FedEx board finalizes spin-off of freight business set for June 1

FedEx (NYSE:FDX) announced that it will execute the separation of its freight business through a tax-free, pro rata dividend of 80.1% of the outstanding shares of the newly formed FedEx Freight Holding Company.

Stockholders of record as of May 15, 2026, will be entitled to receive one share of the new company for every two shares of FedEx common stock they currently hold.

The separation is scheduled to be completed before the market opens on June 1, 2026, at which point the standalone company will begin trading under the ticker symbol FDXF.

FedEx Corp. will retain a 19.9% stake in the entity, which it intends to monetize or distribute to its own shareholders within the next 24 months.

R. Brad Martin, currently executive chairman of FedEx and the incoming chairman of the FedEx Freight board, characterized the move as a milestone in the company’s "One FedEx" strategy. "

As separate organizations, FedEx and FedEx Freight will build on their respective industry leadership positions to serve customers with excellence," Martin said in a statement.

The spin-off allows FedEx to streamline its core express and ground delivery operations while providing FedEx Freight—the largest less-than-truckload (LTL) carrier in North America—with its own capital structure and strategic mandate.

The transaction is expected to be tax-free for U.S. federal income tax purposes, with cash provided in lieu of fractional shares.