FedEx announced that its board of directors has approved the previously announced separation of its freight business, paving the way for FedEx Freight to begin operating as an independent publicly traded company on June 1, 2026.
The FedEx board declared a pro rata dividend distribution of 80.1% of the outstanding shares of FedEx Freight Holding Company to shareholders of record as of May 15, 2026. Under the distribution structure, FedEx shareholders will receive one share of FedEx Freight common stock for every two shares of FedEx common stock held on the record date. Fractional shares will be settled in cash.
Following the separation, FedEx Freight shares are expected to begin trading on the New York Stock Exchange under the ticker symbol “FDXF.” FedEx will retain approximately 19.9% of FedEx Freight’s outstanding shares and plans to dispose of those shares within 24 months through debt exchanges, stockholder distributions, or share exchanges tied to FedEx debt obligations.
The company said the spin-off is expected to qualify as tax-free for U.S. federal income tax purposes for holders of FedEx common stock.
In connection with the separation, FedEx Freight will pay an approximately $4.1 billion cash dividend to FedEx prior to the transaction’s completion. The payment will be funded through proceeds from a previously completed $3.7 billion senior notes offering and borrowings under a delayed-draw term loan facility.
FedEx Corp. also announced plans to redeem all outstanding €354.878 million aggregate principal amount of its 1.300% notes due 2031, with a redemption date scheduled for May 28, 2026.
Headquartered in Memphis, Tennessee, FedEx Corp. generates approximately $92 billion in annual revenue and operates transportation, e-commerce, and business services worldwide. The company employs more than 500,000 people globally.
FedEx Freight operates as North America’s largest less-than-truckload carrier with nearly 30,000 vehicles, more than 40,000 employees, and a network of over 365 locations serving the United States, Canada, Mexico, Puerto Rico, and the U.S. Virgin Islands.
KEY QUOTES:
“Today’s announcement is an important step as we prepare for a seamless separation of the FedEx Freight business on June 1. As separate organizations, FedEx and FedEx Freight will build on their respective industry leadership positions to serve customers with excellence, while creating value for their stockholders.”
R. Brad Martin, Executive Chairman, FedEx Board, And Incoming Chairman, FedEx Freight Board Of Directors
