Watch when-issued trading of FDXF beginning May 27; initial selling pressure likely from index funds and FedEx shareholders unwinding positions. Monitor valuation relative to LTL peers (ODFL, SAIA, XPO) and debt servicing capacity given declining revenue trends.
Price Chart
Executive Summary
FedEx Board declared a pro rata dividend of 80.1% of FedEx Freight common stock to FedEx stockholders, completing the spin-off. FDXF will begin trading on NYSE on June 1, 2026 at a ratio of 1 FDXF share per 2 FDX shares. The spin-off creates a pure-play LTL carrier with $8.9B FY2025 revenue, but also adds $4.3B in debt.
Key Facts
- SEC declared Form 10 effective May 11, 2026; FedEx Board declared distribution on May 13, 2026.
- Record date: May 15, 2026; Distribution/effective date: June 1, 2026.
- FedEx stockholders receive 1 share of FDXF for every 2 shares of FDX.
- FDXF common stock approved for listing on NYSE under ticker 'FDXF'.
- FedEx retains 19.9% of FDXF shares and must dispose within 24 months.
- FDXF will pay ~$4.1B cash dividend to FedEx from $3.7B senior notes and delayed-draw term loan proceeds.
- FDXF incurred $4.3B in total indebtedness (net of $36M costs) at an estimated weighted avg interest rate of 4.79%.
- FY2025 (May 31, 2025): Revenue $8.9B, operating income $1.4B, operating margin 15.8%.
- Pro forma 9 months ended Feb 28, 2026: Revenue $6.383B, operating income $357M, net income $156M, diluted EPS $1.05.
- Pro forma cash $250M, total assets $6.399B, long-term debt $4.264B, total deficit equity $(562)M.
Financial Impact
FDXF distributed ~$4.1B cash to FedEx, funded by $4.3B in new debt (net). Pro forma net income reduced to $156M (9-month) vs historical $497M due to interest expense.
Risk Factors
- High leverage with $4.3B debt on negative equity base.
- Potential near-term selling from FedEx shareholders (80.1% distribution) and eventual FedEx disposition of 19.9% stake.
- Revenue and operating income declining trend (FY2025 vs FY2024 revenue -6%, operating income -20%).
- Execution risk as standalone entity, including transition services and systems separation.
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-060223 |
| Document: tm2520565d14_8k.htm | 0001104659-26-060223 |
| Document: tm2520565d14_ex99-4.htm | 0001104659-26-060223 |
| Document: tm2520565d14_ex99-3.htm | 0001104659-26-060223 |
| Document: tm2520565d14_ex99-2.htm | 0001104659-26-060223 |
| Document: 0001104659-26-060223-index-headers.html | 0001104659-26-060223 |
| Document: 0001104659-26-060223-index.html | 0001104659-26-060223 |
| Document: 0001104659-26-060223.txt | 0001104659-26-060223 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 16, 2026 9w ago | Institutional Cluster | $143.82 $126.94 | โผ โ11.74% | โผ โ9.76% | $113.21 (โ21.28%) |
Jun 26, 2026 16w ago | 8-K | $149.69 $158.00 | โฒ +5.55% | โฒ +5.83% | $113.21 (โ24.37%) |
Jun 25, 2026 16w ago | 8-K | $153.89 $154.79 | โฒ +0.58% | โผ โ0.68% | $113.21 (โ26.43%) |
Jun 2, 2026 19w ago | 3 | $152.00 $150.81 | โผ โ0.78% | โฒ +0.22% | $113.21 (โ25.52%) |
Jun 2, 2026 19w ago | 3 | $152.00 $150.81 | โผ โ0.78% | โฒ +0.22% | $113.21 (โ25.52%) |
Jun 2, 2026 19w ago | 3 | $152.00 $150.81 | โผ โ0.78% | โฒ +0.22% | $113.21 (โ25.52%) |
Jun 2, 2026 19w ago | 3 | $152.00 $150.81 | โผ โ0.78% | โฒ +0.22% | $113.21 (โ25.52%) |
Jun 2, 2026 19w ago | 3 | $152.00 $150.81 | โผ โ0.78% | โฒ +0.22% | $113.21 (โ25.52%) |
Jun 2, 2026 19w ago | 3 | $152.00 $150.81 | โผ โ0.78% | โฒ +0.22% | $113.21 (โ25.52%) |
May 13, 2026 22w ago | 8-K | โ | awaiting T+20 | โ | โ |
US Market Status
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