{"id":863345,"date":"2025-06-24T16:06:02","date_gmt":"2025-06-24T20:06:02","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/fedex-reports-fourth-quarter-diluted-eps-of-6-88-and-adjusted-diluted-eps-of-6-07\/"},"modified":"2025-06-24T16:06:02","modified_gmt":"2025-06-24T20:06:02","slug":"fedex-reports-fourth-quarter-diluted-eps-of-6-88-and-adjusted-diluted-eps-of-6-07","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/fedex-reports-fourth-quarter-diluted-eps-of-6-88-and-adjusted-diluted-eps-of-6-07\/","title":{"rendered":"FedEx Reports Fourth Quarter Diluted EPS of $6.88 and Adjusted Diluted EPS of $6.07"},"content":{"rendered":"

<\/p>\n

FedEx Reports Fourth Quarter Diluted EPS of $6.88 and Adjusted Diluted EPS of $6.07<\/b><\/p>\n

Achieved $2.2 Billion Fiscal 2025 DRIVE Structural Cost Reduction Target
\n
<\/i>Returned $4.3 Billion to Stockholders Through Stock Repurchases <\/i>and Dividends During Fiscal 2025
\n
<\/i>Targeting $1 Billion of Transformation Program Cost Savings During Fiscal 2026<\/i><\/p>\n

Remembering FedEx Founder Frederick W. Smith<\/span><\/b><\/p>\n

\nThe Company acknowledges, with deep sadness, the recent passing of its founder, executive chairman, and long-time CEO. \u201cFred pioneered express delivery and connected the world, shaping global commerce as we know it. His legacy of innovation, leadership, and philanthropy will continue to inspire future generations. I will miss not only his visionary leadership, but his trusted friendship and counsel,\u201d said Raj Subramaniam, FedEx Corp. president and chief executive officer. For more information about Mr. Smith\u2019s legacy as a visionary founder and innovative leader, please visit https:\/\/newsroom.fedex.com\/newsroom\/global-english\/frederick-w-smith-visionary-founder-of-fedex-dies-at-80<\/a>.<\/p>\n

MEMPHIS, Tenn.–(BUSINESS WIRE<\/a>)–
\nFedEx Corp. (NYSE: FDX) today reported the following consolidated results for the fourth quarter ended May 31 (adjusted measures exclude the items listed below):<\/p>\n\n\n\n\n\n\n\n\n\n
\n

\n\u00a0<\/p>\n<\/td>\n

\n

Fiscal 2025<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Fiscal 2024<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

As Reported
\n
(GAAP)<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Adjusted
\n
(non-GAAP)<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

As Reported
\n
(GAAP)<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Adjusted
\n
(non-GAAP)<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenue<\/p>\n<\/td>\n

\n

\n$22.2 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$22.2 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$22.1 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$22.1 billion<\/p>\n<\/td>\n<\/tr>\n

\n

\nOperating income<\/p>\n<\/td>\n

\n

\n$1.79 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$2.02 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$1.56 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$1.87 billion<\/p>\n<\/td>\n<\/tr>\n

\n

\nOperating margin<\/p>\n<\/td>\n

\n

\n8.1%<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n9.1%<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n7.0%<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n8.5%<\/p>\n<\/td>\n<\/tr>\n

\n

\nNet income<\/p>\n<\/td>\n

\n

\n$1.65 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$1.46 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$1.47 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$1.34 billion<\/p>\n<\/td>\n<\/tr>\n

\n

\nDiluted EPS<\/p>\n<\/td>\n

\n

\n$6.88<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$6.07<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$5.94<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$5.41<\/p>\n<\/td>\n<\/tr>\n

\n\n\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\nThis year\u2019s and last year\u2019s quarterly consolidated results have been adjusted for:<\/p>\n\n\n\n\n\n\n\n\n\n\n
\n

\n\u00a0<\/p>\n<\/td>\n

\n

Fiscal 2025<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Fiscal 2024<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Impact per diluted share<\/i><\/p>\n<\/td>\n

\n

Fourth
\n
Quarter<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Full
\n
Year<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Fourth
\n
Quarter<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Full
\n
Year<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nMark-to-market (MTM) retirement plans accounting adjustments<\/p>\n<\/td>\n

\n

\n($1.63)<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n($1.60)<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n($1.72)<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n($1.69)<\/p>\n<\/td>\n<\/tr>\n

\n

\nBusiness optimization costs<\/p>\n<\/td>\n

\n

\n0.39<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n2.37<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n0.67<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n1.77<\/p>\n<\/td>\n<\/tr>\n

\n

\nInternational regulatory and legacy FedEx Ground legal matters<\/p>\n<\/td>\n

\n

\n0.26<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n0.37<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n(0.18)<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n(0.17)<\/p>\n<\/td>\n<\/tr>\n

\n

\nFedEx Freight spin-off costs<\/p>\n<\/td>\n

\n

\n0.11<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n0.18<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u2014<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u2014<\/p>\n<\/td>\n<\/tr>\n

\n

\nAsset impairment charges<\/p>\n<\/td>\n

\n

\n0.07<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n0.06<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n0.48<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n0.48<\/p>\n<\/td>\n<\/tr>\n

\n

\nRemeasurement of state deferred income taxes under one FedEx structure<\/p>\n<\/td>\n

\n

\n\u2014<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u2014<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n0.22<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n0.21<\/p>\n<\/td>\n<\/tr>\n

