FedEx Freight Holding Company, Inc.

FedEx Freight

Overview

FedEx Freight was spun off from FedEx Corporation and began trading as FDXF on the NYSE on June 1, 2026. It is the largest North American less-than-truckload (LTL) freight carrier, operating a network designed for speed, reliability, and proximity to customers.

Services

• Dual-service LTL portfolio:
  • FedEx Freight Priority: premium, time-definite service with the fastest published transit times (typically 1–3 days; next-business-day up to 600 miles). Service includes a money-back guarantee if commitments are not met.
  • FedEx Freight Economy: value-oriented service for shipments with more flexible transit needs (typically 3–6 days).
• Additional capabilities:
  • FedEx Custom Critical: expedited, time-specific solutions such as Surface Expedite and White Glove.
  • FedEx Freight Direct: residential and commercial delivery with options like inside delivery and packaging removal.
  • Retail Flex: delivery to large retailers with on-time, retailer-compliant delivery support.
  • Volume Services: custom pricing for non-urgent shipments to optimize network capacity.
  • Cross-border and international options: cross-border capabilities with Canada and Mexico, plus partnerships for LTL shipments in Europe and Asia.

Digital platform and technology

• LTL Select: a free, cloud-based, multi-carrier TMS that supports online quoting, booking, tracking, visibility, and analytics.
• Internal technology and analytics include dock visibility software, route optimization, load planning, electronic logging devices, RFID tracking, demand forecasting, and risk management.

Key metrics (as of June 1, 2026)

• Employees: approximately 40,000.
• Locations and network:
  • Over 365 locations (approximately 355 shipping terminals; over 320 in the United States) and about 10 linehaul relay sites.
  • More than 26,000 service center doors.
• Geography: United States, Canada, and Mexico; service to Puerto Rico and U.S. Virgin Islands via alliances.
• Fleet: nearly 30,000 motorized vehicles, including about 17,000 tractors.
• Customers: approximately 108,000 active customers.
• Revenue concentration (2026): top five customers accounted for about 9% of revenue; top 25 customers about 21%; the largest single customer about 4%.

Financial structure and spin-off

• Indebtedness incurred prior to the spin-off: about $4.3 billion (net of debt issuance costs and discounts of $36 million), consisting of roughly $3.7 billion in senior notes and a $0.6 billion term loan under a delayed-draw facility.
• Revolving credit facility available: up to $1.2 billion.
• The spin-off included transition services and various agreements; the company expects ongoing standalone public-company costs and potential limitations on strategic flexibility.

Fiscal year

• Effective for the period beginning June 1, 2026, the fiscal year-end changed from May 31 to December 31.

Business model and positioning

• Market position: largest pure-play LTL carrier in North America with an expansive, closely connected network.
• Value proposition: a dual-service model (Priority for speed and Economy for cost-efficiency) supported by differentiated offerings such as volume pricing, time-critical solutions, and retailer- and healthcare-focused services.
• Technology and data: extensive use of digital tools and analytics to improve efficiency and customer experience.

Strategic and risk context

• Risk factors include sensitivity to macroeconomic conditions, fuel prices, regulatory changes, cyber risk, labor dynamics, and potential operational and financial impacts related to the spin-off.