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FedEx Freight — Q4 FY2026 Earnings Presentation (company IR deck)
FedEx Freight (FDXF) · 35 slides · Filed Oct 29, 2026
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Slide 1 — Investor Presentation
1 Investor Presentation Fourth quarter and fiscal year 2026 June 25, 2026
Slide 2 — Forward-looking statements and non-GAAP financial measures
2 Certain statements in this presentation 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, or the prices it obtains for its services; geopolitical developments and additional changes in international trade policies and relations; the price and availability of fuel; 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 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 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, 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 SEC, including its information statement included as Exhibit 99.1 to its Current Report on Form 8-K that was filed with the SEC on May 13, 2026. 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. See “GAAP to non-GAAP reconciliations” below for additional information on non-GAAP financial measures and reconciliations of non-GAAP financial measures to GAAP financial measures. The financial targets and outlook provided herein and discussed during this presentation assume the company's current economic outlook and fuel price expectations, and no additional adverse economic, geopolitical, or international trade-related developments. FedEx Freight's earnings per share and effective tax rate forecasts are based on current law and related regulations and guidance. Guidance discussed during this presentation was effective as of June 25, 2026. Nothing discussed during this presentation should be considered as confirming or disaffirming such guidance. Forward-looking statements and non-GAAP financial measures
Slide 3 — Q4 and Full-Year FY26 highlights
Reinforced Safety Above All culture, achieving record-low Department of Transportation (DOT) preventable accident performance in FY26 Generated $2.4B revenue, $363M adjusted operating income, and 15.1% adjusted operating margin in Q4, delivering a strong finish to the fiscal year Reported $8.8B revenue, $1.1B adjusted operating income, and 12.6% adjusted operating margin for the full fiscal year 2026 Successfully launched as a standalone LTL company on June 1 under ticker FDXF, positioned to redefine the standard in the LTL industry Strengthened commercial foundation with 100% of dedicated LTL sales force target hired Launched new website and fit-for-LTL pricing system; successfully completed Day 1 systems cutover 3 Q4 and Full-Year FY26 highlights As reported in the FedEx Freight segment results of FedEx Corporation and not presented on a carve-out basis. See "GAAP to non-GAAP reconciliations" for reconciliations of and additional information regarding non-GAAP financial measures.
Slide 4 — Delivered a strong finish to FY26
4 Delivered a strong finish to FY26 AVERAGE DAILY SHIPMENTS 87k -5.9% YoY WEIGHT PER SHIPMENT 948lbs +3.0% YoY REVENUE PER SHIPMENT $415.22 +11.5% YoY REVENUE PER HUNDREDWEIGHT $43.79 +8.2% YoY • Volume trends remain soft but show signs of stabilization • Higher revenue per shipment driven primarily by fuel and supported by higher weight per shipment • Delivered best quarterly claims ratio in FedEx Freight history • New, dedicated sales force integrating seamlessly to strengthen business partnerships and enhance customer relationships Q4 FY26 Operational Results Commentary Driving disciplined operational execution As reported in the FedEx Freight segment results of FedEx Corporation and not presented on a carve-out basis.
Slide 5 — ~50%
5 One network, two services, clear advantage Scaled and integrated network enables flexible and efficient mode shifting ONE NETWORK ~50% Customers that use a mix of both Priority and Economy offerings PRIORITY OFFERING 1-3 Days Transit time; shorter average length of haul ECONOMY OFFERING 3-6 Days Transit time; longer average length of haul • ~40% faster than the nearest competitor1 • Speed-focused and time-sensitive deliveries • Prioritized freight during peak operating windows • Leverages linehaul network density for superior efficiency • Mode and cost optimization, driven by rail advantage • Value-focused and flexible-time deliveries • Spreads operations across daytime hub windows • Efficiently maximizes utilization of doors, equipment, and drivers One sales force, same assets, greater flexibility – giving customers choice without compromising margins. 1 Based on published transit times.
