FedEx Freight to become standalone public company by June 2026, spending $600 million on IT infrastructure and systems.

FedEx Freight is on track to become a standalone public company by June 2026, with shares listed on the NYSE under the ticker FDXF. The parent company plans to spend $600 million on IT infrastructure and systems ahead of the spinoff. FedEx Freight reported a 3.1% y/y decline in revenue to $2.26 billion and a 2.5% dip in tonnage per day. The LTL market remains rational but topline trends are constrained by a weak industrial economy and share loss to the truckload market.

FedEx Freight, the nation's largest less-than-truckload carrier, is poised to become a standalone public company by June 2026. The parent company, FedEx, announced on Thursday that it plans to spend $600 million to enhance its IT infrastructure and systems in preparation for the spinoff. Shares of FedEx Freight will be listed on the New York Stock Exchange under the ticker FDXF.

In the fiscal first quarter ended August 31, FedEx Freight reported revenue of $2.26 billion, a 3.1% year-over-year (y/y) decline. Tonnage per day decreased by 2.5%, driven by a 2.2% decline in shipments and a 0.3% dip in weight per shipment. The LTL market remains rational, but topline trends are constrained by a weak industrial economy and share loss to the truckload market where capacity is plentiful and rates are depressed.

FedEx Freight's operating ratio (inverse of operating margin) stood at 84%, which was 280 basis points worse y/y. The decline was attributed to $9 million in separation costs related to the spinoff, a nearly 40-bp y/y headwind, and a 100-bp increase in salaries, wages, and benefits expenses as a percentage of revenue. The company expects a low-single-digit percentage y/y increase in revenue for the fiscal year ending May 31, with yields improving modestly in the back half of the year. The unit's operating margin is expected to see modest y/y deterioration, but the declines are starting to narrow.

FedEx Corp reported adjusted earnings per share of $3.83 for the quarter, 22 cents higher than the consensus estimate and 23 cents higher y/y. Revenue of $22.2 billion was $550 million ahead of expectations. The Purchasing Managers’ Index (PMI) registered a 48.7 reading for August, placing it in negative territory for 32 of the past 34 months. The PMI new orders subindex moved into expansion territory (51.4), signaling future activity but remaining below the required threshold for sustained increases in manufacturing orders.

FedEx Corp shares were up 5.4% in after-hours trading on Thursday following the announcement. The post FedEx Freight spinoff on track for June 2026 appeared first on FedEx Freight spinoff on track for June 2026^[1] https://finance.yahoo.com/news/fedex-freight-spinoff-track-june-000619669.html.