FedEx(FDX) - 2025 FY - Earnings Call Transcript

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]