\nFedEx Freight (NYSE: FDXF) today reported segmented financial results for the fourth quarter and full fiscal year ended May 31, 2026, as previously released by FedEx Corporation.<\/p>\n
\n\u201cFedEx Freight delivered a solid quarter reflecting the resilience of our business, the dedication of our team members, and the value we provide customers across North America,\u201d said John Smith, president and chief executive officer, FedEx Freight.<\/b> \u201cAs a newly independent public company, we are moving forward with a clear strategy focused on profitable growth and service differentiation. We have full confidence in our outstanding people, unmatched network, and ability to create meaningful long-term value for shareholders.\u201d<\/p>\n
\nFourth quarter and full-year fiscal 2026 results included herein are as reported in the FedEx Freight segment results of FedEx Corporation and not presented on a carve-out basis. See \u201cNon-GAAP Financial Measures\u201d below for reconciliations of and additional information regarding non-GAAP financial measures.<\/p>\n
Fourth Quarter Fiscal 2026 Highlights Compared to Prior Year<\/b><\/p>\n Full Fiscal 2026 Highlights Compared to Prior Year<\/b><\/p>\n Fourth Quarter Fiscal 2026 Financial Summary<\/b><\/p>\n \nFedEx Freight Segment revenue increased 4.8% year-over-year in the fourth quarter of fiscal 2026. The increase was primarily driven by the favorable impact of fuel surcharges and higher weight per shipment. These factors were partially offset by lower volumes and a slight decline in base revenue per hundredweight.<\/p>\n \nFedEx Freight Segment results were impacted by planned incremental separation costs, lower shipments, the lapping of a prior-year gain on the sale of a facility, and increased wage rates. These factors were partially offset by net fuel and higher weight per shipment.<\/p>\n \n\u201cFedEx Freight enters this next chapter with a strong financial outlook, supported by the scale of our network and our disciplined approach to cost management, capital deployment, and cash flow generation,\u201d said Marshall Witt, chief financial officer, FedEx Freight.<\/b> \u201cOur guidance for the seven-month transition period reflects our confidence in the underlying strength of the business. We believe FedEx Freight is well-positioned to deliver strong financial performance as we invest strategically in the business and generate durable shareholder value.\u201d<\/p>\n Fiscal Year Change<\/b><\/p>\n \nEffective for the period beginning June 1, 2026, the company’s fiscal year-end has changed from May 31 to December 31.<\/p>\n Outlook<\/b><\/p>\n \nFedEx Freight is unable to forecast the mark-to-market (MTM) retirement plan accounting adjustments for the seven months ending December 31, 2026. As a result, FedEx Freight is unable to provide a Transition Period (June 1 through December 31, 2026) earnings per share (EPS) or effective tax rate (ETR) outlook on a GAAP basis and is relying on the exemption provided by the Securities and Exchange Commission (SEC). It is reasonably possible that the Transition Period MTM retirement plan accounting adjustments could have a material effect on the Transition Period consolidated financial results and ETR.<\/p>\n \nThe company today introduced guidance for the Transition Period on a standalone basis. Prior-year figures reflect carve-out results, with costs previously allocated from FedEx Corporation now fully reclassified into their respective expense line items.<\/p>\n \nFor the Transition Period, FedEx Freight is forecasting:<\/p>\n \nThese forecasts assume the company\u2019s current economic outlook and fuel price expectations, and no additional adverse economic, geopolitical, or international trade-related developments. FedEx Freight\u2019s EPS and ETR forecasts are based on current law and related regulations and guidance.<\/p>\n Corporate Overview<\/b><\/p>\n \nFedEx Freight is North America\u2019s largest less-than-truckload (LTL) carrier, delivering industry-leading published transit times, service levels, and reliability. FedEx Freight\u2019s service offerings \u2014 including Priority, Economy, and Direct \u2014 allow customers to balance speed and cost to meet their unique needs. FedEx Custom Critical, a subsidiary, provides expedited, time- and temperature-specific freight solutions, including Surface Expedite and White Glove Services, available 24\/7\/365. With nearly 30,000 vehicles, of which nearly 17,000 are tractors, and 40,000 dedicated team members to support its network of over 365 locations, we ensure freight arrives safely, securely, and on time across all 50 U.S. states, Canada, Mexico, Puerto Rico, and the U.S. Virgin Islands. FedEx Freight leverages operational efficiency, data-driven technology, and a focused sales organization to provide outstanding service. To learn more, visit www.fedexfreight.com<\/a>.<\/p>\n \nAdditional information and operating data are contained in the company\u2019s filings with the SEC. These materials, as well as a webcast of the earnings release conference call to be held at 4:00 p.m. CDT on June 25, are available on the company\u2019s website at ir.fedexfreight.com<\/a>. A replay of the conference call webcast will be posted on our website following the call.<\/p>\n \n\u00a0<\/p>\n<\/td>\n Three Months Ended May 31,<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Twelve Months Ended May 31,<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n 2026<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 2026<\/b><\/p>\n<\/td>\n<\/tr>\n Dollars in millions<\/i><\/p>\n<\/td>\n Operating<\/b><\/p>\n Income<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Operating<\/b><\/p>\n Margin<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Operating<\/b><\/p>\n Income<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Operating<\/b><\/p>\n Margin<\/b><\/p>\n<\/td>\n<\/tr>\n GAAP measure<\/b><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 158<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 6.6<\/b><\/p>\n<\/td>\n %<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 616<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 7.0<\/b><\/p>\n<\/td>\n %<\/b><\/p>\n<\/td>\n<\/tr>\n \nSpin-off costs<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n205<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8.5<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n492<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5.6<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nNon-GAAP measure<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n363<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n15.1<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1,108<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n12.6<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Seven Months Ended December 31, 2025 Results<\/b><\/p>\n \nFedEx Freight’s seven months ended December 31, 2025 carve-out adjusted operating income and adjusted operating margin are non-GAAP financial measures because they exclude the effects of costs related to the spin-off. No MTM retirement plan accounting adjustments were made for the seven months ended December 31, 2025.<\/p>\n \n\u00a0<\/p>\n<\/td>\n Seven Months Ended December 31,<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n 2025<\/b><\/p>\n<\/td>\n<\/tr>\n Dollars in millions<\/i><\/p>\n<\/td>\n Operating<\/b><\/p>\n Income<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Operating<\/b><\/p>\n Margin<\/b><\/p>\n<\/td>\n<\/tr>\n GAAP measure<\/b><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 394<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 7.8<\/b><\/p>\n<\/td>\n %<\/b><\/p>\n<\/td>\n<\/tr>\n \nSpin-off costs<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n206<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n4.0<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nNon-GAAP measure<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n600<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n11.8<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Seven Months Ending December 31, 2026 Forecasts<\/b><\/p>\n \nFedEx Freight’s seven months ending December 31, 2026 adjusted operating income, adjusted operating margin, adjusted EPS, and ETR forecasts are non-GAAP financial measures because they exclude, as applicable, the effects of MTM retirement plan accounting adjustments and estimated costs related to the spin-off.<\/p>\n Dollars in millions<\/i><\/p>\n<\/td>\n Operating<\/b><\/p>\n Income<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Operating<\/b><\/p>\n Margin<\/b><\/p>\n<\/td>\n<\/tr>\n GAAP measure<\/b><\/p>\n<\/td>\n $<\/b><\/p>\n<\/td>\n 475 to 515<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n 9.0 to 9.5<\/b><\/p>\n<\/td>\n %<\/b><\/p>\n<\/td>\n<\/tr>\n \nSpin-off costs<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n130<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n2.5<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n \nNon-GAAP measure<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n605 to 645<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n11.5 to 12.0<\/p>\n<\/td>\n \n%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nThe company is unable to predict the amount of MTM retirement plan accounting adjustments for the seven months ending December 31, 2026, as such adjustments are significantly affected by changes in interest rates and financial market conditions. Accordingly, these adjustments are not included in the company\u2019s seven months ending December 31, 2026 EPS and ETR forecasts, and a reconciliation of these forecasts to the most directly comparable GAAP measures is impracticable. It is reasonably possible that MTM retirement plan accounting adjustments could have a material effect on the company\u2019s seven months ending December 31, 2026 financial results and ETR.<\/p>\n \nThe seven months ending December 31, 2026 adjusted EPS forecast below outlines the estimated effects of the items excluded from the company\u2019s forecast, other than MTM retirement plan accounting adjustments.<\/p>\n Dollars in millions, except EPS<\/i><\/p>\n<\/td>\n Adjustments<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Diluted Earnings<\/b><\/p>\n Per Share<\/b><\/p>\n<\/td>\n<\/tr>\n \nDiluted earnings per share before MTM retirement plan accounting adjustments (non-GAAP)1<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n1.75 to 1.95<\/p>\n<\/td>\n<\/tr>\n \nSpin-off costs<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n130<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nIncome tax effect<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n(34<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nNet of tax effect<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n96<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.65<\/p>\n<\/td>\n<\/tr>\n \nDiluted earnings per share with adjustments (non-GAAP)1<\/sup><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$<\/p>\n<\/td>\n \n2.40 to 2.60<\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n
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