FedEx Corporation (FDX) Q4 FY 2024 Earni...

Key Highlights:

• Revenue: Overall revenue decreased 1% in the second quarter of 2025 and for the first half of 2025, driven primarily by lower volume and fuel surcharges. Base yield improvements partially offset these declines.
  • "Revenue decreased 1% in the second quarter and first half of 2025 primarily due to lower volume and fuel surcharges, partially offset by base yield improvement, at both of our transportation segments."
  • Federal Express segment revenue was flat, while FedEx Freight segment revenue decreased significantly.
  • "Federal Express segment revenue was flat in the second quarter and first half of 2025 primarily due to increased deferred package volume and improved base yields, partially offset by lower priority package volume...FedEx Freight revenue decreased 11% in the second quarter and 7% in the first half of 2025..."
• Operating Income: Consolidated operating income declined by 18% for the second quarter and 23% for the first half of fiscal year 2025 compared to the prior year due to decreased demand, higher operational costs, and business optimization costs, with some offsetting factors like increased international demand and cost savings from DRIVE initiatives.
  • "Operating income declined 18% for the second quarter and 23% for the first half of 2025 primarily due to lower demand for U.S. domestic package and freight LTL services driven by macroeconomic factors, increased purchased transportation and wage rates, and higher business optimization costs."
• Net Income: Consolidated net income decreased by 18% for the three-month period and 22% for the six-month period compared to the previous year, mirroring the trend in operating income.
  • "Consolidated net income $ 741 $ 900 (18 ) $ 1,535 $ 1,978 (22 )"
• Earnings Per Share (EPS): Diluted EPS decreased by 15% in the second quarter and 20% in the first half of fiscal 2025.
  • "Diluted earnings per share $ 3.03 $ 3.55 (15 ) $ 6.24 $ 7.79 (20 )"
• Cash Flow: Cash flow from operating activities decreased significantly, attributed to changes in assets and liabilities.
  • "Cash provided by operating activities 2,505 4,004"
  • Cash and cash equivalents totaled $5.0 billion at November 30, 2024, down from $6.5 billion at May 31, 2024.
• Capital Expenditures: Capital expenditures have decreased year-over-year, particularly in aircraft and related equipment.
  • "Aircraft and related equipment $ 82 $ 601 $ 263 $ 1,155 (86 ) (77 )"
• Stock Repurchase: FedEx repurchased $1.0 billion of common stock in Q2 and a total of $2.0 billion in the first half of 2025. An additional $500 million in repurchases is expected by the end of the fiscal year.
  • "We repurchased an aggregate of $1.0 billion of our common stock through accelerated share repurchase (“ASR”) transactions with two banks and open market transactions during the second quarter of 2025. During the six-month period ended November 30, 2024, we repurchased 7.1 million shares of FedEx common stock through ASR and open market transactions at an average price of $283.13 per share for a total of $2.0 billion."