Highlights

  • Revenue for the four-month transition period to 30 September 2026 rose 9.2% to about US$3.28 billion.
  • Adjusted Operating Income for the four months climbed 16.4% to US$510 million, a 15.5% adjusted margin.
  • GAAP Diluted Earnings per Share fell 43% to US$1.54, while adjusted diluted earnings per share reached US$2.15.
  • The company repaid US$100 million of Debt ahead of schedule and held total Liquidity of US$1.6 billion.

In its first results since separating from FedEx Corporation, FedEx Freight Holding Company, Inc. (NYSE:FDXF) has reported higher Revenue and adjusted profit while shifting to calendar-year reporting. On 29 October 2026, the less-than-truckload carrier released figures for a one-time four-month transition period from June through September 2026, alongside three-month numbers for the third quarter of 2026.

Transition-period revenue increased 9.2% from a year earlier to US$3,281 million. GAAP operating income declined 6.1% to US$383 million, an 11.7% margin, while adjusted operating income, a non-GAAP measure, rose 16.4% to US$510 million. Net Income for the four months was US$230 million, or US$1.54 per diluted share, down 43%, and adjusted diluted earnings per share fell 24.6% to US$2.15.

Pricing Gains Offset Softer Shipment Counts

For the three months to 30 September 2026, revenue was US$2,442 million, GAAP operating income was US$253 million and adjusted operating income was US$358 million, a 14.7% adjusted margin. Net income for the quarter reached US$147 million, or US$0.98 per diluted share, and adjusted diluted earnings per share were US$1.49.

Average daily shipments for the four months slipped 1.4% to about 88,900, while tonnage per day held flat at roughly 41,700 tons. Composite revenue per shipment rose 10.1% to US$413.00, or 1.6% excluding fuel. President and Chief Executive Officer John Smith described the first four months as a standalone company as a period of solid execution across the organization.

Balance Sheet and Governance Steps

FedEx Freight ended September with cash of US$388 million, total liquidity of US$1.6 billion and about US$4.4 billion of debt after repaying US$100 million ahead of schedule. Capital Expenditure for the four months totaled US$151 million.

The board has set the company's first annual meeting of stockholders for 5 May 2027. Separately, on 2 September 2026, the company terminated Executive Vice President and Chief Specialized Services and Commercial Officer Michael B. Lyons after an internal investigation found a Code of Conduct violation, stating the matter did not affect financial reporting, controls, strategy or customer relationships.

Guidance to the End of the Transition Period

For the full transition period from 1 June to 31 December 2026, the company expects revenue of US$5.58 billion to US$5.65 billion, GAAP operating income of US$465 million to US$485 million and adjusted operating income of US$695 million to US$715 million. It projects diluted earnings per share of US$2.80 to US$2.90 excluding mark-to-market pension adjustments and spin-off costs, and capital expenditure of about US$365 million.

For the three months ending 31 December 2026, management expects revenue of US$2.30 billion to US$2.37 billion and adjusted operating income of US$185 million to US$205 million. The company plans to announce its 2027 Dividend and share repurchase plan, subject to board approval.