FedEx Beats Q4 EPS Estimates; Takes $23M Aircraft Write-Down While Reinstating Jets
FDX•FedEx reported adjusted Q4 EPS of $6.31, topping the $5.96 estimate, but issued 2026 EPS guidance only marginally above consensus. The company reinstated four MD-11 freighters after a design fix, retired five MD-11s and took a $23 million aircraft write-down, with all grounded jets expected back by peak season.
1. Earnings Beat and Modest Guidance
FedEx delivered adjusted fourth-quarter EPS of $6.31, surpassing the $5.96 consensus estimate. Management issued fiscal 2026 EPS guidance only marginally above market expectations, reflecting cautious margin outlook and ongoing cost-control efforts.
2. Fleet Modernization and MD-11 Return
The company reinstated four MD-11 freighters after completing safety part replacements and plans to return the remaining 25 grounded jets by peak season. It retired five large MD-11s, four Boeing 757-200s and one Airbus A300-600, taking a $23 million charge on ten aircraft as part of a broader fleet reduction of three mainline units year-over-year.
