FedEx Corporation · NYSE:FDX
FedEx — Q1 FY2025 Earnings Presentation
15 slides from FedEx's earnings presentation, Sep 19, 2024
Slide 1: FedEx Corporation Fiscal First Quarter 2025 Earnings
FedEx Corporation Fiscal First Quarter 2025 Earnings | September 19, 2024 VP of Investor Relations 2 1
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, such as statements regarding expected cost savings, the optimization of our network through Network 2.0, future financial targets, business strategies, man
Slide 3: Q1 FY25 overview
Q1 FY25 overview • Q1 results reflect a challenging demand environment, particularly in U.S. domestic Q1 FY25 Results package market $21.6B • DRIVE on track to deliver $4B of savings Revenue (0%) YoY compared to FY23 baseline; expect savings to increase sequentially by quarter Adj. operating $1.2B •
Slide 4: Advancing our network transformation
Advancing our network transformation Network 2.0 strategy is working • Canada optimization well underway • On completion of Canada’s rollout in early CY25, nearly 200 facilities across the U.S. and Canada will handle consolidated and integrated Federal Express volume • Integrated facilities have ach
Slide 5: Transportation segment revenue performance
Transportation segment revenue performance Federal Express FedEx Freight (1%) $18.4B $18.3B (2%) $2.4B $2.3B Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 • Decline driven by one fewer operating day, a • Decline driven by reduced weight per shipment mix shift toward deferred services, partially and shipments, low
Slide 6: Transportation segment yield performance
Transportation segment yield performance Pricing environment remains very competitive but rational YoY yield by fiscal quarter 5% 0% -5% -10% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Federal Express U.S. Priority/Deferred Federal Express Ground Federal Express International Export FedEx Freight 11 Po
Slide 7: Q1 FY25 YoY adjusted operating income bridge
EVP & Chief Financial Officer 13 Q1 FY25 YoY adjusted operating income bridge $1.6B ($0.4B) $0.0B ($0.2B) $0.4B $1.2B ($0.2B) Q1 FY24 Revenue, USPS Int’l One fewer DRIVE Q1 FY25 adjusted net of contract export operating adjusted operating cost expiration yield day operating income* increases pressur
Slide 8: Transportation segment operating income performance; FY25 outlook
Transportation segment operating income performance Federal Express FedEx Freight (25%) (9%) $1,333M $996M $482M $439M Q1 FY24* Q1 FY25* Q1 FY24 Q1 FY25 • Adjusted operating income decreased due to • Operating income decline driven by a decline in one fewer operating day and lower U.S. weight per sh
Slide 9: Illustrative operating income bridge; Capital allocation priorities
Illustrative operating income bridge based on the midpoint of FY25 adjusted EPS* outlook $2.2B $7.0B $6.2B ($0.1B) ($0.5B) ($0.5B) ($0.3B) FY24 Revenue, USPS Int’l Two fewer DRIVE FY25E adjusted net of contract export operating adjusted operating cost expiration yield days operating income* increase
Slide 10: Q&A
Q&A Q&A 19 Appendix 20 10
Slide 11: Q1 FY25 reconciliation for FedEx Corporation
Non-GAAP financial measures FY25 EPS and ETR forecasts Our fiscal 2025 earnings per share (EPS) forecast is a non-GAAP financial measure because it excludes fiscal 2025 mark-to-market (MTM) retirement plans accounting adjustments and estimated costs related to business optimization initiatives in fi
Slide 12: Q1 FY25 reconciliation for Federal Express segment
Q1 FY25 reconciliation for Federal Express segment Operating Operating Dollars in millions Income Margin GAAP measure $953 5.2% Business optimization costs 43 0.2% Non-GAAP measure $996 5.4% 23 Q1 FY24 reconciliation for FedEx Corporation Diluted Operating Operating Income Net Dollars in millions, e
Slide 13: FY25 earnings per share forecast
Q1 FY24 reconciliation for Federal Express segment Operating Operating Dollars in millions Income Margin GAAP measure $1,306 7.1% Business optimization costs 27 0.1% Non-GAAP measure $1,333 7.2% 25 FY25 earnings per share forecast Dollars in millions, except EPS Adjustments Diluted Earnings Per Shar
Slide 14: FY25 outlook midpoint operating income forecast
FY25 outlook midpoint operating income forecast Dollars in millions Operating income (GAAP measure) $6,330 Business optimization costs 670 Adjusted operating income (non-GAAP) $7,000 27 FY24 reconciliation for FedEx Corporation Dollars in millions Operating Income GAAP measure $5,559 MTM retirement
Slide 15: FY24 and FY25 free cash flow and adjusted free cash flow
FY24 and FY25 free cash flow and adjusted free cash flow Dollars in billions Fiscal 2025E Fiscal 20248 Cash provided by operating activities (GAAP) $8.2 $8.3 Capital expenditures (5.2) (5.2) Proceeds from asset dispositions and other 0.1 0.1 Free cash flow (non-GAAP) 3.1 3.3 Voluntary contributions