FedEx Freight Sees Q4 Operating Income Down 66.9%, Forecasts up to 6% Revenue Growth
FDXF•FedEx Freight, now independent since its June 1 spin-off, saw Q4 operating income plummet 66.9% to $158 million on separation costs, lower volumes and wage hikes while revenue climbed 4.8% to $2.4 billion. It projects 4%–6% revenue growth and $605–645 million adjusted operating income through Dec. 31, 2026.
1. Q4 Financial Results
FedEx Freight reported Q4 operating income of $158 million, down 66.9% year-over-year due to separation charges, lower shipment volumes and higher labor costs. Quarterly revenue rose 4.8% to $2.4 billion as revenue per shipment increased 11.5% despite a 5.9% decline in average daily shipments.
2. 2026 Growth Outlook
The company forecast 4%–6% revenue growth and $475–515 million operating income for the seven-month transition period ending Dec. 31, 2026. Excluding spin-off costs, adjusted operating income is expected at $605–645 million with adjusted EPS of $2.40–$2.60.
3. Strategic and Reporting Changes
FedEx Freight completed its spin-off on June 1 and will shift its fiscal year-end from May 31 to Dec. 31 beginning 2026. Leadership cites network scale, cost discipline and cash-flow generation as key drivers for profitable growth and service differentiation.
