1 Exhibit 99.1 FedEx Freight Reports Solid Financial Results for the Four-Month
1 Exhibit 99.1 FedEx Freight Reports Solid Financial Results for the Four-Month Transition Period Ended September 30, 2026 Delivered Solid Financial Performance During Inaugural Period as an Independent Company Achieved Second Consecutive Quarter of Record-Low Claims Ratio, Reflecting Improved Customer Experience Introduces Positive Outlook for Three Months Ending December 31, 2026 MEMPHIS, Tenn. – October 29, 2026 – 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 2 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 3 • 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. 4 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 5 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. Media Contact: Kelly Crow media@fedexfreight.com Investor Relations Contact: Marianna Rose ir@fedexfreight.com
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.
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 Three Months Four Months Hundredweig… Ended Ended Results September September September September 30,2026 30,2025 30,2026 30,2025 Priority revenue per $42.82 $38.85 $42.54 $38.62 hundredweig… (GAAP) Fuel 10.03 6.48 9.89 6.37 Priority revenue per hundredweig… $32.79 $32.37 $32.65 $32.25 excluding fuelsurchar… (non-GAAP) Economy revenue per $47.26 $44.66 $47.30 $44.85 hundredweig… (GAAP) Fuel 10.65 7.48 10.56 7.43 Economy revenue per hundredweig… $36.61 $37.18 $36.74 $37.42 excluding fuelsurchar… (non-GAAP) Composite revenue per $44.20 $40.64 $44.03 $40.53 hundredweig… (GAAP) Fuel 10.22 6.80 10.10 6.70 Composite revenue per hundredweig… $33.98 $33.84 $33.93 $33.83 excluding fuelsurchar… (non-GAAP)
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.
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 Diluted EarningsPer December 31, 2026 Adjustments Share ────────────────────────────────────────────────────────────────────────────── Dollars in millions, except EPS Diluted earnings per share before MTM $ 0.15 to 0.25 retirement plan accounting adjustments(non-GAAP)3 Spin-off costs $105 Income tax effect1 -29 Net of tax effect $76 0.50 Diluted earnings per share with $ 0.65 to 0.75 adjustments (non-GAAP)3
Seven Months Ending Diluted EarningsPer December 31, 2026 Adjustments Share ────────────────────────────────────────────────────────────────────────────── Dollars in millions, except EPS Diluted earnings per share before MTM $ 1.69 to 1.79 retirement plan accounting adjustments(non-GAAP)3 Spin-off costs $230 Income tax effect1 -63 Net of tax effect $167 1.11 Diluted earnings per share with $ 2.80 to 2.90 adjustments (non-GAAP)3
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)
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 1,262 1,154 $204 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 3,764 3,747 amortization Net property and equipment 2,907 2,923 Other long-term assets Operating lease right-of-use 1,822 1,824 assets, net 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 $45 $43 debt Accrued salaries and employee 305 389 benefits 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 4,376 4,484 portion 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 issuedand outstanding as of 15 15 September 30, 2026 and 150 million shares authorized, issued,and outstanding as of May 31, 2026 Additional paid-in capital 19 — Accumulated deficit -280 -509 Accumulated other comprehensive -6 -3 loss Total (deficit) equity -252 -497 TOTAL LIABILITIES AND (DEFICIT) $7,216 $6,884 EQUITY
