FedEx Corp has announced that its Board of Directors has formally approved the separation of its freight business, paving the way for FedEx Freight to become an independent publicly traded company. The spin-off is expected to be completed on June 1, 2026, when FedEx Freight common stock begins trading on the New York Stock Exchange under the ticker symbol “FDXF.”
The FedEx Board declared a pro rata dividend of 80.1 percent of the outstanding shares of FedEx Freight Holding Company, Inc to FedEx shareholders of record as of May 15, 2026. Under the terms of the distribution, shareholders will receive one share of FedEx Freight common stock for every two shares of FedEx common stock held on the record date. Fractional shares will be settled in cash.
The company said the separation is designed to allow both organisations to focus more effectively on their respective markets, operational priorities and long-term growth strategies. R Brad Martin, Executive Chairman of the FedEx Board and incoming Chairman of the FedEx Freight Board, described the announcement as a major milestone in the separation process.
“Today’s announcement marks an important step as we prepare for a seamless transition of the FedEx Freight business into an independent company,” Mr Martin said. “As separate organisations, FedEx and FedEx Freight will continue building on their industry leadership positions while delivering value to customers, employees and shareholders.”
Following the transaction, FedEx will retain a 19.9 percent stake in FedEx Freight. The company plans to dispose of those shares over the next 24 months through debt repayment exchanges, shareholder distributions or stock exchange transactions. FedEx stated that the distribution is expected to qualify as tax-free for U.S. federal income tax purposes for holders of FedEx common stock.
The company also outlined trading arrangements related to the separation. Between May 27 and May 29, 2026, FedEx common stock will trade on both a regular-way market and an ex-distribution market on the NYSE. A separate when-issued market for FedEx Freight shares will also operate during this period under the symbol “FDXF WI.”
In connection with the spin-off, FedEx Freight will pay a cash dividend of approximately $4.1 billion to FedEx before the separation is completed. The payment will be funded through proceeds from a $3.7 billion senior notes offering completed earlier in 2026, along with borrowings under a delayed-draw term loan facility.
FedEx also announced plans to redeem all outstanding principal amounts of its 1.300 percent notes due 2031, with a redemption date scheduled for May 28, 2026. The company said the redemption process will be conducted in accordance with applicable financial procedures and regulatory requirements.
FedEx Freight is recognised as North America’s largest less-than-truckload carrier, providing transportation services across the United States, Canada, Mexico, Puerto Rico and the U.S. Virgin Islands. The business operates nearly 30,000 vehicles and employs approximately 40,000 team members across a network of more than 365 locations.
