FedEx Freight Reports Solid Financial Results for the Four-Month Transition Period Ended September 30, 2026

Higher revenue and adjusted operating income contrasted with lower reported profit and a reduced transition-period operating income forecast.

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MEMPHIS, Tenn.--(BUSINESS WIRE)-- FedEx Freight (NYSE: FDXF) today reported financial results for the four-month transition period ended September 30, 2026.

“Our first four months as a standalone company reflect solid execution across the organization and meaningful progress against the clear strategic priorities we outlined earlier this year,” said John Smith, president and chief executive officer, FedEx Freight. “While we are in the early stages of our journey as an independent company, we are encouraged by the momentum we are seeing across our operational, commercial, and technology initiatives. Guided by a clear and consistent strategy, we remain confident in the opportunities ahead and our ability to continue strengthening the business for long-term success.”

Transition to Calendar Year Reporting

This reporting period represents a one-time four-month transition period as the company moves toward a calendar-year reporting cycle. Results include the month of June and the three months ended September 30, 2026. To support year-over-year comparability, FedEx Freight has published calendarized historical results in an accompanying Form 8-K and Stat Book that can be found at ir.fedexfreight.com, providing a consistent quarterly view for year-to-date 2026.

Four Months Ended September 30, 2026 Highlights Compared to Prior Year

• Revenue of $3.3 billion, a 9.2% increase
• Operating income of $383 million, a 6.1% decrease; adjusted operating income of $510 million, a 16.4% increase
• Operating margin of 11.7%, a 190 bps decrease; adjusted operating margin of 15.5%, a 90 bps increase
• Diluted EPS of $1.54, a 43% decrease; adjusted diluted EPS of $2.15, a 24.6% decrease
• Average daily shipments of 88.9 thousand, a 1.4% decrease
• Revenue per shipment of $413.00, a 10.1% increase; revenue per shipment excluding fuel of $318.23, a 1.6% increase
• Revenue per hundredweight of $44.03, an 8.6% increase; revenue per hundredweight excluding fuel of $33.93, a 0.3% increase
• Tonnage per day of 41.7 thousand tons, flat

Four Months Ended September 30, 2026 Financial Summary

FedEx Freight revenue increased 9.2% year-over-year for the four months ended September 30, 2026. The increase was primarily driven by the favorable impact of fuel surcharge revenue, higher weight per shipment, an additional operating day, and an increase in base revenue per hundredweight. These factors were partially offset by softer volumes.

FedEx Freight adjusted operating income increased 16.4% year-over-year for the four months ended September 30, 2026. The increase was primarily driven by higher revenue, partially offset by performance-based compensation and merit-related expenses, Transition Service Agreement (TSA) costs as a result of the spin-off, and planned higher costs to operate the standalone business, primarily related to information technology.

“The operational, commercial, and technology progress we achieved during the period is beginning to translate into tangible financial results,” said Marshall Witt, chief financial officer, FedEx Freight. “Underlying performance was largely in line with our expectations as our initiatives are strengthening the foundation for improved growth and profitability. We have updated our transition period outlook to reflect fuel tailwinds and slightly higher volume assumptions, and we remain confident in the base business as we approach 2027.”

Capital Allocation Priorities

FedEx Freight maintains a disciplined approach to capital allocation, prioritizing an investment-grade balance sheet, steady investment in the business, and returning capital to shareholders. As of September 30, 2026, FedEx Freight had $388 million of cash and cash equivalents and total liquidity of $1.6 billion, supporting financial flexibility to execute its strategic priorities. During the period, the company repaid $100 million of outstanding debt ahead of schedule with cash generated from operations.

Capital expenditures for the four months ended September 30, 2026 were $151 million, and the company expects aggregate capital expenditures for the Transition Period (June 1 through December 31, 2026) to total approximately $365 million. Capital expenditures will be focused on investments in equipment, technology, and facilities that support safety, service, and operational efficiency.

The company remains committed to returning capital to shareholders and is on track to announce its dividend and share repurchase plan for calendar year 2027, subject to board approval.