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 84 33 income taxes Stock-based compensation 16 5 Separation and other costs, net of -11 6 payments Changes in assets and liabilities: Receivables -149 -18 Other current assets -84 -30 Accounts payable and other 90 -94 liabilities Due from Parent, net 18 624 Other, net 5 -1 Cash provided by operating 390 1,085 activities INVESTING ACTIVITIES Capital expenditures -151 -55 Proceeds from asset dispositions and 13 5 other 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 -1 1 cash Net increase (decrease) in cash 137 -24 Cash at beginning of period 251 109 Cash at end of period $388 $85
Full text with the tables
1 Exhibit 99.1 FedEx Freight Reports Solid Financial Results for the Four-Month
Transition Period Ended September 30, 2026 Delivered Solid Financial Performance
During Inaugural Period as an Independent Company Achieved Second Consecutive
Quarter of Record-Low Claims Ratio, Reflecting Improved Customer Experience
Introduces Positive Outlook for Three Months Ending December 31, 2026 MEMPHIS,
Tenn. – October 29, 2026 – 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 2
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 3 • 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. 4 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 5 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. Media Contact: Kelly Crow
media@fedexfreight.com Investor Relations Contact: Marianna Rose
ir@fedexfreight.com
6
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
September DilutedEar…
30, 2026 Operating IncomeTaxes1 NetIncome2 Per Share
──────────────────────────────────────────────────────────────────────────────
Dollars in
millions, Income Margin
except EPS
GAAP $253 10.4% $57 $147 $0.98
measure
Spin-off 105 4.3 29 76 0.51
costs
Non-GAAP $358 14.7% $86 $223 $1.49
measure
Four
Months
Ended
September DilutedEar…
30, 2026 Operating IncomeTaxes1 NetIncome2 Per Share
──────────────────────────────────────────────────────────────────────────────
Dollars in
millions, Income Margin
except EPS
GAAP $383 11.7% $88 $230 $1.54
measure
Spin-off 127 3.9 35 92 0.62
costs
Non-GAAP $510 15.5% $123 $322 $2.15
measure
Three
Months
Ended
September DilutedEar…
30, 2025 Operating IncomeTaxes1 NetIncome2 Per Share
──────────────────────────────────────────────────────────────────────────────
Dollars in
millions, Income Margin
except EPS
GAAP $290 12.8% $100 $291 $1.95
measure
Spin-off 30 1.3 8 22 0.15
costs
Non-GAAP $320 14.2% $108 $313 $2.10
measure
7
Four
Months
Ended
September DilutedEar…
30, 2025 Operating IncomeTaxes1 NetIncome2 Per Share
──────────────────────────────────────────────────────────────────────────────
Dollars in
millions, Income Margin
except EPS
GAAP $408 13.6% $137 $404 $2.70
measure
Spin-off 30 1.0 8 22 0.15
costs
Non-GAAP $438 14.6% $145 $426 $2.85
measure
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 Three Months Four Months
Shipment Ended Ended
Results
September September September September
30,2026 30,2025 30,2026 30,2025
Priority
revenue per $393.28 $361.80 $393.06 $360.16
shipment
(GAAP)
Fuel 92.07 60.37 91.42 59.41
Priority
revenue per
shipment, $301.21 $301.43 $301.64 $300.75
excluding
fuel
surcharges(…
Economy
revenue per $455.58 $408.09 $458.98 $408.30
shipment
(GAAP)
Fuel 102.70 68.40 102.48 67.58
Economy
revenue per
shipment, $352.88 $339.69 $356.50 $340.72
excluding
fuelsurchar…
