FedEx (FDX) risk factors, FY2025 10-K

Macroeconomic and Market Risks

1. 01We are directly affected by the state of the global economy and geopolitical developments
2. 02Additional changes in international trade policies, including with respect to tariffs, and relations could significantly reduce the volume of goods transported globally, increase our costs, and materially and adversely affect our business, results of operations, cash flows, and financial condition
3. 03Our transportation businesses and their profitability are affected by the price and availability of jet and vehicle fuel, as well as our ability to collect fuel surcharges

Operating Risks

1. 04The failure to successfully execute our DRIVE transformation, including Network 2.0 and Tricolor, in the expected time frame and at the expected cost may adversely affect our future results
2. 05A significant data breach or other disruption to our technology infrastructure could disrupt our operations and result in the loss of critical sensitive or confidential information, adversely affecting our reputation, business, or results of operations
3. 06We are self-insured for certain costs associated with our operations, and insurance and claims expenses could have a material adverse effect on us
4. 07The transportation infrastructure continues to be a target of terrorist activities
5. 08Failure of third-party service providers to perform as expected, or disruptions in our relationships with those providers or their provision of services to FedEx, could have a material adverse effect on our business and results of operations
6. 09The effects of a widespread outbreak of an illness or any other communicable disease or public health crisis on our business, results of operations, cash flows, and financial condition are highly unpredictable
7. 10Failure to complete the adjustment of our air network to remove costs related to services previously provided to the United States Postal Service (“USPS”) could adversely affect our profitability

Strategic Risks

1. 11Failure to successfully implement our business strategy and effectively respond to changes in market dynamics and customer preferences will cause our future financial results to suffer
2. 12The planned spin-off of FedEx Freight may not be completed on the terms or timeline currently contemplated, if at all, and there is no guarantee that the spin-off, if completed, will achieve the intended financial and strategic benefits
3. 13We depend on our strong reputation and the value of the FedEx brand
4. 14We face intense competition
5. 15Our businesses are capital intensive, and we must make capital decisions based upon projected volume levels
6. 16Our inability to execute and effectively operate, integrate, leverage, and grow acquired businesses and realize the anticipated benefits of acquisitions, joint ventures, and strategic alliances and investments could materially adversely affect us

Human Resource Management Risks

1. 17Labor-related disruptions and potential changes in labor laws may adversely affect our business and results of operations
2. 18Our failure to attract and retain employee talent, meet our purchased transportation needs, or maintain our company culture, as well as increases in labor and purchased transportation costs, could adversely affect our business and results of operations
3. 19We contract with service providers to conduct certain linehaul and pickup-and-delivery operations, and the status of these service providers as direct and exclusive employers of drivers providing these services is being challenged
4. 20Potential changes to pilot flight and duty time regulations could impair our operations and impose substantial costs on us
5. 21Increasing costs, the volatility of costs and funding requirements, and other legal mandates for employee benefits, especially pension and healthcare benefits, could adversely affect our results of operations, financial condition, and liquidity

Environmental, Climate, and Weather Risks

1. 22We may be affected by global climate change or by legal, regulatory, or market responses to such change
2. 23We may be unable to achieve or demonstrate progress on our goal of carbon neutrality for our global operations by calendar 2040
3. 24Our inability to quickly and effectively restore operations following adverse weather or a localized disaster or disturbance in a key geography could adversely affect our business and results of operations

Other Legal, Regulatory, and Miscellaneous Risks

1. 25Government regulation and enforcement are evolving and unfavorable changes could harm our business
2. 26We could be subject to adverse changes in regulations and interpretations or challenges to our tax positions
3. 27Our business is subject to complex and evolving U.S. and foreign laws and regulations regarding data protection
4. 28The regulatory environment for global aviation or other transportation rights may affect our operations and increase our operating costs