FedEx Freight Spinoff Debuts on NYSE; Shares Slip 2.9% in Early Trading

FedEx Freight, the largest U.S. less-than-truckload carrier, began trading on the New York Stock Exchange on Monday under ticker FDXF after its spinoff from FedEx Corp. The move allows a sharper commercial focus and aims to unlock shareholder value. Shares fell 2.9% to $155.75 in early trading. FedEx Corp. distributed 80.1% of the freight unit to its shareholders of record on May 15, with one FDXF share for every two FDX shares held. FedEx retains a 19.9% stake it plans to divest within two years. FDX shares rose 0.8%. FDXF replaced American Airlines in the Dow Jones Transportation Average and was added to the S&P 500. The company forecast revenue growth of 4%-6% annually and adjusted operating income growth of 10%-12% from fiscal 2026 baselines of $8.7 billion and $1.1 billion, respectively. It sees a 15% operating margin, up from roughly 12%, driven by higher yields, cost reductions, and a focus on small- and mid-sized shipper accounts. Capex is pegged at 5% of revenue, with over $1 billion in annual free cash flow.