Q2 2025 FedEx Corp Earnings Call Transcript
Key Points
- FedEx Corp (FDX) announced a strategic separation of FedEx Freight, creating two industry-leading public companies, which is expected to unlock significant value for shareholders.
- FedEx Freight has maintained its leading market share position and increased operating profit nearly 25% on average per year over the last five years.
- The company achieved drive savings of $540 million in Q2 and remains on track to deliver $2.2 billion in incremental savings in FY25.
- FedEx Corp (FDX) reported strong international growth, with international export package volumes increasing by 9% in the quarter.
- The company completed an additional $1 billion in share repurchases in Q2, bringing the year-to-date total to $2 billion, demonstrating a commitment to returning capital to shareholders.
- FedEx Corp (FDX) revised its FY25 adjusted diluted EPS outlook to $19 to $20, down from the prior range of $20 to $21, due to continued weakness in the industrial economy.
- The company experienced a 1% decline in consolidated revenue, driven by a weak industrial economy and challenging demand environment.
- FedEx Freight's operating profit was down $179 million, with lower average daily shipments and fuel surcharges due to the soft industrial backdrop.
- The expiration of the US Postal Service contract negatively affected two months of the quarter, resulting in additional operating profit headwinds.
- The pricing environment remains competitive, with yields expected to remain pressured due to economic conditions and a mix change towards lower-margin services.
Good day, and welcome to the FedEx fiscal year 2025 second-quarter earnings call. (Operator Instructions) Please note, 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 second-quarter earnings conference call. The second-quarter earnings release, freight assessment results release, Form 10-Q, and stat book are on our website at investors.fedex.com. This call and the accompanying slides are being streamed from our website. 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 actual results to differ
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