Slide 6 — Maintaining commitment to profitability
Q4 FY25 Q4 FY26 Adj. Operating Income Q4 FY25 Q4 FY26 Revenue +5% Maintaining commitment to profitability Emphasis on revenue quality and enhanced customer experience $2.3B $2.4B • Reflects 11.5% YoY growth in revenue per shipment • Driven by higher fuel prices and weight per shipment • Investing in fit-for-LTL sales force and technology • Lapping $33M prior-year gain from sale of a facility $477M 20.8% Margin 6 $363M 15.1% Margin -24% As reported in the FedEx Freight segment results of FedEx Corporation and not presented on a carve-out basis. See "GAAP to non-GAAP reconciliations" for reconciliations of and additional information regarding non-GAAP financial measures.
Slide 7 — Outlook for transition period (TY26)
7 1 Compared to $5.1B for the seven months ended December 31, 2025. 2 Includes 30M shares initially retained by FedEx Corporation. Figures presented on a carve-out basis with costs previously allocated from FedEx Corporation now fully reclassified into their respective expense line items. Outlook for transition period (TY26) June 1 to December 31, 2026 Seasonality Guidance Four months ending Sept. 30, 2026 Three months ending Dec. 31, 2026 Seven months ending Dec. 31, 2026 REVENUE Growth YoY ~60% ~40% 4% to 6%1 ADJ. OP. INCOME ~75% ~25% $605M to $645M EFFECTIVE TAX RATE = = ~26% ADJ. EPS ~80% ~20% $2.40 to $2.60 • Expected results weighted toward the four months ending September 30, 2026, driven by timing and seasonality • For the three months ending December 31, 2026, adj. operating income seasonality is expected to be negatively impacted by the number of business days and merit increases • Interest expense of ~$135M • 149.5M shares outstanding2 • Investment in fit-for-LTL technology and separation TSAs to continue into 2027 Additional assumptions See "GAAP to non-GAAP reconciliations" for reconciliations of and additional information regarding non-GAAP financial measures. ETR and adjusted EPS presented prior to mark-to- market accounting adjustments, which are impracticable to calculate at this time.
Slide 8 — Illustrative adjusted operating margin bridge for TY26E
8 Illustrative adjusted operating margin bridge for TY26E Positioned to maintain solid margins through the transition period Presented on a carve-out basis and based on the midpoint of the TY26E adjusted operating margin forecast. See "GAAP to non-GAAP reconciliations" for reconciliations of and additional information regarding non-GAAP financial measures. TY25 TY26E Net Yield Efficiency & Other Drivers Variable Compensation TSA Costs Net Volume 11.8% ~11.8% +200bps +80bps -130bps -120bps -30bps
Slide 9 — Converting strength into outcomes
9 WE HAVE WE ARE BUILDING WE ARE DELIVERING Structural advantage Industry-leading execution Value creation • Largest and fastest network • Best-in-class service reliability • World-class team • Improving operational efficiency • Leading commercial offering • Advanced technology capabilities • High-quality growth • Improving profitability • Balance sheet strength 1 Based on published transit times. 1 Converting strength into outcomes This is the new FedEx Freight
Slide 10 — Upcoming key dates
10 Upcoming key dates BY MID-AUGUST 2026: • FedEx Freight FY26 10-K filed with financial statements on a carve-out basis for the fiscal year ended May 31 • Recast CY24 and CY25 historical financial statements issued on a carve-out basis LATE-OCTOBER 2026: • FedEx Freight TY26 Earnings Call for the three- and four-month periods ending September 30 • Recast historical financials issued for Q1 CY26 (quarter ended March 31) and Q2 CY26 (quarter ended June 30) on a carve-out basis
Slide 11 — Appendix
Appendix 11
Slide 12 — FedEx Freight
12 Delivering the new FedEx Freight
Slide 13 — 365+
SUSTAINED LEADERSHIP IN LTL MARKET SCALE 365+ Total locations, including ~355 shipping terminals and ~10 linehaul relay sites 26,000 Service center doors 30,000 Motorized vehicles, including ~17,000 tractors 40% Faster than our nearest competitor (Priority service)2 ~90% LTL volume can be delivered within 3 days or less ~90% Revenue from customers with tenure >10 years3 DUAL Service offering, the only LTL carrier with both Priority and Economy SPEED SERVICE Top 6 LTL carriers by volume1 FedEx Freight Others Established leader in attractive LTL industry Firmly positioned to win, today 13 As of April 8, 2026. 1 Source: FedEx estimates based on the trailing twelve months ended calendar 3Q25. 2 Based on published transit times. 3 Represents top 80% of revenue, excluding single shippers (which comprise approx. 20% of revenue).