Outlook

FedEx Freight is unable to forecast the mark-to-market (MTM) retirement plan accounting adjustments for the Transition Period. As a result, FedEx Freight is unable to provide a Transition Period earnings per share (EPS) or effective tax rate (ETR) outlook on a GAAP basis and is relying on the exemption provided by the Securities and Exchange Commission (SEC). It is reasonably possible that the Transition Period MTM retirement plan accounting adjustments could have a material effect on the Transition Period consolidated financial results and ETR.

For the Transition Period, FedEx Freight is now forecasting:

• Revenue of $5.58 billion to $5.65 billion, which is above the original guidance of a 4% to 6% revenue growth rate;
• Operating income of $465 million to $485 million, compared to the prior forecast of $475 million to $515 million;
• Adjusted operating income of $695 million to $715 million, compared to the prior forecast of $605 million to $645 million;
• Operating margin of 8.3% to 8.6%, compared to the prior forecast of 9.0% to 9.5%;
• Adjusted operating margin of 12.5% to 12.7%, compared to the prior forecast of 11.5% to 12.0%;
• Interest expense of approximately $130 million, compared to the prior forecast of approximately $135 million;
• An ETR of approximately 27% before the MTM retirement plan accounting adjustments, compared to the prior forecast of 26%;
• Diluted EPS of $1.69 to $1.79 before the MTM retirement plan accounting adjustments, and $2.80 to $2.90 after also excluding costs related to the spin-off, compared to the prior forecasts of $1.75 to $1.95 and $2.40 to $2.60, respectively; and
• Outstanding diluted share count of 149.9 million, compared to the prior forecast of 149.5 million.

FedEx Freight is also introducing guidance for the three months ending December 31, 2026:

• Revenue of $2.30 billion to $2.37 billion, compared to $2.07 billion for the three months ended December 31, 2025;
• Operating income (loss) of $80 million to $100 million, compared to ($14) million for the three months ended December 31, 2025;
• Adjusted operating income of $185 million to $205 million, compared to $162 million for the three months ended December 31, 2025;
• Operating margin of 3.5% to 4.2%, compared to (0.7%) for the three months ended December 31, 2025;
• Adjusted operating margin of 8.0% to 8.6%, compared to 7.8% for the three months ended December 31, 2025;
• Interest expense of approximately $55 million;
• An ETR of approximately 27% before the MTM retirement plan accounting adjustments, compared to 25.2% for the three months ended December 31, 2025;
• Diluted EPS of $0.15 to $0.25 before the MTM retirement plan accounting adjustments, and $0.65 to $0.75 after also excluding costs related to the spin-off, compared to $0.39 and $1.27, respectively, for the three months ended December 31, 2025; and
• Outstanding diluted share count of 150.0 million.

These forecasts assume the company’s current economic outlook and fuel price expectations, and no additional economic, geopolitical, or international trade-related developments. FedEx Freight’s EPS and ETR forecasts are based on current law and related regulations and guidance.

Corporate Overview

FedEx Freight is North America’s largest less-than-truckload (LTL) carrier, delivering industry-leading published transit times, service levels, and reliability. FedEx Freight’s service offerings — including Priority, Economy, and Direct — allow customers to balance speed and cost to meet their unique needs. FedEx Custom Critical, a subsidiary, provides expedited, time- and temperature-specific freight solutions, including Surface Expedite and White Glove Services, available 24/7/365. With nearly 30,000 vehicles, of which nearly 17,000 are tractors, and 40,000 dedicated team members to support our network of over 365 locations, we ensure freight arrives safely, securely, and on time across all 50 U.S. states, Canada, Mexico, Puerto Rico, and the U.S. Virgin Islands. FedEx Freight leverages operational efficiency, data-driven technology, and a focused sales organization to provide outstanding service. To learn more, visit www.fedexfreight.com.

Additional information and operating data are contained in the company’s filings with the SEC. These materials, as well as a webcast of the earnings release conference call to be held at 4:00 p.m. CDT on October 29, are available on the company’s website at ir.fedexfreight.com. A replay of the conference call webcast will be posted on our website following the call.

