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FedEx Freight — FedEx Freight June Q3 TY26 Investor Presentation (company IR deck)
FedEx Freight (FDXF) · 24 slides · Filed Oct 29, 2026
Every slide of this earnings presentation, with the text as published. Open the original deck ↗ · All FDXF deck slides
Slide 1 — Investor Presentation
Investor Presentation June + Q3 TY26 Earnings Cal October 29, 2026
Slide 2 — Forward
2 Certain statements in this presentation may be considered forward - loking statements within the meaning of the Private Securities Litigation Reform Act, such as statements regarding future financial targets, busines strategies, !"" #$% views with respect to future events and financial performance, and the asumptions underlying such targets, strategies, and statements . Forward - loking statements include those preceded by, folowed by, or that include the words &'())*+ &,*+ &-./)0*+ &'./)0*+ &%1./)0*+ &2")("3"%*+ &"45"-#%*+ &6.7"-%#%*+ & #(-(5#"%*+ &5) %*+ &"%#(#"%*+ !"#%*+ &57.8"-#%*+ &( #" 0%*+ or similar expresions . Such forward - loking statements are subject to risks, uncertainties, and other factors which could cause actual results to difer materialy from historical experience or from future results expresed or implied by such forward - loking statements . Potential risks and uncertainties include, but are not limited to : economic conditions in the markets in which FedEx Freight operates ; significant changes in the volumes of shipments transported through FedEx 97"(!1#$% network, customer demand for FedEx 97"(!1#$% various services, and the prices it obtains for its services ; geopolitical developments and aditional changes in international trade policies and relations ; the price and availability of fuel and limitations on FedEx Freight's ability to recover fuel costs through surcharges ; failure to sucesfuly implement FedEx 97"(!1#$% busines strategy and efectively respond to changes in market dynamics and customer preferences ; FedEx 97"(!1#$% ability to achieve some or al of the anticipated benefits from its spin - of from FedEx Corporation (the "Spin - Of") ; the consequences of FedEx Freight no longer operating as part of a globaly diversified company ; dis - synergies and other costs incured in conection with the Spin - Of exceding FedEx 97"(!1#$% 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 97"(!1#$% technology infrastructure, and its ability to mitigate the technological, operational, legal, regulatory, and reputational risks related to emerging technologies such as autonomous technology and artificial inteligence :&;<+= ; increased insurance and claims expenses related to vehicle acidents, '.7>"7%$ compensation claims, property and cargo los, general busines liabilities, and benefits paid under employe disability programs ; failure to receive or colect expected insurance coverage ; the efect of any international conflicts or terorist activities ; failure of third - party service providers to perform as expected, or disruptions in FedEx 97"(!1#$% relationships with those providers or their provision of services to FedEx Freight ; widespread outbreak of an ilnes or any other comunicable disease or public health crisis ; damage to FedEx 97"(!1#$% or FedEx ?.75.7#(. $% reputation or los of brand equity ; the intense competition within FedEx 97"(!1#$% industry ; FedEx 97"(!1#$% ability to maintain god relationships with its employes and avoid atempts by labor organizations to organize groups of its employes ; any efects on FedEx 97"(!1#$% busineses 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 procedings ; the suficiency of insurance coverage FedEx Freight purchases ; the efect of technology developments (including AI and machine learning) on FedEx 97"(!1#$% operations and on demand for its services, and FedEx 97"(!1#$% ability to identify and eliminate unecesary information technology redundancy and complexity throughout the organization, including exiting the transition service agrements with FedEx Corporation in the expected timeframe and at the expected cost ; disruptions in global suply chains ; constraints, volatility, or disruption in the global capital and credit markets ; FedEx 97"(!1#$% ability to maintain its curent credit ratings and senior unsecured debt credit ratings, and its ability to met credit agrement financial covenants ; and other factors which can be found in FedEx 97"(!1#$% pres releases and filings with the Securities and Exchange Comision, including FedEx Freight's Anual 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 - loking statement speaks only as of the date on which it is made . Neither FedEx Freight nor anyone else undertakes or asumes any obligation to update or revise any forward - loking statement, whether as a result of new information, future events, or otherwise . Se &@;;A to non - GAP 7"-. -()(#(. %+ below for aditional information on non - GAP financial measures and reconciliations of non - GAP financial measures to GAP financial measures . The financial targets and outlok provided herein and discused during this presentation asume the company's curent economic outlok and fuel price expectations, and no aditional economic, geopolitical, or international trade - related developments . FedEx Freight's earnings per share and efective tax rate forecasts are based on curent law and related regulations and guidance . Guidance discused during this presentation was efective as of October 29 , 2026 . Nothing discused during this presentation should be considered as confirming or disafirming such guidance . Forward - loking statements and non - GAP financial measures
