FedEx Freight expects growth in its first few months as a standalone, publicly traded company.
FedEx Freight, which was spun off on June 1, focuses on shipping jobs where multiple smaller shipments are combined into a single trailer, known as the "less-than-truckload" industry. Meanwhile, FedEx continues to operate as a more focused parcel delivery network, similar to rival UPS, with its express and ground-delivery units.
FedEx Freight guided for revenue to grow 4% to 6% for June 1 to Dec. 31, compared with the same period a year earlier, during which it was still a unit under FedEx.
FedEx Freight also forecast earnings per share of $1.75 to $1.95 before mark-to-market retirement plan accounting adjustments, or $2.40 to $2.60 after excluding costs related to the spin-off, for the seven-month period.
The company said the outlook reflects its confidence in the underlying strength of the business.
"As a newly independent public company, we are moving forward with a clear strategy focused on profitable growth and service differentiation," FedEx Freight's Chief Executive Officer John Smith said.
FedEx Freight logged higher revenue in the fiscal fourth quarter, during which it was still a segment under FedEx.
The segment's operating income was $158 million, down 67% from the year-ago period. The results were dented in part by $205 million in costs related to the spinoff. Excluding the spinoff costs, the metric came in at $363 million, a 24% decline.
Revenue rose 4.8% to $2.4 billion, driven by fuel surcharges and higher weight per shipment. The growth was partially offset by lower volumes and a slight decline in base revenue per hundredweight, the company said.
Similar to FedEx, FedEx Freight is shifting its fiscal year to align with the calendar year, switching the end of its fiscal year to Dec. 31 from May 31.
Earlier this week, FedEx forecast 11% revenue growth for the calendar year, excluding the freight business.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
June 25, 2026 16:22 ET (20:22 GMT)
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