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How Does FedEx Make its Money?
FedEx Corporation is one of the world’s largest express transportation companies, providing a portfolio of shipping, logistics, and e-commerce business solutions. The company handles over 16 million shipments per day through its air and ground networks. FedEx has been undergoing a major transformation called DRIVE, aimed at reducing costs by $6 billion through consolidating its historically separate operating companies (Express, Ground, Freight) into a single unified organization called Federal Express Corporation.
FedEx (FDX) Business Model
FedEx operates in the logistics sector. Below is a summary of FedEx’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from FedEx’s 2024 fiscal year filings with the SEC.
FedEx Competitors
FedEx’s key competitors and comparable public companies in the logistics sector include UPS and Amazon. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how FedEx stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
FedEx’s total revenue in 2024 grew 0.0% year-over-year. Here is how their revenue breaks down by segment:
| Revenue Stream | 2024 | 2023 |
|---|---|---|
| Federal Express (Express) | $47,500 | $48,700 |
| FedEx Ground | $28,800 | $27,100 |
| FedEx Freight | $9,300 | $9,400 |
| Other and Eliminations | $2,100 | $2,500 |
| Total | $87,700 | $87,700 |
All values in millions USD unless otherwise stated.
Income Statement Breakdown
Here is a summary of FedEx’s income statement comparing 2024 to 2023:
| Item | 2024 | 2023 |
|---|---|---|
| Total Revenue | $87,700 | $87,700 |
| Cost of Revenue | $73,200 | $74,000 |
| Gross Profit | $14,500 | $13,700 |
| Operating Expenses | $8,400 | $8,500 |
| Operating Income | $6,100 | $5,200 |
| Net Income | $4,300 | $3,800 |
All values in millions USD.
Key Financial Metrics
Gross Margin: 16.5% — This tells us how much profit FedEx keeps after direct costs of delivering their product or service.
Operating Margin: 7.0% — After accounting for all operating expenses like R&D, sales, and administration, this is the profit margin from core operations.
Revenue Growth: 0.0% — Year-over-year revenue growth from 2023 to 2024.
Is FedEx Profitable?
Yes, FedEx is profitable. The company reported net income of $4,300 on total revenue of $87,700.
FedEx (FDX) Financial Summary
FedEx (FDX) is a logistics company that generated $87,700 in total revenue in fiscal year 2024. The company earned $4,300 in net income, making it profitable. For a deeper look at FedEx’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.