FedEx Corporation (FDX)
Pretax margin
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 5,441,000 | 5,836,000 | 5,363,000 | 4,896,000 | 6,674,000 |
| Revenue | US$ in thousands | 87,926,000 | 87,693,000 | 90,155,000 | 93,512,000 | 83,959,000 |
| Pretax margin | 6.19% | 6.66% | 5.95% | 5.24% | 7.95% |
May 31, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $5,441,000K ÷ $87,926,000K
= 6.19%
The pretax margin of FedEx Corporation has demonstrated variability over the analyzed period from May 31, 2021, to May 31, 2025. In 2021, the pretax margin stood at 7.95%, indicating a relatively strong pre-tax profitability level at that time. By 2022, this margin declined significantly to 5.24%, reflecting a decrease of approximately 2.71 percentage points. The subsequent year, 2023, saw a partial recovery, with the pretax margin increasing to 5.95%, representing an improvement of about 0.71 percentage points over the previous year but still remaining below the 2021 peak. The trend continued into 2024, where the margin further increased to 6.66%, marking the highest level within the period and suggesting a period of improved pre-tax profitability. In 2025, the pretax margin experienced a slight decrease to 6.19%, though it remained higher than the margins reported in 2022 and 2023. Overall, the data indicates that FedEx’s pretax margin experienced a decline from 2021 through 2022, followed by a progressive recovery through 2023 and 2024, with a modest decline in 2025. This pattern may reflect adjustments in operating efficiency, costs, or revenue structures over the period.