FedEx presents 'Deliver Today, Innovate for Tomorrow' strategy

By LoadstarEditorial

29/06/2022

PRESS RELEASE

FedEx Presents “Deliver Today, Innovate for Tomorrow” Strategy

– Today’s investors meeting outlines strategic roadmap to deliver for customers, stockholders, and team members

– Adjusted consolidated operating income targeted to increase $3.0–$4.5 billion in fiscal 2025 vs. fiscal 2022

– Fiscal 2025 ratio of capital expenditures to revenue expected to be at or below 6.5%

– Adjusted earnings per share (EPS) expected to grow between 14–19% CAGR through fiscal 2025

– Targeting 18–22% annualized Total Shareholder Return (TSR) through fiscal 2025

MEMPHIS, Tenn., June 29, 2022… FedEx Corp. 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,” Subramaniam said. “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.”

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…

The full press release, can be read here.