The Investor Relations page of our website, ir.fedexfreight.com, contains a significant amount of information about FedEx Freight, including our SEC filings and financial and other information for investors. The information that we post on our Investor Relations website could be deemed to be material information. We encourage investors, the media, and others interested in the company to visit this website from time to time, as information is updated and new information is posted.

Certain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act, such as statements regarding future financial targets, business strategies, management’s views with respect to future events and financial performance, and the assumptions underlying such targets, strategies, and statements. Forward-looking statements include those preceded by, followed by, or that include the words “will,” “may,” “could,” “would,” “should,” “believes,” “expects,” “forecasts,” “anticipates,” “plans,” “estimates,” “targets,” “projects,” “intends,” or similar expressions. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to: economic conditions in the markets in which FedEx Freight operates; significant changes in the volumes of shipments transported through FedEx Freight’s network, customer demand for FedEx Freight’s various services, and the prices it obtains for its services; geopolitical developments and additional changes in international trade policies and relations; the price and availability of fuel and limitations on FedEx Freight's ability to recover fuel costs through surcharges; failure to successfully implement FedEx Freight’s business strategy and effectively respond to changes in market dynamics and customer preferences; FedEx Freight’s ability to achieve some or all of the anticipated benefits from its spin-off from FedEx Corporation (the “Spin-Off”); the consequences of FedEx Freight no longer operating as part of a globally diversified company; dis-synergies and other costs incurred in connection with the Spin-Off exceeding FedEx Freight’s estimates; the distribution of shares of FedEx Freight, together with certain related transactions, not qualifying for the intended tax treatment; a significant data breach or other disruption to FedEx Freight’s technology infrastructure, and its ability to mitigate the technological, operational, legal, regulatory, and reputational risks related to emerging technologies such as autonomous technology and artificial intelligence (“AI”); increased insurance and claims expenses related to vehicle accidents, workers’ compensation claims, property and cargo loss, general business liabilities, and benefits paid under employee disability programs; failure to receive or collect expected insurance coverage; the effect of any international conflicts or terrorist activities; failure of third-party service providers to perform as expected, or disruptions in FedEx Freight’s relationships with those providers or their provision of services to FedEx Freight; widespread outbreak of an illness or any other communicable disease or public health crisis; damage to FedEx Freight’s or FedEx Corporation’s reputation or loss of brand equity; the intense competition within FedEx Freight’s industry; FedEx Freight’s ability to maintain good relationships with its employees and avoid attempts by labor organizations to organize groups of its employees; any effects on FedEx Freight’s businesses resulting from evolving or new U.S. domestic or international government regulations, laws, policies, and actions; any liability resulting from and the costs of defending against litigation and governmental proceedings; the sufficiency of insurance coverage FedEx Freight purchases; the effect of technology developments (including AI and machine learning) on FedEx Freight’s operations and on demand for its services, and FedEx Freight’s ability to identify and eliminate unnecessary information technology redundancy and complexity throughout the organization, including exiting the transition service agreements with FedEx Corporation in the expected timeframe and at the expected cost; disruptions in global supply chains; constraints, volatility, or disruption in the global capital and credit markets; FedEx Freight’s ability to maintain its current credit ratings and senior unsecured debt credit ratings, and its ability to meet credit agreement financial covenants; and other factors which can be found in FedEx Freight’s press releases and filings with the Securities and Exchange Commission, including FedEx Freight's Annual Report on Form 10-K that was filed with the SEC on August 5, 2026 and subsequent quarterly reports on Form 10-Q. Any forward-looking statement speaks only as of the date on which it is made. Neither FedEx Freight nor anyone else undertakes or assumes any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.​

Non-GAAP Financial Measures

FedEx Freight reports its results in accordance with accounting principles generally accepted in the United States (GAAP). FedEx Freight has supplemented these GAAP results and its outlook with certain non-GAAP (adjusted) financial measures, including adjusted operating income, adjusted operating margin, adjusted diluted earnings per share, revenue per shipment excluding fuel surcharges, and revenue per hundredweight excluding fuel surcharges.