(non-GAAP)
Composite
revenue per $412.05 $376.23 $413.00 $375.13
shipment
(GAAP)
Fuel 95.27 62.88 94.77 61.95
Composite
revenue per
shipment, $316.78 $313.35 $318.23 $313.18
excluding
fuelsurchar…
(non-GAAP)
Revenue per Three Months Four Months
Hundredweig… Ended Ended
Results
September September September September
30,2026 30,2025 30,2026 30,2025
Priority
revenue per $42.82 $38.85 $42.54 $38.62
hundredweig…
(GAAP)
Fuel 10.03 6.48 9.89 6.37
Priority
revenue per
hundredweig… $32.79 $32.37 $32.65 $32.25
excluding
fuelsurchar…
(non-GAAP)
Economy
revenue per $47.26 $44.66 $47.30 $44.85
hundredweig…
(GAAP)
Fuel 10.65 7.48 10.56 7.43
Economy
revenue per
hundredweig… $36.61 $37.18 $36.74 $37.42
excluding
fuelsurchar…
(non-GAAP)
Composite
revenue per $44.20 $40.64 $44.03 $40.53
hundredweig…
(GAAP)
Fuel 10.22 6.80 10.10 6.70
Composite
revenue per
hundredweig… $33.98 $33.84 $33.93 $33.83
excluding
fuelsurchar…
(non-GAAP)
Note: tables may not sum to totals due to rounding
8
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 Three
Months Months
Ending Ended
December December
31, 2026 31, 2025
Dollars
in Operating… Operating… OperatingI… Operating…
millions
GAAP $ 80 to 100 3.5% to $(14) (0.7)%
measure 4.2%
Spin-off 105 4.6% to 176 8.5%
costs 4.4%
Non-GAAP $ 185 to 205 8.0% to $162 7.8%
measure 8.6%
Seven
Months
Ending
December
31, 2026
Outlook
and Seven
Months
Ended
December
31, 2025
──────────────────────────────────────────────────────────────────────────────
Seven Seven
Months Months
Ending Ended
December December
31, 2026 31, 2025
Dollars
in Operating… Operating… OperatingI… Operating…
millions
GAAP $ 465 to 485 8.3% to $394 7.8%
measure 8.6%
Spin-off 230 4.1% 206 4.1%
costs
Non-GAAP $ 695 to 715 12.5% to $600 11.8%
measure 12.7%
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
9
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 Diluted EarningsPer
December 31, 2026 Adjustments Share
──────────────────────────────────────────────────────────────────────────────
Dollars in millions,
except EPS
Diluted earnings per share
before MTM $ 0.15 to 0.25
retirement plan accounting
adjustments(non-GAAP)3
Spin-off costs $105
Income tax effect1 -29
Net of tax effect $76 0.50
Diluted earnings per share
with $ 0.65 to 0.75
adjustments (non-GAAP)3
Seven Months Ending Diluted EarningsPer
December 31, 2026 Adjustments Share
──────────────────────────────────────────────────────────────────────────────
Dollars in millions,
except EPS
Diluted earnings per share
before MTM $ 1.69 to 1.79
retirement plan accounting
adjustments(non-GAAP)3
Spin-off costs $230
Income tax effect1 -63
Net of tax effect $167 1.11
Diluted earnings per share
with $ 2.80 to 2.90
adjustments (non-GAAP)3
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.
10
FEDEX FREIGHT HOLDING COMPANY, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except earnings per share) (Unaudited)
One Three Four
Month Months Months
Ended Ended Ended
June June Septemb… Septemb… Septemb… Septem…
30,2026 30,2025 30,2026 30,2025 30,2026 30,2025
──────────────────────────────────────────────────────────────────────────────
Revenue $839 $745 $2,442 $2,259 $3,281 $3,004
Operat…
expens…
Salari…
and 378 349 1,128 1,084 1,506 1,433
employ…
Operat…
suppli… 176 150 546 471 722 621
andexp…
Purcha… 74 65 235 200 309 265
transp…
Deprec… 38 43 114 125 152 168
andamo…
Insura…
and 15 14 44 42 59 56
claims
Operat…
taxes 6 6 17 17 23 23
and
licens…
Separa…
and 22 — 105 30 127 30
other
costs
Total
