Bruce Chan

Tome pointed to platform tenure, partner additions and a one-day API stand-up as the moat; did not quantify competitive risk.

Brian said pockets of strength in automotive, high tech, health care, and industrial but no material shift in market growth assumption. International-to-international trade growing. Carol noted China to rest of world up 14% YoY.

Nando described cascading closure of legacy conventional facilities into consolidated automated hubs, improving feeds, cube utilization, and service quality. Carol noted 93 buildings closed versus 73 targeted in 2025. For 2026, 24 buildings identified for H1 closure with Nando estimating another 60-70 under assessment for potential additional closures.

Carol noted no service disruption observed from government shutdown so far. End-of-October volumes on or slightly above plan. Customer peak forecasts remain positive. No shutdown impact factored into Q4 guidance.

Carol noted SMBs face both sourcing challenges and tighter credit conditions. Matt emphasized SMBs trust UPS brand for supply chain mapping. Kate highlighted healthcare SMB lab packer services.

Carol argued network reconfiguration adds agility rather than reducing it. Brian noted approximately 50 additional closures being evaluated beyond the first 73, with automated network enabling better flex.

RFID rollout expected to complete this year. Matt highlighted 15 large enterprise retailers onboarded for store replenishment using RFID inventory management.

Fleet capacity kept tighter than service center capacity, excess power is punitive on depreciation per unit. ~$105M of 2026 CapEx for equipment replacements. Team continues tightening transit times in certain lanes despite low density. More density will reduce empty miles and enable more direct linehaul runs.

Adam confirmed continued line-haul, P&D, and dock technology investments without giving specifics. Technology helping maintain direct costs at 2022 levels despite lower density.

Adam said yield improvement consistent over last couple of years. NFC classification change expected to be revenue and income neutral. Sometimes achieve yield improvement through cost efficiencies rather than pure price.

Adam said they've competed with this company for years. Won Mastio quality award 16 years in a row. Confident in value proposition and market share trajectory.

Subramaniam declined to speculate on tariff outcomes, noting any international volume increase would be beneficial but is not factored into outlook. Emphasized FedEx's scaled global network advantage in shifting trade patterns.

Carere noted FedEx is a small global airfreight market share participant, focused on premium freight. Healthcare drove almost 50% of U.S. export weight growth. Subramaniam said Tricolor implementation enabling hub decongestion and network densification.

Raj declined to comment in detail, saying it's too early, but stated the principle that package delivery should not be subsidized by taxpayers.

CFO said direct Middle East exposure immaterial but knock-on effects from capacity displacement managed well. Impact to GF results relatively immaterial in Q1. Team helping customers navigate ongoing global conflicts and capacity repositioning.

CFO emphasized disciplined capital allocation. Organic pipeline deep with high-ROI opportunities. Evaluating M&A weekly but won't make a mistake. Buybacks more likely this year.

Darren Field distinguished current issues from 2021-2022 infrastructure problems. Q4 disruption was people/planning-related (union agreement changes affecting employee scheduling), solvable in months.