Slide 14 — 100+ Years
14 DECADES OF EXECUTIVE LEADERSHIP EXPERIENCE 100+ Years Collective experience in the LTL and transportation industry SKILLED DRIVER WORKFORCE 14+ Years Average years of experience among FedEx Freight drivers DEDICATED TEAM 40K Number of team members at FedEx Freight WORLD-CLASS, WINNING TEAM 112 FedEx Freight drivers at the 2025 National Truck Driving Championships; represented >50% of all award winners Underpinned by a world-class, experienced team As of April 8, 2026.
Slide 15 — Unlocking FedEx Freight’s value
15 THE FUTURE OPTIMIZING THE NETWORK • Smarter and more efficient infrastructure • Lowering cost to serve • Heightened productivity • Increasing visibility through technology LEADING COMMERCIAL OFFERING • Industry-leading sales force • Targeted go-to-market strategy • Improving customer experience • Higher-quality revenue growth FINANCIAL VALUE CREATION • Accelerating profitable growth • Free cash flow durability • Disciplined capital allocation • Compelling value for shareholders ADVANCING TECHNOLOGY CAPABILITIES • Enabling operational and commercial outcomes • Modernizing technology • Future-proofing the business • Scaling solutions to optimize performance Unlocking FedEx Freight’s value Led by safety, driven by market-leading scale, published transit times, and service
Slide 16 — Freight’s network
Optimizing FedEx Freight’s network 16
Slide 17 — Firmly positioned to win, today
Firmly positioned to win, today • 365+ locations • 26,000 doors • 30,000 motorized vehicles • All 50 U.S. states, Mexico, and Canada • ~90% of LTL volume can be delivered within 3 days or less • Priority service is 40% faster than nearest competitor1 • Flexibility: dual-service offering choice between speed and cost • Reliability: on-time and in-full • Rail advantage Scale Service Speed 17 1 Based on published transit times. As of April 8, 2026.
Slide 18 — Market-leading
• Concentrated in densest freight markets Market-leading scale and density 18 80% outbound industry volume1 1 For illustrative purposes. As of April 8, 2026.
Slide 19 — offering
Leading commercial offering 19
Slide 20 — Uniquely differentiated offering
Uniquely differentiated offering Versatile multi-pronged service network offers customers the choice to trade up for speed or maximize value Core services Volume Services Retail Flex Dimension-Based Pricing Freight Direct Priority Plus Value-added capabilities Priority Economy Custom Critical 20
Slide 21 — ~140K
~140K Active customers Long-term partner to stable, quality, and diverse customer base 21 Industrial Transportation and logistics Consumer goods Energy, chemicals, other Technology Services Healthcare Automotive Aerospace Other REVENUE BY INDUSTRY 2 ~17% Revenue from top 25 customers (FY26 YTD2) ~90% Revenue from customers with tenure >10 years1,2 As of April 8, 2026, unless otherwise noted. 1 Represents top 80% of revenue, excluding single shippers (which comprise approx. 20% of revenue). 2 June 2025 – February 2026.
Slide 22 — Targeting high-quality revenue opportunities
SMB Healthcare Grocery Data centers & energy Empowering high-margin small and medium business growth through reliable shipping solutions that streamline logistics and expand reach Leveraging FedEx Custom Critical to lean more heavily into ~$6B1 Healthcare, Pharma, and Life Sciences opportunity where reliability and time-definite solutions are critical Growing share within ~$1B1 channel by ensuring timely, temperature-controlled delivery across the supply chain Expanding share within the ~$2B1 addressable market, supporting demand for infrastructure, Cloud/AI buildouts with white-glove, time-definite services Targeting high-quality revenue opportunities 22 1 Third-party estimates of total market size, incorporating census commodity flow data. As of April 8, 2026.
