimization costs, **$21 million** in asset impairment charges, and **$38 million** in FedEx Freight spin-off costs[316](index=316&type=chunk)[320](index=320&type=chunk)[321](index=321&type=chunk)[322](index=322&type=chunk) - For fiscal 2026, capital expenditures are projected at approximately **$4.5 billion**, an increase of **$0.4 billion** from 2025, driven by network modernization[360](index=360&type=chunk) - The company repurchased **10.9 million** shares for **$3.0 billion** in fiscal 2025, benefiting diluted EPS by **$0.44**[325](index=325&type=chunk) [Consolidated Results](index=74&type=section&id=Item%207.%20MD%26A-Consolidated%20Results) FY2025 consolidated revenue was flat at **$87.9 billion**, operating income decreased **6%** to **$5.2 billion**, impacted by FedEx Freight, service mix, USPS contract expiration, and optimization costs Year-over-Year Change in Operating Results by Segment (in millions) | Segment | Revenue Change ($ in millions) | Operating Results Change ($ in millions) | | :--- | :--- | :--- | | Federal Express | $641 | $66 | | FedEx Freight | ($537) | ($332) | | Corporate, other, and eliminations | $129 | ($76) | | **Total** | **$233** | **($342)** | - Purchased transportation expense increased **4%** in 2025 due to higher rates and volume, while fuel expense decreased **20%** due to lower prices and usage[334](index=334&type=chunk)[336](index=336&type=chunk)[339](index=339&type=chunk) - The effective tax rate for 2025 was **24.8%**, down from **25.8%** in 2024, benefiting from corporate legal entity structure changes[352](index=352&type=chunk) [Federal Express Segment](index=85&type=section&id=Item%207.%20MD%26A-Federal%20Express%20Segment) Federal Express revenue increased **1%** to **$75.3 billion** in FY2025, with operating income up **1%** to **$4.9 billion**, driven by international economy and U.S. ground volume growth, offset by priority and freight declines Federal Express Segment Financials (FY2025 vs. FY2024) | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $75,304 M | $74,663 M | 1% | | Operating Income | $4,885 M | $4,819 M | 1% | | Operating Margin | 6.5% | 6.5% | 0 bp | - International economy average daily package volume grew **40%** and U.S. ground home delivery/economy volume grew **5%**, driven by e-commerce[377](index=377&type=chunk)[381](index=381&type=chunk) - U.S. average daily freight pounds decreased **44%**, primarily due to the USPS contract expiration on September 29, 2024[377](index=377&type=chunk)[381](index=381&type=chunk) [FedEx Freight Segment](index=88&type=section&id=Item%207.%20MD%26A-FedEx%20Freight%20Segment) FedEx Freight revenue decreased **6%** to **$8.9 billion** in FY2025, with operating income down **18%** to **$1.5 billion**, driven by reduced demand and lower fuel surcharges FedEx Freight Segment Financials (FY2025 vs. FY2024) | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $8,892 M | $9,429 M | (6)% | | Operating Income | $1,489 M | $1,821 M | (18)% | | Operating Margin | 16.7% | 19.3% | (260) bp | | Avg. Daily Shipments | 90.1 K | 94.0 K | (4)% | - Revenue decreased primarily due to lower shipments from reduced industrial demand, lower fuel surcharges, and decreased weight per shipment[387](index=387&type=chunk)[388](index=388&type=chunk) [Financial Condition](index=89&type=section&id=Item%207.%20MD%26A-Financial%20Condition) FedEx's financial condition is solid with **$5.5 billion** cash, but FY25 operating cash flow decreased to **$7.0 billion**, while capital expenditures were **$4.1 billion** and **$3.0 billion** in stock was repurchased Cash Flow Summary (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Cash from Operating Activities | $7,036 | $8,312 | | Cash used in Investing Activities | ($4,092) | ($5,200) | | Cash used in Financing Activities | ($4,019) | ($3,426) | | **Net Decrease in Cash** | **($999)** | **($355)** | - Capital expenditures decreased **22%** to **$4.1 billion** in 2025, primarily due to lower spending on aircraft, vehicles, and facilities[392](index=392&type=chunk)[396](index=396&type=chunk) - The company repurchased **$3.0 billion** of its common stock in fiscal 2025[393](index=393&type=chunk) [Critical Accounting Estimates](index=93&type=section&id=Item%207.