Slide 1: Fiscal Fourth Quarter 2025 Earnings
FedEx Corporation Fiscal Fourth Quarter 2025 Earnings June 24, 2025 2
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
VP of Investor Relations 3 Forward-Looking Statements and Non-GAAP Financial Measures Certain statements in this presentation may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act, such as statements regarding expected cost savings, the optim
Slide 3: Key messages
President & CEO 5 Key messages • Grew Q4 adjusted operating income* despite an uncertain macroeconomic backdrop • Delivered on $2.2 billion of structural cost reductions through DRIVE, and as a result, achieved our two-year $4 billion DRIVE target • Advanced Network 2.0 and began optimizing larger U
Slide 4: Q4 and FY25 results overview
Q4 and FY25 results overview Delivered two consecutive years of adjusted earnings* growth despite a challenging industrial economy Q4 FY25 FY25 Commentary: Revenue $22.2B $87.9B • Successful DRIVE execution enabled higher adjusted 1% YoY 0.3% YoY operating income* for the quarter, and two consecutiv
Slide 5: Advancing our network transformation
Advancing our network transformation Network 2.0 • Achieved full optimization in Canada and optimized 45 U.S. stations in Q4 • Implemented Network 2.0 in nearly 30 U.S. stations on June 1, with 33 more by end of June • Will exit June with roughly 2.5 million average daily volume flowing through Netw
Slide 6: EVP & Chief Customer Officer
11 EVP & Chief Customer Officer 12
Slide 7: Transportation segment revenue performance
Transportation segment revenue performance Federal Express FedEx Freight 1% (4%) $18.8B $19.0B $2.4B $2.3B Q4 FY24 Q4 FY25 Q4 FY24 Q4 FY25 • Growth driven by increased demand for U.S. • Continued weakness in industrial economy domestic and international economy services pressured revenues, as expect
Slide 8: Transportation segment yield performance
Transportation segment yield performance 4% YoY yield by fiscal quarter 3% 2% 1% 0% -1% -2% -3% -4% Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Federal Express U.S. Priority and Deferred Federal Express Ground Federal Express International Export FedEx Freight 15 Strategic commercial priorities Healthca
Slide 9: Q4 and FY25 results overview
EVP & Chief Financial Officer 17 Q4 and FY25 results overview Delivered two consecutive years of adjusted earnings* growth despite a challenging industrial economy Q4 FY25 FY25 Commentary: Revenue $22.2B $87.9B • Successful DRIVE execution enabled higher adjusted 1% YoY 0.3% YoY operating income* fo
Slide 10: Transportation segment operating income performance
Transportation segment operating income performance Federal Express 9% FedEx Freight (6%) $1.6B $1.7B $507M $477M Q4 FY24* Q4 FY25* Q4 FY24 Q4 FY25 • Adjusted operating income* increased driven by cost • Operating income declined due to lower fuel surcharges, reduction benefits from DRIVE, increased
Slide 11: FY26 Q1 outlook
FY26 Q1 outlook Low-end High-end Revenue 0% 2% Additional detail: • Range assumes no additional adverse economic, geopolitical, or international trade-related Continued strong developments Pressure to U.S. Assumption domestic demand U.S. domestic revenue trends • Approximately $200 million in transf
Slide 12: FY26 considerations
FY26 considerations • Expect $1 billion in transformation tailwinds from DRIVE and Network 2.0 • U.S. Postal Service contract expiration will be a headwind for first four months • Significant revenue net of cost improvement is contingent upon improving demand and pricing environment • Will resume fu
Slide 13: Appendix
Q&A Q&A 25 25 Appendix 26
Slide 14: Non-GAAP financial measures
Non-GAAP financial measures Our non-GAAP financial measures are intended to supplement and should be read together with, and are not an alternative or substitute for, and should not be considered superior to, our reported financial results. Accordingly, users of our financial statements should not p
Slide 15: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations FedEx Corporation Q4 FY25 Q4 FY24 Diluted Diluted Operating Operating Income Earnings Operating Operating Income Earnings Dollars in millions, except EPS Income Margin Taxes1 Net Income2 Per Share Income Margin Taxes1 Net Income2 Per Share GAAP measure $ 1,793 8.1% $
Slide 16: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations Federal Express Segment Full Year FY25 Full Year FY24 Operating Operating Operating Operating Dollars in millions, except EPS Income Margin Income Margin GAAP measure $ 4,885 6.5% $ 4,819 6.5% Business optimization costs 384 0.5% 251 0.3% International regulatory and
Slide 17: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations FY26 Q1 Diluted Earnings Per Share Forecast Q1 FY26 Outlook Diluted Earnings Dollars in millions, except EPS Adjustments Per Share Earnings per diluted share (GAAP) $2.90 to $3.50 Business optimization costs $ 135 FedEx Freight spin-off costs 20 Total adjustments 155