Slide 23 — capabilities
Advancing technology capabilities 23
Slide 24 — Our business-led technology strategy
Our business-led technology strategy Designed to deliver for our customers and bring the FedEx Freight strategy to life Streamline tech stack, maintain service continuity, position for spin Improve customer experience by Day 1, strengthen capabilities, and modernize Leverage AI and partnerships for further modernization and enable commercial and operational strategies Simplify Enable Enhance 24
Slide 25 — Priorities through spin and beyond
Priorities through spin and beyond Building the future of logistics with cutting-edge technology Tech stack Simplify tech stack Separation execution Achieve tax-free spin Exit Transition Service Agreements (TSAs) Customer experience Maintain service continuity through spin Enhance customer experience Deploy full strength of commercial capabilities Operations and capabilities Modernize applications and infrastructure Improve IT efficiency Leverage partnerships AI and automation Integrate AI into workflows to optimize performance Educate & train employees in AI Medium-Term CY27-CY28+ Priority 25 Post Spin TY26 Ahead of Day 1 FY26 JUNE 25 – TODAY
Slide 26 — creation
Financial value creation 26
Slide 27 — Committed to high-quality growth
Committed to high-quality growth $1.1 FY26 Medium-term $8.8 FY26 Medium-term REVENUE ($B) ADJUSTED OPERATING INCOME ($B) 4-6% Revenue CAGR 10-12% Adj. OI CAGR Accelerating profitable growth by leveraging strength across four key areas… 27 1 As reported in the FedEx Freight segment results of FedEx Corporation and not presented on a carve-out basis. See "GAAP to non-GAAP reconciliations" for reconciliations of and additional information regarding non-GAAP financial measures. 1 1
Slide 28 — Driving operating leverage
Driving operating leverage Key levers to improve operating leverage • Investments in LTL-focused capabilities, automation, and technology will drive operating leverage over time • Enhancing customer mix through the addition of higher-yielding customers • Focused on ongoing efficiency initiatives and improving cost to serve • Expedite Transition Service Agreement (TSA) exits to accelerate modernization and automation initiatives Adjusted operating margin (%) 28 FY26 Near-term Investments Volume Growth Yield Expansion Cost Efficiencies Medium-term 12.6% Adj. OI Margin ~15% Adj. OI Margin 1 1 As reported in the FedEx Freight segment results of FedEx Corporation and not presented on a carve-out basis See "GAAP to non-GAAP reconciliations" for reconciliations of and additional information regarding non-GAAP financial measures.
Slide 29 — >90%
FCF CONVERSION >90% Expected net income to FCF conversion in medium-term FCF GENERATION >$1.0B Expected annual FCF generated in medium-term Capital allocation framework Designed to grow ROIC and generate returns above cost of capital Reduce outstanding debt Gross leverage ratio expected to decrease to ~2.5x within 12 months of spin-off Maximize return of capital to shareholders Establishing framework for solid dividends and repurchases to offset share dilution 2 3 4 29 Evaluate accretive M&A Stringent M&A criteria, ensuring potential transactions drive shareholder value Invest in organic growth Maintaining capex at ~5% of revenue over the medium-term 1 See "GAAP to non-GAAP reconciliations" for reconciliations of and additional information regarding non-GAAP financial measures. Gross leverage ratio is calculated by dividing gross debt by trailing twelve-month adjusted EBITDA.
