FedEx Corporation · NYSE:FDX
FedEx — Non-Deal Roadshow (June 2025)
36 slides from FedEx's roadshow presentation, Jun 24, 2025
Slide 1: Investor Relations
Investor Relations June 24, 2025
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
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 optimization of our network thro
Slide 3: Unmatched global network
Unmatched global network Linking more than 99% of world’s GDP Over 220 698 More than Delivers More than countries aircraft 5,000 more 500,000 and and more operating than 17M employees territories, than facilities; shipments worldwide including 200,000 more than per day* every motorized 650 address i
Slide 4: Broad portfolio of services
Broad portfolio of services FY25 revenues: $87.9 billion Federal Express and FedEx Freight show segment revenue. Other and eliminations includes revenue from FedEx Dataworks, FedEx Office and FedEx Logistics segments. 4
Slide 5: Bundle of solutions
Bundle of solutions % of revenue • Our portfolio of solutions creates a strong value proposition Express 0.9% • 96.9% of U.S. revenue comes from customers of two or E+G E+F 18.2% 0.1% more operating companies E+G+F 78.0% • We manage service offerings as a portfolio for the benefit Ground Freight of
Slide 6: 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. U.S. domestic Assumption domestic demand • Approximately $200 million in transformation-relate
Slide 7: Illustrative operating income bridge for Q1 FY26 adjusted EPS outlook
Illustrative operating income bridge based on the midpoint of Q1 FY26 adjusted EPS* outlook $130M ($120M) $200M $1.25B ($170M) $1.21B USPS contract Transformation Q1 FY26E adjusted Q1 FY25 adjusted Revenue, net of Tariff impact operating income* operating income* cost increases expiration initiative
Slide 8: 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 9: Capital allocation priorities
Capital allocation priorities Committed to prudent capital allocation $6.8B $6.2B $5.2B $4.1B 7.2% of 6.8% of 5.9% of 4.6% of revenue revenue revenue revenue FY22 FY23 FY24 FY25 Lowered capital spend Enhancing capital return to stockholders • Reduced capital spending in FY25 by approximately • Compl
Slide 10: Well positioned to capture profitable revenue growth
Well positioned to capture profitable revenue growth E-commerce remains the growth B2B higher-margin verticals engine of parcel volume demand top-tier service • ~90% of expected parcel industry • Target segments generate high growth coming from e-commerce* margins • Anticipate addressable U.S. domes
Slide 11: FedEx Business Trends
FedEx Business Trends Meeting e-commerce demands • Year-round, seven-day-per-week U.S. residential delivery through our ground services* • Significantly later pick up times offered with FedEx Extra Hours Service • Widespread retail convenience network with Walgreens, Dollar General, and our own FedE
Slide 12: 92% of people in the U.S. are within five miles of a FedEx hold location
92% of people in the U.S. are within five miles of a FedEx hold location • Customers want to drop off or pick up at places convenient to their everyday lives — the FedEx retail convenience network offers nearly 50,000 U.S. locations • Now U.S. consumers can pick up their packages at more than 18,000
Slide 13: Pricing Strategy
Pricing Strategy Improving revenue quality • Focused on long-term profitable growth • Utilizing capacity for highest-yielding customers • Shipping rates for express and ground services increased by an average of 5.9% in January 2025 • FedEx Freight shipping rates increased by an average of 5.9%-6.9%
Slide 14: Strong portfolio of residential package services
Strong portfolio of residential package services Express Home Delivery Economy • 1–3 days transit time • 1–5 days transit time • 2–7 days transit time • Time-definite • Day-definite • No declared value • Money Back Guarantee • Declared value up to $50K • Lighter-weight • Declared value up to $50K •
Slide 15: FedEx ground revenue market share has grown to more than 30%
FedEx ground revenue market share has grown to more than 30% $110 50% $100 Revenue ($ Billions) $90 40% Market Share $80 $70 30% $60 $50 $40 20% $30 $20 10% $10 $0 0% CY98CY99CY00CY01CY02CY03CY04CY05CY06CY07CY08CY09CY10CY11CY12CY13CY14CY15CY16CY17CY18CY19CY20CY21CY22CY23CY24 FedEx Ground Revenue Fed
Slide 16: Freight
Freight Competitive Advantages • The only nationwide LTL that offers Priority and Economy services from one network • Priority: Fastest published times of any nationwide LTL • Focused on improving margins with a better balance of volume, pricing, and capacity • FedEx Freight Direct service addresses
