FedEx completes freight spin-off as independent LTL carrier
The spin-off was carried out through the distribution of 80.1% of FedEx Freight's outstanding common stock to FedEx shareholders. FedEx retained a 19.9% stake in the newly independent company.
FedEx Corp. has completed the spin-off of FedEx Freight, creating two separately traded public companies and marking a major restructuring of the transport and logistics group's business portfolio. The move establishes FedEx Freight as an independent company focused on the North American less-than-truckload (LTL) market, while FedEx continues to operate its global transportation, e-commerce and business services network.
FedEx Freight common stock began regular trading on the New York Stock Exchange on June 1 under the ticker symbol FDXF, while FedEx continues to trade under the ticker FDX. The separation follows months of planning aimed at creating independent businesses with separate strategic priorities and capital allocation structures.
Announcing the completion of the transaction, Raj Subramaniam, president and chief executive officer of FedEx, said: “The successful separation of FedEx Freight is a pivotal milestone, positioning two independent companies to lead their respective industries and create long-term value for their stockholders. Today’s spin-off positions FedEx Freight to build on its market-leading scale and a customer-focused culture and advances the next chapter for FedEx as the industrial network that helps power the global economy.”
The spin-off was carried out through the distribution of 80.1% of FedEx Freight's outstanding common stock to FedEx shareholders on a pro rata basis. Shareholders received one share of FedEx Freight stock for every two shares of FedEx common stock held at the close of business on May 15, 2026. Investors entitled to fractional shares will receive cash payments in lieu of those holdings.
FedEx retained a 19.9% stake in the newly independent company. According to the company, those shares are expected to be disposed of within 24 months through one or more exchange transactions related to certain FedEx debt obligations and through potential distributions to FedEx shareholders, either as dividends or in exchange for outstanding FedEx common stock.
The separation creates a standalone company focused exclusively on the LTL freight sector, a segment that plays a key role in North American domestic freight transportation by consolidating shipments from multiple customers into shared truckloads. The move also allows FedEx to concentrate on its broader transportation and logistics network as it continues to pursue its transformation and network optimisation initiatives.
The transaction was supported by Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC as financial advisers, while Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel.
FedEx reported annual revenue of $92 billion, including FedEx Freight, and said an updated figure reflecting the separation will be provided following its fourth-quarter fiscal 2026 earnings call scheduled for June 23. The company employs more than 500,000 people worldwide and operates a network spanning transportation, e-commerce and business services.
The spin-off represents one of the most significant structural changes in FedEx's recent history, separating its freight division into an independently traded entity while giving investors direct exposure to both businesses as they pursue growth and operational objectives independently.
