FedEx (FDX) Q4 2024 earnings summary

Executive summary

• Achieved year-over-year operating profit and margin growth in every quarter of FY24, with adjusted EPS up 19% to $17.80, despite a 3% revenue decline and challenging demand environment.

• Advanced network transformation by consolidating Express, Ground, and Services into one entity and rolling out Network 2.0.

• Returned nearly $4 billion to stockholders in FY24 and announced a 10% dividend increase for FY25.

• Announced $2.2 billion in DRIVE cost savings for FY25 and continued assessment of FedEx Freight's role in the portfolio.

Financial highlights

• FY24 revenue was $87.7 billion, down 3% year-over-year; adjusted operating profit rose 16% to $6.2 billion.

• Adjusted operating margin improved by 110 basis points to 7.1%; adjusted EPS increased to $17.80.

• Q4 FY24 revenue was $22.1 billion, up 1% year-over-year; Q4 adjusted operating income was $1.87 billion.

• ROIC reached 9.9%, up from 8.7% in FY23.

• Capital expenditures for FY24 were $5.2 billion, down 16% from the prior year.

Outlook and guidance

• FY25 adjusted EPS guidance: $20–$22 per share, representing 12–24% growth.

• Revenue expected to grow low- to mid-single digits in FY25, with $2.2 billion in incremental DRIVE cost savings targeted.

• Capital expenditures for FY25 expected at $5.2 billion; effective tax rate projected at 24.5%.

• Plan to repurchase $2.5 billion in stock and increase dividend by 10% in FY25.

• Anticipate significant headwind from USPS contract expiration and two fewer operating days in FY25.