\n\n\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\nOperating income and margin improved in the fourth quarter, as the company achieved its DRIVE structural cost reduction targets. Fourth quarter results also benefited from higher volume at Federal Express and higher base yield at each transportation segment.<\/p>\n

\n\u201cI am proud of the FedEx team for a solid finish to the fiscal year, delivering excellent service for our customers while achieving our structural cost reduction target, in the face of ongoing headwinds,\u201d said Mr. Subramaniam. \u201cWe will continue to leverage the unique scale and flexibility of our global network to support our customers as the demand environment evolves. Looking ahead, I\u2019m confident that our transformation initiatives, which are focused on integrating our networks and further reducing our cost-to-serve, will create meaningful long-term value.\u201d<\/p>\n

Fourth Quarter Results<\/span><\/b><\/p>\n

\nFederal Express segment operating results improved during the quarter, driven by cost reduction benefits from DRIVE, increased U.S. and international export volume, and higher base yield. These factors were partially offset by higher purchased transportation and wage rates, one fewer operating day, and the expiration of the U.S. Postal Service contract.<\/p>\n

\nFedEx Freight segment operating results decreased during the quarter due to lower fuel surcharges, reduced weight per shipment, higher healthcare costs, increased wage rates, and one fewer operating day. These factors were partially offset by higher base yield and a $33 million gain on the sale of a facility.<\/p>\n

\nFourth quarter results include a noncash impairment charge of $21 million ($0.07 per diluted share) from the decision to permanently retire 12 aircraft, including seven A300-600 aircraft, three MD-11 aircraft, and two Boeing 757-200 aircraft, plus eight related engines. These retirements are aligned with the company’s fleet reduction and modernization strategy as the company continues to improve its global network efficiency and better align air network capacity with anticipated demand. Last year’s fourth quarter results included a noncash impairment charge of $157 million ($0.48 per diluted share) from the decision to permanently retire 22 Boeing 757-200 aircraft and seven related engines.<\/p>\n

\nLast year’s fourth quarter results also included an income tax expense of $54 million ($0.22 per diluted share) from the remeasurement of U.S. state deferred income tax balances related to the merger of FedEx Ground and FedEx Services into Federal Express Corporation.<\/p>\n

Full-Year Results<\/span><\/b><\/p>\n

\nFor the full fiscal year, FedEx Corp. reported the following consolidated results (adjusted measures exclude the items listed above for the applicable fiscal year):<\/p>\n\n\n\n\n\n\n\n\n\n
\n

\n\u00a0<\/p>\n<\/td>\n

\n

Fiscal 2025<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Fiscal 2024<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

As Reported
\n
(GAAP)<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Adjusted
\n
(non-GAAP)<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

As Reported
\n
(GAAP)<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Adjusted
\n
(non-GAAP)<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenue<\/p>\n<\/td>\n

\n

\n$87.9 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$87.9 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$87.7 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$87.7 billion<\/p>\n<\/td>\n<\/tr>\n

\n

\nOperating income<\/p>\n<\/td>\n

\n

\n$5.22 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$6.12 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$5.56 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$6.24 billion<\/p>\n<\/td>\n<\/tr>\n

\n

\nOperating margin<\/p>\n<\/td>\n

\n

\n5.9%<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n7.0%<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n6.3%<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n7.1%<\/p>\n<\/td>\n<\/tr>\n

\n

\nNet income<\/p>\n<\/td>\n

\n

\n$4.09 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$4.43 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$4.33 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$4.48 billion<\/p>\n<\/td>\n<\/tr>\n

\n

\nDiluted EPS<\/p>\n<\/td>\n

\n

\n$16.81<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$18.19<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$17.21<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$17.80<\/p>\n<\/td>\n<\/tr>\n

\n\n\n\n\n\n\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\nResults include lower structural costs as the company achieved its $2.2 billion fiscal 2025 DRIVE target and delivered $4.0 billion in total DRIVE structural cost reductions relative to fiscal year 2023.<\/p>\n

\nCapital spending for fiscal 2025 was $4.1 billion, down $1.1 billion or 22% from $5.2 billion in fiscal 2024. Capital spending as a percentage of revenue declined to 4.6%, the lowest level in FedEx Corp. history.<\/p>\n

Capital Returns<\/span><\/b><\/p>\n

\nDuring fiscal 2025, FedEx returned approximately $4.3 billion to stockholders through the combination of $3.0 billion of stock repurchases, above the original $2.5 billion stock repurchase plan, and $1.3 billion of dividend payments. Repurchases during fiscal 2025 totaled approximately 10.9 million shares or 4.5% of the shares outstanding at the beginning of the year, and increased fourth quarter and full-year earnings by $0.28 and $0.44 per share, respectively. As of May 31, 2025, $2.1 billion remained under the company’s 2024 stock repurchase authorization.<\/p>\n

\nFor fiscal 2026, FedEx remains committed to returning capital to stockholders, including the previously announced 5% increase ($0.28 per share) in the annual dividend on its common stock, to $5.80 per share. The company also intends to continue a robust share repurchase program.<\/p>\n

\n\u201cOur fourth quarter and full-year results illustrate our determination to manage costs, reduce capital intensity, and increase earnings in order to unlock additional stockholder value,\u201d said John Dietrich, FedEx Corp. executive vice president and chief financial officer. \u201cIn fiscal 2026, we will remain focused on advancing our network transformation while maintaining a disciplined approach to capital spending and returning capital to our stockholders.\u201d<\/p>\n

Outlook<\/span><\/b><\/p>\n

\nFor the first quarter of fiscal 2026, FedEx is forecasting:<\/p>\n