FedEx Freight faces a tough quarter but makes strides towards its spinoff.
by Web Administrator
Dec 20, 2025 02:40
FedEx Freight's operating income dropped significantly from $312 million to $90 million for Q2, with one-time spin-off costs totaling $152 million. Adjusted operating income was reported at $242 million. The company attributed this decline to a weaker market and challenges in the less-than-truckload (LTL) industry. Revenue for the segment fell to nearly $2.1 billion, down from $2.2 billion year-over-year. FedEx plans to enhance its LTL sales force and anticipates a $300 million decrease in adjusted operating income for the second half of the year. The Freight segment is set to spin off as a separate entity in June 2026.