FEDEX CORP
For the period ended Nov 30, 2025. Filed Dec 18, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Nov 30, 2025 · Filed Dec 18, 2025
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“Financial Condition – Capital Resources”
CAPITAL RESOURCES
Our operations are capital intensive, characterized by significant investments in aircraft, package handling and sort equipment, technology, vehicles and trailers, and facilities. The amount and timing of capital investments depend on various factors, including pre-existing contractual commitments, anticipated volume growth, domestic and international economic conditions, new or enhanced services, geographical expansion of services, availability of satisfactory financing, and actions of regulatory authorities.
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The following table compares capital expenditures by asset category and reportable segment for the periods ended November 30, 2025 and 2024 (in millions):
| Three Months Ended · Six Months Ended · Percent Change | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | Three Months Ended | Six Months Ended | |
| Aircraft and related equipment | $124 | $82 | $184 | $263 | 51 | (30) |
| Package handling and ground support equipment | 252 | 213 | 457 | 410 | 19 | 11 |
| Information technology | 93 | 106 | 211 | 259 | (12) | (19) |
| Vehicles and trailers | 60 | 184 | 107 | 274 | (67) | (61) |
| Facilities and other | 228 | 233 | 421 | 379 | (2) | 11 |
| Total capital expenditures | $757 | $818 | $1,380 | $1,585 | (7) | (13) |
| Federal Express segment | $640 | $598 | $1,208 | $1,301 | 7 | (7) |
| FedEx Freight segment | 100 | 195 | 132 | 230 | (49) | (43) |
| Other | 17 | 25 | 40 | 54 | (33) | (26) |
| Total capital expenditures | $757 | $818 | $1,380 | $1,585 | (7) | (13) |
Capital expenditures decreased in the second quarter of 2026 primarily due to decreased spending on “vehicles and trailers” at FedEx Freight and “information technology” investments at Federal Express, partially offset by increased spending on “aircraft and related equipment” at Federal Express and “package handling and ground support equipment” at Federal Express and FedEx Freight.
Capital expenditures decreased in the first half of 2026 primarily due to decreased spending on “package handling and ground support equipment” and “aircraft and related equipment” at Federal Express partially offset by increased spending on “vehicles and trailers” at FedEx Freight. These reductions are a result of continuing to prioritize investments that support increasing efficiency and reducing our cost to serve.
GUARANTOR FINANCIAL INFORMATION
We are providing the following information in compliance with Rule 13-01 of Regulation S-X, “Financial Disclosures about Guarantors and Issuers of Guaranteed Securities” with respect to our senior unsecured debt securities and Pass-Through Certificates, Series 2020-1AA (the “Certificates”).
The$19.8 billion principal amount of the senior unsecured notes were issued by FedEx under a shelf registration statement and are guaranteed by certain direct and indirect subsidiaries of FedEx (“Guarantor Subsidiaries”). FedEx owns, directly or indirectly, 100% of each Guarantor Subsidiary. The guarantees are (1) unsecured obligations of the respective Guarantor Subsidiary, (2) rank equally with all of their other unsecured and unsubordinated indebtedness, and (3) are full and unconditional and joint and several. If we sell, transfer, or otherwise dispose of all of the capital stock or all or substantially all of the assets of a Guarantor Subsidiary to any person that is not an affiliate of FedEx, the guarantee of that Guarantor Subsidiary will terminate, and holders of debt securities will no longer have a direct claim against such subsidiary under the guarantee. See Note 4 of the accompanying unaudited condensed consolidated financial statements for information regarding the issuance by FedEx of its 3.500% Notes due 2032 and 4.125% Notes due 2037 guaranteed by the Guarantor Subsidiaries that was completed during the first quarter of 2026.
Additionally, FedEx fully and unconditionally guarantees the payment obligation of Federal Express in respect of the $711 million principal amount of the Certificates. See Note 4 of the accompanying unaudited condensed consolidated financial statements and Note 6 to the financial statements included in our Annual Report for additional information regarding the terms of the Certificates.
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The following tables present summarized financial information for FedEx (as Parent) and the Guarantor Subsidiaries on a combined basis after transactions and balances within the combined entities have been eliminated.
Parent and Guarantor Subsidiaries
The following table presents the summarized balance sheet information as of November 30, 2025 and May 31, 2025 (in millions):
| November 30, 2025 | May 31, 2025 | |
|---|---|---|
| Current Assets | $11,030 | $9,514 |
| Intercompany Receivable | 4,957 | 4,278 |
| Total Assets | 84,550 | 83,125 |
| Current Liabilities | 12,041 | 11,202 |
| Intercompany Payable | — | — |
| Total Liabilities | $53,832 | $52,324 |
The following table presents the summarized statement of income information for the period ended November 30, 2025 (in millions):
| Six Months Ended | |
|---|---|
| November 30, 2025 | |
| Revenue | $34,032 |
| Intercompany Charges, net | (2,180) |
| Operating Income | 2,277 |
| Intercompany Charges, net | 146 |
| Income Before Income Taxes | 1,822 |
| Net Income | $1,236 |
The following tables present summarized financial information for FedEx (as Parent Guarantor) and Federal Express (as Subsidiary Issuer) on a combined basis after transactions and balances within the combined entities have been eliminated.
Parent Guarantor and Subsidiary Issuer
The following table presents the summarized balance sheet information as of November 30, 2025 and May 31, 2025 (in millions):
| November 30, 2025 | May 31, 2025 | |
|---|---|---|
| Current Assets | $10,996 | $9,504 |
| Intercompany Receivable | 724 | 581 |
| Total Assets | 73,372 | 72,044 |
| Current Liabilities | 11,030 | 10,310 |
| Intercompany Payable | — | — |
| Total Liabilities | $50,496 | $49,200 |
The following table presents the summarized statement of income information for the period ended November 30, 2025 (in millions):
| Six Months Ended | |
|---|---|
| November 30, 2025 | |
| Revenue | $29,451 |
| Intercompany Charges, net | (2,556) |
| Operating Income | 1,855 |
| Intercompany Charges, net | 26 |
| Income Before Income Taxes | 1,867 |
| Net Income | $1,389 |
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