FedEx Corp. (NYSE:FDX)

The annual financial data shows various trends in revenue, expenses, and income items over the six-year period from 2020 to 2025. The analysis focuses on the financial performance and operational cost patterns observed throughout the intervals.

Revenue

Revenue increased significantly from 69,217 million US dollars in 2020 to a peak of 93,512 million in 2022, followed by a decline in 2023 and a gradual stabilization around 87,693 to 87,926 million in the subsequent years. This indicates growth in the earlier part of the period with a slight downturn afterward.

Salaries and employee benefits

Expenses related to salaries and employee benefits rose from -25,031 million in 2020 to a high of -32,058 million in 2022, before marginally decreasing and stabilizing around -31,000 million from 2023 to 2025. This reflects increasing wage costs during growth years and a plateau in later years.

Purchased transportation

This expense increased sharply from -17,466 million in 2020 to a peak of -24,118 million in 2022, then decreased immediately in 2023 and stabilized around -21,000 million through 2025, indicating responsiveness to operational scaling or cost control measures after 2022.

Rentals and landing fees

Rentals and landing fees rose steadily from -3,712 million in 2020 to -4,712 million in 2022, remaining relatively flat but slightly decreasing thereafter, staying close to the -4,600 million mark by 2025, suggesting stable facility and landing cost management.

Depreciation and amortization

Depreciation and amortization costs showed a consistent gradual increase from -3,615 million in 2020 to a peak of -4,287 million in 2024, slightly decreasing to -4,264 million in 2025, reflecting ongoing capital investments and asset aging patterns.

Fuel

Fuel expenses fluctuated significantly, decreasing from -3,156 million in 2020 to -2,882 million in 2021, spiking sharply to -5,115 million in 2022 and a further increase to -5,909 million in 2023, followed by a notable decline to -3,775 million by 2025. These swings may reflect market fuel price volatility and operational adjustments.

Maintenance and repairs

Expenses for maintenance and repairs increased from -2,893 million in 2020 to a peak of -3,372 million in 2022, then gradually decreased to -3,245 million by 2025, indicating a moderate level of asset upkeep with some cost optimization.

Goodwill and other asset impairment charges

These charges were significant at -435 million in 2020, but nearly absent in 2021 and 2022, then reappeared at lower levels from 2023 (-117 million) through 2025 (-21 million). This suggests selective asset impairment events impacting certain years.

Business optimization and realignment costs

Costs emerged in 2021 at -116 million and steadily increased to -756 million by 2025, indicating ongoing restructuring or strategic realignment efforts within the company over the later years.

Other expenses

Other operating expenses showed a steady increase from -10,492 million in 2020 to a peak of -13,828 million in 2023, then slightly decreased, stabilizing around -13,000 million in 2025. This may comprise miscellaneous operational costs escalating with scale.

Operating expenses

Overall operating expenses grew from -66,800 million in 2020 to -87,267 million in 2022, followed by a downward trend to about -82,700 million by 2025. The reduction after 2022 demonstrates efforts to control operational costs despite earlier growth-related increases.

Operating income

Operating income improved substantially from 2,417 million in 2020 to a peak of 6,245 million in 2022, declined to 4,912 million in 2023, and fluctuated moderately around 5,200-5,559 million through 2025, indicating strong profitability in the early years with some contraction and stabilization in later periods.

Interest expense and income

Interest expense gradually increased from -672 million in 2020 to -789 million in 2025, reflecting possibly rising debt costs. Interest income remained relatively low and stable initially but rose markedly to 370 million in 2024, suggesting increased investment income or cash reserves.

Other retirement plans income (expense)

This item showed variability, with an initial expense of -122 million in 2020, a large positive amount of 1,983 million in 2021, followed by fluctuations through the years, ending in moderate positive values near 700 million in recent years, indicating volatility in retirement plan valuations or related income.

Loss on debt extinguishment

A one-time loss of -393 million recorded in 2021 was not repeated in other years, indicating an isolated financial event related to debt restructuring or repayment.

Other, net and Other income (expense)

Net other items fluctuated between slight losses and gains, while other income (expense) moved from negative -748 million in 2020 to positive 817 million in 2021, followed by oscillations and ending with positive values around 200-277 million in recent years, showing variable non-operating financial impacts.

Income before income taxes

Income before taxes grew markedly from 1,669 million in 2020 to 6,674 million in 2021, decreased to 4,896 million in 2022, then maintained a relatively stable level around 5,400-5,800 million till 2024 before a slight fall to 5,441 million in 2025, mirroring operating income trends with some influence from non-operating items.

Provision for income taxes

Tax provisions increased in magnitude from -383 million in 2020 to about -1,500 million in 2024 before slightly declining to -1,349 million in 2025, consistent with higher taxable incomes in later years.

Net income

Net income showed a substantial increase from 1,286 million in 2020 to a peak of 5,231 million in 2021, declined to 3,826 million in 2022, then regained growth to 4,331 million in 2024 before slightly falling to 4,092 million in 2025. This pattern reflects significant profit expansion early on, followed by moderate fluctuations and stabilization at a strong earnings level thereafter.