FedEx(US:FDX)2025-06-24 20:12Financial Performance - FedEx reported fourth quarter revenue of $22.2 billion, a slight increase from $22.1 billion in the same quarter last year[1]. - The company achieved an operating income of $1.79 billion, resulting in an operating margin of 8.1%, compared to 7.0% in the prior year[1]. - FedEx reported a GAAP operating income of $5,217 million with a margin of 5.9% for the full-year fiscal 2025[42]. - The non-GAAP operating income for the same period was $6,120 million, reflecting a margin of 7.0%[42]. - For the fourth quarter of fiscal 2025, FedEx's GAAP diluted earnings per share (EPS) was $6.88, while the non-GAAP EPS was $6.07[38]. - Net income for the twelve months ended May 31, 2025, was $4,092 million, a 6% decrease from $4,331 million in 2024[54]. - Diluted earnings per share for the three months ended May 31, 2025, increased by 16% to $6.88, compared to $5.94 in the same period of 2024[54]. - Operating income for the Federal Express segment increased by 22% to $1,586 million for the three months ended May 31, 2025, compared to $1,305 million in 2024[54]. - Operating margin improved to 8.4% for the three months ended May 31, 2025, compared to 6.9% in the same period of 2024[63]. Cost Management - For fiscal 2025, FedEx achieved a total of $4.0 billion in structural cost reductions, surpassing its $2.2 billion DRIVE target[8]. - The company plans to target $1 billion in cost savings from transformation programs in fiscal 2026[1]. - Business optimization costs for fiscal 2025 amounted to $756 million, contributing a 0.9% margin impact[42]. - The planned spin-off of FedEx Freight incurred costs of $38 million for the full year fiscal 2025[42]. - Asset impairment charges for fiscal 2025 totaled $21 million, with a negligible impact on margins[42]. - The international regulatory and legacy FedEx Ground legal matters incurred costs of $88 million for the full year fiscal 2025[42]. Shareholder Returns - FedEx returned $4.3 billion to stockholders through stock repurchases and dividends during fiscal 2025[11]. - The company plans to continue its robust share repurchase program and has announced a 5% increase in the annual dividend to $5.80 per share[12]. Future Outlook - FedEx forecasts a revenue growth rate of flat to 2% year over year for the first quarter of fiscal 2026[14]. - Diluted earnings per share for fiscal 2026 are projected to be between $2.90 and $3.50, excluding certain costs[14]. - Capital spending for fiscal 2026 is expected to be $4.5 billion, focusing on network optimization and efficiency improvements[14]. - The company expects first quarter fiscal 2026 diluted EPS to range from $2.90 to $3.50, with adjustments totaling $155 million[51]. Segment Performance - The FedEx Freight segment experienced a decrease in operating results due to lower fuel surcharges and increased costs[5]. - The FedEx Freight segment experienced a 4% decline in revenue for the three months ended May 31, 2025, totaling $2,297 million compared to $2,387 million in 2024[54]. - Total freight revenue decreased by 15% to $1,414 million, down from $1,654 million year-over-year[63]. - International priority package revenue decreased by 9% to $2,203 million, while international economy revenue increased by 16% to $1,448 million[63]. Revenue and Volume Metrics - Total revenue for the three months ended May 31, 2025, was $22,220 million, a 1% increase from $22,109 million in the same period of 2024[54]. - Total revenue for the three months ended May 31, 2025, was $18,977 million, a 1% increase from $18,792 million in the same period of 2024[63]. - U.S. domestic package revenue increased by 4% to $12,580 million, compared to $12,062 million in the prior year[63]. - Average daily package volume (ADV) for U.S. priority increased by 2% to 1,644, while U.S. deferred rose by 9% to 1,063[65]. - Revenue per package for U.S. priority increased by 1% to $25.85, while international priority yield rose by 11% to $61.33[65].