FedEx Freight, now an independent publicly traded company after completing its spin-off from FedEx Corp. on June 1, projected revenue growth of 4% to 6% and operating income of $475 million to $515 million for the seven-month transition period ending December 31, 2026. The company also forecast adjusted operating income of $605 million to $645 million and adjusted earnings per share of $2.40 to $2.60, excluding spin-off-related costs. The outlook follows a steep decline in profitability during the fiscal fourth quarter ended May 31, where operating income fell 66.9% to $158 million and adjusted operating income declined 23.9% to $363 million, with operating margin contracting to 6.6% from 20.8% a year earlier. Quarterly revenue rose 4.8% to $2.4 billion, helped by fuel surcharges and higher shipment weights, though average daily shipments fell 5.9%. For the full fiscal year, revenue slipped 1.1% to $8.8 billion, while operating income dropped 58.6% to $616 million and adjusted operating income declined 25.6% to approximately $1.1 billion. Chief Executive John Smith said the company is entering its next phase with a strategy focused on profitable growth and service differentiation, and the company also announced a change in fiscal year-end from May 31 to December 31 beginning June 1, 2026.
FedEx Freight Holding Company, Inc.Forecasts revenue growth and adjusted EPS guidance for transition period.
FedEx CorporationForecasts revenue growth and adjusted EPS guidance for transition period.