FedEx Freight Holding Company, Inc. · NYSE:FDXF
FedEx Freight — Q4 2026 Earnings Presentation
35 slides from FedEx Freight's earnings presentation, Jun 25, 2026
Slide 1: Investor Presentation: Fourth quarter and fiscal year 2026
Investor Presentation Fourth quarter and fiscal year 2026 June 25, 2026 1
Slide 2: Forward-looking statements and non-GAAP financial measures
Forward-looking statements and non-GAAP financial measures Certain statements in this presentation may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act, such as statements regarding future financial targets, business strategies, management’s
Slide 3: Q4 and Full-Year FY26 highlights
Q4 and Full-Year FY26 highlights Reinforced Safety Above All culture, achieving record-low Department of Transportation (DOT) preventable accident performance in FY26 Generated $2.4B revenue, $363M adjusted operating income, and 15.1% adjusted operating margin in Q4, delivering a strong finish to th
Slide 4: Delivered a strong finish to FY26
Delivered a strong finish to FY26 Driving disciplined operational execution Q4 FY26 Operational Results Commentary • Volume trends remain soft but show signs of AVERAGE DAILY SHIPMENTS 87k stabilization -5.9% YoY • Higher revenue per shipment driven primarily by fuel and supported by higher weight p
Slide 5: One network, two services, clear advantage
One network, two services, clear advantage Scaled and integrated network enables flexible and efficient mode shifting PRIORITY OFFERING ONE NETWORK ECONOMY OFFERING 1-3 Days ~50% 3-6 Days Transit time; shorter average length of haul Customers that use a mix of both Transit time; longer average lengt
Slide 6: Maintaining commitment to profitability
Maintaining commitment to profitability Emphasis on revenue quality and enhanced customer experience Revenue Adj. Operating Income +5% -24% $2.3B $2.4B $477M 20.8% Margin $363M 15.1% Margin Q4 FY25 Q4 FY26 Q4 FY25 Q4 FY26 • Reflects 11.5% YoY growth in revenue per shipment • Investing in fit-for-LTL
Slide 7: Outlook for transition period (TY26)
Outlook for transition period (TY26) June 1 to December 31, 2026 Seasonality Guidance Additional assumptions Four months ending Three months ending Seven months ending Sept. 30, 2026 Dec. 31, 2026 Dec. 31, 2026 • Expected results weighted toward the four months ending September 30, 2026, driven by t
Slide 8: Illustrative adjusted operating margin bridge for TY26E
Illustrative adjusted operating margin bridge for TY26E Positioned to maintain solid margins through the transition period +80bps -130bps +200bps -120bps -30bps 11.8% ~11.8% TY25 Net Yield Efficiency & Variable TSA Costs Net Volume TY26E Other Drivers Compensation Presented on a carve-out basis and
Slide 9: Converting strength into outcomes
Converting strength into outcomes This is the new FedEx Freight WE HAVE WE ARE BUILDING WE ARE DELIVERING Structural advantage Industry-leading execution Value creation • Largest and fastest 1 • Improving • High-quality growth network operational efficiency • Improving profitability • Best-in-class
Slide 10: Upcoming key dates
Upcoming key dates • FedEx Freight FY26 10-K filed with financial statements on a carve-out basis for the BY MID-AUGUST 2026: fiscal year ended May 31 • Recast CY24 and CY25 historical financial statements issued on a carve-out basis • FedEx Freight TY26 Earnings Call for the three- and four-month p
Slide 11: Appendix
Appendix FedEx Freight.
Slide 12: Delivering the new FedEx Freight
Delivering the new FedEx Freight 12
Slide 13: Established leader in attractive LTL industry
Established leader in attractive LTL industry Firmly positioned to win, today SUSTAINED LEADERSHIP SCALE SPEED SERVICE IN LTL MARKET Top 6 LTL carriers by volume1 365+ 40% ~90% Total locations, including ~355 Faster than our nearest Revenue from customers shipping terminals and ~10 competitor (Prior
Slide 14: Underpinned by a world-class, experienced team
Underpinned by a world-class, experienced team DEDICATED SKILLED DRIVER WORLD-CLASS, DECADES OF EXECUTIVE TEAM WORKFORCE WINNING TEAM LEADERSHIP EXPERIENCE 40K 14+ Years 112 100+ Years Number of team members Average years of experience FedEx Freight drivers at the Collective experience in the at Fed
Slide 15: Unlocking FedEx Freight’s value
Unlocking FedEx Freight’s value Led by safety, driven by market-leading scale, published transit times, and service OPTIMIZING THE NETWORK LEADING COMMERCIAL OFFERING • Smarter and more efficient infrastructure • Industry-leading sales force • Lowering cost to serve • Targeted go-to-market strategy
Slide 16: Optimizing FedEx Freight’s network
Optimizing FedEx Freight’s network 16
Slide 17: Firmly positioned to win, today
Firmly positioned to win, today Scale Speed Service • 365+ locations • ~90% of LTL volume can be delivered • Flexibility: dual-service offering choice • 26,000 doors within 3 days or less between speed and cost • 30,000 motorized vehicles • Priority service is 40% faster than • Reliability: on-time
Slide 18: Market-leading scale and density
