FedEx is hosting an investors meeting today where President and Chief Executive Officer Raj Subramaniam and the FedEx leadership team will present a strategic plan to deliver more value for customers, stockholders, and team members. FedEx will also outline its fiscal 2025 financial targets.
“The FedEx team and its unparalleled network have been connecting the world and creating opportunities since our founding,” said Raj Subramaniam, President and Chief Executive Officer, FedEx.
“As we enter the next phase of FedEx, we will unlock value from this foundation to deliver outstanding returns to all of our stakeholders. Our strategy is focused on driving yields, expanding margins, and elevating returns through profitable growth and capital efficiency. We have tremendous momentum and a committed leadership team focused on delivering today while innovating for tomorrow.”
FedEx Fiscal 2025 Financial Targets
FedEx is targeting to deliver 18–22% annualized TSR through fiscal 2025 based upon these balanced financial goals for fiscal 2025:
- 4–6% compound annual revenue growth through fiscal 2025
- 10% adjusted consolidated operating margin, driven by
- 11–12% FedEx Ground adjusted operating margin
- 8–9% FedEx Express adjusted operating margin
- 20–22% FedEx Freight adjusted operating margin
- Adjusted dividend payout ratio of at least 25%
- Ratio of capital expenditures to revenue equal to or less than 6.5% and an increase of 200 basis points in FedEx’s return on invested capital (ROIC) compared to fiscal 2022
- Fiscal 2025 adjusted consolidated operating income improvement of $3.0–$4.5 billion compared to fiscal 2022 adjusted consolidated operating income
- Compound annual growth rate for adjusted EPS of 14–19% through fiscal 2025.
Deliver Today, Innovate For Tomorrow Strategy
The FedEx executive leadership team will discuss its strategy and detailed plans to Deliver Today, Innovate for Tomorrow during their investor’s day. The plans will guide the company’s short- and long-term priorities to maximize value for customers, stockholders, and team members.
During today’s presentations, the leadership team will focus on how FedEx is Delivering Today by:
- Delivering revenue quality with a differentiated value proposition, targeting high-value customer segments
- Expanding margins through more efficient networks
- Increasing stockholder returns through profitable growth, lowered capital intensity, and increased ROIC focus
The leadership team will also outline how FedEx is Innovating for Tomorrow by:
- Enabling intelligent supply chains by leveraging its technology, data, and digital capabilities
- Leading through its continued commitment to sustainability
- Reinventing work and empowering people
Speakers will include Subramaniam; Mike Lenz, executive vice president and chief financial officer; Brie Carere, executive vice president and chief customer officer; and other key members of the FedEx executive leadership team.
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