“Today’s filing is a key milestone in our journey toward being an independent company,” said John Smith, FedEx Freight’s incoming president and CEO. (Business Wire via Associated Press)
January 16, 2026 2:20 PM, EST
Key Takeaways:
- FedEx filed the Form 10 registration statement with the U.S. Securities and Exchange Commission to separate the companies.
- FedEx said the separation is on track to be completed June 1.
- More information will be shared about the spinoff at the company’s investor day April 8.
[Stay on top of transportation news: Get TTNews in your inbox.]
FedEx Corp. has filed to spin off its freight business into its own stand-alone business, the company announced Jan. 16.
The Memphis, Tenn.-based transportation company filed the Form 10 registration statement with the U.S. Securities and Exchange Commission to separate the companies. FedEx Freight will use its position as a separate company to leverage its national less-than-truckload network, industry-leading scale and model to strengthen operations and its place within the market.
“Today’s Form 10 filing reflects the strong progress we are making toward the launch of FedEx Freight as a focused, industry-leading LTL company,” FedEx CEO Raj Subramaniam said. “This separation will create two world-class companies, positioning both FedEx and FedEx Freight to better serve customers and unlock long-term value for all stockholders.”
FedEx said the separation is on track to be completed June 1. The new stand-alone company will then work to execute a focused commercial and operational strategy centered on high-growth verticals, technology and infrastructure investment. The company also will continue efficiency initiatives to drive meaningful and sustained growth.
“FedEx Freight is built on a strong foundation, powered by our expansive network, differentiated service model, and 39,000 highly skilled and dedicated team members,” said John Smith, the incoming president and CEO of FedEx Freight. “Today’s filing is a key milestone in our journey toward being an independent company, positioned to deliver greater value as the premier LTL freight carrier in North America.”
FedEx Announces Board of Directors for Future Independent FedEx Freight https://t.co/2tm3MPzHYe pic.twitter.com/R7hGedT6o1
— Latest News from Business Wire (@NewsFromBW) January 16, 2026
J.P. Morgan described the stand-alone financials provided in the Form 10 as modestly better than expected with how the filing outlined its adjustments. The investment banking company noted in a report that the filing shows freight contributed more of the consolidated free cash flow than previously thought. But it is also expecting more information leading up to the spinoff with the filing not providing a complete picture of the leverage profile for freight.
“We recognize the negative reaction in the LTL stocks on the filing was partially attributable to a more definitive strategy at Freight, which we expect could create competitive pressures across the industry, assuming volumes are still soft when the operation is fully separated with a stand-alone IT system and salesforce,” Brian Ossenbeck, managing director at J.P. Morgan, wrote in the report. “However, the near-term impact on the industry appears limited as completing the spinoff will likely take a year and we expect a stronger freight market at that point.”
Barclays Investment Bank echoed a similar point by noting in a report that the filing reaffirmed the relatively favorable margin profile of the company and focused management commercial strategy. The investment banking company suspects that the new information will likely alleviate more pessimistic fears surrounding the upcoming public company spin.
“There remain plenty of investors skeptical of FedEx Freight’s profitability profile and concerns the forward stand-alone strategy could focus on growth over pricing and margins,” Brandon Oglenski, senior equity analyst at Barclays, wrote in the report. “However, the Form 10 filing belays many of these concerns with pro forma financials confirming the profitability of the business and management strategic focus.”
FedEx plans to reveal more about the spinoff plans and its value creation strategy during its investor day April 8. The plan is still subject to final approval from the FedEx board of directors and other customary conditions. FedEx Freight is expected to list its common stock on the New York Stock Exchange under the ticker symbol FDXF. Goldman Sachs & Co. is serving as the financial adviser, and Skadden, Arps, Slate, Meagher & Flom is serving as legal counsel.
FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest for-hire carriers in North America, and FedEx Freight ranks No. 1 on TT’s LTL sector list.
Also, FedEx ranks No. 3 on the TT Top 50 list of the largest global freight carriers, and FedEx Logistics ranks No. 43 on the TT Top 100 logistics companies list.
Want more news? Listen to today’s daily briefing below or go here for more info:
