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FedEx Freight Begins Independent Trading as Largest North American LTL Carrier

FedEx Freight commenced trading Monday on the New York Stock Exchange under ticker FDXF, marking its debut as a standalone less-than-truckload carrier. FedEx distributed 80.1% of the company's outstanding shares to its shareholders at a one-for-two ratio as of May 15. The spinoff enables FedEx Freight to pursue a narrower commercial strategy while unlocking shareholder value at both entities. The carrier replaces American Airlines in the Dow Jones Transportation Average and joins the S&P 500. FedEx retains positions in both indices. Operating from more than 26,000 service center doors across North America, FedEx Freight projects medium-term revenue growth of 4% to 6% annually and adjusted operating income growth of 10% to 12%. The company targets 300 basis points of operating margin expansion, moving from approximately 12% currently to 15% near term. This expansion is driven by yield improvements and cost reductions.