FedEx Corporation 2022 Investor Meeting Review
<p>Analysts at Oppenheimer provided a review of <a href='https://financialmodelingprep.com/financial-summary/FDX'>FedEx Corporation (NYSE:FDX)</a> following the company’s 2022 Investor Meeting, which represents its first Investor Day since 2012. </p>
<p>The company outlined its strategy and introduced its 2025 financial targets. It expects its Express segment's (43% of 2022 adjusted operating income) adjusted operating margin to reach 8%-9% by 2025.</p>
<p>The company is targeting expense reduction via operating a more collaborative/efficient network, introducing Network 2.0, which builds upon its 2020-introduced collaboration between its Express/Ground/Freight segment operating units, and targets a $2 billion annual benefit run-rate by 2027, mainly via fewer stations/P&D route & linehaul efficiencies.</p>
<p>Ground segment’s (35% of 2022 adjusted operating income) adjusted operating margin is expected to reach 11%-12% by 2025 (vs. 8% in 2022) largely via profitable revenue growth from targeted segments/pricing/$1 billion of cost savings from productivity initiatives.</p>
<p>The freight segment’s (22% of 2022 adjusted operating income mix) adjusted operating margin is expected to reach 20%-22% by 2025 (vs. 17.4% in 2022).</p>

NYSE:FDX