FedEx Corporation has successfully completed the spin-off of its FedEx Freight business into a new, independent publicly traded company, FedEx Freight Holding, Inc. The separation was effective June 1, 2026, with FedEx Freight beginning "regular way" trading on the New York Stock Exchange (NYSE) under the ticker symbol "FDXF" on the same day.
Key Details
- Distribution Terms: FedEx distributed 80.1% of the outstanding shares of FedEx Freight common stock to its stockholders. Shareholders received one share of FedEx Freight for every two shares of FedEx common stock held as of the record date of May 15, 2026.
- Financial Impact: Prior to the spin-off, FedEx Freight paid a cash dividend of approximately $4.1 billion to FedEx Corporation. This was funded by a $3.7 billion senior notes offering and borrowings under a term loan facility.
- Management Changes: In connection with the transaction, John A. Smith resigned as COO, United States and Canada of FedEx to become President and CEO of FedEx Freight. Director Stephen E. Gorman also resigned from the FedEx board to join the board of FedEx Freight.
- Governing Agreements: The two companies entered into a series of agreements to govern the separation and their future relationship, including a Separation and Distribution Agreement, a Transition Services Agreement, and a Tax Matters Agreement.