Management uses these non-GAAP measures in making financial, operating, and planning decisions and evaluating the company’s ongoing performance. These non-GAAP financial measures are intended to supplement, and should be read together with, FedEx Freight’s GAAP results. These supplemental non-GAAP financial measures should not be considered a substitute for, or superior to, the most directly comparable GAAP measures. Accordingly, users of our financial statements should not place undue reliance on these non-GAAP financial measures. Because non-GAAP measures are not standardized, they may not be comparable to similarly titled measures presented by other companies. As required by SEC rules, reconciliations of the supplemental non-GAAP financial measures to the most directly comparable GAAP measures are presented below.

Financial Results for Periods Ended September 30, 2026 and 2025

FedEx Freight's three and four months ended September 30, 2026 and 2025 adjusted operating income, adjusted operating margin, and adjusted diluted earnings per share are non-GAAP financial measures because they exclude the effects of costs related to the Spin-Off, which primarily consist of professional fees and other separation-related costs and which management believes are not indicative of the company’s core operating performance. Management believes these non-GAAP financial measures facilitate period-to-period comparisons and provide useful information to investors by excluding items that are not reflective of the company’s underlying operating performance.

Three Months Ended	Operating						Income Taxes1			Net Income2			Diluted Earnings Per Share
September 30, 2026
Dollars in millions, except EPS	Income			Margin
GAAP measure	$	253		10.4	%		$	57		$	147		$	0.98
Spin-off costs		105		4.3				29			76			0.51
Non-GAAP measure	$	358		14.7	%		$	86		$	223		$	1.49

Four Months Ended	Operating						Income Taxes1			Net Income2			Diluted Earnings Per Share
September 30, 2026
Dollars in millions, except EPS	Income			Margin
GAAP measure	$	383		11.7	%		$	88		$	230		$	1.54
Spin-off costs		127		3.9				35			92			0.62
Non-GAAP measure	$	510		15.5	%		$	123		$	322		$	2.15

Three Months Ended	Operating						Income Taxes1			Net Income2			Diluted Earnings Per Share
September 30, 2025
Dollars in millions, except EPS	Income			Margin
GAAP measure	$	290		12.8	%		$	100		$	291		$	1.95
Spin-off costs		30		1.3				8			22			0.15
Non-GAAP measure	$	320		14.2	%		$	108		$	313		$	2.10

Four Months Ended	Operating						Income Taxes1			Net Income2			Diluted Earnings Per Share
September 30, 2025
Dollars in millions, except EPS	Income			Margin
GAAP measure	$	408		13.6	%		$	137		$	404		$	2.70
Spin-off costs		30		1.0				8			22			0.15
Non-GAAP measure	$	438		14.6	%		$	145		$	426		$	2.85

Note: tables may not sum to totals due to rounding

Yield Results for Periods Ended September 30, 2026 and 2025

FedEx Freight's three and four months ended September 30, 2026 and 2025 revenue per shipment excluding fuel surcharges and revenue per hundredweight excluding fuel surcharges are non-GAAP financial measures because they exclude fuel surcharge revenue, which is largely driven by fluctuations in fuel prices and may obscure underlying pricing trends. Management believes these supplemental measures provide investors with useful information regarding underlying yield performance and facilitate meaningful comparisons of pricing trends between periods by removing the impact of fluctuations in fuel surcharge revenue.

Revenue per Shipment Results	Three Months Ended						Four Months Ended
	September 30, 2026			September 30, 2025			September 30, 2026			September 30, 2025
Priority revenue per shipment (GAAP)	$	393.28		$	361.80		$	393.06		$	360.16
Fuel		92.07			60.37			91.42			59.41
Priority revenue per shipment, excluding fuel surcharges (non-GAAP)	$	301.21		$	301.43		$	301.64		$	300.75
Economy revenue per shipment (GAAP)	$	455.58		$	408.09		$	458.98		$	408.30
Fuel		102.70			68.40			102.48			67.58
Economy revenue per shipment, excluding fuel surcharges (non-GAAP)	$	352.88		$	339.69		$	356.50		$	340.72
Composite revenue per shipment (GAAP)	$	412.05		$	376.23		$	413.00		$	375.13
Fuel		95.27			62.88			94.77			61.95
Composite revenue per shipment, excluding fuel surcharges (non-GAAP)	$	316.78		$	313.35		$	318.23		$	313.18

