Q3 2025 FedEx Corp Earnings Call Transcript
Key Points
- FedEx Corp (FDX) achieved a 12% growth in adjusted operating income year-over-year, driven by revenue growth and cost savings.
- The company realized $600 million in DRIVE savings during the quarter, contributing to structural cost reductions.
- FedEx Corp (FDX) reported a 17% increase in adjusted operating income at Federal Express Corporation despite headwinds.
- The company is on track to achieve $2.2 billion in DRIVE savings for FY25, with a total target of $4 billion from the FY23 baseline.
- FedEx Corp (FDX) expanded its Sunday residential coverage to nearly two-thirds of the US population, enhancing service capabilities.
- FedEx Corp (FDX) lowered its FY25 adjusted EPS outlook to $18 to $18.60 due to uncertain demand and inflationary pressures.
- The expiration of the US Postal Service contract resulted in a $180 million headwind to adjusted operating income.
- Weakness in the industrial economy continued to pressure higher-margin B2B volumes, affecting overall performance.
- FedEx Freight experienced a 5% revenue decline due to lower volumes, fuel surcharges, and weight per shipment.
- Inflationary pressures on the cost base are expected to be higher than planned, impacting the full-year outlook.
Good day, and welcome to the FedEx third quarter fiscal 2025 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 third quarter earnings conference call. The third quarter earnings 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 materially from those expressed or
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