The DRIVE program is contributing to cost savings, but these savings are being offset by increased purchased transportation and wage rates, the expiration of the USPS contract, and higher business optimization costs. The company expects savings from the plan to be between $125 million and $175 million on an annualized basis beginning in 2027.

The company incurred $23 million in costs related to the planned spin-off of FedEx Freight, consisting of expenses related to debt exchange offers and consent solicitations. The company completed exchange offers and consent solicitations in February 2025.

Capital expenditures for 2025 are expected to be approximately $4.9 billion, $0.3 billion lower than 2024, as the company continues to reduce capital intensity relative to revenue. Aircraft spend is expected to decline, partially offset by increased investments in network optimization and modernization of facilities.

DRIVE initiatives for the nine months of 2025 included the continued transformation of the structural network, improving the efficiency of information technology and back-office functions, optimizing operations in Europe, and increasing linehaul efficiencies.

Federal Express announced a workforce reduction plan in Europe in June 2024, impacting approximately 1,500 employees across back-office and commercial functions. The execution of the plan is subject to a consultation process and is expected to generate annualized savings of $125 to $175 million beginning in 2027.

The company has implemented Network 2.0 optimization in more than 200 locations in the U.S. and Canada, utilizing contracted service providers for pickup and delivery in some areas.

The planned spin-off of FedEx Freight may not be completed on the current timeline, or at all, and there's no guarantee it will achieve the intended benefits. This is due to factors beyond the company's control, including market conditions, regulatory approvals, and tax rulings.

A significant data breach or other disruption to the company's technology infrastructure could disrupt operations and result in the loss of critical sensitive or confidential information, adversely affecting reputation, business, and results of operations.

The company expects revenue to continue to be pressured by macroeconomic conditions, including uncertainty related to international trade, negatively affecting customer demand and constraining yield growth.

The company faces intense competition, which affects its ability to maintain or increase prices (including fuel surcharges) or to maintain or grow its revenue and market share.

The company anticipates a continued mix shift to deferred services offerings to negatively affect results.

The company will also continue to execute on our revenue quality strategy and pursue profitable revenue growth opportunities to mitigate the impact of the service mix shift on our yield as well as base yield pressures through surcharge management and optimizing our customer mix.

The DRIVE program includes a business optimization plan to drive efficiency within and among the transportation segments, lower overhead and support costs, and transform digital capabilities.

The company has implemented Network 2.0 optimization in more than 200 locations in the U.S. and Canada. Contracted service providers will handle the pickup and delivery of Federal Express packages in some locations while employee couriers will handle others.

The company will continue to execute on DRIVE program initiatives focused on reducing the permanent cost structure, aligning our cost base with demand, and increasing the flexibility of our network.

Corporate and other includes corporate headquarters costs for executive officers and certain legal and finance functions, certain other costs and credits not attributed to our core business, and certain costs associated with developing integrated business solutions through our FedEx Dataworks, Inc. (“FedEx Dataworks”) operating segment.

DRIVE initiatives for the nine months of 2025 included the continued transformation of the structural network, improving the efficiency of information technology and back-office functions, optimizing operations in Europe, and increasing linehaul efficiencies.

The effect of technology developments (including artificial intelligence and machine learning) on our operations and on demand for our services, and our ability to continue to identify and eliminate unnecessary information-technology redundancy and complexity throughout the organization.

The company repurchased $497 million of common stock in the third quarter and $2.5 billion for the nine months ended February 28, 2025. As of February 28, 2025, $2.6 billion remained available for repurchases under the 2024 stock repurchase program.

Capital expenditures for 2025 are expected to be approximately $4.9 billion, $0.3 billion lower than 2024, as the company continues to reduce capital intensity relative to revenue. Aircraft spend is expected to decline, partially offset by increased investments in network optimization and modernization of facilities.

The company made voluntary contributions of $800 million to its U.S. Pension Plan during the nine months of 2025 and maintains a credit balance exceeding $3.0 billion, providing flexibility to eliminate required contributions for several years.

The company is working to achieve or demonstrate progress on our goal of carbon neutrality for our global operations by calendar 2040.

The company faces the risk of failing to achieve or demonstrate progress on our goal of carbon neutrality for our global operations by calendar 2040.

The company expects revenue to continue to be pressured by macroeconomic conditions, including uncertainty related to international trade, negatively affecting customer demand and constraining yield growth.

Geopolitical developments and additional changes in and/or uncertainty regarding international trade policies and relations.

The price and availability of jet and vehicle fuel.