Revenue per Hundredweight Results	Three Months Ended						Four Months Ended
	September 30, 2026			September 30, 2025			September 30, 2026			September 30, 2025
Priority revenue per hundredweight (GAAP)	$	42.82		$	38.85		$	42.54		$	38.62
Fuel		10.03			6.48			9.89			6.37
Priority revenue per hundredweight, excluding fuel surcharges (non-GAAP)	$	32.79		$	32.37		$	32.65		$	32.25
Economy revenue per hundredweight (GAAP)	$	47.26		$	44.66		$	47.30		$	44.85
Fuel		10.65			7.48			10.56			7.43
Economy revenue per hundredweight, excluding fuel surcharges (non-GAAP)	$	36.61		$	37.18		$	36.74		$	37.42
Composite revenue per hundredweight (GAAP)	$	44.20		$	40.64		$	44.03		$	40.53
Fuel		10.22			6.80			10.10			6.70
Composite revenue per hundredweight, excluding fuel surcharges (non-GAAP)	$	33.98		$	33.84		$	33.93		$	33.83

Note: tables may not sum to totals due to rounding

Three and Seven Months Ending December 31, 2026 Forecasts and Comparative Periods

FedEx Freight's three and seven months ending December 31, 2026 adjusted operating income, adjusted operating margin, adjusted EPS, and ETR forecasts are non-GAAP financial measures because they exclude, as applicable, the effects of MTM retirement plan accounting adjustments and estimated costs related to the Spin-Off. The tables below present the 2026 operating income and operating margin forecasts compared with the corresponding prior-year results for the three and seven months ended December 31, 2025.

Three Months Ending December 31, 2026 Outlook and Three Months Ended December 31, 2025
	Three Months Ending					Three Months Ended
	December 31, 2026					December 31, 2025
Dollars in millions	Operating Income			Operating Margin		Operating Income				Operating Margin
GAAP measure	$	80 to 100		3.5% to 4.2%		$	(14	)		(0.7	)%
Spin-off costs		105		4.6% to 4.4%			176			8.5	%
Non-GAAP measure	$	185 to 205		8.0% to 8.6%		$	162			7.8	%

Seven Months Ending December 31, 2026 Outlook and Seven Months Ended December 31, 2025
	Seven Months Ending						Seven Months Ended
	December 31, 2026						December 31, 2025
Dollars in millions	Operating Income			Operating Margin			Operating Income			Operating Margin
GAAP measure	$	465 to 485		8.3% to 8.6%			$	394		7.8	%
Spin-off costs		230		4.1%				206		4.1	%
Non-GAAP measure	$	695 to 715		12.5% to 12.7%			$	600		11.8	%

The company is unable to predict the amount of MTM retirement plan accounting adjustments for the three and seven months ending December 31, 2026, as such adjustments are significantly affected by changes in interest rates and financial market conditions. Accordingly, these adjustments are not included in the company’s three and seven months ending December 31, 2026 EPS and ETR forecasts, and a reconciliation of these forecasts to the most directly comparable GAAP measures is impracticable. It is reasonably possible that MTM retirement plan accounting adjustments could have a material effect on the company’s three and seven months ending December 31, 2026 financial results and ETR.

Note: tables may not sum to totals due to rounding

The three and seven months ending December 31, 2026 adjusted EPS forecasts below outline the estimated effects of the items excluded from the company’s forecast, other than MTM retirement plan accounting adjustments.

Three Months Ending	Adjustments				Diluted Earnings Per Share
December 31, 2026
Dollars in millions, except EPS
Diluted earnings per share before MTM retirement plan accounting adjustments (non-GAAP)3					$	0.15 to 0.25
Spin-off costs	$	105
Income tax effect1		(29	)
Net of tax effect	$	76				0.50
Diluted earnings per share with adjustments (non-GAAP)3					$	0.65 to 0.75

Seven Months Ending	Adjustments				Diluted Earnings Per Share
December 31, 2026
Dollars in millions, except EPS
Diluted earnings per share before MTM retirement plan accounting adjustments (non-GAAP)3					$	1.69 to 1.79
Spin-off costs	$	230
Income tax effect1		(63	)
Net of tax effect	$	167				1.11
Diluted earnings per share with adjustments (non-GAAP)3					$	2.80 to 2.90

Note: tables may not sum to totals due to rounding

________________________

1	Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.
2	Effect of “total other (expense) income” on net income amount not shown.
3	The MTM retirement plan accounting adjustments, which are impracticable to calculate at this time, are excluded.