%20MD%26A-Critical%20Accounting%20Estimates) Critical accounting estimates include pension assumptions, income tax provisions, self-insurance accruals, and long-lived asset valuation, all subject to management judgment and potential material impact - Pension accounting is highly sensitive; a **50-basis-point** decrease in discount rate would increase PBO by approximately **$1.4 billion**[419](index=419&type=chunk) - Self-insurance accruals totaled **$5.9 billion** as of May 31, 2025; a **5%** change in claim severity would impact reserves and expenses by approximately **$295 million**[426](index=426&type=chunk) - In FY2025, the company recorded a noncash impairment charge of **$21 million** related to the permanent retirement of **12** aircraft and **eight** engines[434](index=434&type=chunk) - Goodwill stood at **$6.6 billion** as of May 31, 2025; annual impairment testing in Q4 2025 and 2024 found no impairment[443](index=443&type=chunk)[447](index=447&type=chunk) [Financial Statements and Supplementary Data](index=103&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents FedEx's consolidated financial statements for FY2025, including balance sheets, income, cash flows, and equity, along with management and auditor reports on internal controls Key Financial Statement Balances (as of May 31, 2025) | Account | Value (in millions) | | :--- | :--- | | **Assets** | | | Total Current Assets | $18,386 | | Net Property and Equipment | $41,642 | | Total Assets | $87,627 | | **Liabilities & Equity** | | | Total Current Liabilities | $15,411 | | Long-Term Debt, less current portion | $19,151 | | Total Liabilities | $59,553 | | Total Common Stockholders' Investment | $28,074 | - Management concluded internal control over financial reporting was effective as of May 31, 2025, with Ernst & Young LLP issuing an unqualified opinion[467](index=467&type=chunk)[471](index=471&type=chunk)[479](index=479&type=chunk) [Notes to Consolidated Financial Statements](index=113&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data-Notes%20to%20Consolidated%20Financial%20Statements) Notes provide detailed disclosures on accounting policies and financial figures, covering segment reorganization, debt, leases, taxes, retirement plans, and purchase commitments - Note 1 details significant events including 'one FedEx' consolidation, planned FedEx Freight spin-off, and fiscal year-end change[507](index=507&type=chunk)[509](index=509&type=chunk)[510](index=510&type=chunk) - Note 7 discloses **$19.2 billion** in senior unsecured debt and details February 2025 debt exchange offers for FedEx Freight separation[600](index=600&type=chunk)[607](index=607&type=chunk)[608](index=608&type=chunk) - Note 14 shows the U.S. Pension Plan had a funded status surplus of **$626 million** at May 31, 2025, an improvement from a **$487 million** deficit in 2024[673](index=673&type=chunk) - Note 19 outlines total purchase commitments of **$7.0 billion**, including **$4.7 billion** for aircraft and related equipment[707](index=707&type=chunk) Part III [Directors, Executive Officers, and Corporate Governance](index=157&type=section&id=Item%2010.%20Directors,%20Executive%20Officers,%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the forthcoming 2025 proxy statement - Information regarding directors and corporate governance is incorporated by reference from the forthcoming 2025 proxy statement[725](index=725&type=chunk) [Executive Compensation](index=157&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding director and executive compensation is incorporated by reference from the forthcoming 2025 proxy statement - Information regarding executive compensation is incorporated by reference from the forthcoming 2025 proxy statement[726](index=726&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=159&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership of beneficial owners, management, and related stockholder matters is incorporated by reference from the forthcoming 2025 proxy statement - Information regarding security ownership is incorporated by reference from the forthcoming 2025 proxy statement[727](index=727&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=159&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information on certain relationships, related person transactions, and director independence is incorporated by reference from the forthcoming 2025 proxy statement - Information regarding related transactions and director independence is incorporated by reference from the forthcoming 2025 proxy statement[728](index=728&type=chunk) [Principal Accountant Fees and Services](index=159&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services, including preapproval policies, is incorporated by reference from the forthcoming 2025 proxy statement - Information regarding principal accountant fees and services is incorporated by reference from the forthcoming 2025 proxy statement[729](index=729&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=160&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed with the Form 10-K, including corporate governance and debt instruments - This section provides a comprehensive list of all exhibits filed with the Form 10-K, including corporate governance documents, debt indentures, and compensatory plans[731](index=731&type=chunk)[732](index=732&type=chunk) [Form 10-K Summary](index=174&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable as no Form 10-K summary was provided - No Form 10-K summary is provided[752](index=752&type=chunk)

