United States-based freight transportation and logistics provider FedEx has confirmed its June 1 spin-off of less-than-truckload subsidiary FedEx Freight into a separately traded public company remains on track, according to commentary provided during the company's fiscal third quarter earnings call reported in Logistics Management.

Chief Executive Raj Subramanian stated: "Our plans to spin off FedEx Freight on June 1, remain on track. We are confident that the separation will unlock meaningful long-term value for our stockholders."

FedEx's Board of Directors elected in December 2024 to separate FedEx Freight following a portfolio review. The separation is expected to be achieved in a tax-efficient manner for stockholders, with FedEx Freight to be listed on the New York Stock Exchange under ticker symbol FDXF.

Fiscal third quarter revenue for FedEx Freight reached $1.991 billion (€1.72 billion), down five per cent annually. Operating costs decreased due to increased costs related to the planned spin-off, lower shipments and higher wage rates, offset by increased yield.

Subramanian noted that the current market represents a challenging less-than-truckload freight environment, with FedEx Freight's results remaining pressured by ongoing industry trends and increased separation-related expenses. He stated: "Importantly, we are laser-focused on revenue quality. As a result, higher weight and revenue per shipment at FedEx Freight helped mitigate lower shipment volumes."

Executive Vice President and Chief Commercial Officer Brie Carere stated that with nearly all of the planned dedicated less-than-truckload sales force now hired, the company is confident FedEx Freight is well-positioned to grow as the market recovers.

FedEx Freight was created in 2001 when FedEx acquired and merged assets of American Freightways, Viking Freight and Watkins Motor Lines. It has since become the largest carrier in the less-than-truckload space, posting $9.1 billion (€7.87 billion) in revenue in 2024 to lead the market.

Read the complete report on FedEx Freight's June 1 spin-off timeline and fiscal third quarter performance.