FedEx Freight Holding Company, Inc. (FDXF)

FedEx Freight, headquartered in Memphis, Tennessee, is the largest North American less-than-truckload (LTL) freight carrier, recently spun off from FedEx Corporation on June 1, 2026, with FedEx distributing 80.1% of shares to shareholders and the company now trading as "FDXF" on the NYSE. As of June 1, 2026, the company employed approximately 40,000 people across over 365 locations (including roughly 355 shipping terminals and 10 linehaul relay sites) and operated nearly 30,000 motorized vehicles, including about 17,000 tractors, spanning all 50 U.S. states, Canada, Mexico, Puerto Rico, and the U.S. Virgin Islands, supported by a network of more than 26,000 service center doors covering 98% of U.S. ZIP codes. The company's core offering consists of two complementary LTL services: FedEx Freight Priority, a premium time-definite service with industry-leading transit times and a money-back guarantee, and FedEx Freight Economy, a value-oriented service for flexible shipping needs without a service guarantee; additional offerings include FedEx Custom Critical for expedited freight, Volume Services for non-urgent bulk shipments, FedEx Freight Direct for residential/commercial delivery, and Retail Flex for large retailers.

The company serves approximately 108,000 active customers across diverse industries and geographies, with its top five customers representing only 9% of revenue and its largest customer just 4%, reflecting a highly diversified customer base spanning e-commerce, healthcare, grocery, manufacturing, and other sectors. FedEx Freight differentiates itself through proprietary technology, including the LTL Select cloud-based transportation management platform, route optimization, load planning, RFID tracking, and AI-driven demand forecasting and risk management tools, alongside a dedicated LTL sales organization built following the spin-off. The company continues to use the "FedEx" and "FedEx Freight" trademarks under a Trademark License Agreement with Federal Express Corporation, and has established an Intellectual Property Cross-License Agreement with FedEx entities for shared patents, know-how, and copyrights.

Competing in a North American LTL market of roughly 10 scaled players, the company faces competition from regional and national LTL carriers, truckload carriers, small package carriers, private fleets, railroads, air freight carriers, third-party logistics providers, and emerging digital freight platforms, but believes its scale, network density, dual-service model, and technology investments position it well to capitalize on trends such as e-commerce growth and increased demand for reliable logistics partners. Notably, the company's fiscal year-end is changing from May 31 to December 31, effective for the period beginning June 1, 2026.