FedEx Freight Posts $158 Million Operating Income After Spin-Off

The Tip Desk · August 6, 2026 · 2 min read

Fourth-quarter revenue reached $2.4 billion as the newly independent lessor completed its separation from FedEx Corp.

FedEx Freight Holding Company (FDXF), the less-than-truckload carrier that began trading as an independent company on June 1, 2026, reported fourth-quarter revenue of $2.4 billion, a 4.8% increase from a year earlier, as fuel surcharges and heavier loads more than offset a drop in volume.

Operating income was $158 million, down 66.9%, and the operating margin compressed to 6.6% from 20.8%. Adjusted operating income was $363 million, down 23.9%, with an adjusted operating margin of 15.1%. The company said the quarter included planned incremental separation costs, lower shipments, the lapping of a prior-year gain on the sale of a facility, and increased wage rates, partially offset by net fuel and higher weight per shipment.

Average daily shipments were 86.7 thousand, a 5.9% decrease. Weight per shipment rose 3.0% to 948 pounds. Revenue per shipment was $415.22, up 11.5%, and revenue per hundredweight was $43.79, up 8.2%. The revenue increase was primarily driven by the favorable impact of fuel surcharges and higher weight per shipment, partially offset by lower volumes and a slight decline in base revenue per hundredweight.

For the full fiscal year ended May 31, 2026, revenue was $8.8 billion, a 1.1% decrease. Operating income was $616 million, down 58.6%, and the operating margin was 7.0% versus 16.7% a year earlier. Adjusted operating income was $1.1 billion, down 25.6%, with an adjusted operating margin of 12.6%.

The results were presented as the FedEx Freight segment of FedEx Corporation and were not on a carve-out basis. President and Chief Executive Officer John Smith said the company was moving forward with a strategy focused on profitable growth and service differentiation. Chief Financial Officer Marshall Witt said guidance for the seven-month transition period ending December 31, 2026, reflected confidence in the underlying strength of the business.

The company achieved record-low Department of Transportation preventable accident performance in the quarter. Those figures sit alongside a year of separation work that ended with the June 1 spin-off, leaving the network as a standalone public less-than-truckload operator with a seven-month bridge into the next fiscal calendar.