FedEx Freight Reports First Standalone Earnings After Spinoff

FedEx Freight Holding Co. has reported its first earnings as an independent company following its separation from FedEx Corp. earlier in June 2026. CEO John Smith emphasized the firm’s strategic pivot into a “hunting phase” to aggressively pursue new business in higher-margin sectors such as data center infrastructure, grocery, and healthcare. Smith highlighted the company’s recent investment in a dedicated sales force to target these segments, where FedEx Freight historically had a smaller footprint. “Building out that sales team is really one of the differentiators from where we were to where we are now,” Smith said during a June 25 earnings call. The company also initiated guidance for the remainder of 2026, projecting adjusted profit of $2.40 to $2.60 per share, excluding spinoff-related costs. FedEx Freight, which ranks as the top less-than-truckload (LTL) carrier on Transport Topics’ list of largest freight players, is entering the market amid early signs of recovery in shipping rates after a prolonged freight recession. However, inflation and elevated fuel prices stemming from the war in Iran are adding pressure to the sector. Smith cautioned that the recovery trajectory won’t be linear. The announcement follows Amazon.com Inc.’s recent expansion into freight services, which has intensified competition and contributed to a drop in shares of FedEx Freight and other LTL peers. FedEx Freight’s shares were flat at 4:11 p.m. in New York after regular trading hours. The company’s earnings report and guidance come as it completes its transition to standalone operations, marking a significant milestone in its strategic evolution.