FedEx Freight Holding Company, Inc. (FDXF)

Price—Loading quote

AI: Overvalued

Price checkThe current price demands strong recovery while offering little protection against setbacks.

At 08:00 UTC on August 17, MarketWatch showed a $150.00 premarket indication with zero volume; the prior close was $150.29. Using 149.5 million shares, equity value is about $22.4 billion; adding $4.28 billion of net debt gives roughly $26.7 billion. That equals 34 times fiscal 2026 earnings and about 25 times reported earnings before interest, taxes, depreciation, and amortization. Even $1 billion of annual cash left after investment implies roughly 22 times, too demanding for this leverage and cycle.

Big pictureCash generation was historically solid, but falling shipments have sharply weakened recent earnings.

Revenue declined from $9.42 billion in fiscal 2024 to $8.80 billion in 2026, while operating income fell from $1.75 billion to $540 million and net income from $1.57 billion to $655 million. Cash left after running and investing in the business was about $1.08 billion in 2024 and $1.09 billion in 2025, then negative $212 million in 2026. The latest figure includes roughly $1 billion used to reacquire customer receivables, but fourth-quarter shipments still fell 5.9%, confirming genuine cyclical weakness.

Business strengthIndustry-leading scale and pricing help, but spin-off debt sharply reduced financial flexibility.

FedEx Freight is North America’s largest carrier of partial truckloads, with more than 365 locations, 26,000 service-center doors and nearly 30,000 vehicles. Fourth-quarter revenue per shipment rose 11.5% despite 5.9% fewer shipments, showing pricing strength. However, debt reached $4.53 billion against $251 million of cash, and shareholder equity became negative $497 million after a $4.12 billion distribution to FedEx. Current assets still exceeded current liabilities by $513 million. Dilution was minimal, with $13 million of stock compensation and an almost unchanged share count, but no buybacks supported shareholders.

What could change the storyMeeting cash targets while reducing debt could justify the price; stalled volumes would not.

Management forecasts 4% to 6% revenue growth and $475 million to $515 million of operating income for the seven months ending December 2026, despite about $135 million of interest expense. Its medium-term ambition exceeds $1 billion of annual cash left after investment. The bull case requires shipments to recover, margins to reach guidance and surplus cash to reduce debt. The bear case is continued shipment weakness or Amazon-driven price pressure, leaving shareholders paying a growth valuation while interest costs absorb cash. Progress should be judged against those specific thresholds.

$150.00 price considered

AI: News

Independent trading beginsThe June spin-off created a focused freight company but loaded it with substantial debt.

On June 1, 2026, FedEx completed the separation and FedEx Freight began regular New York Stock Exchange trading as FDXF. FedEx shareholders received one FDXF share for every two FedEx shares, while FedEx retained 19.9% of the new company. The separation gave management direct control over investment and pricing, but the related $4.12 billion distribution to FedEx left FDXF with heavy debt. Because no directly comparable standalone closing price existed beforehand, a clean one-day market reaction cannot be measured.

Amazon expands freight serviceAmazon opened its freight network broadly, creating a credible new threat to shipment volumes and pricing.

On June 10, Amazon made its partial-truckload service available to businesses of every size and to destinations beyond Amazon facilities, supported by more than 80,000 trailers. FDXF closed down 6.96% at $175.35 that day. The timing makes competitive concern a plausible contributor, but it does not prove causation. Amazon can pressure traditional carriers by combining lower prices with real-time tracking and existing customer relationships, potentially slowing FedEx Freight’s shipment recovery or limiting future price increases.

First standalone outlookJune results showed stronger pricing but weaker shipments, while management forecast only modest near-term profit improvement.

On June 25, FedEx Freight reported fourth-quarter revenue of $2.4 billion, up 4.8%, while shipments fell 5.9% and adjusted operating income declined 23.9%. Management forecast 4% to 6% revenue growth and adjusted operating income of $605 million to $645 million for the seven-month transition period. FDXF closed down 1.2% that day and another 2.9% the next session on elevated volume. The timing suggests caution about recovery and costs, though it does not establish that the outlook alone caused the decline.

Revenue

2024

2025

2026

Net income

2024

2025

2026

Free cash flow

2024

2025

2026

Total cash / debt

CashTotal debt

2023

2024

2025

2026

Financial statements

	2026	2025	2024
Revenue	$8.79B	$8.89B	$9.42B
Operating income	$540.0M	$1.40B	$1.75B
EBITDAderived	$1.05B	$1.88B	$2.21B
Net income	$655.0M	$1.35B	$1.57B
Basic EPSper diluted share	$4.38	$9.00	$10.53
Diluted EPSper diluted share	$4.38	$9.00	$10.53

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)0$0.00 disclosed value

No insider transactions transactions were reported in the stored SEC coverage.

Review ownership filings at SEC.gov ↗

FedEx Freight Holding Company, Inc. (FDXF)

Financial charts

Financial statements

Insider buys & sells