FEDEX FREIGHT HOLDING COMPANY, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In millions, except earnings per share) (Unaudited)
	One Month Ended							Three Months Ended							Four Months Ended
	June 30, 2026				June 30, 2025			September 30, 2026				September 30, 2025			September 30, 2026				September 30, 2025
Revenue	$	839			$	745		$	2,442			$	2,259		$	3,281			$	3,004
Operating expenses:																			​
Salaries and employee benefits		378				349			1,128				1,084			1,506				1,433
Operating supplies and expenses		176				150			546				471			722				621
Purchased transportation		74				65			235				200			309				265
Depreciation and amortization		38				43			114				125			152				168
Insurance and claims		15				14			44				42			59				56
Operating taxes and licenses		6				6			17				17			23				23
Separation and other costs		22				—			105				30			127				30
Total operating expenses		709				627			2,189				1,969			2,898				2,596
Operating income		130				118			253				290			383				408
Other income (expense):
Related party interest income		—				30			—				98			—				128
Interest expense		(18	)			—			(55	)			—			(73	)			—
Interest income		—				—			5				—			5				—
Other, net		2				2			1				3			3				5
Total other income (expense)		(16	)			32			(49	)			101			(65	)			133
Income before income taxes		114				150			204				391			318				541
Provision for income taxes		31				37			57				100			88				137
Net income	$	83			$	113		$	147			$	291		$	230			$	404
Earnings per share:
Basic	$	0.56			$	0.76		$	0.98			$	1.95		$	1.54			$	2.70
Diluted	$	0.56			$	0.76		$	0.98			$	1.95		$	1.54			$	2.70
Weighted-average shares outstanding:
Basic		149.5				149.5			149.5				149.5			149.5				149.5
Diluted		149.9				149.5			149.9				149.5			149.9				149.5

FEDEX FREIGHT HOLDING COMPANY, INC. OPERATING STATISTICS (Unaudited)
	Three Months Ended						Percent Change			Four Months Ended						Percent Change
	September 30, 2026			September 30, 2025						September 30, 2026			September 30, 2025
Operating Statistics
Operating days		64			64						86			85
Total shipments		5,702,719			5,741,922		(1	)%			7,643,623			7,658,866		—	%
Total tonnage		2,658,119			2,658,064		—				3,584,767			3,544,693		1
Tonnage per day		41,533			41,532		—				41,683			41,702		—
Average daily shipments:				​						​			​
Priority		62,247			61,763		1				62,000			62,086		—
Economy		26,858			27,954		(4	)			26,879			28,018		(4	)
Total average daily shipments		89,105			89,717		(1	)			88,879			90,104		(1	)
Weight per shipment (pounds):	​			​						​			​
Priority		919			931		(1	)			924			933		(1	)
Economy		964			914		5				970			910		7
Composite weight per shipment		932			926		1				938			926		1
Average length of haul (miles):
Priority		911			920		(1	)			914			920		(1	)
Economy		1,170			1,161		1				1,172			1,162		1
Composite average length of haul		991			994		—				994			994		—
Yield Statistics
Revenue per shipment (GAAP):				​						​			​
Priority	$	393.28		$	361.80		9			$	393.06		$	360.16		9
Economy		455.58			408.09		12				458.98			408.30		12
Composite revenue per shipment (GAAP)	$	412.05		$	376.23		10			$	413.00		$	375.13		10
Revenue per shipment, excluding fuel surcharges (non-GAAP):				​						​			​
Priority	$	301.21		$	301.43		—			$	301.64		$	300.75		—
Economy		352.88			339.69		4				356.50			340.72		5
Composite revenue per shipment, excluding fuel surcharges (non-GAAP)	$	316.78		$	313.35		1			$	318.23		$	313.18		2
Revenue per hundredweight (GAAP):	​			​						​			​
Priority	$	42.82		$	38.85		10			$	42.54		$	38.62		10
Economy		47.26			44.66		6				47.30			44.85		5
Composite revenue per hundredweight (GAAP)	$	44.20		$	40.64		9			$	44.03		$	40.53		9
Revenue per hundredweight, excluding fuel surcharges (non-GAAP):
Priority	$	32.79		$	32.37		1			$	32.65		$	32.25		1
Economy		36.61			37.18		(2	)			36.74			37.42		(2	)
Composite revenue per hundredweight, excluding fuel surcharges (non-GAAP)	$	33.98		$	33.84		—	%		$	33.93		$	33.83		—	%