Slide 3 — June + Q3 TY 2026
3 June + Q3 TY 2026 highlights Se "GAP to non - GAP reconciliations" for reconciliations of and aditional information regarding non - GAP financial measures. 1 Claims ratio defined as claims paid as a percentage of revenue. 2 2026 Mastio Survey. Team B 10 podium finishes at the transportation industry's leading driver and technician competitions B Two drivers selected for the Women In Trucking Image Team B Launched Employe Stock Purchase Plan; ~14,0 eligible participants enroled Customer Profit B Delivered ~98% pick - up reliability and ~ 98% on - time service B Reduced claims ratio to 0.43%, reflecting improvements in customer experience 1 B Improved in 17 of 28 Mastio survey atributes , reflecting YoY progres 2 B Reported $3.3B revenue and $2.15 adjusted diluted earnings per share B Delivered $510M adjusted operating income and 15.5% adjusted operating margin B Generated $239M of fre cash flow and repaid $10M of debt ahead of schedule Four months ended September 30, 2026
Slide 4 — C ).->( !D9"0E4D97"(!1#$%D3)
4 THE FUTURE OPTIMIZING THE NETWORK BClaims ratio and filing frequency each improved by +20bps since 202 1 BAchieved ~ 98% pick - up reliability and ~98% on - time service through September 2026 BAchieved >3% YoY improvement in cube utilization LEADING COMERCIAL OFERING BImproved monthly net revenue churn YoY, reflecting customer - focused mindset BPositioning for greater penetration in high - value verticals outlined at Investor Day BDelivered YoY improvements in key Mastio atributes, including overal NPS improvement 2 FINANCIAL VALUE CREATION BGenerated $239M in fre cash flow, underscoring strength of operating model BReduced debt by $10M, making progres toward achieving gros leverage ratio of ~2.5x BConverting thre key service centers from lease to own ADVANCING TECH CAPABILITIES BDelivered ~20bps YoY improvement in first - time invoice acuracy 3 BSignificantly improved first - cal resolution to 92% BEntered into strategic aliance to enhance AI and productivity eficiencies C ).->( !D9"0E4D97"(!1#$%D3) Led by safety, driven by market - leading scale, published transit times, and service 1 Filing frequency defined as claims filed as a percentage of total shipments and claims ratio defined as claims paid as a perc ent age of revenue. 2 2026 Mastio Survey. 3 Reported for the thre months ended May 31, 2026 to ensure completenes and year - over - year comparability. Unles otherwise noted, al results and metrics reflect the four months ended September 30, 2026. Se "GAP to non - GAP reconciliations" for reconciliations of and aditional information regarding non - GAP financial measures.
Slide 5 — Meaningful momentum during the transition period
5 Meaningful momentum during the transition period B Volume and base yield trends continue to show signs of stabilization, suported by focus on comercial priorities B Yield metrics also benefited from higher fuel surcharge revenue B Building momentum into 2027 through progres on technology and comercial initiatives Comentary Suported by dep comitment to operational excelence AVERAGE DAILY SHIPMENTS 89 k - 1.4% YoY 89 k - 0.7% YoY REVENUE PER SHIPMENT ($ incl. fuel / $ excl. fuel) $413.0 / $318.23 +10.1% YoY / +1.6 % YoY $412.05 / $316.78 +9.5% YoY / +1.1% YoY REVENUE PER HUNDREDWEIGHT ($ incl. fuel / $ excl. fuel) $4.03 / $3.93 +8.6% YoY / +0.3% YoY $4.20 / $3.98 +8.8% YoY / +0.4% YoY WEIGHT PER SHIPMENT 938 lbs +1.3% YoY 932 lbs +0.6% YoY TY2026 operational results Thre months ended Sept. 30 Four months ended Sept. 30 Se "GAP to non - GAP reconciliations" for reconciliations of and aditional information regarding non - GAP financial measures.
Slide 6 — Stabilizing year
-2% 0% 2% 4% 6% 8% Q1 CY24 Q2 CY24 Q3 CY24 Q4 CY24 Q1 CY25 Q2 CY25 Q3 CY25 Q4 CY25 Q1 CY26 Q2 CY26 Q3 CY26 Revenue per shipment (excl. fuel) Revenue per hundredweight (excl. fuel) Stabilizing year - over - year volume and yield performance 6 Average daily shipments 2026 YoY performance Yield (excluding fuel) 2024 2026 YoY performance - 7.6% - 5.1% - 6.3% - 5.9% - 5.2% - 3.4% - 2.2% - 0.7% 0.9% Jan Feb Mar Apr May Jun Jul Aug Sep Strong pricing renewals position FedEx Freight for future yield improvement Se "GAP to non - GAP reconciliations" for reconciliations of and aditional information regarding non - GAP financial measures.
Slide 7 — ~98%
Improving service for our customers 7 Claims filing frequency and claims expense ratios at record lows 0.0% 0.4% 0.8% 1.2% 1.6% 2015 2016 2017 2018 2019 2020 2021 202 2023 2024 2025 2026 Claims Ratio Claims Filing Frequency Customer claims filing frequency and claims ratio Claims filed as % of total shipments and claims paid as % of revenue 0.27% 0.43% ON - TIME SERVICE 1 ~98%