Slide 30 — ~2.5x
1 Does not include $1,200M of undrawn revolving credit facility that matures in 2031. 2 Amount represents the annualized interest expense for amounts outstanding as of June 1, 2026. See "GAAP to non-GAAP reconciliations" for reconciliations of and additional information regarding non-GAAP financial measures. Gross leverage ratio is calculated by dividing gross debt by trailing twelve-month adjusted EBITDA. Strong, investment-grade balance sheet GROSS LEVERAGE RATIO ~2.5x Anticipated gross leverage ratio within 12 months of spin ANNUAL INTEREST EXPENSE2 ~$200M Expected annualized interest expense for Secured Notes and Term Loan2 SIGNIFICANT LIQUIDITY ~$1.5B $250M in cash + $1,200M undrawn revolver on June 1, 2026 WEIGHTED AVG. COST OF DEBT 4.79% Weighted average interest rate for debt outstanding on June 1, 2026 LONG-TERM DEBT MATURITY SCHEDULE1 ($M) $1,000 $1,000 $700 $1,000 $600 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Secured Notes Term Loan 30
Slide 31 — reconciliations
GAAP to non-GAAP reconciliations 31
Slide 32 — Non-GAAP financial measures
Non-GAAP financial measures 32 The FedEx Freight Segment results as reported by FedEx Corporation are reported 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. These non-GAAP financial measures are intended to supplement, and should be read together with, FedEx Freight’s GAAP results. They should not be considered a substitute for, or superior to, reported financial results prepared in accordance with GAAP. Because non-GAAP financial measures are not standardized, they may not be comparable to similarly titled measures presented by other companies. As required by SEC rules, reconciliations of FedEx Freight’s non-GAAP financial measures to the most directly comparable GAAP measures are provided below. Seven Months Ending December 31, 2026 Forecasts FedEx Freight is unable to predict the amount of mark-to-market (MTM) retirement plan accounting adjustments for the 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 FedEx Freight’s seven months ending December 31, 2026 earnings per share (EPS) and effective tax rate (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 FedEx Freight’s seven months ending December 31, 2026 financial results and ETR. The tables below outline the estimated effects of the items excluded from FedEx Freight’s EPS forecast, other than MTM retirement plan accounting adjustments. Medium-Term Outlook and Gross Leverage Ratio FedEx Freight has provided a medium-term outlook for adjusted operating income and adjusted operating margin growth, free cash flow generation, and net income to free cash flow conversion; and its outlook for gross debt divided by the trailing twelve-month adjusted earnings before interest, taxes, depreciation, and amortization (“adjusted EBITDA”) as of May 31, 2027. FedEx Freight does not provide reconciliations of its medium- term adjusted operating income, adjusted operating margin, or free cash flow outlook or adjusted EBITDA for the trailing twelve months of May 31, 2027 to the most directly comparable GAAP measures because it is unable to provide a meaningful or accurate calculation or estimation of reconciling items without unreasonable effort. These items are inherently uncertain and depend on various factors, many of which are beyond the company’s control, and as such, any associated estimate and its impact on FedEx Freight’s GAAP financial measures could vary materially. While FedEx Freight views free cash flow as cash provided by operating activities less capital expenditures, free cash flow is not defined under GAAP. Therefore, FedEx Freight’s medium-term free cash flow generation and net income to free cash flow conversion outlook should not be considered a substitute for income or cash flow data prepared in accordance with GAAP and may not be comparable to similarly titled measures used by other companies. It should not be inferred that FedEx Freight’s free cash flow represents amounts available for discretionary expenditures.
Slide 33 — Reconciliations of GAAP to non-GAAP financial measures
Reconciliations of GAAP to non-GAAP financial measures 33 Fourth Quarter and Full Fiscal 2026 Segment Results Three Months Ended May 31, Twelve Months Ended May 31, 2026 2026 Dollars in millions Operating Income Operating Margin Operating Income Operating Margin GAAP measure $ 158 6.6 % $ 616 7.0 % Spin-off costs 205 8.5 % 492 5.6 % Non-GAAP measure $ 363 15.1 % $ 1,108 12.6 %
Slide 34 — Reconciliations of GAAP to non-GAAP financial measures
Reconciliations of GAAP to non-GAAP financial measures 34 Seven Months Ended December 31, 2025 Carve-Out Results Seven Months Ended December 31, 2025 Dollars in millions Operating Income Operating Margin GAAP measure $ 394 7.8 % Spin-off costs 206 4.0 % Non-GAAP measure $ 600 11.8 % Seven Months Ending December 31, 2026 Outlook Seven Months Ending December 31, 2026 Dollars in millions Operating Income Operating Margin GAAP measure $ 475 to 515 9.0 to 9.5 % Spin-off costs 130 2.5 % Non-GAAP measure $ 605 to 645 11.5 to 12.0 %
Slide 35 — Reconciliations of GAAP to non-GAAP financial measures
Reconciliations of GAAP to non-GAAP financial measures 35 Seven Months Ending December 31, 2026 Outlook Dollars in millions, except EPS Adjustments Diluted Earnings per Share Diluted earnings per share before MTM retirement plan accounting adjustments (non-GAAP)1 $ 1.75 to 1.95 Spin-off costs $ 130 Income tax effect (34) Net of tax effect $ 96 0.65 Diluted earnings per share with adjustments (non-GAAP)1 $ 2.40 to 2.60 1 The MTM retirement plan accounting adjustments, which are impracticable to calculate at this time, are excluded.