operat… 709 627 2,189 1,969 2,898 2,596
expens…
Operat… 130 118 253 290 383 408
income
Other
income
(expen…
Related
party — 30 — 98 — 128
intere…
income
Intere… -18 — -55 — -73 —
expense
Intere… — — 5 — 5 —
income
Other, 2 2 1 3 3 5
net
Total
other -16 32 -49 101 -65 133
income
(expen…
Income
before 114 150 204 391 318 541
income
taxes
Provis…
for 31 37 57 100 88 137
income
taxes
Net $83 $113 $147 $291 $230 $404
income
Earnin…
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
Weight…
shares…
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
11
FEDEX FREIGHT HOLDING COMPANY, INC. OPERATING STATISTICS (Unaudited)
Three Four
Months Perce… Months Perce…
Ended Ended
Septe… Septe… Septe… Septe…
30,20… 30,20… 30,20… 30,20…
Oper…
Stat…
Oper… 64 64 86 85
days
Total 5,702… 5,741… (1)% 7,643… 7,658,… —%
ship…
Total 2,658… 2,658… — 3,584… 3,544,… 1
tonn…
Tonn…
per 41,533 41,532 — 41,683 41,702 —
day
Aver…
daily
ship…
Prio… 62,247 61,763 1 62,000 62,086 —
Econ… 26,858 27,954 -4 26,879 28,018 -4
Total
aver… 89,105 89,717 -1 88,879 90,104 -1
daily
ship…
Weig…
per
ship…
(pou…
Prio… 919 931 -1 924 933 -1
Econ… 964 914 5 970 910 7
Comp…
weig… 932 926 1 938 926 1
per
ship…
Aver…
leng…
of
haul
(mil…
Prio… 911 920 -1 914 920 -1
Econ… 1,170 1,161 1 1,172 1,162 1
Comp…
aver…
leng… 991 994 — 994 994 —
of
haul
Yield
Stat…
Reve…
per
ship…
(GAA…
Prio… $393.… $361.… 9 $393.… $360.16 9
Econ… 455.58 408.09 12 458.98 408.30 12
Comp…
reve…
per $412.… $376.… 10 $413.… $375.13 10
ship…
(GAA…
Reve…
per
ship…
excl…
fuel…
(non…
Prio… $301.… $301.… — $301.… $300.75 —
Econ… 352.88 339.69 4 356.50 340.72 5
Comp…
reve…
per
ship… $316.… $313.… 1 $318.… $313.18 2
excl…
fuel…
(non…
Reve…
per
hund…
(GAA…
Prio… $42.82 $38.85 10 $42.54 $38.62 10
Econ… 47.26 44.66 6 47.30 44.85 5
Comp…
reve…
per $44.20 $40.64 9 $44.03 $40.53 9
hund…
(GAA…
Reve…
per
hund…
excl…
fuel…
(non…
Prio… $32.79 $32.37 1 $32.65 $32.25 1
Econ… 36.61 37.18 -2 36.74 37.42 -2
Comp…
reve…
per
hund… $33.98 $33.84 —% $33.93 $33.83 —%
fuel
surc…
(non…
12
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 1,262 1,154
$204
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 3,764 3,747
amortization
Net property and equipment 2,907 2,923
Other long-term assets
Operating lease right-of-use 1,822 1,824
assets, net
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 $45 $43
debt
Accrued salaries and employee 305 389
benefits
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 4,376 4,484
portion
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
issuedand outstanding as of 15 15
September 30,
2026 and 150 million shares
authorized,
issued,and outstanding as of
May 31, 2026
Additional paid-in capital 19 —
Accumulated deficit -280 -509
Accumulated other comprehensive -6 -3
loss
Total (deficit) equity -252 -497
TOTAL LIABILITIES AND (DEFICIT) $7,216 $6,884
EQUITY
13
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 84 33
income taxes
Stock-based compensation 16 5
Separation and other costs, net of -11 6
payments
Changes in assets and liabilities:
Receivables -149 -18
Other current assets -84 -30
Accounts payable and other 90 -94
liabilities
Due from Parent, net 18 624
Other, net 5 -1
Cash provided by operating 390 1,085
activities
INVESTING ACTIVITIES
Capital expenditures -151 -55
Proceeds from asset dispositions and 13 5
other
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 -1 1
cash
Net increase (decrease) in cash 137 -24
Cash at beginning of period 251 109
Cash at end of period $388 $85