Q4 2024 FedEx Corp Earnings Call Transcript
Key Points
- FedEx Corp (FDX) achieved year-over-year operating profit growth and margin expansion in every quarter of FY 2024.
- The company returned nearly $4 billion to stockholders and improved its return on invested capital.
- FedEx Corp (FDX) reached its FY 2025 target of less than 6.5% capital intensity a year earlier than planned.
- The company achieved $1.8 billion in structural cost savings in FY 2024, with significant contributions from network and international operations, G&A, and surface network.
- FedEx Corp (FDX) expects to deliver adjusted EPS growth of 12% to 24% in fiscal year 2025.
- Despite improvements, FedEx Corp (FDX) faced a challenging demand environment and a decline in revenue compared to initial growth expectations.
- Adjusted Express operating margin declined year-over-year, despite sequential improvements.
- The company anticipates a $500 million headwind from the expiration of its contract with the United States Postal Service in Q2 FY 2025.
- International yields were pressured by increased capacity in the global air cargo market and a shift towards deferred services.
- FedEx Corp (FDX) announced a noncash impairment charge of $157 million related to the permanent retirement of 22 Boeing 757 aircraft and related engines.
Good day and welcome to the FedEx fiscal year 2024. For the fourth quarter earnings call, (Operator Instructions) Please note that this event is being recorded.
I would now like to turn the conference over to Jeni Hollander, Vice President of Investor Relations. Please go ahead.
Good afternoon and welcome to FedEx Corporation's fourth quarter earnings conference call. The fourth quarter earnings release and stat book are on our website at investors dot FedEx.com. This call and the accompanying slides are being streamed from our website where the replay and slides will be available for about one year during our Q&A session. Callers will be limited to one question to allow us to accommodate all those who would like to participate. Certain statements in this conference call may be considered forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause
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