FedEx Freight Holding Company guided for $605 million to $645 million in adjusted operating income on revenue growth of 4% to 6% for the seven-month transition period ending December 31, 2026, compared with the same period in 2025 on a stand-alone basis. The company, which recently completed its spin-off and began trading under the ticker FDXF, reported fourth-quarter revenue of $2.4 billion, a 5% year-over-year increase, with adjusted operating income of $363 million and a 15% adjusted operating margin. Revenue per shipment rose 11.5% in the quarter, driven by higher fuel surcharges and increased weight per shipment, partially offset by lower volumes. Management flagged approximately $80 million in separation-related costs during the quarter and expects a roughly 120-basis-point headwind from ongoing Transition Service Agreements, translating to about $65 million, with total transition-related costs potentially reaching $700 million to $750 million before easing in the second half of 2027. About 60% of the revenue growth and 75% of the adjusted operating income during the transition period are expected to be weighted toward the four months ending September 30.
FedEx Freight Holding Company, Inc.Company issued positive guidance for adjusted operating income and revenue growth for the transition period.