10-KPeriod: FY2026

FedEx Freight Holding Company, Inc. Annual Report, Year Ended May 31, 2026

Filed August 5, 2026For Securities:FDXF

Summary

FedEx Freight Holding Company, Inc. (FDXF) has completed its spin-off from FedEx Corporation and is now operating as an independent, publicly traded entity. The company is the largest North American less-than-truckload (LTL) freight carrier, offering both time-definite (Priority) and value-oriented (Economy) services across the United States, Canada, and Mexico. The fiscal year ended May 31, 2026, saw a revenue decrease of 1% to $8.8 billion, primarily due to lower shipment volumes driven by macroeconomic conditions, although this was partially offset by higher fuel surcharges and improved base yields. Operating income experienced a significant decline of 62% to $540 million, largely impacted by $492 million in separation and other costs associated with the spin-off, alongside reduced demand. Despite these headwinds, the company has a robust network of over 365 locations and nearly 30,000 vehicles. The company's strategy focuses on leveraging its scale, dual-service offering, and technology platform to drive growth and optimize its operating model. Key risks include macroeconomic volatility, fuel price fluctuations, intense competition, and regulatory changes, alongside managing the operational and financial complexities of being a newly independent public company.

Key Highlights

  • 1FedEx Freight Holding Company, Inc. completed its spin-off from FedEx Corporation on June 1, 2026, and now trades under the ticker symbol FDXF.
  • 2The company remains the largest North American LTL freight carrier, operating an extensive network with over 365 locations and nearly 30,000 vehicles.
  • 3Revenue for the fiscal year ended May 31, 2026, decreased by 1% to $8.8 billion, primarily due to lower shipment volumes.
  • 4Operating income fell 62% to $540 million, significantly impacted by $492 million in separation and other costs related to the spin-off.
  • 5The company offers two main LTL services: FedEx Freight Priority for time-sensitive shipments and FedEx Freight Economy for cost-sensitive shipments.
  • 6Key risks identified include macroeconomic conditions, fuel price volatility, competition, and evolving regulations.
  • 7FedEx Freight incurred $4.3 billion in debt in preparation for the spin-off.

Frequently Asked Questions

The spin-off from FedEx Corporation on June 1, 2026, marks FedEx Freight's debut as an independent, publicly traded company. This allows for a more focused strategy, dedicated capital allocation, and direct accountability to its shareholders, operating under the ticker symbol FDXF.

Revenue saw a slight decrease of 1% due to lower shipment volumes, attributed to prevailing macroeconomic conditions. However, this was partially offset by increased fuel surcharges and yield improvements. Operating income experienced a substantial decline of 62%, significantly impacted by $492 million in separation costs related to the spin-off, in addition to the impact of reduced demand.

FedEx Freight is North America's largest LTL carrier, offering FedEx Freight Priority (premium, time-definite) and FedEx Freight Economy (value-oriented) services. Its competitive advantages include its extensive network scale, proximity to customers, differentiated dual-service offering, and a proprietary, digitally enabled technology platform.

The company faces significant risks including macroeconomic downturns affecting freight demand, volatility in fuel prices and the ability to recover these costs, intense competition within the LTL sector, and increasing regulatory burdens related to transportation, environmental, and labor standards. Additionally, managing its new status as an independent public company, including debt obligations and the reliance on transition services from FedEx, presents operational and financial challenges.