FedEx announces Q2 financial results with strategic focus on operational transformation

Meanwhile, FedEx Freight experienced a decline in operating results due to fewer shipments and lower fuel surcharges but was partially balanced by higher base yield.

During this period, FedEx completed $1 billion in share repurchases which contributed $0.07 per diluted share to the quarterly results. The company plans to buy back an additional $500 million worth of stock during fiscal 2025.

FedEx's Board has decided on a full separation of FedEx Freight into a new publicly traded company within 18 months.

Looking ahead, FedEx is unable to provide specific fiscal 2025 EPS or effective tax rate forecasts on a GAAP basis due to uncertainties related to mark-to-market retirement plan accounting adjustments. However, they expect flat revenue year over year and adjusted EPS ranging from $19.00 to $20.00 per share after excluding business optimization costs.

John Dietrich, executive vice president and CFO of FedEx Corp., commented on their strategy: “I remain confident FedEx will continue to grow earnings this year despite the challenging demand environment.”

FedEx remains committed to achieving carbon-neutral operations by 2040 and continues its efforts towards operational efficiency through various initiatives such as network optimization and facility modernization.

For more detailed information regarding their financial performance and future outlooks, interested parties are encouraged to visit investors.fedex.com.