FedEx to Spin Off Freight Division Into Independent Public Company

The logistics giant plans to separate its less-than-truckload business to unlock shareholder value and sharpen its focus on core operations.

FedEx has announced it will spin off its FedEx Freight division into a standalone publicly traded company within the next 18 months.
The separation is intended to unlock significant shareholder value, with analysts estimating the freight business could be valued between $30 billion and $35 billion.
FedEx Freight, the largest less-than-truckload carrier in the U.S., reported $9.4 billion in revenue for fiscal 2024 but faced declining volumes and profitability this year.
The move will allow FedEx to focus on its core parcel delivery operations while enabling the freight division to expand its sales force and implement a tailored pricing system.
FedEx also lowered its fiscal 2025 outlook, citing weak demand in the freight and industrial shipping markets, but reported better-than-expected earnings for its second quarter.