Slide 17: LTL industry revenue market share
LTL Industry Revenue Market Share LTL industry revenue market share 30% FedEx Yellow XPO TForce ODFL ABFS Saia 25% 20% 15% 10% 5% 0% CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23 CY24 Source: FedEx Analysis 17
Slide 18: FedEx Freight leadership update
FedEx Freight leadership update Brad Martin, Chairman of the Board as chairman of the board of directors of FedEx in addition to chairing the audit and finance committee. Additiona as the chairman of RBM Venture Company, and in prior roles, served in multiple leadership capacities across large corpo
Slide 19: Carbon neutral operations by 2040
Carbon neutral operations by 2040 Aircraft Vehicles Facilities Fuel conservation, fleet Route optimization, EV pickup and Renewable energy, energy modernization, and cost-effective delivery vehicles (PUDs), testing management, building efficiency sustainable aviation fuel (SAF) alternative fuels and
Slide 20: Corporate social responsibility
Corporate social responsibility Awards & recognition World’s Most Admired Companies 2025 Best Places to Work in IT 2024 FORTUNE ComputerWorld • Our 25th consecutive year we’ve been ranked among the top 20 in the FORTUNE Most Trusted Brands 2024 Most Admired Companies List Morning Consult World’s Mos
Slide 21: Consolidated operating margin
Consolidated operating margin 8.0% 7.3% 7.1% 7.0% 7.0% 6.7% 6.3% 6.0% 5.9% 6.0% 5.4% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% FY22 FY23 FY24 FY25 GAAP Adjusted Non-GAAP financial measure. See Appendix for more details. 21
Slide 22: Earnings per share
Earnings per share $25.00 $20.61 $20.00 $18.19 $17.21 $17.80 $16.81 $15.48 $14.96 $15.00 $14.33 $10.00 $5.00 $0.00 FY22 FY23 FY24 FY25 GAAP Adjusted Non-GAAP financial measure. See Appendix for more details.. 22
Slide 23: Capital expenditures
Capital expenditures (% of Revenues) 9.0% 8.5% 8.0% 7.0% 7.2% 7.0% 6.8% 5.9% 6.0% 5.0% 4.6% 4.0% 3.0% 2.0% 1.0% 0.0% FY20 FY21 FY22 FY23 FY24 FY25 Non-GAAP financial measure. See Appendix for more details. 23
Slide 24: Adjusted Free Cash Flow
Adjusted Free Cash Flow $5.0 $4.7 $4.5 $4.1 $4.0 $3.9 $3.7 $3.6 $3.5 $3.0 $ Billion $2.5 $2.0 $1.5 $1.0 $0.5 $0.3 $0.0 FY20 FY21 FY22 FY23 FY24 FY25 Non-GAAP financial measure. See Appendix for more details. 24
Slide 25: Capital Returns
Capital Returns $5.0 $4.5 $4.3 $4.0 $3.8 $3.5 $3.0 $3.0 $2.7 $ Billion $2.5 $2.0 $1.5 $1.0 $0.7 $0.7 $0.5 $0.0 FY20 FY21 FY22 FY23 FY24 FY25 Capital Returns calculated based on dividend payments and stock repurchases 25
Slide 26: Appendix
Appendix
Slide 27: 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 28: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations FedEx Corporation Full Year FY25 Full Year 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
Slide 29: 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 30: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations FedEx Corporation Q1 FY25 Diluted Operating Operating Income Earnings Dollars in millions, except EPS Income Margin Taxes1 Net Income2 Per Share GAAP measure $ 1,080 5.0% $ 262 $ 794 $ 3.21 Business optimization costs4 128 0.6% 30 98 0.39 Non-GAAP measure $ 1,208 5.6
Slide 31: 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 32: 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
Slide 33: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations FY20 - FY25 Free Cash Flow and Adjusted Free Cash Flow Dollars in millions FY20 FY21 FY22 FY23 FY24 FY25 Cash Provided by Operating Activities (GAAP) $ 5,097 $ 10,135 $ 9,832 $ 8,848 $ 8,312 $ 7,036 Capital expenditures (5,868) (5,884) (6,763) (6,174) (5,176) (4,055)
Slide 34: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations FY23 Reconciliation for FedEx Corporation FY23 Diluted Operating Operating Income Earnings Dollars in millions, except EPS Income Margin Taxes1 Net Income2 Per Share3 GAAP measure $ 4,912 5.4% $ 1,391 $ 3,972 $ 15.48 MTM retirement plans — — (157) (493) (1.92) accoun
Slide 35: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations FY22 Reconciliation for FedEx Corporation FY22 Diluted Operating Operating Income Earnings Dollars in millions, except EPS Income Margin Taxes1 Net Income2 Per Share3 GAAP measure $ 6,245 6.7% $ 1,070 $ 3,826 $ 14.33 Mark-to-Market Retirement — — 379 1,199 4.49 Plans
Slide 36: Footnotes for non-GAAP reconciliation slides
Footnotes for non-GAAP reconciliation slides 1. Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction. 2. Effect of “total other (expense) income” on net income amount not shown. 3. The MTM retirement plans accounting adjustment reflects the year-end