Industry News

Earlier this month, FedEx Corporation filed an omnibus shelf registration for common stock and debt securities and completed cash tender offers to purchase about US$4.86 billion of long-dated notes, using a waterfall acceptance methodology capped by an overall offer limit. Together, the large-scale refinancing via tender offers and the fresh shelf registration broaden FedEx’s flexibility to reshape its capital structure, potentially affecting interest costs, leverage, and how it funds ongoing network transformation initiatives. We’ll now examine how FedEx’s large debt tender and new universal shelf registration might influence the company’s existing investment narrative.

Last year, the company generated ‪94.70 B‬ USD, the most of which — ‪82.27 B‬ USD — came from its top-performing segment, Federal Express, compared to ‪75.30 B‬ USD the previous year. The greatest contribution came from United States, which accounted for ‪67.94 B‬ USD last year, with ‪62.92 B‬ USD the year before.

The consensus among 24 analysts... The EPS estimate range spans $1.56 to $1.74, while revenue projections run from $21.44B to $22.49B, reflecting fairly tight conviction around the logistics giant’s near-term trajectory. Relative to the second quarter of 2025, when UPS posted EPS of $1.55 on revenue of $21.22B, the Street is modeling 7.1% earnings growth and 2.9% revenue expansion.

The company's Network of the Future initiative and largest network reconfiguration in history focuses on optimizing capacity and increasing automation, reducing labor dependency and capital requirements, expected to enhance operating margins and return on invested capital. While the most followed narrative pegs United Parcel Service at about 1% over its $112.88 fair value, the market's current P/E of 18.5x tells a different story. At the same time, United Parcel Service trades above the wider global logistics industry on P/E, at 18.5x versus 15.4x, so investors are already paying a premium for its earnings.

In recent weeks, United Parcel Service has drawn attention as analysts anticipated its quarterly earnings report, with consensus expecting earnings per share of US$1.65 and revenue of US$21.75 billion, alongside modest growth in key domestic and international package segments. The latest expectations for US$1.65 EPS on US$21.75 billion in revenue keep the near term focused on execution of cost savings as the key catalyst, while geopolitical and trade-policy uncertainty remains the biggest risk. United Parcel Service's narrative projects $97.8 billion revenue and $6.8 billion earnings by 2029.

“Hundreds of absentee ballots received by the Postal Service before Wisconsin’s Spring Election were delivered after Election Day, preventing them from being counted,” wrote Senator Baldwin and Governor Evers in a letter to Postmaster General David Steiner and members of the USPS Board of Governors. In the letter, Senator Baldwin and Governor Evers underscore the importance of protecting mail-in voting for Wisconsinites and how President Trump’s proposed rule could further jeopardize Wisconsinites’ access to the ballot box. We write to you about the United States Postal Service’s (USPS) role in ensuring that Wisconsin’s elections are fair and reliable and to express our serious concerns that USPS is threatening Wisconsinites’ ability to exercise their right to vote.

Tony Evers are urging the United States Postal Service to address mail delays and reverse course on implementing a federal rule to require states to hand over some voter information to the Trump administration or risk losing delivery of mail-in ballots. Postal Service officials on July 23 arguing that the proposed changes are "threatening" the voting rights of Wisconsinites because of the executive order, which would likely cause further mail delays and the fact that ballots arriving late prevents them from being counted in the state. The order additionally required USPS to deliver ballots only to voters on the approved mail-in ballot list for each state, which they began to implement by issuing proposed rules for states to provide names and barcodes connected to each mail-in ballot.