Core Insights - FedEx views China as a core part of its development strategy, citing the country's robust economic growth and potential for market expansion as key opportunities for the company [2][7] - The Chinese supply chain is undergoing significant changes, with advancements in digital transformation and the integration of artificial intelligence, enhancing the resilience and value of the supply chain [3][4] Group 1: Market Potential and Supply Chain Changes - China is recognized for its complete industrial chain, deep division of labor, and efficient collaboration, making it an attractive destination for foreign investment [4] - The Chinese supply chain is evolving with a focus on high-value ecosystems, driven by digital transformation and AI integration [3][4] - In 2024, China's manufacturing scale is projected to remain the largest globally for the 15th consecutive year, highlighting its critical role in the global supply chain [2] Group 2: Investment Plans and Strategic Focus - FedEx plans to enhance its routes from China to Europe, capitalizing on the growing trade between China and the EU, which saw imports and exports reach 2.82 trillion yuan in the first half of the year, a 3.5% increase year-on-year [6] - The company aims to upgrade its network in the Asia-Pacific region to support increasing transportation demands between China and Southeast Asia, following the completion of the RCEP 3.0 negotiations [6] - FedEx is focusing on empowering the supply chain in key areas such as cross-border e-commerce and heavy freight transportation, providing solutions for B2B and B2C exports and imports [6] Group 3: Sustainability Initiatives - FedEx is actively implementing green initiatives in China, with 20% of its delivery fleet now electric vehicles, and aims for global carbon neutrality by 2040 [8][10] - The company has received LEED Gold certification for its Shanghai headquarters, showcasing its commitment to sustainable infrastructure [8] - FedEx is also providing tools to help clients track their carbon emissions, supporting their sustainability goals [8][10] Group 4: Challenges and Opportunities in Green Logistics - The logistics industry's transition to green practices is becoming essential due to regulatory and market demands, with the Chinese government promoting green logistics development as part of its broader economic strategy [9][10] - The need for logistics companies to invest in sustainable practices, including infrastructure upgrades and low-carbon technologies, is critical for reducing carbon emissions [10]

Core Insights - FedEx's Chief Digital and Information Officer, Sriram Krishnasamy, is leaving the company following an investigation into claims of inflated performance within his unit [1][4][5] - The investigation pertains to a personnel matter within the IT department, which Krishnasamy oversaw, and he will remain with the company as an executive adviser until October or potentially earlier [2][5] - FedEx's stock fell by 1.4% following the announcement of Krishnasamy's departure, and the company is currently facing financial challenges due to trade uncertainties [4][11] Company Leadership Changes - Sriram Krishnasamy has been with FedEx since 1997 and has held various leadership roles globally [2][9] - The data and technology organization will now report directly to FedEx CEO Raj Subramaniam as the company prepares for a transition [6] Financial Outlook - FedEx has warned of a financial hit in the current quarter due to the impact of President Trump's trade war, which has disrupted global shipping and trade [8][9] - The company has withheld its financial forecast for the current fiscal year due to ongoing trade uncertainties, with its stock down approximately 17% year-to-date [11]

美交通部长：升级空中交通管制系统还差190亿美元 智通财经7月17日电，据央视新闻报道，美国交通部长达菲表示，特朗普政府还需要190亿美元，才能全 面升级空中交通管制系统。此前5月21日，美国多家航空公司的首席执行官发布联名信，信中说，美国 的空中交通管制系统正在"辜负美国民众"。他们敦促国会迅速采取行动，批准资金对空管系统进行现代 化改造。这封联名信由美国航空公司、美国联合航空公司、达美航空、西南航空、捷蓝航空、阿拉斯加 航空、阿特拉斯航空以及联邦快递和联合包裹运送服务公司联合签署。信中表示，美国联邦航空管理局 的技术已经"严重过时"。夏季旅游季即将开始，他们呼吁尽快采取行动。 ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends FedEx. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...