FedEx (FDX) Roadshow presentation summary

Strategic initiatives and transformation

• Executing Network 2.0 and One FedEx initiatives to optimize operations and achieve $2B in cumulative cost savings in the U.S. domestic segment by 2029.

• Planned spin-off of FedEx Freight as an independent, publicly traded company is on track for June 2026, with leadership and salesforce in place and a $3.7B debt offering completed.

• Network 2.0 optimization aims to close over 475 stations and optimize more than 900 by end of 2027, targeting $2B in structural cost savings.

• Focus on B2B, SMBs, and high-value B2C segments to drive premium revenue and sustainable growth.

• Emphasis on digital transformation, leveraging Dataworks for predictive insights and orchestration across customer workflows.

Financial performance and outlook

• FY25 revenues reached $87.9B, with 86% from express and ground services and 10% from FedEx Freight.

• FY26 revenue guidance raised to $93.5B (consolidated), with adjusted EPS outlook of $19.30–$20.10 and capital expenditures below $4.1B.

• 2029 targets include $8B operating income, $25 GAAP EPS, $6B adjusted free cash flow, and 8% operating margin, with a 4% CAGR in total revenue.

• Committed to disciplined capital allocation, reducing CapEx-to-revenue ratio to ~4% by 2029 and generating >100% FCF conversion.

• Expecting 200 bps ROIC expansion and cumulative $16B in adjusted free cash flow from FY26–2029.

Market position and growth strategies

• Operates in over 220 countries, linking more than 99% of global GDP, with 708 aircraft, 200,000+ vehicles, and 500,000+ employees.

• Ground revenue market share exceeds 31%, with focus on profitable, longer-haul B2C and high-yield B2B shipments.

• Targeting verticals with >$130B TAM, including healthcare, automotive, data centers, and aerospace.

• U.S. domestic and international revenues both projected to grow at 4% CAGR through 2029, with margin expansion in both segments.

• Pricing strategy includes 5.9% average rate increases for express, ground, and freight services in January 2026, and a 2% yield growth CAGR through 2029.