FedEx Freight Reports Results for Four-Month Transition Period Ended September 30, 2026

Overview

On October 29, 2026, FedEx Freight Holding Company, Inc. (NYSE: FDXF) filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition) and Item 9.01 (Financial Statements and Exhibits), disclosing financial results for the four-month transition period ended September 30, 2026.

Following its spin-off from FedEx Corporation on June 1, 2026, FedEx Freight changed its fiscal year-end from May 31 to December 31. This filing covers the one-time transition period.

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Key Financial Highlights

• Revenue: $3.3 billion, an increase of 9.2% year-over-year, driven by favorable fuel surcharge revenue, higher weight per shipment, an extra operating day, and increased base revenue per hundredweight, partially offset by softer volume.
• Operating Income: $383 million (down 6.1% YoY); Adjusted Operating Income: $510 million (up 16.4% YoY).
• Operating Margin: 11.7% (down 190 bps); Adjusted Operating Margin: 15.5% (up 90 bps).
• Diluted EPS: $1.54 (down 43% YoY); Adjusted Diluted EPS: $2.15 (down 24.6% YoY).
• Operating Metrics:
  • Average daily shipments: 88.9 thousand (-1.4% YoY)
  • Revenue per shipment: $413.00 (+10.1% YoY); excluding fuel: $318.23 (+1.6% YoY)
  • Revenue per hundredweight: $44.03 (+8.6% YoY); excluding fuel: $33.93 (+0.3% YoY)
  • Tonnage per day: 41.7 thousand tons (flat YoY)

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Balance Sheet & Capital Allocation

• Cash & Liquidity: Cash and cash equivalents of $388 million with total liquidity of $1.6 billion as of September 30, 2026.
• Debt Repayment: Repaid $100 million in debt ahead of schedule during the period.
• Capital Expenditures: $151 million for the four-month period; aggregate CapEx for the Transition Period (June 1–December 31, 2026) projected at ~$365 million.
• Shareholder Returns: On track to announce a dividend and share repurchase program for calendar year 2027, subject to board approval.

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Outlook & Guidance

Transition Period (June 1 – December 31, 2026)

• Revenue: $5.58 billion to $5.65 billion (raised above initial 4%–6% growth guidance).
• Operating Income: $465 million to $485 million (Adjusted: $695 million to $715 million).
• Operating Margin: 8.3% to 8.6% (Adjusted: 12.5% to 12.7%).
• Diluted EPS: $1.69 to $1.79 before mark-to-market (MTM) retirement plan adjustments ($2.80 to $2.90 excluding spin-off costs).
• Interest Expense: ~$130 million.
• Effective Tax Rate: ~27% before MTM retirement adjustments.

Three Months Ending December 31, 2026

• Revenue: $2.30 billion to $2.37 billion.
• Operating Income: $80 million to $100 million (Adjusted: $185 million to $205 million).
• Operating Margin: 3.5% to 4.2% (Adjusted: 8.0% to 8.6%).
• Diluted EPS: $0.15 to $0.25 before MTM retirement adjustments ($0.65 to $0.75 excluding spin-off costs).