FedEx Completes Spin-Off of Freight Unit; FedEx Freight Begins Trading as FDXF

FedEx Corp. completed the spin-off of FedEx Freight on Monday, creating a separately traded public company and reshaping one of the biggest U.S. transportation businesses into two stocks. FedEx Freight Holding Co. began regular-way trading on the New York Stock Exchange on June 1 under the ticker FDXF, while FedEx continues to trade as FDX. The separation became effective at 12:01 a.m. Central Time.

For shareholders, the distribution was automatic. FedEx investors who were on record as of May 15 received one share of FedEx Freight common stock for every two shares of FedEx common stock they held, with cash paid instead of fractional shares. FedEx said shareholders did not need to take any action to receive the new shares. After the spin-off, FedEx retained 19.9% of FedEx Freight’s outstanding common stock and said it plans to dispose of those shares within 24 months, including through exchanges to repay certain FedEx debt and/or through distributions or exchanges.

The change matters beyond FedEx holders because major stock indexes are also being updated. Index providers previously said FedEx Freight would join the S&P 500 effective June 1, replacing EPAM Systems, and would also be added to the Dow Jones Transportation Average before the open on Monday. That means index funds and other investors that track those benchmarks now have a new standalone freight company to account for.

FedEx Freight is being separated as a standalone less-than-truckload, or LTL, carrier — a trucking business focused on shipments that do not fill an entire trailer. In company materials, FedEx has described it as the largest LTL carrier in North America by revenue. In fiscal 2025, the business generated $8.9 billion in revenue and $1.4 billion in operating income, according to its information statement, and it had more than 26,000 service doors as of Feb. 28, 2026.

The deal also included a significant cash transfer back to the parent company. In connection with the separation, FedEx Freight paid, or was expected to pay, FedEx a cash dividend of about $4.1 billion before the spin-off. That payment was funded through the new company’s financing, including senior unsecured notes issued in February 2026 that generated net proceeds of about $3.7 billion, along with other borrowings disclosed in company filings.

The legal steps for the transaction came together over the past several weeks. The Securities and Exchange Commission declared FedEx Freight’s Form 10 registration statement effective on May 11, and FedEx’s board declared the distribution on May 13. FedEx first announced plans to separate the freight business in December 2024 as part of a broader restructuring.

In FedEx’s June 1 press release, Raj Subramaniam, FedEx’s president and CEO, said: “The successful separation of FedEx Freight is a pivotal milestone, positioning two independent companies to lead their respective industries and create long-term value for their stockholders. Today’s spin-off positions FedEx Freight to build on its market-leading scale and a customer-focused culture, and advances the next chapter for FedEx as the industrial network that helps power the global economy.”