Soft B2B shipping demand hit FedEx’s latest quarterly results and is likely to continue for the rest of this year amid “challenging” economic uncertainties and disruptive trade tariffs, according to company executives.
As a result, the US express transportation giant has scaled back its forecasts for the fiscal year ending in May 2025, prompting investors to sell off shares.
Profitable growth
Cost savings drove profitable growth in the December 2024 – February 2025 quarter, which includes the final month of the peak season. FedEx increased consolidated revenue by 2% to $22,160 million and improved its operating profit by 4% to $1,292 million.
These consolidated operating results improved due to cost reduction benefits from DRIVE program initiatives, higher base yield at each transportation segment, and higher volume at Federal Express.
“Very challenging environment”