FEDEX FREIGHT HOLDING COMPANY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except share data)
	September 30, 2026 (Unaudited)				May 31, 2026
ASSETS
Current assets
Cash	$	388			$	251
Receivables, less allowances of $196 and $204		1,262				1,154
Due from Parent		—				18
Prepaid expenses and other		196				83
Total current assets		1,846				1,506
Property and equipment
Property and equipment, at cost		6,671				6,670
Less accumulated depreciation and amortization		3,764				3,747
Net property and equipment		2,907				2,923
Other long-term assets
Operating lease right-of-use assets, net		1,822				1,824
Goodwill		602				602
Other assets		39				29
Total other long-term assets		2,463				2,455
TOTAL ASSETS	$	7,216			$	6,884
LIABILITIES AND (DEFICIT) EQUITY
Current liabilities
Current portion of long-term debt	$	45			$	43
Accrued salaries and employee benefits		305				389
Accounts payable		210				106
Operating lease liabilities		162				172
Accrued expenses		414				283
Total current liabilities		1,136				993
Long-term liabilities
Long-term debt, less current portion		4,376				4,484
Deferred income taxes		209				220
Self-insurance accruals		43				13
Operating lease liabilities		1,679				1,666
Other liabilities		25				5
Total long-term liabilities		6,332				6,388
Commitments and contingencies
(Deficit) equity
Common stock, $0.10 par value; 500 million shares authorized; 150 million shares issued and outstanding as of September 30, 2026 and 150 million shares authorized, issued, and outstanding as of May 31, 2026		15				15
Additional paid-in capital		19				—
Accumulated deficit		(280	)			(509	)
Accumulated other comprehensive loss		(6	)			(3	)
Total (deficit) equity		(252	)			(497	)
TOTAL LIABILITIES AND (DEFICIT) EQUITY	$	7,216			$	6,884

FEDEX FREIGHT HOLDING COMPANY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited)
	Four Months Ended
	September 30, 2026				September 30, 2025
OPERATING ACTIVITIES
Net income	$	230			$	404
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization		152				148
Provision for uncollectible accounts		39				8
Other noncash items including leases and deferred income taxes		84				33
Stock-based compensation		16				5
Separation and other costs, net of payments		(11	)			6
Changes in assets and liabilities:
Receivables		(149	)			(18	)
Other current assets		(84	)			(30	)
Accounts payable and other liabilities		90				(94	)
Due from Parent, net		18				624
Other, net		5				(1	)
Cash provided by operating activities		390				1,085
INVESTING ACTIVITIES
Capital expenditures		(151	)			(55	)
Proceeds from asset dispositions and other		13				5
Cash used in investing activities		(138	)			(50	)
FINANCING ACTIVITIES
Principal payments on debt		(115	)			(1	)
Proceeds from stock issuances		1				—
Net transfers to Parent		—				(1,059	)
Cash used in financing activities		(114	)			(1,060	)
Effect of exchange rate changes on cash		(1	)			1
Net increase (decrease) in cash		137				(24	)
Cash at beginning of period		251				109
Cash at end of period	$	388			$	85

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261029580367/en/

Media Contact:
Kelly Crow
media@fedexfreight.com

Investor Relations Contact:
Marianna Rose
ir@fedexfreight.com

Source: FedEx Freight

Key Terms

gaap financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

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non-gaap financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

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