Market-leading scale and density • Concentrated in densest freight markets 80% outbound industry volume1 As of April 8, 2026. 1 For illustrative purposes. 18
Slide 19: Leading commercial offering
Leading commercial offering 19
Slide 20: Uniquely differentiated offering
Uniquely differentiated offering Versatile multi-pronged service network offers customers the choice to trade up for speed or maximize value Core services Priority Economy Custom Critical Value-added capabilities Dimension-Based Volume Services Retail Flex Freight Direct Priority Plus Pricing 20
Slide 21: Long-term partner to stable, quality, and diverse customer base
Other Long-term partner to stable, Aerospace Automotive quality, and diverse customer base Healthcare ~140K Industrial Active customers Services ~17% REVENUE BY INDUSTRY 2 Revenue from top 25 Technology ~90% customers (FY26 YTD2) Energy, Revenue from chemicals, Transportation customers with other an
Slide 22: Targeting high-quality revenue opportunities
Targeting high-quality revenue opportunities SMB Healthcare Grocery Data centers & energy Empowering high-margin small Leveraging FedEx Custom Growing share within ~$1B1 Expanding share within the and medium business growth Critical to lean more heavily into channel by ensuring timely, ~$2B1 address
Slide 23: Advancing technology capabilities
Advancing technology capabilities 23
Slide 24: Our business-led technology strategy
Our business-led technology strategy Designed to deliver for our customers and bring the FedEx Freight strategy to life Simplify Enhance Enable Streamline tech stack, maintain service Improve customer experience by Day 1, Leverage AI and partnerships for further continuity, position for spin strengt
Slide 25: Priorities through spin and beyond
Priorities through spin and beyond Building the future of logistics with cutting-edge technology Ahead of Day 1 Post Spin Medium-Term Priority FY26 TY26 CY27-CY28+ Tech stack Simplify tech stack Separation Achieve tax-free spin execution Exit Transition Service Agreements (TSAs) Maintain service con
Slide 26: Financial value creation
Financial value creation Fed Freight. 26
Slide 27: Committed to high-quality growth
Committed to high-quality growth REVENUE ($B) ADJUSTED OPERATING INCOME ($B) 4-6% 1 Revenue CAGR Accelerating $8.8 profitable growth 10-12% Adj. OI CAGR by leveraging strength across $1.1 1 four key areas… FY26 Medium-term FY26 Medium-term 1 As reported in the FedEx Freight segment results of FedEx
Slide 28: Driving operating leverage
Driving operating leverage Key levers to improve operating leverage Adjusted operating margin (%) • Investments in LTL-focused capabilities, automation, ~15% and technology will drive operating leverage over time Adj. OI Margin • Enhancing customer mix through the addition of higher-yielding custome
Slide 29: Capital allocation framework
Capital allocation Invest in organic growth framework 1 Maintaining capex at ~5% of revenue over the medium-term Designed to grow ROIC and generate returns above cost of capital Reduce outstanding debt FCF GENERATION 2 Gross leverage ratio expected to decrease to ~2.5x within 12 months of spin-off >
Slide 30: Strong, investment-grade balance sheet
Strong, investment-grade balance sheet WEIGHTED AVG. ANNUAL INTEREST LONG-TERM DEBT MATURITY SCHEDULE1 ($M) COST OF DEBT EXPENSE2 Secured Notes Term Loan 4.79% Weighted average interest rate for ~$200M Expected annualized interest expense debt outstanding on June 1, 2026 for Secured Notes and Term L
Slide 31: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations 31
Slide 32: Non-GAAP financial measures
Non-GAAP financial measures The FedEx Freight Segment results as reported by FedEx Corporation are reported in accordance with accounting principles generally accepted in the United States (GAAP). FedEx Freight has supplemented these GAAP results and its outlook with certain non-GAAP (adjusted) fina
Slide 33: Reconciliations of GAAP to non-GAAP financial measures
Reconciliations of GAAP to non-GAAP financial measures Fourth Quarter and Full Fiscal 2026 Segment Results Three Months Ended May 31, Twelve Months Ended May 31, 2026 2026 Operating Operating Operating Operating Dollars in millions Income Margin Income Margin GAAP measure $ 158 6.6 % $ 616 7.0 % Spi
Slide 34: Reconciliations of GAAP to non-GAAP financial measures
Reconciliations of GAAP to non-GAAP financial measures Seven Months Ended December 31, 2025 Carve-Out Results Seven Months Ended December 31, 2025 Operating Operating Dollars in millions Income Margin GAAP measure $ 394 7.8 % Spin-off costs 206 4.0 % Non-GAAP measure $ 600 11.8 % Seven Months Ending
Slide 35: Reconciliations of GAAP to non-GAAP financial measures
Reconciliations of GAAP to non-GAAP financial measures Seven Months Ending December 31, 2026 Outlook Diluted Earnings Dollars in millions, except EPS Adjustments per Share Diluted earnings per share before MTM retirement plan accounting adjustments (non-GAAP)1 $ 1.75 to 1.95 Spin-off costs $ 130 Inc
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