Financial Data and Key Metrics Changes - FedEx achieved structural cost reduction targets of $1.8 billion in FY 2024 and $2.2 billion in FY 2025, reaching an overall target of $4 billion over the FY 2023 base [13] - The company returned approximately $4.3 billion back to stockholders in FY 2025 [13] Business Line Data and Key Metrics Changes - The company operated as "One FedEx" in FY 2025, indicating a unified operational approach across its various business lines [13] Market Data and Key Metrics Changes - FedEx secured over 3 million gallons of blended sustainable aviation fuel for delivery at Los Angeles International Airport, marking the largest SAF purchase executed by a U.S. cargo airline at LAX as of May 2025 [16] Company Strategy and Development Direction - FedEx is focused on achieving carbon neutrality in its operations and supporting the low-carbon transition in the transportation and logistics industry, with specific initiatives in vehicle electrification and sustainable energy [16] - The company emphasizes the importance of its employees in delivering exceptional customer experiences and expanding into new markets [13] Management's Comments on Operating Environment and Future Outlook - The CEO paid tribute to the company's founder, highlighting the legacy and vision that continue to inspire FedEx's operations [12] - Management expressed pride in the team's response to a rapidly evolving market and their commitment to making a difference [13] Other Important Information - The stockholder proposal for an independent board chairman was not approved [11] Q&A Session Summary Question: What has been done to improve emission reduction of FedEx aircraft since the 2024 annual meeting? - FedEx is implementing comprehensive long-term actions and interim goals for carbon neutrality, focusing on vehicle electrification, sustainable energy, and sustainable aviation fuel [16] Question: What new aircraft will FedEx take delivery of between now and the 2026 annual meeting? - For information regarding planned future aircraft deliveries, stakeholders are directed to refer to the stat book on the Investor Relations website [17]

Financial Data and Key Metrics Changes - FedEx achieved structural cost reduction targets of $1.8 billion in FY24 and $2.2 billion in FY25, reaching an overall target of $4 billion over the FY23 base [14] - The company returned approximately $4.3 billion back to stockholders in FY25 [14] Business Line Data and Key Metrics Changes - FY25 marked the first year operating as One FedEx, indicating a unified approach across the organization [14] Market Data and Key Metrics Changes - No specific market data or key metrics changes were provided in the meeting Company Strategy and Development Direction and Industry Competition - FedEx is focused on vehicle electrification, sustainable energy for facilities, and sustainable aviation fuel for aircraft to achieve carbon neutrality [18] - The company is committed to supporting the low-carbon transition of the broader transportation and logistics industry [18] Management's Comments on Operating Environment and Future Outlook - The CEO expressed pride in the team's response to a rapidly evolving market and emphasized the commitment to exceeding customer expectations and expanding into new markets [14] - The legacy of the company's founder was highlighted, emphasizing the long-term vision and commitment to excellence [13] Other Important Information - FedEx secured over 3 million gallons of blended sustainable aviation fuel, marking the largest SAF purchase executed by a U.S. cargo airline at LAX as of May 2025 [18] Q&A Session Summary Question: What has been done to improve emission reduction of FedEx aircraft since the 2024 annual meeting? - FedEx is implementing comprehensive long-term actions and interim goals for carbon neutrality, focusing on vehicle electrification, sustainable energy, and sustainable aviation fuel [18] Question: What new aircraft will FedEx take delivery of between now and the 2026 annual meeting? - Information regarding planned future aircraft deliveries can be found in the stat book on the Investor Relations website [19]

Financial Data and Key Metrics Changes - The company reported consolidated profit growth in the first quarter, with U.S. operating profit increasing by $164 million and U.S. operating margin expanding by 110 basis points [38] - Last year, the company generated $6.3 billion in free cash flow and ended the year with over $6 billion in cash on the balance sheet [48] Business Line Data and Key Metrics Changes - The company plans to reduce Amazon's volume by more than 50% by June 2026, focusing on profitable segments while exiting unprofitable fulfillment center outbound volume [36][37] - Health care revenue totaled $10.5 billion last year and is expected to grow mid-single digits in 2025, with plans to acquire targeted companies to enhance capabilities [41][42] Market Data and Key Metrics Changes - The U.S. import volume is approximately 400,000 pieces per day, representing less than 2% of total global average daily volume and about 5% of consolidated revenue [50] - The company has seen strong growth in small and medium-sized businesses (SMBs), with SMBs making up 31.2% of total U.S. volume, the highest concentration in ten years [42] Company Strategy and Development Direction - The company is undertaking the largest network reconfiguration in its history, planning 164 operational closures, including 73 buildings, to improve cost structure and profitability [39][60] - The focus is on revenue quality and growth in key markets such as health care, international, and SMBs, while leveraging technology and automation to enhance efficiency [41][60] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment and emphasized the need for meaningful actions to improve performance and create additional value [19][20] - The company is confident that its strategic actions will lead to improved profitability, cash generation, and higher returns on invested capital, which should positively impact share price over time [46] Other Important Information - The company has maintained its dividend policy, marking the sixteenth consecutive year of dividend increases, and prioritizes reinvestment in the business [48][49] - The company is actively managing risks associated with voluntary carbon reduction commitments and trade policy changes, while also exploring opportunities in the evolving market landscape [16][50] Q&A Session Summary Question: Why is UPS reducing its volume from Amazon, and why now? - The company is exiting unprofitable Amazon fulfillment center outbound volume, which has pressured U.S. operating margins, while retaining profitable segments [36][37] Question: When will UPS redesign its network and reduce costs to grow profit? - The company has already begun profit growth, reporting a $164 million increase in U.S. operating profit and plans to remove $3.5 billion in expenses through network reconfiguration [38][39] Question: What plans do you have to grow the business, especially with reduced exposure to large customers? - The company expects growth by focusing on health care, international markets, and SMBs, with specific acquisitions planned to enhance capabilities [41][42] Question: Can you comment on investor confidence and stock performance? - Management expressed disappointment in stock performance but highlighted actions taken to improve profitability and cash generation, which should lead to higher share prices over time [44][46] Question: What is the status of the dividend policy and buybacks? - The dividend remains a hallmark of financial strength, with a focus on reinvestment, maintaining a strong financial condition, and using excess cash for share repurchases [48][49] Question: How will UPS be affected by tariff changes? - The company is well-positioned to manage complex trade policies but acknowledges exposure to potential price increases and consumer demand impacts due to tariffs [50][52] Question: How does RFID technology provide a competitive advantage? - RFID technology improves efficiency and visibility, with a significant reduction in manual scans, and the company plans to expand its deployment internationally [53][54] Question: How will UPS maintain competitiveness with closing drop-off locations? - The company continues to lead in service reliability and will remain accessible through a network of UPS stores and drop-off points, despite building closures [56][57] Question: Has there been a change in the cleanliness of package cars and driver appearance? - The company maintains high standards for vehicle cleanliness and has updated driver uniform guidelines to enhance comfort and visibility [58][59]