FedEx Freight Holding Company, Inc. (FDXF)

Price$114.96Cached quoteAs of 2026-09-24 18:36 UTC

AI: Fair-priced

Price checkThe market price implies meaningful recovery, but not flawless execution, after the post-spin selloff.

FedEx Freight Holding Company, Inc. trades on the NYSE as FDXF. Based on the last completed market close, the equity value is about $18.7 billion. Against audited FY26 diluted earnings, that is roughly 28.5 times trailing earnings. That multiple assumes profits recover from a weak freight cycle and separation costs fade. Because the company also began life as an independent business with substantial new debt, the valuation does not yet offer an obvious margin of safety.

Big pictureCash generation can improve sharply, but the market already discounts a meaningful recovery.

FY26 operating cash flow was $167 million while capital spending was $379 million, making headline free cash flow negative. Free cash flow means operating cash left after capital spending. The result was unusually weak because FedEx Freight reacquired about $1 billion of trade receivables, which absorbed working capital. Management targets more than $1 billion of medium-term free cash flow and over 90% conversion from net income; at the current equity value, that target would imply under 19 times cash flow.

Business strengthIndustry-leading scale supports pricing, while leverage makes execution and cash discipline more important.

FedEx Freight is the largest North American less-than-truckload carrier, with roughly 90,000 average daily shipments. FY26 revenue fell 1% and shipments fell 4%, but revenue per shipment rose 4%, showing pricing discipline. Cash was $251 million against about $4.3 billion of unsecured debt, yet a $1.2 billion revolving credit line was undrawn and major unsecured principal maturities do not begin until 2029. Liquidity looks adequate, but leverage raises sensitivity to a prolonged freight downturn.

What could change the storyUpside needs target growth and cash delivery; downside comes from weak freight and balance-sheet pressure.

Bull case: revenue grows 4–6% annually, adjusted operating income grows 10–12%, free cash flow exceeds $1 billion, and debt falls. Bear case: shipments remain around FY26's 4% decline, margins fail to improve, and interest plus capital spending keep cash flow below target. Capital allocation is still unsettled: no regular dividend is promised, equity awards can create dilution, meaning more shares reduce each holder's ownership percentage, and FedEx's retained 19.9% stake must generally be disposed of within 24 months, creating a stock-supply overhang.

AI: News

Commercial executive terminatedFedEx Freight terminated a senior commercial executive after an internal Code of Conduct investigation.

On September 2, FedEx Freight terminated Michael B. Lyons, executive vice president for specialized services and commercial, after an internal investigation found a Code of Conduct violation. The company said the conduct did not affect financial reporting, performance, internal controls, strategy, or customer relationships. His responsibilities are being reassigned across the leadership team while the company searches for a replacement, creating some near-term leadership continuity risk.

Calendar-year results recastThe company recast historical results to match its new calendar-year reporting structure.

On August 6, FedEx Freight furnished unaudited calendar-year 2024 and 2025 financial results after changing its fiscal year-end from May 31 to December 31. The company also regrouped several operating expense lines, but said the presentation changes did not alter previously reported total revenue, operating expenses, operating income, net income, or earnings per share. The recast should make future standalone comparisons easier, though historical periods still reflect pre-spin conditions.

FY26 results and guidanceFY26 showed weaker volumes and margins, while management introduced standalone transition-period guidance.

On June 25, FedEx Freight reported FY26 segment revenue down 1.1% and adjusted operating income down 25.6%, with average daily shipments under pressure from weak freight demand. Management nevertheless highlighted pricing and introduced guidance for the seven months ending December 2026, while continuing to exclude unpredictable retirement-plan mark-to-market adjustments from its earnings outlook. The release reinforced that recovery depends on volume, cost control, and separation execution.

Spin-off completedFedEx Freight completed its separation from FedEx and began independent NYSE trading.

On June 1, FedEx completed the spin-off of FedEx Freight, which became an independent public company listed on the New York Stock Exchange under FDXF. Before separation, FedEx Freight paid its former parent about $4.1 billion, funded mainly with newly issued notes and a term loan. FedEx retained 19.9% of the shares and generally must dispose of that stake within 24 months, leaving a meaningful stock-supply overhang.

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Revenue

2023

2024

2025

2026

Net income

2023

2024

2025

2026

Free cash flow

2023

2024

2025

2026

Total cash / debt

CashTotal debt

2024

2025

2026

Financial statements

	2026	2025	2024	2023
Revenue	$8.79B	$8.89B	$9.42B	$10.08B
Operating expenses	$8.26B	$7.49B	$7.67B	$1.74B
Operating income	$540.0M	$1.40B	$1.75B	$1.89B
Operating margin	6.14%	15.79%	18.60%	18.78%
EBITDA	$1.05B	$1.88B	$2.21B	$2.28B
EBITDA margin	11.96%	21.09%	23.43%	22.62%
Net income	$655.0M	$1.35B	$1.57B	$1.58B
Net profit margin	7.45%	15.14%	16.70%	15.68%
Basic EPSper basic share	$4.38	$9.00	$10.53	$10.57
Diluted EPSper diluted share	$4.38	$9.00	$10.53	$10.57

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Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 12 reported holders of FDXF
Holder	Shares held
FEDEX CORP	29.75M
Smith Samantha M	285.98K
MARTIN R BRAD	45.44K
Smith John Alan	16.52K
King Robert A	8.19K
Klank Clement E III	5.03K
GORMAN STEPHEN E	2.65K
McCoy Clinton D	1.77K
Erwin Guy M II	1.74K
Witt Marshall	986
Lyons Michael B	580
Rodgers Michael	497

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

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 ↗

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FedEx Freight Holding Company, Inc. (FDXF)

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